Companies /Technology

Twilio Inc Class A

NYSE: TWLO Software - Infrastructure
$241.34
â–² $12.88 (+5.64%) today
Markets closed · 4:27am ET

Q1 2025 Earnings

Reported May 1, 2025, 4:09pm ET · SEC source
$1.14
Beat +18.59%
EPS · est. $0.96
$1.2B
Beat +2.98%
Revenue · est. $1.1B
+14.6%
Beating market
TWLO vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−4%0+4%May 1May 2report 4:09pm ETearnings+1.9%−2.1%
−4%0+4%May 1May 2earnings+1.9%−2.1%
TWLO −2.1%S&P 500 +1.9%
−4%0+4%May 1May 2report 4:09pm ETearnings+2.1%−2.1%
−4%0+4%May 1May 2earnings+2.1%−2.1%
TWLO −2.1%NASDAQ +2.1%
−6%−3%0+3%Apr 30May 9report 4:09pm ETearnings+1.4%+1.2%
−6%−3%0+3%Apr 30May 9earnings+1.4%+1.2%
TWLO +1.2%S&P 500 +1.4%
−6%−3%0+3%Apr 30May 9report 4:09pm ETearnings+1.9%+1.2%
−6%−3%0+3%Apr 30May 9earnings+1.9%+1.2%
TWLO +1.2%NASDAQ +1.9%
+2.28%
Day of report
+2.94%
Next session
+5.57%
One week
+19.74%
30 days

S&P 500 over the same 30 days: +5.15%.

Did TWLO Beat Earnings? Q1 2025 Results

Twilio posted a decisive beat across both top and bottom lines in the first quarter of 2025, with its Communications segment serving as the clear growth engine behind results that comfortably exceeded Wall Street expectations. Revenue rose 12.0% year-over-year to $1.17 billion, ahead of the $1.14 billion consensus, while non-GAAP diluted EPS of $1.14 beat the $0.96 estimate by 18.59%, lifted by disciplined cost management that pushed non-GAAP operating margin to 18.2% from 15.2% a year earlier. The Communications segment alone generated $1.10 billion in revenue, up 13% year-over-year, and the company posted GAAP net income of $20.02 million compared to a net loss of $55.35 million in Q1 2024, reflecting meaningful operating leverage. Customer momentum also strengthened, with active accounts expanding to more than 335,000 and the dollar-based net expansion rate improving to 107%. Looking ahead, Twilio raised its full-year 2025 organic revenue growth target to 7.5%-8.5% and increased non-GAAP operating income guidance to $850-$875 million, signaling continued confidence in its profitability trajectory.

Key Takeaways
  • Revenue growth acceleration to 12% YoY driven by Communications segment at 13% growth
  • Dollar-Based Net Expansion Rate improved to 107% from 102% YoY
  • Active Customer Accounts grew to over 335,000 from 313,000 YoY
  • Non-GAAP operating margin expanded to 18.2% from 15.2% YoY
  • Disciplined cost management across R&D, sales and marketing, and G&A

“Twilio saw another quarter of revenue growth acceleration and double-digit growth, illustrating that our commitment to operating with more discipline, rigor, and focus is paying off. I'm encouraged by the momentum we've established to start the year. Going forward, we'll continue to focus on what's in our control and will deliver further innovation on behalf of our customers who rely on Twilio to drive amazing experiences for their end users.”

Twilio CEO, on the earnings call

Forward Guidance & Outlook

For Q2 2025, Twilio guided revenue of $1,180–$1,190 million (9%–10% YoY growth), non-GAAP income from operations of $195–$205 million, and non-GAAP diluted EPS of $0.99–$1.04 on approximately 157 million weighted average diluted shares. For full year 2025, the company raised its organic revenue growth target to 7.5%–8.5% (from 7%–8%), non-GAAP income from operations guidance to $850–$875 million (from $825–$850 million), and free cash flow guidance to $850–$875 million (from $825–$850 million).

TWLO YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$400.0M$800.0M$1.2B$1.0B$1.2BRevenue$530.8M$581.6MGross Profit$8.6M$23.1MOperating Income$8.5M$20.0MNet Income
$0$400.0M$800.0M$1.2BRevenueGross ProfitOperating IncomeNet Income

TWLO Revenue by Segment

Communications$1.1B+13.0%

Figures from SEC filings and company reports. Not investment advice.