TWILIO (TWLO) Company Report

Twilio's Voice business is experiencing an inflection point of growth due to AI, particularly advancements in speech recognition, generative AI voices, and large language models (LLMs), with its Programmable Voice product designed to interface well with AI.
Voice revenue accounted for 12% of Twilio's total revenue in 2024 and saw its growth rate reaccelerate to the mid-teens, marking the highest growth in three years.
Twilio offers differentiated Voice solutions, including Conversation Relay (for speech recognition and voice providers) and Conversational Intelligence (for call analysis and LLM application), with Conversation Relay having a list price of $0.07 per minute compared to $0.01 per minute for programmable voice alone.
The company views Voice AI as a high-margin opportunity to automate expensive and inefficient customer interactions, with enterprises currently in the testing phase for surgical deployment of AI agents.

1 day ago

Transcript

Twilio Discusses Voice AI Growth and Strategy at UBS Conference

TWLO

New Projects/Investments

Revenue Acceleration/Inflection

Twilio's Voice business, which constituted 12% of revenue in 2024, is experiencing a renaissance largely driven by the emergence of AI, with AI's contribution to Voice business growth increasing over the last several quarters.
The company is evolving its Voice product by offering programmable features and abstraction layers like Conversation Relay and Conversational Intelligence, which interface with AI models to provide advanced functionalities such as call recording, transcription, and intelligent analysis.
Voice AI solutions present a significant upsell opportunity, with Conversation Relay having a list price of $0.07 per minute, compared to $0.01 per minute for basic Programmable Voice, contributing to Voice being a higher-margin channel for Twilio.
Enterprise adoption of Voice AI is currently in its early innings, with companies taking a surgical approach to testing and deployment, particularly in regulated verticals like healthcare and credit unions.

1 day ago

Transcript

Twilio Discusses AI-Driven Growth and Strategic Positioning in Voice Market

TWLO

New Projects/Investments

Revenue Acceleration/Inflection

Product Launch

Twilio's Voice business, accounting for 12% of 2024 revenue, is experiencing an inflection point of growth primarily driven by AI advancements in speech recognition, generative AI voices, and large language models (LLMs).
The company is strategically evolving its Voice product with modular, AI-driven solutions like Conversation Relay and Conversational Intelligence, which provide features such as call analysis, transcription, and integration with various AI providers.
These software-enabled components, particularly Conversation Relay (list price $0.07 per minute), contribute to Voice being a structurally higher margin channel for Twilio and offer significant upsell opportunities per interaction.
While still in early stages, enterprises are actively testing Voice AI agents for automating high-volume, repetitive inbound calls, with early adoption noted in regulated sectors like healthcare and credit unions.

1 day ago

Transcript

Twilio Reports Earnings Beat, Analysts Adjust Price Targets

TWLO

Earnings

Guidance Update

Revenue Acceleration/Inflection

Twilio (TWLO) reported an earnings beat with $1.25 earnings per share and $1.30 billion in revenue, marking a 14.7% year-over-year increase.
Following the earnings, several analysts raised their price targets, including Monness Crespi & Hardt to $175, KeyCorp to $156, Mizuho to $150, and Morgan Stanley to $154.
Some firms, such as Bank of America and Royal Bank of Canada, maintain cautious "underperform" ratings with targets around $110 and $75, respectively, while UBS Group lowered its price objective to $135.00.
Twilio holds a consensus rating of "Moderate Buy" with an average target price near $139.
For the recent quarter, Twilio reported a net margin of 1.37% and a return on equity of 3.35%.

Nov 2, 2025, 7:16 AM

Morningstar

Twilio announces Q3 2025 results and raises full-year 2025 guidance

TWLO

Earnings

Guidance Update

Revenue Acceleration/Inflection

Twilio reported Q3 2025 revenue of $1,300 million, marking a 15% year-over-year reported revenue growth and 13% organic revenue growth.
For Q3 2025, the company achieved a non-GAAP gross profit of $652 million with a 50.1% non-GAAP gross margin, and non-GAAP income from operations of $235 million.
Free cash flow for Q3 2025 was $248 million.
Twilio provided Q4 2025 guidance, projecting reported revenue between $1.310 billion and $1.320 billion and non-GAAP diluted earnings per share of $1.17 to $1.22.
The company raised its Full Year 2025 guidance, with reported revenue growth now expected to be 12.4% to 12.6% (up from 10% to 11% previously), non-GAAP income from operations between $900 million and $910 million (up from $850 million to $875 million), and free cash flow between $920 million and $930 million (up from $875 million to $900 million).

