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TWLO · Twilio

11 filings

10-K

TWLO 10-K Annual Reports

Twilio - 11 annual reports

Filing record · 2016–202610-K1110-Q328-K108

2025
Twilio Annual Report, Year Ended Dec 31, 2025
Twilio Inc. reported total revenue of $5.07 billion for the year ended December 31, 2025, up 14% from $4.46 billion in 2024, driven primarily by increased usage from existing customers (Dollar-Based Net Expansion Rate of 108%) and $242.0 million of revenue from new Active Customer Accounts. The company returned to net income of $33.8 million in 2025 after net losses of $109.4 million in 2024 and $1.0 billion in 2023. Gross profit rose to $2.48 billion, with gross margin of 49% versus 51% in 2024, reflecting the pass-through of A2P messaging fees imposed by a major U.S. carrier, which the filing says create a modest margin headwind. Operating income was $157.8 million compared with an operating loss of $53.7 million in 2024, and non-GAAP income from operations was $924.0 million, or 18% of revenue. Other expenses were affected by an $80.6 million impairment of the company's equity method investment in Syniverse Corporation. Free cash flow was $945.4 million (19% of revenue), up from $657.5 million in 2024. At year end, cash and cash equivalents totaled $682.3 million and short-term marketable securities $1.8 billion, against $1.0 billion of senior notes due 2029 and 2031. The company repurchased $854.6 million of stock in 2025 under a $2.0 billion program, leaving approximately $1.1 billion available, and management states that cash and cash equivalents and cash flows are sufficient for the next 12 months and beyond. The filing also notes that the company expects a significant income tax benefit if it releases a portion of its U.S. valuation allowance within the next twelve months. Key risks highlighted include the usage-based nature of most revenue (74% of 2025 revenue), exposure to network service provider fee increases, international operations (36% of 2025 revenue from outside the United States), cybersecurity incidents, and evolving privacy, telecommunications and AI regulation. The auditor KPMG LLP issued an unqualified opinion on both the financial statements and internal control over financial reporting, with revenue recognition for Messaging and Voice APIs identified as the critical audit matter.
Feb 24, 2026
2024
Twilio Annual Report, Year Ended Dec 31, 2024
Twilio Inc. reported revenue of $4,458,036 thousand ($4.46 billion) for the year ended December 31, 2024, up from $4,153,945 thousand in 2023, with Communications revenue of $4,160,340 thousand and Segment revenue of $297,696 thousand. The company remained loss-making on a GAAP basis, with a net loss of $109,403 thousand in 2024 compared with $1,015,441 thousand in 2023. Loss from operations narrowed to $53,708 thousand from $876,541 thousand, reflecting the absence of the $320,504 thousand impairment charges recorded in 2023 and lower restructuring costs. Gross margin improved to 51% from 49%, and operating expenses fell to $2,331,920 thousand from $2,920,471 thousand. Cash generation improved meaningfully. Net cash provided by operating activities was $716,241 thousand and free cash flow was $657,455 thousand, compared with $363,517 thousand in 2023. The company repurchased 36.8 million Class A shares for $2.3 billion during 2024 under authorizations that expired December 31, 2024, and in January 2025 authorized a new $2.0 billion repurchase program running through December 31, 2027. Cash and cash equivalents were $421.3 million and short-term marketable securities were $2.0 billion at year end, against $1.0 billion of senior notes (2029 and 2031) outstanding. The filing also flags continuing risks for investors. Revenue is predominantly usage-based (72% of 2024 revenue), so it is more exposed to macroeconomic conditions, and network service provider fees, including A2P SMS fees charged by U.S. carriers, pressure gross margins. Dollar-Based Net Expansion Rate declined to 104% from 103% in 2023 overall, while the Segment rate was 92% in 2024, and the company cited ongoing regulatory, cybersecurity and tax exposures, including reserves of $41.4 million for uncollected taxes.
