Company Quick10K Filing
Twilio
Price99.93 EPS-2
Shares140 P/E-45
MCap13,962 P/FCF994
Net Debt-1,395 EBIT-362
TEV12,567 TEV/EBIT-35
TTM 2019-12-31, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-04
10-Q 2020-03-31 Filed 2020-05-07
10-K 2019-12-31 Filed 2020-03-02
10-Q 2019-09-30 Filed 2019-10-31
10-Q 2019-06-30 Filed 2019-08-02
10-Q 2019-03-31 Filed 2019-05-09
10-K 2018-12-31 Filed 2019-03-01
10-Q 2018-09-30 Filed 2018-11-08
10-Q 2018-06-30 Filed 2018-08-08
10-Q 2018-03-31 Filed 2018-05-10
10-K 2017-12-31 Filed 2018-03-01
10-Q 2017-09-30 Filed 2017-11-14
10-Q 2017-06-30 Filed 2017-08-11
10-Q 2017-03-31 Filed 2017-05-10
10-K 2016-12-31 Filed 2017-02-22
10-Q 2016-09-30 Filed 2016-11-07
10-Q 2016-06-30 Filed 2016-08-09
8-K 2020-08-06 Enter Agreement, Exhibits
8-K 2020-08-05 Other Events, Exhibits
8-K 2020-08-04 Earnings, Exhibits
8-K 2020-06-03
8-K 2020-05-06
8-K 2020-02-05
8-K 2019-10-30
8-K 2019-07-31
8-K 2019-06-19
8-K 2019-06-18
8-K 2019-05-30
8-K 2019-05-29
8-K 2019-04-30
8-K 2019-02-12
8-K 2019-02-01
8-K 2019-01-30
8-K 2018-11-20
8-K 2018-11-09
8-K 2018-11-06
8-K 2018-10-24
8-K 2018-10-15
8-K 2018-08-06
8-K 2018-06-14
8-K 2018-05-30
8-K 2018-05-14
8-K 2018-05-14
8-K 2018-05-08
8-K 2018-02-13

TWLO 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 5. Other Information
Item 6. Exhibits
EX-3.1 twlo-2020x0630xex31.htm
EX-31.1 twlo-2020x0630xex311.htm
EX-31.2 twlo-2020x0630ex312.htm
EX-32.1 twlo-2020x0630xex321.htm

Twilio Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
10.08.06.04.02.00.02014201620182021
Assets, Equity
0.40.30.20.10.0-0.12014201620182021
Rev, G Profit, Net Income
1.00.60.2-0.1-0.5-0.92014201620182021
Ops, Inv, Fin

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________________
FORM 10-Q
_____________________________________________
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 1934
For the quarterly period ended June 30, 2020
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 001-37806
twlo-20200630_g1.jpg
TWILIO INC.
(Exact name of registrant as specified in its charter)
_____________________________________________
Delaware26-2574840
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification Number)
101 Spear Street, First Floor
San Francisco, California 94105
(Address of principal executive offices) (Zip Code)
(415) 390-2337
(Registrant’s telephone number, including area code)

____________________________________________
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

As of July 27, 2020, 132,340,556 shares of the registrant’s Class A common stock and 10,793,764 shares of registrant’s Class B common stock were outstanding.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes   No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
  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.   
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No 




TWILIO INC.
Quarterly Report on Form 10-Q
For the Three Months Ended June 30, 2020
TABLE OF CONTENTS

