Twilio - Earnings Call - Q1 2021
May 5, 2021
Transcript
Speaker 0
Good day and thank you for standing by. Welcome to the Twilio Q1 twenty twenty one Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded.
I would now like to hand the conference over to Andrew Zilli, Vice President of Investor Relations and Treasury. Sir, please go ahead.
Speaker 1
Thanks, Lee. Good afternoon, everyone, and thank you for joining us for Twilio's first quarter twenty twenty one earnings conference call. In an effort to make our call more efficient, we are using a new approach today by posting our prepared remarks on our IR website and using today's call for Q and A only. In addition to our prepared remarks, our earnings press release, SEC filings and a replay of today's call can be found on our IR website at investors.twilio.com. Joining me today for Q and A are Jeff Lawson, Co Founder and CEO George Hu, COO and Khozema Shipchandler, CFO.
As a reminder, some of our commentary today may be in non GAAP terms. Reconciliations between our GAAP and non GAAP results and guidance can be found in our earnings press release. Additionally, some of our discussions and responses may contain forward looking statements, which are subject to risks, uncertainties and assumptions. In particular, our expected business benefits and financial impacts from the segment and ValueFirst acquisition and the Cindeverse partnership, including the associated transactions, our expectations around the impact of the COVID-nineteen pandemic on our business, results of operations and financial condition and that of our customers and partners is subject to change And our ability to manage changes in network service provider fees that we pay in connection with the delivery of communications on our platform and the impact of those fees on our gross margin are subject to change. Should any of these risks materialize or should our assumptions prove to be incorrect, actual financial results could differ materially from our projections or those implied by these forward looking statements.
A description of these risks, uncertainties and assumptions and other factors that could affect our financial results are included in our SEC filings, including our most recent report on Form 10 ks and subsequent reports on Form 10 Q. And our remarks during today's discussion should be considered to incorporate this information by reference. Forward looking statements represent our beliefs and assumptions only as of the date such statements are made. We undertake no obligation to update any forward looking statements made during this call to reflect events or circumstances after today or to reflect new information or the occurrence of unanticipated events, except as required by law. With that, I'll hand it over to Jeff for a brief statement, and then we'll open the call for Q and A.
Speaker 2
Thank you, Zoe. Before going into q and a, I wanted to acknowledge that over the past year fighting COVID nineteen, each country and region has had good times and bad times. While many places are trending well and we feel like we hope we can see the light at the end of the tunnel, the response to COVID nineteen is, of course, not over, and the tragedy of this pandemic remains an evolving situation and uneven on a global level. So I wanted to take a moment to share my heartfelt sorrow and support for our colleagues, friends, and families in India who we know are fighting a tremendous outbreak. Along with our colleagues, friends, and family in Brazil, Colombia, Mexico, it's a reminder that this pandemic is not over and will not be over until every country, every city, every community in the
Speaker 3
world is through it.
Speaker 2
We are truly in this pandemic together as a global community. Twilio has created several programs to help communities in the hardest hit regions providing additional matching funds to organizations such as Aid India COVID nineteen relief program, Give to Asia, and Direct Relief. It is more important than ever to help every country combat this pandemic, and we hope that these efforts will help provide funds towards that cause. And I invite everybody listening today to pitch in your support as you can. Thank you.
Now let's open the call for questions.
Speaker 0
Your first question comes from the line of Meta Marshall from Morgan Stanley. Your line is now open.
Speaker 4
Great. Thanks for the question and congrats on the quarter. Maybe a higher level question. I wanted to get a sense of what your customer conversations are like. I imagine a year ago, it was help me get through the next two weeks to maybe six months ago.
Was like help me get through COVID to now people are really starting to embrace digital transformation and think longer term. But just is that something that we just hypothesized or you're actually seeing in customer conversations? How does segment change that conversation? Thanks.
Speaker 5
This is George. Why don't I start? We absolutely are continuing to see the conversations around digital transformation, digital acceleration. What we've talked to, what I've talked to a lot of customers about is now that they see the end of the pandemic in sight, they're not foreseeing that digital is going away for them. They see a lot of the transitions that have happened to digital, whether it's telemedicine or digital relationship in financial services are going to continue.