Feb 26, 2025
2023
Twilio Annual Report, Year Ended Dec 31, 2023
Twilio Inc. reported 2023 revenue of $4.15 billion, up from $3.83 billion in 2022, with Communications revenue of $3.86 billion and Segment revenue of $295.3 million. The company remained unprofitable on a GAAP basis, with a net loss of $1.02 billion in 2023 versus $1.26 billion in 2022, though non-GAAP income from operations was $533.0 million compared with a loss of $4.5 million in 2022. Active Customer Accounts rose to over 305,000, while Dollar-Based Net Expansion Rate declined to 103% from 121%, and the Segment Dollar-Based Net Expansion Rate was 97%. The company undertook substantial restructuring, cutting its workforce by approximately 17% in February 2023 and approximately 5% in December 2023, after an 11% reduction in September 2022. Restructuring costs were $165.7 million and impairment of long-lived assets was $320.5 million, including a $285.7 million impairment of Segment intangible assets. An operational review of the Segment business is expected to be completed in March 2024, and Jeff Lawson resigned as CEO in January 2024, succeeded by Khozema Shipchandler. Capital position includes cash and cash equivalents of $655.9 million and short-term marketable securities of $3.4 billion, against $1.0 billion of senior notes due 2029 and 2031. The company repurchased $672.1 million of stock in 2023 under a $1.0 billion authorization, with $327.9 million remaining, and reported an accumulated deficit of $5.07 billion as of year-end.
Feb 27, 2024
2022
Twilio Annual Report, Year Ended Dec 31, 2022
Twilio Inc. reported 2022 revenue of $3.83 billion, up 35% from $2.84 billion in 2021, driven by a Dollar-Based Net Expansion Rate of 121% and growth in Active Customer Accounts to over 290,000. However, the company posted a net loss of $1.26 billion for 2022 (compared with $949.9 million in 2021), with a GAAP gross margin of 47% and a GAAP loss from operations of $1.21 billion. Non-GAAP income from operations was a loss of $4.5 million, roughly breakeven, as the company works toward sustained profitability. Cash flow from operations was negative $254.4 million, and the company ended 2022 with $651.8 million in cash and cash equivalents and $3.5 billion in short-term marketable securities. Management announced a significant restructuring in February 2023. Twilio is reorganizing into two business units, Twilio Communications and Twilio Data & Applications (previously Software), and has committed to a workforce reduction of approximately 17% on top of the 11% reduction from September 2022. The February plan is estimated to cost $100.0 to $135.0 million, and the company is closing additional offices. The company also authorized a $1.0 billion share repurchase program expiring December 31, 2024. Management intends to prioritize efficiencies and profitability in the Communications business while accelerating growth in Data & Applications. Key risks highlighted in the filing include macroeconomic pressure on usage-based revenue, rising network service provider fees (such as A2P SMS fees), dependence on Amazon Web Services for platform operations, and a December 2022 security incident affecting approximately 209 customers. The company also faces a San Francisco tax assessment lawsuit with a trial expected in summer 2023, and it has $1.0 billion of senior notes outstanding. The dual-class share structure is set to convert to a single class by the Final Conversion Date of June 28, 2023.
