Financial Data and Key Metrics Changes - Twilio reported record revenue of $1.4 billion in Q4 2025, representing a 14% year-over-year increase on a reported basis and 12% on an organic basis [4][13] - For the full year, revenue reached $5.1 billion, reflecting a 14% reported growth and 13% organic growth [13] - Non-GAAP income from operations for Q4 was $256 million, up 30% year-over-year, while for the full year, it was $924 million, a 29% increase [17][18] - Free cash flow for Q4 was also $256 million, and for the full year, it increased by 44% year-over-year to $945 million [14][19] - The company achieved its first full year of GAAP profitability with a GAAP income from operations of $158 million [14] Business Line Data and Key Metrics Changes - Voice revenue growth accelerated to the high teens in Q4, driven by strong adoption of voice AI, which saw over 60% year-over-year growth [15][14] - Messaging revenue growth was solid, particularly during Cyber Week, contributing to overall strong performance [15] - Software add-on revenue grew over 20% year-over-year, with Verify growing more than 25% for two consecutive quarters [16] - The number of large deals closed (over $500,000) increased by 36% year-over-year, indicating strong demand across business lines [6] Market Data and Key Metrics Changes - Twilio's dollar-based net expansion rate was 109% in Q4, reflecting improving growth trends [16] - The company saw a 34.5% year-over-year increase in messages sent during Cyber Week, with 6.99 billion messages sent [9] - RCS volume grew roughly 5x quarter-over-quarter, indicating strong traction in this area [10] Company Strategy and Development Direction - Twilio aims to be a foundational infrastructure layer in the age of AI, moving beyond just providing communication channels [5] - The company is focused on delivering essential infrastructure powered by contextual data and evolving automation, such as Voice AI, to help customers build personalized relationships [6][12] - A strategic partnership with AEG was established to enhance real-time, personalized communications at live events [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum into 2026, supported by a robust innovation roadmap and strong execution [12][24] - The company anticipates reported revenue growth of 11.5%-12.5% and organic growth of 8%-9% for the full year 2026 [21] - Management acknowledged the impact of increased A2P fees on margins but emphasized that these fees do not affect the ability to generate profit dollars [22][40] Other Important Information - Twilio completed $198 million in share repurchases in Q4 and $855 million for the full year, representing 90% of 2025 free cash flow [19][20] - The company is focused on cost discipline, with a net burn rate of just 1.5% in 2025, well below the target [19] Q&A Session Summary Question: What drove the voice strength in Q4? - Management noted broad adoption across customer cohorts, with strong performance in self-service and ISV channels, as well as direct enterprise use cases [27][28] Question: Can you provide visibility on Q1 guidance? - Management expressed confidence in Q1 guidance, citing broad-based strength in voice and messaging, with both channels growing in the high teens [31] Question: What is driving the growth in messaging? - Management indicated broad-based strength across multiple products, with no specific driver identified, but overall positive trends in messaging [42] Question: How is Twilio positioned against competitors? - Management highlighted differentiated technology and a strong developer experience as key advantages, allowing Twilio to capture market share [52][55] Question: What is the outlook for Voice AI growth? - Management sees strong growth potential in both enterprise and voice AI companies, with enterprise expected to drive long-term growth [59][60]

Q4 2025 Earnings Results February 12, 2026 1 Legal Disclaimer This presentation and the accompanying conference call contain forward-looking statements within the meaning of the federal securities laws, including statements about our future performance and goals. These statements involve substantial risks and uncertainties that may cause our actual results, performance or achievement to differ materially, as further described in the Appendix, as well as in our most recent periodic reports filed with the SEC ...