And so, they're looking for us to be strategic partners to help them, move to the new world and with technologies like Conversations and Flex and other things that we've been working on. In terms of segment, people are very excited about it. I've had it come up in probably more than two thirds of the calls I've been on with customers in the last ninety days. We've talked about segment and the opportunity there. I think people are very excited about the idea of delivering much more personalized engagement and the idea of segment as a foundational component to that is very interesting to a lot of customers.
So we're excited about that and the opportunity for us going forward on that front as well.
Speaker 4
Great. Thanks.
Speaker 0
Thank you. And your next question comes from the line of Samad Samana from Jefferies. Your line is now open.
Speaker 6
Hi, great. Thanks for taking my questions and congrats on the strong quarter. Maybe the first on the enterprise sales hiring side. I saw in the prepared remarks that the company has caught up, but maybe how should we think about the hiring from here and how the productivity ramp looks for those new direct those enterprise sales rep hires?
Speaker 5
Yes. We're absolutely on track with our sales hiring. We continue to invest in capacity to match the frankly the incredible opportunity that we see in front of us. And in terms of the productivity that has continued to be strong and the ramp times are consistent. So we haven't really seen, a significant shift as we added capacity, which is I think just really speaks to, the demand out there and the size of the opportunity.
Speaker 6
Great. And then maybe just a follow-up on the decision to split the R and D organization that was discussed then and how we should think about that impacting the innovation cycle going forward?
Speaker 2
Yes. Thanks for the question, Simon. This is Jeff. I'll take that one. So we've got a very broad set of products and a very broad customer base all around the world.
And so we thought the way to best serve the broad set of customers and the broad set of products was to break it out into So our Twilio core communications platform, our data platform and our core platform. And we've got great leaders for a lot of these things. And you could see a lot of synergies between like all the things we're doing in communications, which is the core business, lot things we're doing with data, and and Pino from segment is gonna lead the data team. And then a core platform is sort of how we build internally and and all the platforms that support, the growth of all of our engineering units.
And so by dividing and conquering, we think we can actually tackle more, to, you know, continue our track record of innovation, and continue to serve our customers at scale. And so I'm, really appreciative of of of Chi and everything he's brought to the company and looking forward to building, the next great set of products with the the great set of leaders we have and once we get hired.
Speaker 6
Great. And just as an aside, we love the new reporting structure. It allows us to spend more quality time with with the management team, rather than listen to you guys
Speaker 5
read the script to us. So I
Speaker 6
really appreciate that and appreciate the additional time with you
Speaker 2
all. Fantastic.
Speaker 0
Thank you. Your next question comes from the line of Fred Hae Meyer from Macquarie. Your line is now open.
Speaker 2
Hey. Thank you very much for the time here. You know, I'm interested in some of the acquisitions and investments that you've recently been making, including Cinnaverse and Value First. Can you help us understand how these acquisitions, investments, and partnerships could help your overall cost structure both domestically and internationally? And secondly, on this topic, can you tell us about how these investments could benefit your customers across areas such as pricing and also reliability of services?
Speaker 7
Yeah. Those are good questions. This is Khozema. I'll I'll start. So I think from a cost structure perspective, obviously, having local presence in markets and being able to do some consolidation within our supply chain is always gonna yield some cost synergies.
And so we definitely have an an eye on that in terms of some of the ways that we're looking at it. I think beyond that, you know, if you look at some of the more recent things, like whether it's in Mexico or whether it's India, you know, that also gives us enhanced geographic footprint. So it allows us, you know, to better see, consumer demand in some of those markets as well. And then from a pricing perspective, I mean, I I wouldn't say there's a big change in pricing relative to m and a. You know?
I mean, it obviously remains a competitive pricing landscape, but I I think we feel good about the way that we're positioned. And I think this allows us to continue to, geographically expand.
Speaker 3
Thank you.
