twlo-20200804
0001447669false00014476692020-08-042020-08-04

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________________________
FORM 8-K
________________________________________

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 4, 2020
________________________________________
 Twilio Inc.
(Exact name of registrant as specified in its charter)
________________________________________
Delaware001-3780626-2574840
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
101 Spear Street, First Floor
San Francisco, California 94105
(Address of principal executive offices)

(415) 390-2337
(Registrant’s telephone number, including area code)

Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Class A Common Stock, par value $0.001 per shareTWLOThe New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.




Item 2.02       Results of Operations and Financial Condition.
On August 4, 2020, Twilio Inc. (the “Company”) issued a press release announcing its financial results for the quarterly period ended June 30, 2020. A copy of the press release is furnished herewith as Exhibit 99.1.
The information furnished under this Item 2.02 and in the accompanying Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.
Item 9.01       Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.Description







SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


TWILIO INC.
 
August 4, 2020By:/s/ Khozema Shipchandler
Name:Khozema Shipchandler
Title:Chief Financial Officer


Document

Exhibit 99.1
Twilio Announces Second Quarter 2020 Results

Second Quarter Total Revenue of $400.8 million, up 46% Year-Over-Year
Second Quarter Total Revenue Dollar-Based Net Expansion Rate of 132%

SAN FRANCISCO--(BUSINESS WIRE)--August 4, 2020--Twilio (NYSE: TWLO), the leading cloud communications platform, today reported financial results for its second quarter ended June 30, 2020.
“Organizations in nearly every industry are turning to Twilio as they identify new ways to communicate with their customers and stakeholders,” said Jeff Lawson, Twilio’s co-founder and CEO. “We are just scratching the surface of this huge opportunity, and we believe the solutions being built today using our customer engagement platform will be the standard for digital engagement in the future.”
Second Quarter 2020 Financial Highlights
Total revenue of $400.8 million for the second quarter of 2020, up 46% year-over-year.

GAAP loss from operations of $102.6 million for the second quarter of 2020, compared to $93.7 million for the second quarter of 2019.

Non-GAAP income from operations of $9.5 million for the second quarter of 2020, compared to $1.5 million for the second quarter of 2019.

GAAP net loss per share attributable to common stockholders of $0.71 for the second quarter of 2020, based on 141.6 million weighted average shares outstanding, compared to a net loss per share of $0.72 for the second quarter of 2019.

Non-GAAP diluted net income per share attributable to common stockholders of $0.09 based on 153.7 million non-GAAP weighted average shares outstanding, compared to net income per share of $0.03 for the second quarter of 2019.
Key Metrics and Recent Business Highlights
More than 200,000 Active Customer Accounts as of June 30, 2020, up 24% year-over-year.

Dollar-Based Net Expansion Rate, calculated using total revenue, was 132% for the second quarter of 2020, compared to 141% for the second quarter of 2019.

3,284 employees as of June 30, 2020.

Welcomed Michelle Grover as the company's first Chief Information Officer.

Twilio SendGrid crossed a new milestone, surpassing three trillion processed emails since inception.

Twilio was named to Fast Company's second annual list of the 100 Best Workplaces for Innovators.



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Outlook
Twilio is initiating the following guidance for the third quarter ending September 30, 2020.
Q3 FY20
Guidance
Revenue (millions)$401 - $406
Y/Y Growth36% - 38%
Non-GAAP loss from operations (millions)($15) - ($10)
Non-GAAP loss per share($0.09) - ($0.05)
Non-GAAP basic shares outstanding (millions)145