Revenue Growth - Fourth Quarter 2025 revenue reached $1.37 billion, representing a 14% increase year-over-year, with organic revenue growth of 12%[5] - Full Year 2025 revenue totaled $5.07 billion, also up 14% year-over-year, with organic revenue growth of 13%[5] - Revenue for Q4 2025 was $1,365,930, an increase of 14.3% from $1,194,835 in Q4 2024[37] - For Q1 2026, Twilio expects revenue between $1.335 billion and $1.345 billion, indicating a growth range of 14% to 15% year-over-year[10] - Full-year 2026 guidance includes a revenue growth range of 11.5% to 12.5%[13] Profitability Metrics - GAAP income from operations for Q4 2025 was $57 million, compared to a GAAP income of $13.7 million in Q4 2024[6] - Non-GAAP income from operations for Q4 2025 was $256 million, up from $197 million in Q4 2024[6] - The company reported a GAAP net loss per share of $0.30 for Q4 2025, compared to a loss of $0.08 in Q4 2024[6] - The company reported a net income attributable to common stockholders of $33,834 for the year 2025, a significant recovery from a loss of $109,403 in 2024[39] - For the year ended December 31, 2025, Twilio reported a net income of $33.834 million, a significant improvement from a net loss of $109.403 million in 2024[41] Customer Metrics - Active customer accounts increased to over 402,000 as of December 31, 2025, up from over 325,000 a year earlier[12] - The Dollar-Based Net Expansion Rate was 109% for Q4 2025, compared to 106% for Q4 2024[12] - Active Customer Accounts at the end of the reporting period were defined as accounts generating at least $5 in revenue in the last month, with a focus on maintaining and growing these relationships[32][35] - The Dollar-Based Net Expansion Rate is used to measure revenue growth from existing customers, indicating the effectiveness of customer retention and upselling strategies[34][35] Cash Flow and Financial Position - Free cash flow is defined as net cash provided by operating activities, excluding capitalized software development costs, with a focus on improving cash generation capabilities[30] - The net cash provided by operating activities for 2025 was $1.003 billion, compared to $716.241 million in 2024, indicating a 39.9% increase[41] - Twilio's cash, cash equivalents, and restricted cash at the end of the period increased to $682.534 million from $431.437 million at the beginning of the period[41] - The company reported a net cash used in financing activities of $(833.095) million for 2025, a decrease from $(2.311) billion in 2024[41] Gross Profit and Margins - Gross profit for Q4 2025 was $662,350, compared to $599,697 in Q4 2024, reflecting a gross margin improvement[37] - Non-GAAP gross profit for Q4 2025 was $682.236 million, reflecting a 9.9% increase from $620.798 million in Q4 2024[42] - Non-GAAP gross profit for 2025 was $2,559,237, with a non-GAAP gross margin of 50.5%[45] - Operating cash flow margin for the year ended December 31, 2025, was 20%, compared to 16% in 2024[49] Shareholder Returns - Twilio initiated a share repurchase program of up to $2.0 billion, with $198 million repurchased in Q4 2025[9] Expenses - Research and development expenses on a GAAP basis for 2025 were $1,020,159, with non-GAAP R&D expenses at $679,792, representing 13.4% of revenue[45] - Sales and marketing expenses on a GAAP basis for 2025 were $873,216, with non-GAAP sales and marketing expenses at $686,074, accounting for 13.5% of revenue[45]

Core Insights - Twilio Inc. (TWLO) is set to report its fourth-quarter 2025 earnings on February 12, with anticipated non-GAAP earnings per share between $1.17 and $1.22, while the Zacks Consensus Estimate remains at $1.24, reflecting a 24% increase from the previous year's $1.00 [1][10] - The company expects revenues in the range of $1.31 billion to $1.32 billion, with the Zacks Consensus Estimate also at $1.32 billion, indicating a 10.2% increase from last year's revenues of $1.19 billion [2][10] Performance History - In the last four quarters, Twilio has beaten the Zacks Consensus Estimate three times and missed once, with an average surprise of 14.4% [2] Influencing Factors - The fourth-quarter results are likely to benefit from ongoing digital transformation efforts as enterprises adapt to hybrid operational environments, along with Twilio's expansion initiatives with independent software vendors and global partners [3] - New product launches, including rich communication services and AI enhancements, particularly the integration of OpenAI's Realtime API, are expected to positively impact the quarter's results [4] - Twilio added over 43,000 new clients in the last reported quarter, bringing the total active customer count to 392,000 as of September 30, 2025, suggesting continued growth in the customer base [5] Product Contributions - Solutions such as Twilio Conversations, SendGrid Ads, and SendGrid's Email Validation API are anticipated to contribute positively to the fourth-quarter performance, alongside the integration of AI in various communication and segment products [6] Macroeconomic Challenges - Ongoing macroeconomic challenges may negatively affect Twilio's top line, as enterprises are delaying large IT spending plans due to a weakening global economy and geopolitical issues [7] Earnings Prediction Model - The Zacks model does not predict a definitive earnings beat for Twilio this season, as the company holds a Zacks Rank of 4 (Sell) and an Earnings ESP of 0.00% [8]

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Core Viewpoint - Twilio Inc's shares fell over 10% following the announcement of a partnership with Genspark, an AI workspace platform, which utilizes Twilio's technology for its AI calling agent [1][10]. Group 1: Partnership and Product Offering - Genspark is deploying Twilio Programmable Voice to power its "Call for Me" AI agent, allowing users to delegate phone tasks globally across 40+ countries with multilingual support [2]. - The "Call for Me" agent handles various tasks including customer service inquiries, appointment bookings, and information gathering, showcasing Twilio's capability for reliable and scalable global connectivity [3]. Group 2: Adoption Metrics - Genspark reported 180,000 unique users and up to 800 daily outgoing calls since the integration, achieving a 94.3% call success rate and 99.97% uptime [4]. Group 3: Technical Analysis - Twilio's stock is currently trading 15.1% below its 20-day simple moving average and 10.4% below its 100-day simple moving average, indicating a bearish short-term trend [5]. - Over the past year, Twilio shares have decreased by 25.34%, reflecting ongoing weakness in the stock [5]. - The RSI is at 38.42, indicating neutral territory, while the MACD is below its signal line, suggesting bearish pressure [6]. Group 4: Earnings and Analyst Outlook - Investors are anticipating the next earnings report scheduled for February 12 [7]. - The stock carries a Buy Rating with an average price target of $138.91, with recent analyst actions including upgrades and downgrades [8][9]. Group 5: Price Action and Valuation - As of the latest publication, Twilio shares were down 10.62% at $107.25 [10]. - Key support is identified at $104.50 and key resistance at $115.50, with an EPS estimate of $0.92 and revenue estimate of $1.32 billion [9].

