TWLO Earnings Prediction
The chart below shows how TWLO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TWLO sees a -0.83% change in stock price 10 days leading up to the earnings, and a -0.96% change 10 days following the report. On the earnings day itself, the stock moves by +0.97%. This data can give you a slight idea of what to expect for the next quarter's release.
TWLO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.19B
11.05%
5.40%
Gross Margin
50.19%
1.66%
-1.67%
Operating Margin
0.98%
339.02%
9700.00%
Net Margin
-1.04%
-96.94%
20.93%
EPS
-0.08
-96.02%
33.33%
No Data Available
TWLO Earnings Analysis
Twilio Inc Corporation (TWLO.N) Earnings Conference Call
Positive
Q4 Revenue Increase: Twilio reported Q4 2024 revenue of $1.195 billion, an 11% increase year over year, marking the second consecutive quarter of double-digit growth.
First GAAP Profitability Achieved: The company achieved its first-ever GAAP operating profitability in Q4, well ahead of initial targets.
Annual Revenue Growth: For the full year, Twilio generated $4.458 billion in revenue, representing 9% organic growth year over year.
Product Launch Strategy: Twilio launched 251 products, enhancements, and services in 2024, aligning with its strategy to build a trusted and smart platform for customer interactions.
Cyber Week Performance Metrics: During Cyber Week, Twilio powered over 5 billion messages, delivered more than 65 billion emails, and supported 678 million calls with 100% uptime.
AI Platform Leadership: Twilio is a key player in the AI space, with 90% of the Forbes 50 AI startups building on its platform, and it has partnered with major AI companies like OpenAI and AWS.
Large Deal Activity Surge: The company closed 78 deals worth $500,000 or more in Q4, a 47% increase year over year, indicating strong large deal activity.
Dollar-Based Net Expansion Rate: Twilio's dollar-based net expansion rate was 106% in Q4, reflecting improving growth trends in its communications business.
Record Non-GAAP Operating Income: The company generated record non-GAAP income from operations of $197 million in Q4, up 14% year over year, and a non-GAAP operating margin of 16.5%.
Shareholder Return Strategy: Twilio returned over $2.3 billion to shareholders in 2024 through share repurchases, reducing its outstanding share count by 16%.
Free Cash Flow Surge: For the full year 2024, Twilio generated $657 million in free cash flow, up 81% year over year, representing a margin of 14.7%.
Share Repurchase Program: The board authorized a $2 billion share repurchase program expiring at the end of 2027, targeting 50% of annual free cash flow for capital returns to shareholders.
Negative
Quarterly Segment Revenue Decline: Segment revenue for the quarter was $74 million, down 1% year over year.
Bad Debt Expenses Impact: We incurred $17 million in bad debt expenses related to our customer OI, a Brazilian telecom company, as a result of a slowdown in their ongoing payment activity.
Gross Margin Decline Factors: The decline in gross margins was driven by expected higher hosting costs during Cyber Week, along with an increase in revenue mix from messaging.
Gross Margin Decline: Non-GAAP gross margin of 52%, down 40 basis points year over year and 100 basis points quarter over quarter.
Segment Business Loss: Non-GAAP loss from operations for our Segment business was $10 million in the fourth quarter.
Free Cash Flow Impact: Free cash flow in Q1 will be impacted by a roughly $120 million payment related to our company-wide cash bonus program.
TWLO FAQs
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TWLO Earning Call Sentiment
Twilio Inc. (NYSE:TWLO) Q4 2024 Earnings Call Transcript
TWLO.N
2.29%Positive
Twilio's earnings call highlights strong financial performance with record revenue growth, improved margins, and a new share repurchase program, signaling confidence in future growth. The Q&A section reveals management's positive outlook on the business environment and competitive positioning, despite some vagueness in responses about AI's impact. The guidance aligns with continued growth, and strategic moves like AI integration and ISV channel expansion are promising. These factors, coupled with the share repurchase program, suggest a positive stock price movement over the next two weeks.