Conference Call Information
Twilio will host a conference call today, August 4, 2020, to discuss its second quarter 2020 financial results at 2:00 p.m. (PT) / 5:00 p.m. (ET). Investors and analysts should register for the call in advance by visiting http://www.directeventreg.com/registration/event/9891389. A live webcast of the conference call, as well as a replay of the call, will be available at https://investors.twilio.com. Following the completion of the call through 11:59 p.m. (ET) on August 11, 2020, a replay will be available by dialing (800) 585-8367 (United States) or +1 (416) 621-4642 (non-U.S.) and entering passcode 9891389.
Twilio intends to use its investor relations website, its Twitter feed (@twilio), and the Twitter feed of Twilio's Chief Executive Officer, Jeff Lawson (@jeffiel), as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
About Twilio Inc.
Millions of developers around the world have used Twilio to unlock the magic of communications to improve any human experience. Twilio has democratized communications channels like voice, text, chat, video and email by virtualizing the world’s communications infrastructure through APIs that are simple enough for any developer to use, yet robust enough to power the world’s most demanding applications. By making communications a part of every software developer's toolkit, Twilio is enabling innovators across every industry — from emerging leaders to the world’s largest organizations — to reinvent how companies engage with their customers.
Forward-Looking Statements
This press release and the accompanying conference call contain forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” "can," “will,” "would," “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” "forecasts," “potential,” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this press release include, but are not limited to, statements about: Twilio’s outlook for the quarter ending September 30, 2020, the impact on Twilio and its customers and partners related to COVID-19 and Twilio’s expectations regarding its products and solutions. You should not rely upon forward-looking statements as predictions of future events.
The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties, and other factors that may cause Twilio’s actual results, performance, or achievements to differ materially from those described in the forward-looking statements, including, among other things: adverse changes in general economic or market conditions; changes in the market for communications; the impact of COVID-19 on Twilio and its customers and partners; Twilio’s ability to adapt its products to meet evolving market and customer demands and rapid technological change; Twilio’s ability to comply with modified or new industry standards, laws and regulations applying to its business; Twilio’s ability to generate sufficient revenues to achieve or sustain profitability; Twilio’s ability to retain customers and attract new customers; Twilio’s ability to effectively manage its growth; and Twilio’s ability to compete effectively in an intensely competitive market.
The forward-looking statements contained in this press release are also subject to additional risks, uncertainties, and factors, including those more fully described in Twilio’s most recent filings with the Securities and Exchange Commission, including its Form 10-Q for the quarter ended March 31, 2020 filed on May 7, 2020. Further information on potential risks that could affect actual results will be included in the subsequent periodic and current reports and other filings that Twilio makes with the Securities and Exchange Commission from time to time. Moreover, Twilio operates in a very competitive and rapidly changing
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environment, and new risks and uncertainties may emerge that could have an impact on the forward-looking statements contained in this press release.
Forward-looking statements represent Twilio’s management’s beliefs and assumptions only as of the date such statements are made. Twilio undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
Use of Non-GAAP Financial Measures
To provide investors and others with additional information regarding Twilio’s results, the following non-GAAP financial measures are disclosed:
Non-GAAP Gross Profit and Non-GAAP Gross Margin. For the periods presented, Twilio defines non-GAAP gross profit and non-GAAP gross margin as GAAP gross profit and GAAP gross margin, respectively, adjusted to exclude, as applicable, certain expenses as presented in the table below.
Non-GAAP Operating Expenses. For the periods presented, Twilio defines non-GAAP operating expenses (including categories of operating expenses) as GAAP operating expenses (and categories of operating expenses) adjusted to exclude, as applicable, certain expenses as presented in the table below.
Non-GAAP Income from Operations and Non-GAAP Operating Margin. For the periods presented, Twilio defines non-GAAP income from operations and non-GAAP operating margin as GAAP loss from operations and GAAP operating margin, respectively, adjusted to exclude, as applicable, certain expenses as presented in the table below.
Non-GAAP Net Income Attributable to Common Stockholders and Non-GAAP Net Income Per Share Attributable to Common Stockholders, Basic and Diluted. For the periods presented, Twilio defines non-GAAP net income attributable to common stockholders and non-GAAP net income per share attributable to common stockholders, basic and diluted, as GAAP net loss attributable to common stockholders and GAAP net loss per share attributable to common stockholders, basic and diluted, respectively, adjusted to exclude, as applicable, certain expenses presented in the table below.