Speaker 0
Thank you. Your next question comes from the line of Brent Bracelin from Piper Sandler. Your line is now open.
Speaker 8
Thank you. And I like your comments of appreciation here on the new format. Super efficient and super helpful. Maybe, Jeff, I'll start with you. We're six months now into the Twilio segment kind of combination here.
My question for you, what are you most excited about and most pleased with during the first six months of the integration here? And then I know it's early, but we're seeing some interesting personalized messages come out, some interesting Flex segment integrations. And then secondly, what are you most excited about now that you know what you own here, looking at over the next couple of years?
Speaker 2
Yeah. Thank you for the question. Well, first of all, the the nuts and bolts of integration are hard, but they're going really well. Been really pleased by just a great cultural overlap, teams working really well together and teams that see the opportunity and see the way we approach customers and the markets that we're serving, like see those things really well aligned. And so super happy with Peter, the leadership team of Segments and all of the folks who joined Twilio with that acquisition.
But talking about the opportunity ahead, look, I think we are seeing this come up in so many conversations with customers that maybe in the past before we had Segments as part of our portfolio wouldn't have organically come up. But now that Segment is here, really seeing that become a major part of the conversation we're having with customers. Because every company that I talk to seems to be struggling with, like, how do I build this one picture of my customer based on data that is spread across all these different not just systems they have, and they have that problem. They've got, you separate system for marketing and a separate system for the contact center and a separate system for commerce, but also across business units. Like, oh, we made an acquisition here.
We gotta integrate their view of the customer. And, oh, we've got these, you know, different structures inside the company. And they all use different systems. And so this question of how do you actually build that profile of your customer? How do you understand your customer?
The story that is being told by all the data that customers are giving off, by how they use your website, how they use your mobile app, what things they bought, what things they've returned, etcetera. That, story is is resonating with customers because they all see that problem. But then not just how do you make sense of that data, how do you act on it? And that's where Twilio comes in. How do you actually build really engaging communications, whether it's marketing, during your sales process, during your, support or in product?
How do you tailor and make all that stuff, dynamically personalized every single customer to optimize their chances of, you know, becoming a repeat buyer, becoming a loyal, customer of yours. And that's something we see so many companies, wanting to do, struggling to do, and looking to us to help them to do. And so when I look forward to what we're gonna build this segment, I see a tremendous surface area across, you know, pretty much every industry to help them solve this problem. Interesting. Big problem, but certainly
Speaker 8
a big opportunity. Kazeema, one quick one for you. AT and T and T Mobile joined the price increase party that I think Verizon kicked off last year. How should we kind of think about the framework around what type of growth rate that could have an influence here on Q2? It looked like the guide did not include any sort of impact on that price increase.
You have two carriers instead of one raising price. So just trying to think through how we should we think about that impact in Q2? Or should we just kind of wait a quarter and wait until we see actually what happened? But just curious to hear your thoughts and guidance here on that price increase.
Speaker 5
Yeah. I mean, we left it out of
Speaker 7
the guide on purpose just so that it wouldn't be that confusing and, you know, we wouldn't have to deal with all the kind of puts and takes. So you should look at the guide as being clean and excluding those impacts. I would say you should largely expect them to be kind of in the ballpark as what we saw previously with Verizon. But we'll provide a lot more detail on that when we do the Q2 call, and we'll give you the exact numbers, at that time.
Speaker 2
Got it. Makes sense. Thank you. Yes.
Speaker 0
Thank you. Your next question comes from the line of Alex Zukin from Wolfe. Your line is now open.
Speaker 3
Yeah. Thanks for taking my question. I'm gonna yeah. Instead of asking my typical dollar based net expansion question because I I'll I'll I'll do just two very big picture product questions. Jeff, maybe just for you first.
If if we take a step back and just see how we look at the components of your business, you're you're now getting into a point where you're able to do, you know, potentially, you know, intelligent messaging solutions where you can, you know, you can effectively have a customer, you know, send a message when a certain action takes place, like a cart is left abandoned. And, you know, that the the value added component of that message for that customer is a lot higher than than potentially some others. So I guess the question is, are you able to now start thinking about different pricing or different unit economics depending on the type of message that you're, helping a customer deliver?