Oct 30, 2025, 9:00 PM

Presentation

Twilio Reports Strong Q3 2025 Results, Raises Full-Year Guidance, and Acquires Stitch

TWLO

Earnings

Guidance Update

M&A

Twilio reported record Q3 2025 financial results, with revenue of $1.3 billion, marking a 15% year-over-year increase on a reported basis and 13% organically. Non-GAAP income from operations reached a record $235 million, up 29% year over year, and free cash flow was $248 million.
The company raised its full-year 2025 guidance, with organic revenue growth now expected to be 11.3% to 11.5% (up from 9% to 10%) and non-GAAP income from operations projected at $900 to $910 million (up from $850 million to $875 million). Full-year free cash flow guidance was also raised to $920 to $930 million.
Key growth drivers included mid-to-high teens revenue growth in Messaging and Voice, with Voice AI customers accelerating to nearly 60% year over year, and 20%+ revenue growth from both ISV and self-serve customers. The dollar-based net expansion rate was 109%.
Twilio entered into a definitive agreement to acquire Stitch, an identity platform for AI agents, for less than $100 million, with an expected immaterial financial impact.
The company completed $350 million in share repurchases during Q3 2025, bringing year-to-date repurchases to $657 million.

Oct 30, 2025, 9:00 PM

Transcript

Twilio Announces Strong Third Quarter 2025 Results and Raised Full-Year Guidance

TWLO

Earnings

Guidance Update

M&A

Twilio reported Q3 2025 revenue of $1.3 billion, an increase of 15% reported and 13% organic year-over-year, with non-GAAP income from operations reaching $235 million, up 29% year-over-year.
The company raised its full-year 2025 guidance, now projecting reported revenue growth of 12.4% - 12.6%, organic revenue growth of 11.3% - 11.5%, non-GAAP income from operations between $900 million and $910 million, and free cash flow between $920 million and $930 million.
During Q3 2025, Twilio repurchased $349.8 million in Class A common stock, contributing to $656.7 million in year-to-date repurchases through September 30, 2025, with approximately $1.3 billion remaining under the authorized program.
Twilio entered into a definitive agreement on October 30, 2025, to acquire Stytch, Inc., an identity platform for AI agents, with the transaction expected to close in mid-November.

Oct 30, 2025, 8:09 PM

8-K

Twilio Announces Third Quarter 2025 Results and Raises Full-Year Guidance

TWLO

Earnings

Guidance Update

M&A

Twilio reported revenue of $1.3 billion, an increase of 15% reported and 13% organic year-over-year for the third quarter ended September 30, 2025.
For Q3 2025, non-GAAP income from operations was $235 million, up 29% year-over-year, and non-GAAP diluted net income per share was $1.25.
The company raised its full-year 2025 guidance, with reported revenue growth now expected to be 12.4% - 12.6%, organic revenue growth 11.3% - 11.5%, non-GAAP income from operations $900 - $910 million, and free cash flow $920 - $930 million.
During the third quarter of 2025, Twilio repurchased $349.8 million in aggregate value of shares of Class A common stock, contributing to approximately $656.7 million in year-to-date repurchases under a $2.0 billion program authorized in January 2025.
On October 30, 2025, Twilio entered into a definitive agreement to acquire Stytch, Inc., an identity platform for AI agents, with the transaction expected to close in mid-November.

Oct 30, 2025, 8:05 PM

Press Release

Totaligent Launches AI-Driven Omnichannel Ad Platform Amidst Adtech M&A Wave

TWLO

Product Launch

M&A

New Projects/Investments

Totaligent, Inc. (OTCID: TGNT) has launched the final beta version of its AI-driven omnichannel ad platform.
The platform integrates programmatic ad targeting, AI-generated content, and various ad delivery methods, emphasizing fraud-resistant attribution and API interoperability.
This launch occurs amidst a significant $50 billion adtech M&A wave, with private equity firm Novacap making a major acquisition, indicating increased institutional interest in AI-first and fraud-resistant ad platforms.
Totaligent's platform is designed to empower businesses, particularly small and medium businesses (SMBs), to execute precise and fraud-free marketing campaigns by leveraging advanced AI and real-time consumer insights.

Sep 30, 2025, 1:52 PM

Press Release

Twilio anticipates significant AI benefits and reports strong financial performance

TWLO

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

Twilio delivered a solid quarter with accelerated growth, record non-GAAP income from operations, and free cash flow, and raised its guidance for free cash for the year [0:06].
The company expects to be a significant beneficiary of AI, making short-term investments in voice AI to drive medium-term benefits, as many AI startups are launching with voice-based use cases [0:59][2:04].
Twilio is focused on disciplined operations and taking market share in a price-disciplined way, not returning to a "growth at all cost" dynamic [0:59].
The company's share price has seen a 63% increase over the past year [3:01].

Aug 8, 2025, 7:11 PM

Bloomberg Technology

Earnings Transcripts

Quarterly earnings call transcripts for TWILIO.

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