Twilio’s management uses the foregoing non-GAAP financial information, collectively, to evaluate its ongoing operations and for internal planning and forecasting purposes. Twilio’s management believes that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance, facilitates period-to-period comparisons of results of operations, and assists in comparisons with other companies, many of which use similar non-GAAP financial information to supplement their GAAP results. Non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from similarly-titled non-GAAP measures used by other companies. Whenever Twilio uses a non-GAAP financial measure, a reconciliation is provided to the most closely applicable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.
With respect to Twilio’s guidance as provided under “Outlook” above, Twilio has not reconciled its expectations as to non-GAAP income from operations to GAAP loss from operations or non-GAAP net income per share to GAAP net loss per share because stock-based compensation expense cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.
Operating Metrics
Twilio reviews a number of operating metrics to evaluate its business, measure performance, identify trends, formulate business plans, and make strategic decisions. These include the number of Active Customer Accounts and Dollar-Based Net Expansion Rate.
Number of Active Customer Accounts. Twilio believes that the number of Active Customer Accounts is an important indicator of the growth of its business, the market acceptance of its platform and future revenue trends. Twilio defines an Active Customer Account at the end of any period as an individual account, as identified by a unique account identifier, for which Twilio has recognized at least $5 of revenue in the last month of the period. Twilio believes that use of its platform by customers at or above the $5 per month threshold is a stronger indicator of potential future engagement than trial usage of its platform or usage at levels below $5 per month. A single organization may constitute multiple unique Active Customer Accounts if it has multiple account identifiers, each of which is treated as a separate Active Customer Account. Effective December 31, 2019, we round down the number of Active Customer Accounts to the nearest thousand.
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Dollar-Based Net Expansion Rate. Twilio’s ability to drive growth and generate incremental revenue depends, in part, on the Company’s ability to maintain and grow its relationships with existing Active Customer Accounts and to increase their use of the platform. An important way in which Twilio has historically tracked performance in this area is by measuring the Dollar-Based Net Expansion Rate for Active Customer Accounts. Twilio’s Dollar-Based Net Expansion Rate increases when such Active Customer Accounts increase their usage of a product, extend their usage of a product to new applications or adopt a new product. Twilio’s Dollar-Based Net Expansion Rate decreases when such Active Customer Accounts cease or reduce their usage of a product or when the Company lowers usage prices on a product. As our customers grow their businesses and extend the use of our platform, they sometimes create multiple customer accounts with us for operational or other reasons. As such, when we identify a significant customer organization (defined as a single customer organization generating more than 1% of revenue in a quarterly reporting period) that has created a new Active Customer Account, this new Active Customer Account is tied to, and revenue from this new Active Customer Account is included with, the original Active Customer Account for the purposes of calculating this metric. Twilio believes that measuring Dollar-Based Net Expansion Rate provides a more meaningful indication of the performance of the Company’s efforts to increase revenue from existing customers.
For historical periods through December 31, 2019, Twilio’s Dollar-Based Net Expansion Rate compared the revenue from Active Customer Accounts, other than large Active Customer Accounts that have never entered into 12 month minimum revenue commitment contracts with the Company, in a quarter to the same quarter in the prior year. For reporting periods starting with the three months ended March 31, 2020, Twilio's Dollar-Based Net Expansion Rate compares the total revenue from all Active Customer Accounts in a quarter to the same quarter in the prior year. To calculate the Dollar-Based Net Expansion Rate, the Company first identifies the cohort of Active Customer Accounts that were Active Customer Accounts in the same quarter of the prior year. The Dollar-Based Net Expansion Rate is the quotient obtained by dividing the revenue generated from that cohort in a quarter, by the revenue generated from that same cohort in the corresponding quarter in the prior year. When Twilio calculates Dollar-Based Net Expansion Rate for periods longer than one quarter, it uses the average of the applicable quarterly Dollar-Based Net Expansion Rates for each of the quarters in such period. As a result of the change in calculation of Dollar-Based Net Expansion Rate, unless specifically identified as being calculated based on total revenue, any Dollar-Based Net Expansion Rates disclosed by our Company in SEC filings, press releases and presentations prior to the date of our press release for the three months ended March 31, 2020, will not be directly comparable to our Dollar-Based Net Expansion Rates going forward.