Speaker 2
Thanks, Alex. You know, I think there's, like, two ways of thinking about that. One is our role And as a platform, you support many different use cases. And even within things like messaging, you know, there's different use cases for for messaging.
And in fact, different messages may have different performance characteristics. You know, some customers might value speed of delivery over over others might value things like, you know, bulk delivery. And so there's ways of thinking about how do you segment in the product itself, at the platform layer. And then there's ways of saying like, okay. But, in order to actually do a specific use case, you often have software that's powering that use case or integrations.
To use the example, you have integration into a shopping cart. And the business logic of that integration and the business logic of that intelligence is in many ways a different value proposition from the platform itself. And so as you see what we're doing with, for example, Flex, that's what we're building. We're building that, you know, the value proposition of a contact center on top of the primitives. And you see that with our marketing campaigns products as well.
And so I think when you think about our core communications platform, you get the sense of, the economics are tied to the underlying, capabilities of the platform. And then when you look at the engagement platform that sits above it, the economics are more closely tied to, the value proposition that we're creating with software. But I also think that part of Twilio's unique value proposition is to build a product and a go to market that really closely aligns how our customers use our product with what they pay. And I think that's a key competitive differentiation, which is a little different than traditional solution selling, which is you're trying to extract full value. I think as a platform play, you still leave white space for customers to go paint in to make it there, and that's what they value.
They want to build on top of our platform. And as a result of that, we give them that flexibility, and that enables them to get outcomes that they can't get with any other vendor that also enables developers to continue to be our biggest champions inside of these accounts, and I think those are important things for us to continue to consider.
Speaker 3
That makes perfect sense. And then another, again, kind of big picture question. If you think about the rise of IDFA, the the demise of you know, potential demise of It's our thesis that we're entering the world where, you know, the notion of CDP, ready for first party data, is gonna rapidly accelerate in strategic performance. You know, you guys mentioned I think, George, you mentioned that segment is now in two thirds or wasn't two thirds of your customer conversations.
I guess a couple of angles around this question. Is this something is this future world something you contemplated acquisition? Are you, you know, just now weeping an even greater amount of strategic benefit? Just talk to us about how you think about segments in this new world, both integrated with the rest of your solutions as part of the platform, but also on a stand alone basis, with respect to strategic enterprise and all these things?
Speaker 2
This is Jeff. I'll I'll answer. Unless George, you want to?
Speaker 5
Go ahead, Jeff. I'll I'll chime in.
Speaker 9
Alright. Well, I'll I'll give my point
Speaker 3
of view, and I'll let George give his point
Speaker 2
of view. You know, collaboration, who's gonna answer is harder in this virtual world. My point of view is, yes. You know, we did think about the importance of first party data and how every company is having to become great digital marketers and great digital executors. And you can't necessarily rely on some of the, let's let's say, you know, sloppier ways of, acquiring and reengaging your customers, when you've got a lot of third party data floating around out there.
And so we did believe, we do believe that, the CDP market in and of itself as a standalone becomes ever more important to companies, not just because of the plurality of systems they have to figure out how to make sense of, but also because outside their walls is getting more complex to actually, target and reach your own customers. So it becomes even more important that once you meet a customer, whether it's in the marketing or they buy something or whatever it is, that you do a really good job of continually engaging them. Because going back out to try to reacquire that customer is getting harder and harder and harder. And so companies have to treat their existing customers incredibly well, and those relationships are getting even more valuable. And then you add in all the value of then integrating that and creating that journey that's going to achieve that using, using Twilio's Customer Engagement, cloud that is, you know, the the next level benefit on top of the the core CDP.
Speaker 5
Yeah. I I think, well, you know, I think Jeff said it really, really well. And I would say we're having certainly a lot of these conversations that I'm talking about are largely customers. A lot of customers are learning about our acquisition, interested in our strategy, and we're having the broad conversation. But we're definitely seeing interest on both fronts of both the standalone CDP conversation as well as the potential for intelligent engagement that's built when you have the customer data and all of the engagement channels together.
