Twilio

TWLO Q4 2024 Earnings

Reported Feb 13, 2025 at 4:09 PM ET · SEC Source

Q4 24 EPS

$1.00

MISS 2.91%

Est. $1.03

Q4 24 Revenue

$1.19B

BEAT +1.26%

Est. $1.18B

vs S&P Since Q4 24

+16.1%

BEATING MARKET

TWLO +34.3% vs S&P +18.2%

Full Year 2024 Results

FY 24 EPS

$3.67

MISS 0.51%

Est. $3.69

FY 24 Revenue

$4.46B

BEAT +0.33%

Est. $4.44B

Market Reaction

Did TWLO Beat Earnings? Q4 2024 Results

Twilio posted a mixed Q4 2024, delivering a revenue beat but falling short on the bottom line as shares slid more than 5% following the report. Revenue came in at $1.19 billion, topping the $1.18 billion consensus by 1.26% and marking 11.1% growth ye… Read more Twilio posted a mixed Q4 2024, delivering a revenue beat but falling short on the bottom line as shares slid more than 5% following the report. Revenue came in at $1.19 billion, topping the $1.18 billion consensus by 1.26% and marking 11.1% growth year-over-year, while adjusted EPS of $1.00 missed the $1.03 estimate by 2.91%. The headline story, however, was Twilio's first-ever quarter of GAAP operating profitability at $13.73 million, a striking reversal from a $361.73 million GAAP operating loss in the year-ago period. That achievement was partly clouded by $16.80 million in bad debt expenses tied to Brazilian telecom Oi SA, which weighed on both GAAP and non-GAAP operating income. Communications drove growth, rising 12% year-over-year to $1.12 billion, while the Segment business slipped 1% to $74.05 million. Looking ahead, management guided Q1 2025 revenue of $1.13 to $1.14 billion and full-year organic revenue growth of 7-8%, with free cash flow targeted at $825 to $850 million.

Key Takeaways

  • Second consecutive quarter of double-digit revenue growth
  • First-ever quarter of GAAP operating profitability
  • Communications segment revenue growth of 12% Y/Y
  • Dollar-Based Net Expansion Rate improved to 106% from 102% Y/Y
  • Active Customer Accounts grew to over 325,000 from over 305,000
  • Non-GAAP operating margin expanded to 16.5%
  • Financial discipline and operational rigor
24/7 Wall St

TWLO YoY Financials

Q4 2024 vs Q4 2023, source: SEC Filings

24/7 Wall St

TWLO Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 24 Q1 25

“Twilio's focus on financial discipline, operational rigor, and innovation is paying off as we delivered a second consecutive quarter of double digit growth and our first ever quarter of GAAP operating profitability.”

— Khozema Shipchandler, Q4 2024 Earnings Press Release