Source: Twilio Inc.
4



TWILIO INC.
Condensed Consolidated Statements of Operations  
(In thousands, except share and per share amounts)
(Unaudited)

Three Months Ended
June 30,
20202019
Revenue$400,849  $275,039  
Cost of revenue191,718  125,024  
Gross profit209,131  150,015  
Operating expenses:
Research and development120,701  98,783  
Sales and marketing129,823  90,421  
General and administrative61,251  54,543  
Total operating expenses311,775  243,747  
Loss from operations(102,644) (93,732) 
Other income (expenses), net3,015  (880) 
Loss before (provision) benefit for income taxes(99,629) (94,612) 
(Provision) benefit for income taxes(294) 2,033  
Net loss attributable to common stockholders$(99,923) $(92,579) 
Net loss per share attributable to common stockholders, basic and diluted$(0.71) $(0.72) 
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted141,618,541  129,310,641  



5


TWILIO INC.
Condensed Consolidated Balance Sheets    
(In thousands)
(Unaudited)
As ofAs of
June 30,December 31,
20202019
ASSETS
Current assets:
Cash and cash equivalents$475,700  $253,660  
Short-term marketable securities1,427,619  1,599,033  
Accounts receivable, net194,563  154,067  
Prepaid expenses and other current assets62,800  54,571  
Total current assets2,160,682  2,061,331  
Restricted cash—  75  
Property and equipment, net161,413  141,256  
Operating right-of-use asset196,647  156,741  
Intangible assets, net424,739  460,849  
Goodwill2,291,616  2,296,784  
Other long-term assets55,472  33,480  
Total assets$5,290,569  $5,150,516  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$27,531  $39,099  
Accrued expenses and other current liabilities197,303  147,681  
Deferred revenue and customer deposits29,111  26,362  
Operating lease liability, current35,287  27,156  
Finance lease liability, current7,134  6,924  
Total current liabilities296,366  247,222  
Operating lease liability, noncurrent172,408  139,200  
Finance lease liability, noncurrent10,116  8,746  
Convertible senior notes, net470,545  458,190  
Other long-term liabilities19,544  17,747  
Total liabilities968,979  871,105  
Commitments and contingencies
Stockholders’ equity:
Preferred stock—  —  
Common stock142  138  
Additional paid-in capital5,181,368  4,952,999  
Accumulated other comprehensive income13,606  5,086  
Accumulated deficit(873,526) (678,812) 
Total stockholders’ equity4,321,590  4,279,411  
Total liabilities and stockholders’ equity$5,290,569  $5,150,516  

6


TWILIO INC.
Condensed Consolidated Statements of Cash Flows 
(In thousands)
(Unaudited)
Six Months Ended
June 30,
20202019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss$(194,714) $(129,082) 
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization64,772  49,610  
Non-cash reduction to the right-of-use asset17,804  10,707  
Amortization of debt discount and issuance costs12,356  11,682  
Stock-based compensation148,412  129,064  
Tax benefit related to release of valuation allowance(357) (53,502) 
Allowance for credit losses7,115  697  
Value of donated common stock6,673  —  
Other adjustments6,857  (1,286) 
Changes in operating assets and liabilities:
Accounts receivable(47,766) (22,523) 
Prepaid expenses and other current assets(12,001) (15,688) 
Other long-term assets(19,774) (5,969) 
Accounts payable(11,523) 8,306  
Accrued expenses and other current liabilities47,435  13,976  
Deferred revenue and customer deposits2,994  1,927  
Operating lease liability(16,340) (9,367) 
Long-term liabilities1,968  (2,371) 
Net cash provided by (used in) operating activities13,911  (13,819) 
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions, net of cash acquired, and other related payments(2,725) 146,957  
Purchases of marketable securities and other investments(443,816) (1,377,072) 
Proceeds from sales and maturities of marketable securities621,754  286,653  
Capitalized software development costs(17,651) (10,520) 
Purchases of long-lived assets(12,797) (7,882) 
Net cash provided by (used in) investing activities144,765  (961,864) 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from a public offering, net of underwriting discount—  980,000  
Payments of costs related to public offerings—  (347) 
Principal payments on finance leases and notes payable(3,829) (3,460) 
Proceeds from exercises of stock options and shares issued under ESPP69,936  33,509  
Value of equity awards withheld for tax liabilities(2,818) (2,580) 
Net cash provided by financing activities63,289  1,007,122  
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH221,965  31,439  
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period253,735  505,334  
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period$475,700  $536,773  
7