Core Insights - Genspark, an AI workspace for over 1 billion global knowledge workers, has integrated Twilio's Programmable Voice to enhance its Call for Me AI agent [1] Company Summary - Genspark aims to streamline phone call-based tasks by utilizing AI, which helps in breaking down language barriers and reducing wait times for users [1] - Twilio, a customer engagement platform, provides the necessary global voice connectivity that powers Genspark's AI capabilities [1]

Summary of Key Points from the Conference Call Industry Overview - The focus is on the U.S. Internet and U.S. SMID-Cap Software sectors, particularly Amazon Web Services (AWS) and its correlation with cloud-linked infrastructure companies like Datadog (DDOG) and Cloudflare (NET) [1][2]. Core Insights and Arguments - **Web Metrics Correlation**: There is a strong correlation between engaged visits to AWS' SSO web interface and AWS' non-AI revenue in the following quarter, indicating real-time trends that can predict revenue performance [1][34]. - **Q4 Revenue Acceleration**: Strong web metrics in H2'25 signal a potential acceleration in Q4 revenue for AWS and related companies. Q3 was noted as the strongest since 2021, with continued momentum into Q4 [2][33]. - **2025 IT Budget Dynamics**: IT budgets were reportedly spent more aggressively in H2'25, which may impact growth in H2'26 due to tougher comparisons with the end of 2025 [5][20]. - **CIO Survey Insights**: The recent CIO survey indicates that IT budgets entering 2026 are the strongest since 2018, with a focus on cloud modernization and platform investments [4][14]. - **AI Demand and Supply**: AI demand is critical for revenue acceleration in 2026, with an under-supply environment expected to persist despite significant capacity additions. AWS is expected to double its capacity by 2027, which is essential for continued revenue growth [6][15]. Financial Metrics and Forecasts - **Amazon (AMZN)**: Outperform rating maintained with a price target of $300. Expected adjusted EPS for 2026 is $8.31, with a P/E ratio of 28.8 [7][8]. - **Datadog (DDOG)**: Outperform rating maintained with a price target of $180. Expected adjusted EPS for 2026 is $2.85, with a P/E ratio of 41.8 [9]. - **Twilio (TWLO)**: Market-Perform rating maintained with a price target of $119. Expected adjusted EPS for 2026 is $5.83, with a P/E ratio of 20.4 [10]. - **Cloudflare (NET)**: Market-Perform rating maintained with a price target of $131. Expected adjusted EPS for 2026 is $1.58, with a P/E ratio of 116.6 [11]. Additional Important Insights - **Q1 Trends for 2026**: Early indicators suggest that Q1'26 may see growth acceleration compared to previous years, with a focus on avoiding the nuances that have historically dragged down performance [3][12]. - **Spending Patterns**: The spending patterns observed in 2025, particularly around the holiday season, may have implications for Q1'26 performance, as IT budgets were largely spent early [20][21]. - **Correlation with Other Companies**: AWS serves as a bellwether for other cloud consumption-linked companies, with strong correlations noted between AWS and Datadog, Cloudflare, and Twilio [49][50][53]. This summary encapsulates the key points discussed in the conference call, highlighting the trends, financial forecasts, and implications for the industry and specific companies.

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced news journalists who produce independent content across various financial markets [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content delivered includes insights into sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Core Insights - Twilio and AEG have launched a strategic multi-year partnership to enhance customer engagement in live events and sports, utilizing Twilio's technology for improved communication and experiences [1][2][3] Company Overview - Twilio is a customer engagement platform that enables real-time personalized experiences for brands, with a presence in 180 countries and millions of developers and businesses using its services [9] - AEG is a leading sports and live entertainment company, entertaining over 90 million guests annually through its venues and events [10] Partnership Details - The partnership marks Twilio's first collaboration with a major venue, NHL team, and ticketing platform, establishing Twilio as a Founding Partner of Crypto.com Arena and an official partner of the LA Kings [2][5] - Twilio's technology will be integrated into AEG's operations, enhancing fan engagement through data-driven insights and personalized communication [3][4] Technology Implementation - Twilio's products, including Twilio Segment, will provide AEG with deeper insights into fan preferences, improving the overall customer experience [3] - Twilio's existing technology already supports AXS with SMS and multi-factor authentication, indicating a foundation for further growth in the partnership [4] Marketing and Visibility - As a Founding Partner, Twilio will gain significant brand visibility at Crypto.com Arena, including LED signage and hospitality experiences, reaching millions of visitors annually [5][8] - The partnership will also extend Twilio's branding throughout L.A. LIVE, enhancing its presence in the sports and entertainment district [8]