Twilio announces its results for the first quarter of 2019

The forward-looking statements in this press release are also subject to additional risks, uncertainties and factors, including those described in more detail in Twilio's most recent documents with the Securities and Exchange Commission, including its Form 10 -K for the year ended December 31, 2018, filed March 1, 2019. Additional information on the potential risks that may affect actual results will be included in the periodic and current reports and in other documents that Twilio will submit from time to time to the Securities and Exchange Commission. In addition, Twilio operates in a highly competitive and rapidly changing environment, and new risks and uncertainties may arise that could affect the forward-looking statements contained in this press release.

Forward-looking statements represent the beliefs and assumptions of Twilio's management as of the date on which they are made. Twilio assumes no obligation to update the forward-looking statements made in this press release to reflect events or circumstances subsequent to the date of this press release or new information or the occurrence of unanticipated events, unless the law imposes it.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Use of non-GAAP financial measures"data-reactid =" 50 ">Use of non-GAAP financial measures

In order to provide investors and others with additional information about Twilio's results, the following non-GAAP financial measures are presented: gross margin and non-GAAP gross margin, non-GAAP GAAP, non-GAAP income (loss) from operations and operating margin, non-GAAP net income (loss) attributable to common shareholders, and non-GAAP net income (loss) per common share attributable to common shareholders, and diluted.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Non-GAAP gross income and non-GAAP gross margin. For the periods presented, Twilio defines non-GAAP gross profit and gross margin under GAAP and GAAP, respectively, adjusted to exclude stock-based compensation and amortization of intangible assets acquired. "Data-reactid =" 52 ">Non-GAAP gross income and non-GAAP gross margin. For the periods presented, Twilio defines non-GAAP gross margin and gross margin as gross GAAP gross margin and gross margin, respectively, adjusted to exclude stock-based compensation and amortization of acquired intangible assets. .

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Non-GAAP operating expenses. In the periods presented, Twilio defines non-GAAP operating expenses (including operating expense categories) as GAAP operating expenses (and operating expense categories) adjusted to exclude, if applicable, stock-based compensation, amortization of intangible assets acquired, social security charges and social charges related to stock-based compensation. "data-reactid =" 53 ">Non-GAAP operating expenses. In the periods presented, Twilio defines non-GAAP operating expenses (including operating expense categories) as GAAP operating expenses (and operating expense categories) adjusted to exclude, if applicable, stock-based compensation, amortization of intangible assets acquired, expenses and social charges related to stock-based compensation.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Non-GAAP earnings (loss) and non-GAAP operating margin. For the periods presented, Twilio defines non-GAAP operating income and non-GAAP operating margin as GAAP operating loss and GAAP operating margin, respectively, adjusted to exclude stock-based compensation. , amortization of intangible assets acquired, losses related to acquisitions. social charges and social charges related to stock-based compensation. "data-reactid =" 54 ">Non-GAAP earnings (loss) and non-GAAP operating margin. For the periods presented, Twilio defines non-GAAP operating income and non-GAAP operating margin as GAAP operating loss and GAAP operating margin, respectively, adjusted to exclude stock-based compensation. , amortization of intangible assets acquired, losses related to acquisitions. expenses and social charges related to stock-based compensation.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Non-GAAP net income (loss) attributable to common shareholders and Net earnings (loss) per non-GAAP share attributable to common shareholders, basic and diluted. Twilio defines, for the periods presented, net income (loss) attributable to common shareholders and non-GAAP net income attributable to common shareholders, basic and diluted, as a net loss in accordance with GAAP attributable to common shareholders and to shareholders. net income under GAAP. loss per share attributable to ordinary shareholders, respectively basic and diluted, adjusted to exclude stock-based compensation, amortization of intangible assets acquired, acquisition expenses, employee benefits expense, shares, amortization of issue costs and issue costs, income tax benefit related to the acquisition and provision for the tax consequences of non-GAAP adjustments. "data-reactid =" 55 ">Non-GAAP net income (loss) attributable to common shareholders and Net earnings (loss) per non-GAAP share attributable to common shareholders, basic and diluted. Twilio defines, for the periods presented, net income (loss) attributable to common shareholders and non-GAAP net income attributable to common shareholders, basic and diluted, as a net loss in accordance with GAAP attributable to common shareholders and to shareholders. net income under GAAP. loss per share attributable to ordinary shareholders, respectively basic and diluted, adjusted to exclude stock-based compensation, amortization of intangible assets acquired, acquisition expenses, employee benefits expense, shares, amortization of issue costs and issue costs, the tax benefit result related to the acquisition and provision for the tax consequences related to non-GAAP adjustments.