TWILIO INC.
Reconciliation to Non-GAAP Financial Measures  
(In thousands, except shares, per share amounts and percentages)
(Unaudited)
Three Months Ended
June 30,
20202019
Gross profit$209,131  $150,015  
Non-GAAP adjustments:
Stock-based compensation2,143  1,623  
Amortization of acquired intangibles12,695  11,857  
Payroll taxes related to stock-based compensation—  58  
Non-GAAP gross profit$223,969  $163,553  
Non-GAAP gross margin56 %59 %

Research and development$120,701  $98,783  
Non-GAAP adjustments:
Stock-based compensation(39,841) (33,701) 
Payroll taxes related to stock-based compensation(2,983) (2,186) 
Non-GAAP research and development$77,877  $62,896  
Non-GAAP research and development as a % of revenue19 %23 %
Sales and marketing$129,823  $90,421  
Non-GAAP adjustments:
Stock-based compensation(23,086) (14,564) 
Amortization of acquired intangibles(7,889) (7,329) 
Payroll taxes related to stock-based compensation(2,957) (990) 
Non-GAAP sales and marketing$95,891  $67,538  
Non-GAAP sales and marketing as a % of revenue24 %25 %
General and administrative$61,251  $54,543  
Non-GAAP adjustments:
Stock-based compensation(14,317) (20,852) 
Amortization of acquired intangibles(11) (62) 
Acquisition-related expenses(21) (1,274) 
Charitable contributions(3,972) —  
Payroll taxes related to stock-based compensation(2,238) (746) 
Non-GAAP general and administrative$40,692  $31,609  
Non-GAAP general and administrative as a % of revenue10 %11 %

Loss from operations$(102,644) $(93,732) 
Non-GAAP adjustments:
Stock-based compensation79,387  70,740  
Amortization of acquired intangibles20,595  19,248  
Acquisition-related expenses21  1,274  
Charitable contributions3,972  —  
Payroll taxes related to stock-based compensation8,178  3,980  
Non-GAAP income from operations$9,509  $1,510  
Non-GAAP operating margin%%

8


TWILIO INC.
Reconciliation to Non-GAAP Financial Measures  
(In thousands, except shares, per share amounts and percentages)
(Unaudited)
Three Months Ended
June 30,
20202019
Net loss attributable to common stockholders$(99,923) $(92,579) 
Non-GAAP adjustments:
Stock-based compensation79,387  70,740  
Amortization of acquired intangibles20,595  19,248  
Acquisition-related expenses21  1,274  
Charitable contributions3,972  —  
Payroll taxes related to stock-based compensation8,178  3,980  
Amortization of debt discount and issuance costs6,178  5,841  
Income tax benefit related to acquisition(195) (63) 
Provision for income tax effects related to Non-GAAP adjustments **(4,187) (3,588) 
Non-GAAP net income attributable to common stockholders$14,026  $4,853  
Non-GAAP net income attributable to common stockholders as a % of revenue%%
Net loss per share attributable to common stockholders, basic and diluted*$(0.71) $(0.72) 
Non-GAAP adjustments:
Stock-based compensation0.52  0.49  
Amortization of acquired intangibles0.13  0.13  
Acquisition-related expenses—  0.01  
Charitable contributions0.03  —  
Payroll taxes related to stock-based compensation0.05  0.03  
Amortization of debt discount and issuance costs0.04  0.04  
Income tax benefit related to acquisition—  —  
Provision for income tax effects related to Non-GAAP adjustments **(0.03) (0.02) 
Dilutive securities0.06  0.07  
Non-GAAP net income per share attributable to common stockholders, diluted$0.09  $0.03  
GAAP weighted-average shares used to compute net loss per share attributable to common stockholders, basic141,618,541129,310,641
Effect of dilutive securities (stock options and restricted stock units)12,116,18914,349,437
Non-GAAP weighted-average shares used to compute Non-GAAP net income per share attributable to common stockholders, diluted153,734,730143,660,078