Feb 27, 2023
2021-A
Twilio Annual Report (Amendment), Year Ended Dec 31, 2021
This Amendment No. 1 to Twilio Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 supplies Part III information: board and executive officer details, executive and director compensation, security ownership, related party transactions, and principal accountant fees. The filing reports that Twilio's board has nine directors, all independent except Chief Executive Officer Jeff Lawson, and it describes the compensation committee's 2021 decisions and its 2022 changes. Fiscal 2021 revenue was $2.84 billion, up 61% year-over-year. GAAP loss from operations was $915.6 million, compared with $492.9 million in 2020, and non-GAAP income from operations was $2.5 million, compared with $35.7 million. Active Customer Accounts exceeded 256,000 at December 31, 2021, up from 221,000. Compensation is heavily weighted toward equity. The filing states that fixed pay was 1% and variable pay 99% of the CEO's 2021 target total direct compensation. Mr. Lawson's 2021 total compensation was $14,625,745, and the reported CEO pay ratio was 88:1. Beginning in 2022, the committee granted performance-based restricted stock units tied to year-over-year organic revenue growth and non-GAAP operating profit. The company also raised the stock ownership requirement for the CEO to six times base salary and for other named executive officers to three times base salary. Ownership data as of March 31, 2022 show 171,763,174 Class A and 9,820,605 Class B shares outstanding. The filing lists The Vanguard Group at 6.1% of Class A shares and BlackRock, Inc. at 5.4%. KPMG fees were $5,397 thousand for 2021, compared with $4,829 thousand for 2020, with audit fees of $4,105 thousand in 2021.
Apr 22, 2022
2021
Twilio Annual Report, Year Ended Dec 31, 2021
Twilio Inc. reported total revenue of $2.84 billion for the year ended December 31, 2021, up 61% from $1.76 billion in 2020, driven by higher usage of Programmable Messaging, Programmable Voice and Email products, growth in Active Customer Accounts to over 256,000, and contributions from the Segment, Zipwhip and other acquisitions. The Dollar-Based Net Expansion Rate was 131% for 2021, down from 137% in 2020. Gross margin declined to 49% from 52%, primarily due to additional carrier A2P SMS fees and growth in lower-margin international messaging. The company remained unprofitable, with a net loss of $949.9 million (diluted loss per share of $5.45) compared with $491.0 million in 2020, and an accumulated deficit of $2.1 billion. Operating cash flow was negative at $(58.2) million for 2021, versus positive $32.7 million in 2020. The balance sheet strengthened considerably through financing activity. Cash and cash equivalents were $1.48 billion and short-term marketable securities were $3.88 billion at year-end. Twilio raised $1.8 billion in a February 2021 follow-on offering and issued $1.0 billion of 3.625% 2029 and 3.875% 2031 senior notes in March 2021, while redeeming its 2023 convertible notes. Long-term debt stood at $985.9 million. Goodwill and intangible assets totaled $6.3 billion following acquisitions, including Zipwhip for $838.8 million in July 2021. Non-GAAP operating loss was $2.5 million on a non-GAAP basis in 2021, compared with income of $35.7 million in 2020. The filing also highlights ongoing risks, including a $38.8 million San Francisco tax assessment that Twilio is contesting in court, the pending minority investment of $500.0 million to $750.0 million in Syniverse Corporation after a prior merger was terminated in February 2022, and a dual-class structure in which directors and officers held 21.3% of voting power. The company reported 7,867 employees at December 31, 2021.
Feb 22, 2022
2020
Twilio Annual Report, Year Ended Dec 31, 2020
Twilio Inc. reported 2020 revenue of $1.76 billion, up from $1.13 billion in 2019, with total revenue growth of 55% and a Dollar-Based Net Expansion Rate of 137%. The company remained loss-making, with a net loss of $491.0 million in 2020 compared with $307.1 million in 2019, and an accumulated deficit of $1.17 billion as of December 31, 2020. Active Customer Accounts reached over 221,000, up from 179,000 a year earlier. Gross margin declined to 52% from 54%, which the filing attributes to a re-acceleration in messaging growth, higher amortization of acquired intangibles, an increasing mix of international usage and higher network service provider fees in certain geographies. The year was shaped by two major transactions. Twilio acquired Segment.io, Inc. in November 2020 for a total purchase price of $3.0 billion, consisting of $2.5 billion in Class A common stock and $413.3 million in cash, and completed an equity offering in August 2020 that raised $1.4 billion in net proceeds. Operating cash flow was $32.7 million in 2020, and cash and cash equivalents plus marketable securities totaled roughly $3.0 billion at year-end. The company also disclosed a February 2021 follow-on offering that raised $1.8 billion in net proceeds, and the Notes became convertible in the first quarter of 2021 after the conditional conversion trigger was met. The filing highlights ongoing risks, including the COVID-19 pandemic's effect on customer usage, a history of losses, dependence on network service providers and Amazon Web Services, regulatory exposure under GDPR, CCPA and telecommunications rules, and a disputed sales tax assessment in one jurisdiction of $38.8 million, against which the company had accrued $11.5 million. Its dual-class structure gives Class B holders majority voting control.