So I think there's potential both standalone and integrated, and I think that's one of the things that we're excited to continue to build on going forward.
Speaker 3
Congrats. Just amazing execution as always.
Speaker 0
Thank you. Thank you. Your next question comes from the line of Derrick Wood from Cowen. Your line is now open.
Speaker 7
Hi, thanks for taking my questions and congrats on a great quarter. We get a lot of questions from investors on how to think about consumption growth trends across various use cases as the economy opens up. So Jeff, it'd be great to hear what you're seeing from the COVID impacted use cases and travel, hospitality, ride sharing, and then get a sense of with the opening of the economy, how that impacts some of the use cases that got catalyzed from COVID. So really just trying to get an understanding of how those net out as we navigate through the opening of economy and maybe put that in context with, you know, how you guys guided for Q2, which assumes, flat to up 10,000,000 in sequential revenue.
Speaker 2
Absolutely, Derek. I'll answer that. So the, what I would say is, like, you get this usage pattern. And so you've got two categories, like roll the clock back to a year ago. You have a category of digitization of lots of interactions.
Interactions. That was really the path that society was on and every industry was on because of, you know, digital transformation, like the big secular trend, then those got accelerated. And so a lot of the things that we're seeing, like, you know, like, a a lot of the workflows between ordering online and picking up in the store and things like that are getting far more use now than they would have before. Or telemedicine, you know, saw a huge acceleration of adoption of telemedicine. And those workflows have provided consumers in a lot of cases, like, a much more convenient path.
And these are things that these organizations, whether it was, you know, health care doing telemedicine or retailers doing really good online order pickup type workflows, you know, these are things that, were on their path anyway, just got accelerated. And so I think we're seeing is a retraining, like, of consumers to expect new types of experiences. And those are gonna continue, and the competitive dynamics of of keeping those features and making them better and making them ever easier, I think those are gonna continue. Then you've got the category of industries that were negatively impacted by COVID, something travel, hospitality, things like that. And those obviously saw a decline in their usage in 2020, and now I think we're starting to see the the the early signs of the recovery
We try all that bad lines, talking about, you know, people returning to travel, they're getting vaccinated, and how hard it is to get rental car, and and, how airplanes are now full. And so as we see the return of those industries, you know, I think that we will continue to see, you know, both return of, you know, volume and usage, but also of new use cases because many of those industries have to now go build trust with their consumers and say, hey. You know, it's safe to do these things again. And, hey. Trust us as the brand you're going to return to as you start doing things like traveling or eating out or whatever it is.
And so we're seeing, not just the return of the old use cases, but I think also new engagement strategies that these companies have in order to build trust and loyalty, in their customer bases that, in many ways, they have to kinda re reengage with and reacquire.
Speaker 7
And I guess maybe I'd throw it to Khozema on on the revenue guidance. I've gotten some questions on, you know, just if you look at the sequentials, it's flat to slightly up. Historically, it's that you've seen some good sequential seasonality in Q2. I know you may have conservatism in there, but any other puts and takes to call out for Q2? Yeah.
I mean, let me just add to what Jeff said, and then I'll directly take your question. So I would say, in general, what our guidance contemplates is sort of a world without COVID in a way. I mean, withstanding what Jeff said at the outset of the call. I mean, obviously, there's a lot going on globally, and I certainly don't want to take anything away from that and the impact that that's having on people. But generally speaking, the way that we're looking at things is as if, you know, COVID is starting to wane and we see durability in some of the positively impacted industries.
We see recovery in some of the negatively impacted industries. And so in general, I think, you know, as we start to think about a world post COVID, We do see a lot of general strength in the business, kind of broadly diversified across industries and and geos and and company shapes and sizes. As it relates to q two specifically, I mean, we feel good about the guide. I mean, obviously, you know, we're still up in in the quarter based on the guide, forty seven to fifty percent. The world is a very, very complicated place right now.