* Some columns may not add due to rounding

** Represents the tax effect of the non-GAAP adjustments based on the estimated annual effective tax rate of 25%
9


TWILIO INC.
Key Metrics 
(Unaudited)

Three Months Ended
Jun 30,
2018
Sep 30,
2018
Dec 31,
2018
Mar 31,
2019
Jun 30,
2019
Sep 30,
2019
Dec 31,
2019
Mar 31,
2020
Jun 30,
2020
Number of Active Customers (1)
(as of period end date)
57,35061,15364,286154,797161,869172,092179,000190,000200,000
Dollar-Based
Net Expansion Rate (2)
138 %147 %150 %142 %141 %132 %125 %143 %
(3)
132 %
Total Revenue$147,754  $168,895  $204,302  $233,139  $275,039  $295,066  $331,224  $364,868  $400,849  
Total Revenue Growth Rate,
Year over Year
54 %68 %77 %81 %86 %75 %62 %57 %46 %

(1) Effective December 31, 2019, we round down the number of active customer accounts to the nearest thousand. Commencing with the three month period ended March 31, 2019, Active Customer Accounts include the contribution from Twilio SendGrid customer accounts from February 1, 2019 (the date of the acquisition).

(2) As previously announced in our Annual Report on Form 10-K filed with the SEC on March 2, 2020, commencing with the three-month period ended March 31, 2020, we calculate our Dollar-Based Net Expansion Rate by comparing total revenue from a cohort of Active Customer Accounts in a period to the same period in the prior year (the "New DBNE Definition"). To facilitate comparison between the periods presented, Dollar-Based Net Expansion Rate as presented in the table above, has been calculated as if the New DBNE Definition had been in effect during that period. As a result of the New DBNE Definition, unless specifically identified as being calculated using total revenue, any Dollar-Based Net Expansion Rates disclosed by our Company in SEC filings, press releases and presentations prior to the date of our press release for the three months ended March 31, 2020, will not be directly comparable to our Dollar-Based Net Expansion Rates going forward. Commencing with the three month period ended March 31, 2020, Dollar-Based Net Expansion Rate includes the contribution from Twilio SendGrid from February 1, 2019 (the date of the acquisition).

(3) After adjusting for the extra month of revenue from Twilio SendGrid in January 2020, Dollar-Based Net Expansion Rate was 135%.


CONTACT:
Investor Contact:
Andrew Zilli
ir@Twilio.com

or

Media Contact:
Caitlin Epstein
press@Twilio.com

10
v3.20.2
Cover Page
Aug. 04, 2020
Entity Addresses [Line Items]  
Entity Address, Address Line One 101 Spear Street
Entity Address, Address Line Two First Floor
Entity Address, City or Town San Francisco
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94105
Document Type 8-K
Document Period End Date Aug. 04, 2020
Entity Registrant Name Twilio Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-37806
Entity Tax Identification Number 26-2574840
City Area Code 415
Local Phone Number 390-2337
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class A Common Stock, par value $0.001 per share
Trading Symbol TWLO
Security Exchange Name NYSE
Entity Emerging Growth Company false
v3.20.2
Cover Page Non-Printing
Aug. 04, 2020
Cover Page [Abstract]  
Entity Central Index Key 0001447669
Amendment Flag false