Feb 26, 2021
2019
Twilio Annual Report, Year Ended Dec 31, 2019
Twilio Inc. reported total revenue of $1,134.5 million for 2019, up from $650.1 million in 2018, with a net loss of $307.1 million compared with $121.9 million in 2018. Gross profit was $608.9 million, and loss from operations widened to $369.8 million from $115.2 million, driven by research and development expense of $391.4 million, sales and marketing expense of $369.1 million, and general and administrative expense of $218.3 million. Stock-based compensation rose to $264.3 million from $93.3 million. The increase in revenue includes the contribution of Twilio SendGrid, acquired February 1, 2019 in a share transaction valued at $2,658.9 million (total adjusted purchase price $2,841.5 million). The company reports 179,000 Active Customer Accounts at December 31, 2019, up from 64,286 a year earlier, and a Dollar-Based Net Expansion Rate of 136% for 2019 compared with 140% for 2018. International revenue was $325.6 million, or 29% of total revenue. Management states it intends to operate to expand the reach and scale of its platform and grow revenue rather than maximize gross margins. Cash and cash equivalents were $253.7 million and marketable securities were $1,599.0 million at year-end, following a June 2019 public offering that raised $979.0 million in net proceeds. The company also has $550.0 million of 0.25% convertible senior notes due 2023, and the conversion feature was triggered during the fourth quarter of 2019, making the notes convertible from January 1 through March 31, 2020. The filing also discloses material legal matters, including the Telesign patent litigation, which the Federal Circuit affirmed in Twilio's favor on January 9, 2020, and a $10.0 million class action settlement related to the California Invasion of Privacy Act. Risk factors highlight dependence on Amazon Web Services for cloud infrastructure, reliance on network service providers, GDPR and other privacy regulation, and concentration of voting power in Class B shares, which held 28.6% of voting power for directors and executive officers as a group.
Mar 2, 2020
2018
Twilio Annual Report, Year Ended Dec 31, 2018
Twilio Inc. reported its 10-K for fiscal 2018, showing revenue of $650.1 million, up from $399.0 million in 2017, and a net loss of $121.9 million, compared with $63.7 million in 2017. Growth was driven by Base Revenue of $593.0 million, which rose 62% year over year, and by 64,286 Active Customer Accounts as of December 31, 2018, up from 48,979. The Dollar-Based Net Expansion Rate was 140%, versus 128% in 2017. Non-GAAP operating margin improved to 1%, from (5)% in 2017, and the company had $487.2 million in cash and cash equivalents plus $261.1 million in marketable securities at year end. The balance sheet changed significantly during 2018. Twilio issued $550 million of 0.25% convertible senior notes due 2023, with net proceeds of approximately $537.0 million, and bought capped calls for $58.5 million. The company acquired SendGrid in February 2019 by issuing 23.4 million Class A shares valued at $2.6 billion. The filing also notes that the Chief Financial Officer resigned in November 2018, and that the company has a material exposure from the Telesign patent litigation and a $10 million Flowers class action settlement, of which it reserved $1.7 million given insurance coverage. The risk profile is concentrated in a few areas. WhatsApp accounted for 7% of 2018 revenue, and the 10 largest Active Customer Accounts generated 18%. Most customers have no long-term contracts. The company also faces a new A2P SMS carrier fee expected in 2019 that management says will weigh on gross margins. The dual-class structure gives directors, executive officers and their affiliates 48.8% of voting power. The company has reported losses in each year since inception and an accumulated deficit of $371.7 million.