Twilio's management uses this non-GAAP financial information above, collectively, to evaluate its ongoing operations and for internal planning and forecasting purposes. Twilio's management believes that non-GAAP financial information, when considered collectively, may be of value to investors as it provides consistency and comparability with past financial performance, facilitates the comparison of results of operations with other companies. one period at a time and facilitate comparisons with other companies. many of them use similar non-GAAP financial information to supplement their GAAP results. Non-GAAP financial information is presented as additional information only. They should not be considered as a substitute for financial information presented in accordance with GAAP. They may be different from non-GAAP measures with the same title and used by other companies. When Twilio uses a non-GAAP financial measure, a reconciliation is provided with the most directly comparable financial measure reported in accordance with GAAP. Investors are encouraged to review the GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.

With respect to Twilio's guidance as provided in the "Outlook" section above, Twilio has not reconciled its expectations with respect to non-GAAP results (loss) from operations, the loss of revenue from operating income or non-GAAP earnings per share. per share, as the stock-based compensation expense can not reasonably be calculated or forecast at this time. As a result, a match is not available without unreasonable effort.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Operations metrics"data-reactid =" 58 ">Operations metrics

Twilio examines a number of operational parameters to evaluate its business, measure performance, identify trends, develop business plans and make strategic decisions. These include the number of active customer accounts, the basic income and the net dollar growth rate.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Number of active customer accounts. Twilio believes that the number of active customer accounts is an important indicator of the growth of its business, the acceptance of its platform by the market and the future evolution of revenues. Twilio defines an active customer account at the end of any period as an individual account, identified by a unique account identifier, for which Twilio has earned at least $ 5 of revenue in the last month of the period. Twilio believes that the use of its platform by customers of an amount equal to or above the threshold of $ 5 per month is a stronger indicator of potential commitment than the use to test title of its platform or at levels below $ 5 per month. The same organization may constitute multiple unique active customer accounts if it has multiple account identifiers, each of which is treated as a separate active customer account. "Data-reactid =" 60 ">Number of active customer accounts. Twilio believes that the number of active customer accounts is an important indicator of the growth of its business, the acceptance of its platform by the market and the future evolution of revenues. Twilio defines an active customer account at the end of any period as an individual account, identified by a unique account identifier, for which Twilio has earned at least $ 5 of revenue in the last month of the period. Twilio believes that the use of its platform by customers of an amount equal to or above the threshold of $ 5 per month is a stronger indicator of potential commitment than the use to test title of its platform or at levels below $ 5 per month. A single organization can build multiple unique active customer accounts if it has multiple account identifiers, each of which is treated as a separate active customer account.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Basic income. Twilio considers basic income as one of the most reliable indicators of future income trends. Basic income includes all income other than income from large, active accounts receivable that have never entered into minimum revenue commitment agreements with Twilio for a term of 12 months, which the Company calls variable accounts receivable. Although virtually all of Twilio's customers exhibit some variability in the use of its products, Twilio believes, based on Twilio's management experience, that variable accounts receivable are more likely to experience significant fluctuations. the use of its products from one period to another. therefore, revenues from variable accounts receivable can also fluctuate significantly from one period to the next. This behavior is fully evidenced by the decision of these clients not to enter into contracts with Twilio that include a minimum revenue commitment, even though they may spend significant amounts of money on the use of the company's products. and give up more favorable terms often offered to customers. who enter into contracts with Twilio. This variability has a negative impact on Twilio's ability to leverage variable receivables products to analyze expected future product trends. "Data-reactid =" 61 ">Basic income. Twilio considers basic income as one of the most reliable indicators of future income trends. Basic income includes all income other than income from large, active accounts receivable that have never entered into minimum revenue commitment agreements with Twilio for a term of 12 months, which the Company calls variable accounts receivable. Although virtually all of Twilio's customers exhibit some variability in the use of its products, Twilio believes, based on Twilio's management experience, that variable accounts receivable are more likely to experience significant fluctuations. the use of its products from one period to another. therefore, revenues from variable accounts receivable can also fluctuate significantly from one period to the next. This behavior is fully evidenced by the decision of these clients not to enter into contracts with Twilio that include a minimum revenue commitment, even though they may spend significant amounts of money on the use of the company's products. and give up more favorable terms often offered to customers. who enter into contracts with Twilio. This variability negatively affects Twilio's ability to rely on variable receivables products to analyze expected future product trends.