Page

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Special Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), 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 Quarterly Report on Form 10-Q include, but are not limited to, statements about:
the impact of the COVID-19 pandemic on the global economy, our customers, employees and business;
our future financial performance, including our revenue, cost of revenue, gross margin and operating expenses, ability to generate positive cash flow and ability to achieve and sustain profitability;
anticipated technology trends, such as the use of and demand for cloud communications;
our ability to continue to build and maintain credibility with the global software developer community;
our ability to attract and retain customers to use our products;
the evolution of technology affecting our products and markets;
our ability to introduce new products and enhance existing products;
our ability to comply with modified or new industry standards, laws and regulations applying to our business, including the General Data Protection Regulation (“GDPR”), the California Consumer Privacy Act of 2018 and other privacy regulations that may be implemented in the future, and Signature-based Handling of Asserted Information Using toKENs ("SHAKEN") and Secure Telephone Identity Revisited ("STIR") standards (together, "SHAKEN/STIR") and other robocalling prevention and anti-spam standards and increased costs associated with such compliance;
our ability to optimize our network service provider coverage and connectivity;
our ability to manage changes in network service provider fees that we pay in connection with the delivery of communications on our platform;
our ability to work closely with email inbox service providers to maintain deliverability rates;
our ability to pass on our savings associated with our platform optimization efforts to our customers;
the impact and expected results from changes in our relationship with our larger customers;
our ability to attract and retain enterprises and international organizations as customers for our products;
our ability to form and expand partnerships with technology partners and consulting partners;
our ability to successfully enter into new markets and manage our international expansion;
the attraction and retention of qualified employees and key personnel;
our ability to effectively manage our growth and future expenses and maintain our corporate culture;
our ability to compete effectively in an intensely competitive market;
the sufficiency of our cash and cash equivalents to meet our liquidity needs;
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our anticipated investments in sales and marketing, research and development and additional systems and processes to support our growth;
our ability to maintain, protect and enhance our intellectual property;
our ability to successfully defend litigation brought against us;
our ability to service the interest on our convertible notes and repay such notes, to the extent required;
our customers' and other platform users' violation of our policies or other misuse of our platform;
our expectations about the impact of natural disasters and public health epidemics, such as the coronavirus on our business, results of operations, financial condition and on our customers, employees, vendors and partners; and
our ability to successfully integrate and realize the benefits of our past or future strategic acquisitions or investments.
We caution you that the foregoing list may not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q.
You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in Part II, Item 1A, “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.
The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.


3


PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
TWILIO INC.
Condensed Consolidated Balance Sheets
(Unaudited)
As ofAs of
June 30,December 31,
20202019
(In thousands)
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 (Note 11)
Stockholders’ equity:
Preferred stock    
Class A and Class B 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  
See accompanying notes to condensed consolidated financial statements.
4


TWILIO INC.
Condensed Consolidated Statements of Operations
(Unaudited)

Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
(In thousands, except share and per share amounts)
Revenue$400,849  $275,039  $765,717  $508,178  
Cost of revenue191,718  125,024  363,051  232,113  
Gross profit209,131  150,015  402,666  276,065  
Operating expenses:
Research and development120,701  98,783  235,040  176,638  
Sales and marketing129,823  90,421  246,545  162,028  
General and administrative61,251  54,543  116,421  118,719  
Total operating expenses311,775  243,747  598,006  457,385  
Loss from operations(102,644) (93,732) (195,340) (181,320) 
Other income (expenses), net3,015  (880) 1,897  (1,516) 
Loss before (provision) benefit for income taxes(99,629) (94,612) (193,443) (182,836) 
(Provision) benefit for income taxes(294) 2,033  (1,271) 53,754  
Net loss attributable to common stockholders$(99,923) $(92,579) $(194,714) $(129,082) 
Net loss per share attributable to common stockholders, basic and diluted$(0.71) $(0.72) $(1.39) $(1.05) 
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted141,618,541  129,310,641  140,512,351  122,985,716  
See accompanying notes to condensed consolidated financial statements.


5


TWILIO INC.
Condensed Consolidated Statements of Comprehensive Loss
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
(In thousands)
Net loss$(99,923) $(92,579) $(194,714) $(129,082) 
Other comprehensive income:
Net unrealized gain on marketable securities, net of tax17,895  980  8,520  2,021  
Comprehensive loss attributable to common stockholders$(82,028) $(91,599) $(186,194) $(127,061) 
See accompanying notes to condensed consolidated financial statements.
6


TWILIO INC.
Condensed Consolidated Statements of Stockholders' Equity
(Unaudited)