Mar 1, 2019
2017
Twilio Annual Report, Year Ended Dec 31, 2017
Twilio Inc. reported revenue of $399,020 thousand ($399.0 million) for the year ended December 31, 2017, up from $277,335 thousand in 2016 and $166,919 thousand in 2015. Loss from operations was $66,074 thousand, and net loss was $63,708 thousand, compared with a net loss of $41,324 thousand in 2016. Base Revenue was $365.5 million, and the Dollar-Based Net Expansion Rate was 128% for 2017, down from 161% in 2016. The company had 48,979 Active Customer Accounts as of December 31, 2017, up from 36,606. Non-GAAP gross margin was 55% in 2017 versus 57% in 2016, and management attributed the decline to an increasing mix of international usage and price adjustments made as a result of Uber's high volume growth. The filing discloses a material weakness in internal control over financial reporting related to tracking and categorizing capitalized software development costs. KPMG issued an adverse opinion on internal control as of December 31, 2017, while its opinion on the consolidated financial statements was unqualified. Management stated that the deficiencies did not result in a material misstatement of research and development expenses or long-lived assets for 2017. Cash and cash equivalents were $115.3 million and marketable securities were $175.6 million at year-end, but operating cash flow was negative $3.3 million for 2017. Customer concentration remains significant: Uber, a Base Customer, accounted for 8% of 2017 revenue, down from 14% in 2016, and WhatsApp, a Variable Customer, accounted for 6%. Key risks include ongoing patent litigation with Telesign, a putative class action under the California Invasion of Privacy Act, the General Data Protection Regulation taking effect May 25, 2018, and state sales and telecommunications tax exposure, for which the company carried a $20.9 million liability. The Chief Financial Officer, Lee Kirkpatrick, announced his departure on February 13, 2018, and will remain until a replacement is hired. Co-founder and CEO Jeff Lawson holds Class B shares with 10 votes per share, and directors, executive officers and affiliates held 54.5% of the voting power as of December 31, 2017.
Mar 1, 2018
2016
Twilio Annual Report, Year Ended Dec 31, 2016
Twilio Inc. reported its 10-K for fiscal 2016, describing itself as the leader in the Cloud Communications Platform category, with a usage-based revenue model that lets developers embed voice, messaging, video and authentication into applications. Revenue grew to $277.3 million in 2016 from $166.9 million in 2015 and $88.8 million in 2014, and Base Revenue reached $245.5 million, up 79%. The Dollar-Based Net Expansion Rate was 161% in 2016 versus 155% in 2015, and Active Customer Accounts rose to 36,606 from 25,347. Usage-based fees made up 83% of 2016 revenue. Profitability remained negative. The net loss was $41.3 million in 2016, compared with $35.5 million in 2015 and $26.8 million in 2014, and the accumulated deficit was $186.7 million. Gross margin improved to 57% from 55%, and non-GAAP gross margin was 57% versus 56%. Non-GAAP operating margin was (4)% in 2016 compared with (14)% in 2015. Operating cash flow turned positive at $10.1 million, compared with cash used of $18.8 million in 2015. Cash and cash equivalents were $305.7 million at year-end, after the June 2016 IPO (net proceeds of $155.5 million) and the October 2016 follow-on offering (net proceeds of $64.4 million). Investors should weigh customer concentration and governance. WhatsApp, a Variable Customer Account, accounted for 9% of 2016 revenue, and Uber accounted for more than 10%. The 10 largest Active Customer Accounts generated 30% of revenue. Class B shares carry 10 votes each, and insiders and significant holders held 83.9% of voting power at December 31, 2016. The company also faces Telesign patent litigation and a privacy class action, and it has a large accrued sales and other tax liability of $28.8 million.
Feb 22, 2017