You know, there's a lot of moving pieces. And so I think we'll we'll wait and see how things exactly play out. But we feel good about, you know, the way we guided, the way that things are positioned, and we feel great about the long term prospects of the business and, you know, certainly in the short and medium term. Right. Yes.
50% growth, pretty amazing. So, congrats again. Thanks, Derek.
Speaker 0
Thanks, Derek. Thank you. Moving on, your next question comes from Ryan McWilliams. Your line is now open.
Speaker 3
Thank you. Thanks for taking the question, and I'll take Zukin's normal dollar based on expansion question. But knowing that this metric can fluctuate, especially with the same group compare year over year, but anything to comment on here with this moving lower in the quarter and maybe any read throughs to the following quarters could help. Yeah.
Speaker 7
You you certainly hit one of the nails in the head. I mean, I would say in general, like, at a 133%, like, DV and E is still really, really strong. So whether you look at it on a year over year basis or you look at it on a sequential basis, maybe I'll start with the latter. So the sequential basis, you know, you obviously don't have, like, the political, dynamic. Right?
We're in in a nonelection year, and so that's gonna direct it down a little bit. And then we've also lapped Verizon carrier fees. And so one year away from that, you know, that's gonna have a little bit of an impact as well. And then really the third dynamic is is what you said a moment ago in in terms of SendGrid. So I would say I'm kind of a normalized basis.
You know, you might think about one thirties, but, I mean, we feel great about the the printed number, a 133%, and we're really, really happy with the way that our expansion rate's been going.
Speaker 3
Thanks. And just from my perspective, was great to see how Tolero helped support global vaccine distribution. But, you know, from a financial perspective, I was just wondering, did vaccine distribution delivery, materially impact results on the quarter?
Speaker 7
I wouldn't say it impacted our financials materially. You know, as I said a moment ago, like, I think we're really looking at the world both in terms of our q one print as well as the way that we guided into q two based on a world in which, you know, COVID is sort of a thing that's starting to wane a little bit. And we just see broad based things across the business. And any one use case is relatively de minimis.
Speaker 3
You see the time. Thanks, guys. Thanks.
Speaker 0
We have a follow-up question. Your next question comes from Michael Turrin from Wells Fargo Securities.
Speaker 10
George, the Deloitte hackathon you mentioned in the materials stood out as interesting. I'm wondering if you could talk more about what events like that could maybe open up and how that can help with the push into targeted verticals. Specifically, health interesting there, but anything you can add around context is helpful.
Speaker 5
Yes. Thanks for the question. We've had a hackathon program now that we've used successfully in enterprise area directly with customers and now we're starting to do that with our partners. Obviously, when you're building momentum with a large systems integrator, lot of what you need to do is, first of all, get people internally just aware. These are not simple entities or complex entities.
They have lots of groups and just kind of evangelizing internally the power of Twilio and the Twilio message is really important. So bringing these hackathons, we find, is generally speaking, a really good way to extend our reach, especially among developers and the thought leaders within an organization, whether it's a customer or an SI like Deloitte. So we're excited about that. But also the, a lot of the times these hackathons also yield really interesting IP or the beginnings of interesting IP and whether that's at the customer side or on auto partner side. And with an entity like Deloitte, the opportunity to create vertical IP, think, is very, very interesting, around Flex, which is a big focal point for a lot of our discussion.
So it remains to be seen obviously how all these things play out. There's usually a pretty significant path between a hackathon and obviously Real IP. But we're excited about the opportunity, whether it's with Deloitte or with others to go down this path, repeat that, continue to evangelize, get the flywheel going and continue to do more work with them. I mean we're really excited about the potential of this partnership. We're seeing some traction already and this is just another kind of another brick the pathway to building a really successful long term enterprise playbook.
Speaker 10
Yes, makes a lot of sense. Just quick for Khozema, can we go back to Value first for just a moment? I'd just be curious if there's more you can add on what that adds internationally. Know that's been one of a few focus areas. And then anything you can add on any contribution?
