Twilio (TWLO) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $1.195 billion, up 11% year-over-year, with full-year revenue at $4.458 billion, representing 9% organic growth.

• Achieved first-ever GAAP operating profit in Q4 2024 with $14 million income; full-year GAAP operating loss narrowed to $54 million from $877 million in 2023.

• Non-GAAP income from operations was $197 million for Q4 and $714 million for the year, both increasing year-over-year.

• Free cash flow for Q4 was $93 million (7.8% margin); full-year free cash flow was $657 million (14.7% margin), both up significantly from 2023.

• Over 325,000 active customer accounts as of year-end, up from 305,000 a year ago.

Financial highlights

• Q4 non-GAAP income from operations was $197 million (16.5% margin); full-year non-GAAP income from operations was $714 million (16.0% margin).

• Communications business Q4 revenue was $1.121 billion, up 12% year-over-year; Segment revenue was $74 million, down 1% year-over-year.

• Non-GAAP gross margin was 52% in Q4 and 53% for the full year.

• Stock-based compensation as a percentage of revenue was 13% in Q4.

• Q4 dollar-based net expansion rate was 106%; full-year was 104%.

Outlook and guidance

• Q1 2025 revenue guidance: $1.13–$1.14 billion, 8–9% year-over-year growth.

• Full-year 2025 organic revenue growth guidance: 7–8%.

• Q1 non-GAAP income from operations expected at $180–$190 million; full-year 2025 at $825–$850 million.

• Free cash flow for 2025 expected in the range of $825–$850 million.

• Non-GAAP diluted EPS guidance for Q1 2025: $0.88–$0.93.