Twilio Announces Second Quarter 2017 Results

• Q2 Total Revenue of $95.9 million, up 49% year-over-year
• Q2 Base Revenue of $87.6 million, up 55% year-over-year
• Q2 Dollar-Based Net Expansion Rate of 131%

SAN FRANCISCO--(BUSINESS WIRE)-- Twilio Inc. (NYSE: TWLO), the leading Cloud Communications Platform company, today reported financial results for its second quarter ended June 30, 2017.

“I’m extremely proud of what our team was able to deliver at our SIGNAL Conference in Q2. We announced 42 new products around SIGNAL - from speech recognition and our new machine learning-powered Understand product, to the launch of an entirely new layer of software - the Twilio Engagement Cloud.” said Jeff Lawson, Twilio’s Co-Founder and Chief Executive Officer. “Once again this quarter, we saw a large number of companies across a variety of industries place their trust in our platform.”

Second Quarter 2017 Financial Highlights

- Total revenue of $95.9 million for the second quarter of 2017, up 49% from the second quarter of 2016 and 10% sequentially from the first quarter of 2017.
- Base revenue of $87.6 million for the second quarter of 2017, up 55% from the second quarter of 2016 and 9% sequentially from the first quarter of 2017.
- GAAP loss from operations of $7.1 million for the second quarter of 2017, compared with GAAP loss from operations of $10.9 million for the second quarter of 2016. Non-GAAP loss from operations of $4.7 million for the second quarter of 2017, compared with non-GAAP loss from operations of $5.7 million for the second quarter of 2016.
- GAAP net loss per share attributable to common stockholders of $0.08 based on 90.9 million weighted average shares outstanding in the second quarter of 2017, compared with GAAP net loss per share attributable to common stockholders of $0.45 based on 24.3 million weighted average shares outstanding in the second quarter of 2016.
- Non-GAAP net loss per share attributable to common stockholders of $0.05 based on 90.9 million non-GAAP weighted average shares outstanding in the second quarter of 2017, compared with non-GAAP net loss per share attributable to common stockholders of $0.08 based on 72.8 million non-GAAP weighted average shares outstanding in the second quarter of 2016.

Key Metrics and Recent Business Highlights
- 43,431 Active Customer Accounts as of June 30, 2017, compared to 30,780 Active Customer Accounts as of June 30, 2016.
- Dollar-Based Net Expansion Rate was 131% for the second quarter of 2017, compared to 164% for the second quarter of 2016.
- Held our annual Signal user conference, where we gathered developers, executives, and partners from across the globe to discuss what is possible by leveraging the power and functionality of our platform.
- Introduced the Engagement Cloud, a set of declarative APIs designed to help our customers build better ways to engage with their customers.
- Announced Proxy, a next generation API for building private and moderated conversations with customers.
- Launched the public Beta of Speech Recognition, a new component of our Programmable Voice API that allows customers to convert speech to text and analyze its intent, along with a preview of a new machine learning product called Understand that will allow our customers to capture the meaning behind voice, chat, and SMS text, and drive automated interactions based on that meaning.
- Released the public Beta of Functions, a new serverless environment to help customers more easily build, run, and scale communications applications using the Twilio platform by automatically handling the provisioning of the web infrastructure required to run their applications securely, and at global scale.
- Welcomed Jeff Epstein to our Board of Directors.

Conference Call Information:
Twilio will host a conference call today, August 7, 2017, to discuss second quarter 2017 financial results, as well as the third quarter and full year 2017 outlook, at 2 p.m. Pacific Time, 5 p.m. Eastern Time. A live webcast of the conference call, as well as a replay of the call, will be available at investors.twilio.com. The conference call can also be accessed by dialing (844) 453-4207, or +1 (647) 253-8638 (outside the U.S. and Canada). The conference ID is 46139073. Following the completion of the call through 11:59 PM Eastern Time on August 14, 2017, a replay will be available by dialing (800) 585-8367 or +1 (416) 621-4642 (outside the U.S. and Canada) and entering passcode 46139073. Twilio has used, and intends to continue to use, its investor relations website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.