Twilio Fourth Quarter and 2018 Results

SAN FRANCISCO — Twilio (NYSE: TWLO), operator of cloud communications platform, reported financial results for its fourth quarter and full year ended December 31, 2018.

“The power of our platform model was evident in our results once again, as Q4’s exceptional results capped off an incredible 2018,” said Jeff Lawson, Twilio’s Co-Founder and Chief Executive Officer. “We are excited to add email to our platform through the acquisition of SendGrid and look forward to helping our customers drive their customer engagement strategies across all of the important communication channels – voice, messaging, video, and, now email.”

Fourth Quarter 2018 Financial Highlights

  • Total revenue of $204.3 million for the fourth quarter of 2018, up 77% from the fourth quarter of 2017 and 21% sequentially from the third quarter of 2018.
  • Base revenue of $186.2 million for the fourth quarter of 2018, up 77% from the fourth quarter of 2017 and 21% sequentially from the third quarter of 2018.
  • GAAP loss from operations of $44.0 million for the fourth quarter of 2018, compared with GAAP loss from operations of $20.2 million for the fourth quarter of 2017. Non-GAAP income from operations of $2.4 million for the fourth quarter of 2018, compared with non-GAAP loss from operations of $3.9 million for the fourth quarter of 2017.
  • GAAP net loss per share attributable to common stockholders, basic and diluted, of $0.47 based on 99.4 million weighted average shares outstanding in the fourth quarter of 2018, compared with GAAP net loss per share attributable to common stockholders, basic and diluted, of $0.20 based on 93.2 million weighted average shares outstanding in the fourth quarter of 2017.
  • Non-GAAP net income per share attributable to common stockholders, diluted, of $0.04 based on 110.6 million non-GAAP weighted average shares outstanding in the fourth quarter of 2018, compared with non-GAAP net loss per share attributable to common stockholders, diluted, of $0.03 based on 93.2 million weighted average shares outstanding in the fourth quarter of 2017.

Full Year 2018 Financial Highlights

  • Total revenue of $650.1 million for the full year 2018, up 63% from the full year 2017.
  • Base revenue of $593.0 million for the full year 2018, up 62% from the full year 2017.
  • GAAP loss from operations of $115.2 million for the full year 2018, compared with GAAP loss from operations of $66.1 million for the full year 2017. Non-GAAP income from operations of $4.1 million for the full year 2018, compared with non-GAAP loss from operations of $20.1 million for the full year 2017.
  • GAAP net loss per share attributable to common stockholders, basic and diluted, of $1.26 based on 97.1 million weighted average shares outstanding in the full year 2018, compared with GAAP net loss per share attributable to common stockholders, basic and diluted, of $0.70 based on 91.2 million weighted average shares outstanding in the full year 2017.
  • Non-GAAP net income per share attributable to common stockholders, diluted, of $0.11 based on 108.3 million non-GAAP weighted average shares outstanding in the full year 2018, compared with non-GAAP net loss per share attributable to common stockholders, diluted, of $0.19 based on 91.2 million weighted average shares outstanding in the full year 2017.

Key Metrics and Recent Business Highlights

  • 64,286 Active Customer Accounts as of December 31, 2018, compared to 48,979 Active Customer Accounts as of December 31, 2017.
  • Dollar-Based Net Expansion Rate was 147% for the fourth quarter of 2018, compared to 118% for the fourth quarter of 2017.
  • 1,440 employees as of December 31, 2018.
  • Announced Chee Chew as Chief Product Officer.
  • Added to the leadership in our go-to-market organization by naming Chetan Chaudhary as Global Vice President of Partners and adding David Parry-Jones as Regional Vice President of EMEA Sales.
  • Welcomed technology pioneer Donna Dubinsky to the Board of Directors.
  • Closed the acquisition of SendGrid, the leading email API platform, expanding the reach of our platform.

Outlook

Twilio is providing guidance for the first quarter ending March 31, 2019 and full year ending December 31, 2019 as follows (guidance includes outlook for SendGrid from February 1, 2019, the date of acquisition):

Quarter ending March 31, 2019:
Total Revenue (millions) $ 222.0 to $ 225.0
Base Revenue (millions) $ 212.0 to $ 214.0
Non-GAAP loss from operations (millions) $ (2.0 ) to $ (1.0 )
Non-GAAP net income per share $ to $ 0.01
Non-GAAP weighted average shares outstanding (millions) 130
Non-GAAP income tax rate 25 %
Full year ending December 31, 2019:
Total Revenue (millions) $ 1,065.0 to $ 1,077.0
Base Revenue (millions) $ 1,028.0 to $ 1,036.0
Non-GAAP income from operations (millions) $ 4.0 to $ 8.0
Non-GAAP net income per share $ 0.08 to $ 0.11
Non-GAAP weighted average shares outstanding (millions) 141
Non-GAAP income tax rate 25 %