I don't know what the timing specifically looked like, but any contribution you saw or would expect to see is helpful.
Speaker 5
Yes. Just to take the latter part
Speaker 7
of the question first, very contribution in the current quarter, and it'll be relatively de minimis contribution going forward as well. So we're not necessarily calling it out. I mean, I would say value first kind of fits into, you know, one of the questions that was asked earlier in terms of just broader trends that we're seeing in in supply chain. I mean, when we see a unique asset that we think on the one hand gives us a particularly interesting entry into a geo, and it's not limited to India, obviously. Although India is obviously a huge consumer market, but I I threw Mexico into the same category, which is why we did a deal there too.
But, you know, India, Mexico, large consumer markets, opportunity, for some, you know, cost capabilities. And then, with these acquisitions, we always get awesome local teams. And so it's really just a combination of those things. But from a financial perspective, I think this is like an added portfolio, but nothing that you should really think about in terms of having an outsized impact on our financials at all.
Speaker 10
Okay. Helpful. Keep up the pace. Thanks, everyone.
Speaker 0
Thanks. Thank you. Your next question is from Mark Murphy from JPMorgan. Your line is open.
Speaker 9
This is Pinjalim on behalf of Mark. Congrats on the quarter, guys. Jeff, high level question again for you. From a product strategy point of view, how do you think about kind of accelerating the usage of Twilio core communications by developers? Just just the the usage of that.
Do do you think, like, serverless or function is an important strategy to drive speed to market for developers or maybe maybe the studios a way to go to democratize the usage beyond developers? Or now that you have segment, maybe
Speaker 8
you can actually tap into
Speaker 9
a broader low code, low code customer engagement solution. Would love to hear your thoughts around that.
Speaker 2
Absolutely. So first of I'd say we're we're really pleased with the adoption of Twilio and all of our products by developers, and I think that's going very well. Developers continue to pull us into the wide variety of opportunities at at every kind of company that that you see us posting up as as new customers. As far as smoothing out, you know, I don't necessarily draw a straight line between, like, low code, no code and, like, getting more developers and more accounts in the platform. Yeah.
I think low code, no code are tools. And when the problem you have fits well into
Speaker 5
Hey, guys. It seems like this is George. Seems like there might be a problem with Jeff's line. So, obviously, I can't completely anticipate his train of thought there. But, you know, certainly Can you hear now?
Is
Speaker 2
you hear now?
Speaker 10
You're back. Perfect. Thanks.
Speaker 2
Yeah. Zoe says my phone connected to my car, and that is exactly what happened because someone just left to go pick up my kids and turned on the car. So fantastic. Good good to know that that's a way earnings calls can fail. So back to what I was saying, I don't know where I lost you, but essentially, low code, no code is a tool that if that tool allows you to build your use case faster, more reliably because it's hosted for you and you have to provision your own infrastructure, then developers love to use it as do, you know, and so called citizen developers.
But it's the right tool for the right job. And we've seen a lot of uptake of Studio for certain types of workflows and other things that are, you know, more client side and more deeply embedded. May not be the right tool, but we are definitely committed to this road map of using low code, no code, and what I call yellow code, each for the right thing that enables the developers and and the various participants of the company to do the, the task that they need to do. And by the that includes taking things like Flex, which really accelerate our customers' time to deploy these solutions, but then still give them the flexibility to go invoke functions or use Studio to build that IVR or build that chatbot flow and plug it into this right spot. And so I would say, I think we're using low code, no code effectively today, and we've got an active road map for how we continue to unlock more and more use cases and more and more customers to be using that.
But we are very happy with the adoption, that the developers are already doing on Twilio across those solutions, including a lot of them who aren't using no code because they, you know, they're writing code the the old way. Understood. Thank you.
Speaker 1
Great. And that will do it for today's call. So really appreciate everybody joining today and look forward to catching up with you throughout the rest of the quarter.
Speaker 0
Ladies and gentlemen, this concludes today's conference call. Thank for your participation. You may now disconnect.