Nick Altmann

Nick Altmann inquired about the durability of Twilio's voice and voice AI business over the next couple of years, seeking insights into use case scaling in production, longer-term customer commitments, and other factors supporting its sustained growth.

Answer

Thomas Wyatt, Chief Revenue Officer, highlighted that voice growth is broad-based across startups, enterprises, and ISVs, and is a global phenomenon. He noted its strong performance in both self-service and direct sales channels, contributing to Twilio's best new business quarter in years. Wyatt emphasized that voice is undergoing a renaissance as a key part of next-generation AI-powered applications, making its durability strong.

Nick Altmann asked about the durability of voice and voice AI business over the next couple of years, seeking insights into how use cases are scaling in production and longer-term customer commitments.

Answer

Thomas Wyatt, Chief Revenue Officer, emphasized that voice growth is broad-based across startups, enterprise, ISVs, and is a global phenomenon. He noted strong performance in both self-service and direct sales channels, with Q4 being the best new business quarter in years. He stated that voice is undergoing a renaissance as a key part of next-generation AI-powered applications and agents, making its durability strong.

Nick Altmann from Scotiabank asked about the trend of more customers landing directly on the Ultimate tier and the implications for future expansion rates, as well as the impact of making Duo Enterprise available to Premium customers.

Answer

CEO Bill Staples noted that while more customers landing on Ultimate is a positive sign driven by security needs, the majority still start with Premium, preserving the land-and-expand motion. He explained that making Duo Enterprise available to Premium customers was a response to demand and analysis showed it was not a primary driver for Ultimate upgrades, thus posing low risk to the upgrade path and expanding the addressable market.

Nick Altmann followed up on the strong RPO and cRPO growth, asking if there was any notable shift in the mix of new ACV between net new customers and cross-sell/upsell activities during the quarter.

Answer

CFO Isabelle Winkels confirmed that there was nothing unique about the new ACV mix in Q1. She stated that the split between net new business and upsells remained well within historical norms, which typically fluctuate in a 40/60 to 60/40 range.

Nick Altmann asked if the sales pipeline mix is expected to shift more towards net new customers versus expansions, considering that the new agentic automation capabilities are reportedly driving new logo wins and competitive displacements.

Answer

CFO & COO Ashim Gupta stated he does not see a significant change in the mix between new and expansion business. He explained that platform capabilities beyond core RPA have always driven wins, and agentic automation is a further differentiator that enhances discussions with both new and existing customers, rather than fundamentally altering the business mix.

Nick Altmann from Scotiabank sought clarification on whether the 14% growth in sales headcount was impacted by the recent restructuring and asked about the underlying sales productivity assumptions for the FY26 ACV target. He also questioned what signals would prompt reinvestment of cost savings versus allowing them to flow to the bottom line.

Answer

CFO Greg Orenstein confirmed the sales organization was not impacted by the restructuring and the 14% capacity increase remains accurate. CEO Sean Desmond added that the primary indicator for reinvestment is pipeline activity and momentum, noting a recent uptick and strong interest in new AI solutions, which could justify further investment to capture growth.

Nick Altmann asked for the financial contribution of Command AI (Guides and Surveys) and the strategy for its reacceleration. He also inquired how the push for longer-term contracts has affected sales cycles and if the company would revert to annual deals in a choppier macro.

Answer

CFO Andrew Casey did not provide specific numbers but stated that the ARR from Guides and Surveys now 'well eclipsed' what Command AI had generated on its own. Regarding contract duration, Casey explained that longer terms are grounded in selling to the enterprise, which values cost predictability. He said sales cycles are managed with deal constructs that demonstrate value upfront, and this approach is effective for both new logos and expansions, suggesting it's a durable strategy rather than one they would revert from.

John Gomez, on for Nick Altmann at Scotiabank, inquired about the pipeline for upmarket logos and whether Q4 is the peak period for winning these accounts due to competitor renewal cycles.

Answer

CEO Andrew Bialecki clarified that most large retailers avoid platform migrations during the critical Q4 holiday season. He explained that Q4 is typically used to build the pipeline, with many enterprise deals closing in Q1 after brands have analyzed their holiday performance and are ready to invest in new technology.

Asked about the revenue contribution from the BluBracket acquisition and the company's broader M&A strategy.

Answer

The BluBracket acquisition has a small initial revenue impact, with a more significant contribution expected next year after full integration. The M&A strategy focuses on smaller, synergistic acquisitions of adjacent products that accelerate the core product roadmap, such as helping onboard secrets into Vault.