01—Abstract
Summary
Summary of the 10-K filed February 26, 2025. Cited figures are marked; the original filing is the authoritative source.
Twilio Inc. reported revenue of $4,458,036 thousanda ($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 thousandb 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 thousandc 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 milliond 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.
02—Key points
Key Highlights
- Revenue of $4,458,036 thousand in 2024, up from $4,153,945 thousand in 2023; Communications revenue $4,160,340 thousand and Segment revenue $297,696 thousand.
- GAAP net loss narrowed to $109,403 thousand in 2024 from $1,015,441 thousand in 2023; loss from operations was $53,708 thousand versus $876,541 thousand a year earlier.
- Operating cash flow of $716,241 thousand and free cash flow of $657,455 thousand in 2024, versus $414,752 thousand and $363,517 thousand in 2023.
- Repurchased $2.3 billion of Class A common stock (36.8 million shares) in 2024; a new $2.0 billion repurchase program was authorized in January 2025, expiring December 31, 2027.
- Dollar-Based Net Expansion Rate was 104% for 2024 versus 103% for 2023; Segment's rate was 92% in 2024.
- Usage-based fees generated 72% of 2024 revenue, making results more sensitive to consumer activity and macroeconomic conditions.
- Year-end liquidity of $421.3 million in cash and cash equivalents plus $2.0 billion in short-term marketable securities, against $1.0 billion in senior notes due 2029 and 2031.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2024, Twilio lost $0.02.
- Revenue$4.46B100.0%
- Cost of revenue−$2.18B48.9%
- Gross profit$2.28B51.1%
- Operating costs−$2.33B52.3%
- Operating income−$53.7M1.2%
- Interest, other & tax−$55.3M1.2%
- Net income−$109.0M2.4%
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 26, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $4.46B$4.15B | +7.3% |
| Cost of Revenue | $2.18B$2.11B | +3.3% |
| Gross Profit | $2.28B$2.04B | +11.5% |
| R&D Expenses | $1.01B$942.79M | +7.0% |
| Operating Expenses | $2.33B$2.92B | −20.2% |
| Operating Income | -$53.71M-$876.54M | +93.9% |
| Net Income | -$109.00M-$1.01B | +89.3% |
| EPS (Basic) | $-0.66$-5.54 | +88.1% |
| EPS (Diluted) | $-0.66$-5.54 | +88.1% |
| Shares Outstanding (Basic) | 165.93M183.33M | −9.5% |
| Shares Outstanding (Diluted) | 165.93M183.33M | −9.5% |
05—Questions
Frequently Asked Questions
Did Twilio become profitable in 2024?
Not on a GAAP basis. The company reported a net loss of $109,403 thousand for 2024, although this was a large improvement from the $1,015,441 thousand loss in 2023. Non-GAAP income from operations was $714,394 thousand, or 16% of revenue, in 2024.
What drove the improvement in operating results?
Total operating expenses fell to $2,331,920 thousand from $2,920,471 thousand, mainly because 2023 included $320,504 thousand of impairment charges and $165,733 thousand of restructuring costs, against $13,273 thousand in 2024. Sales and marketing expense also declined to $860,821 thousand from $1,022,985 thousand. Gross profit rose to $2,278,212 thousand from $2,043,930 thousand.
How is the company returning capital to shareholders?
Twilio does not pay dividends. It repurchased $2.3 billion of Class A common stock in 2024 under authorizations that expired December 31, 2024, and the board authorized a new $2.0 billion program in January 2025 that runs through December 31, 2027. The filing states that the program may be suspended at any time.
What are the main risks flagged for investors?
The filing highlights reliance on usage-based revenue sensitive to macroeconomic conditions, rising network service provider fees (including A2P SMS fees), intense competition, cybersecurity incidents, evolving privacy and AI regulation, and potential tax exposure, for which the company reserved $41.4 million at December 31, 2024. It also notes the Oi SA customer bankruptcy, for which Twilio fully reserved $15.2 million of pre-petition and $13.5 million of post-petition receivables.
06—Continue