For periods prior to March 31, 2016, Twilio has defined a variable customer account as an active customer account that (i) has never signed a minimum revenue commitment agreement with the Company for a minimum of 12 months and (ii) exceeded 1% of the Company 's sales during the quarter for the periods presented to March 31, 2016. one period at a time, in the event that a customer account was qualified as a variable customer account as at March 31, 2016, or if a variable customer account previously ceased to be an active customer account as of that date date, Twilio has included this customer account as a variable customer account for all periods presented. For reporting periods beginning with the quarter ended June 30, 2016, Twilio defines a Variable Customer Account as a customer account that (a) has been categorized as a Variable Customer Account in the previous quarter, as well as that (b) any new client counts who (i) is with a client who has never signed a Minimum Revenue Commitment Contract with Twilio for a minimum of 12 months and (ii) reaches or exceeds 1% of the figure. of the Company on a quarterly basis. Once a customer account is considered a variable customer account for a given period, it remains a variable customer account for subsequent periods, unless it enters into a revenue commitment agreement minimum with Twilio of a duration of at least 12 months.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Net expansion rate in dollars. Twilio's ability to generate growth and generate additional revenue is dependent in part on the ability of the company to maintain and develop its relationships with existing active customer accounts and to increase their use of the platform. Twilio tracks its performance in this area significantly by measuring the net dollar expansion rate for active accounts receivable, other than variable accounts receivable. Twilio's net dollar growth rate increases when such active customer accounts increase the use of a product, extend their use of a product to new applications or adopt a new product. Twilio's net dollar growth rate decreases when these active customer accounts stop or reduce their use of a product or when the Company reduces the price of using the product. When our customers develop their business and expand the use of our platform, they sometimes create multiple customer accounts with us for operational or other reasons. For reporting periods beginning with the quarter ended December 31, 2016, we identify a significant client organization (defined as a single client organization generating more than 1% of revenue over a quarterly reporting period) that has created a new asset. As a customer account, this new active customer account is linked to the original active active account account and the earnings of this new active customer account for the calculation of this indicator. Twilio estime que la mesure du taux d&#39;expansion net en dollars sur les produits générés par les comptes clients actifs, autres que les comptes clients variables, fournit une indication plus significative des résultats des efforts déployés par la société pour accroître les produits provenant de clients existants. "Data-reactid =" 63 ">Taux d&#39;expansion net en dollars. La capacité de Twilio à générer de la croissance et à générer des revenus supplémentaires dépend en partie de la capacité de la société à maintenir et à développer ses relations avec les comptes clients actifs existants et à accroître leur utilisation de la plate-forme. Twilio suit de manière importante ses performances dans ce domaine en mesurant le taux d’expansion net en dollars pour les comptes clients actifs, autres que les comptes clients variables. Le taux d’expansion net en dollars de Twilio augmente lorsque de tels comptes clients actifs augmentent l’utilisation d’un produit, étendent leur utilisation d’un produit à de nouvelles applications ou adoptent un nouveau produit. Le taux d’expansion net en dollars de Twilio diminue lorsque ces comptes clients actifs cessent ou réduisent leur utilisation d’un produit ou lorsque la Société réduit les prix d’utilisation du produit. Lorsque nos clients développent leurs activités et élargissent l&#39;utilisation de notre plate-forme, ils créent parfois plusieurs comptes client avec nous pour des raisons opérationnelles ou autres. Ainsi, pour les périodes de reporting débutant avec le trimestre clos le 31 décembre 2016, nous identifions une organisation cliente significative (définie comme une organisation cliente unique générant plus de 1% des revenus sur une période de reporting trimestrielle) ayant créé un nouvel actif. Compte client, ce nouveau compte client actif est lié au compte compte actif actif d’origine et aux revenus de ce nouveau compte client actif aux fins du calcul de cet indicateur. Twilio pense que la mesure du taux d’expansion net en dollars sur les produits générés par les comptes clients actifs, autres que les comptes clients variables, donne une indication plus significative des résultats des efforts de la société pour accroître les produits provenant de clients existants.

Le taux d’expansion net en dollars de Twilio compare les produits tirés des comptes clients actifs, autres que les comptes clients variables, sur un trimestre, par rapport au même trimestre de l’exercice précédent. Pour calculer le taux d&#39;expansion net en dollars, la société identifie d&#39;abord la cohorte de comptes clients actifs, autres que les comptes clients variables, qui étaient des comptes clients actifs au même trimestre de l&#39;exercice précédent. Le taux d&#39;expansion net en dollars est le quotient obtenu en divisant les revenus générés par cette cohorte d&#39;un trimestre par les revenus générés par cette même cohorte au trimestre correspondant de l&#39;exercice précédent. Lorsque Twilio calcule le taux d’expansion net en dollars pour des périodes de plus d’un trimestre, il utilise la moyenne des taux d’expansion nets en dollars trimestriels applicables pour chacun des trimestres de cette période.

Source: Twilio Inc.

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