Common Stock
Class A
Common Stock
Class B
Additional Paid In CapitalAccumulated Other Comprehensive Income (Loss)Accumulated DeficitTotal Stockholders' Equity
SharesAmountSharesAmount
(In thousands, except share amounts)
Balance as of December 31, 2019126,882,172  $124  11,530,627  $14  $4,952,999  $5,086  $(678,812) $4,279,411  
Net loss—  —  —  —  —  —  (94,791) (94,791) 
Exercises of stock options243,029  —  426,001  —  8,231  —  —  8,231  
Vesting of restricted stock units849,763  1  23,107  —  —  —  —  1  
Value of equity awards withheld for tax liability(8,726) —  (4,692) —  (1,674) —  —  (1,674) 
Conversion of shares of Class B common stock into shares of Class A618,103  1  (618,103) (1) —  —  —    
Donated common stock22,102  —  —  —  2,701  —  —  2,701  
Net unrealized loss on available-for-sale securities—  —  —  —  —  (9,375) —  (9,375) 
Stock-based compensation—  —  —  —  72,021  —  —  72,021  
Balance as of March 31, 2020128,606,443  $126  11,356,940  $13  $5,034,278  $(4,289) $(773,603) $4,256,525  
Net loss—  —  —  —  —  —  (99,923) (99,923) 
Exercises of stock options1,590,891  2  459,010  —  45,230  —  —  45,232  
Vesting of restricted stock units807,270  1  4,212  —  —  —  —  1  
Value of equity awards withheld for tax liability(6,018) —  —  —  (1,144) —  —  (1,144) 
Conversion of shares of Class B common stock into shares of Class A983,005  1  (983,005) (1) —  —  —    
Shares issued under ESPP190,642  —  —  —  16,473  —  —  16,473  
Donated common stock22,102  —  —  —  3,972  —  —  3,972  
Net unrealized gain on available-for-sale securities—  —  —  —  —  17,895  —  17,895  
Stock-based compensation—  —  —  —  82,559  —  —  82,559  
Balance as of June 30, 2020132,194,335  $130  10,837,157  $12  $5,181,368  $13,606  $(873,526) $4,321,590  

See accompanying notes to condensed consolidated financial statements.















7


TWILIO INC.
Condensed Consolidated Statements of Stockholders' Equity, continued
(Unaudited)

Common Stock
Class A
Common Stock
Class B
Additional Paid In CapitalAccumulated Other Comprehensive IncomeAccumulated DeficitTotal Stockholders' Equity
SharesAmountSharesAmount
(In thousands, except share amounts)
Balance as of December 31, 201880,769,763  $80  19,310,465  $20  $808,527  $1,282  $(371,674) $438,235  
Net loss—  —  —  —  —  —  (36,503) (36,503) 
Exercises of stock options748,679  1  1,023,984  1  15,326  —  —  15,328  
Vesting of early exercised stock options—  —  —  —  9  —  —  9  
Vesting of restricted stock units641,406  —  39,360  —  —  —  —    
Value of equity awards withheld for tax liability(5,860) —  (4,431) —  (1,062) —  —  (1,062) 
Conversion of shares of Class B common stock into shares of Class A4,339,519  4  (4,339,519) (4)   —  —    
Shares issued in acquisition23,555,081  24  —  —  2,658,874  —  —  2,658,898  
Equity awards assumed in acquisition—  —  —  —  191,620  —  —  191,620  
Net unrealized gain on available-for-sale securities—  —  —  —  —  1,041  —  1,041  
Stock-based compensation—  —  —  —  59,947  —  —  59,947  
Balance as of March 31, 2019110,048,588  $109  16,029,859  $17  $3,733,241  $2,323  $(408,177) $3,327,513  
Net loss—  —  —  —  —  —  (92,579) (92,579) 
Issuance of common stock in connection with a public offering, net of underwriter discounts8,064,515  8  —  —  979,992  —  —  980,000  
Costs related to the public offering—  —  —  —  (953) —  —  (953) 
Exercises of stock options313,924  —  503,797  1  9,926  —  —  9,927  
Vesting of restricted stock units675,028  1  29,576  —    —  —  1  
Value of equity awards withheld for tax liability(5,934) —  (5,888) —  (1,518) —  —  (1,518) 
Conversion of shares of Class B common stock into shares of Class A2,172,598  2  (2,172,598) (2) —  —  —    
Shares issued under ESPP108,895  —  —  —  8,254  —  —  8,254  
Equity awards assumed in acquisition (measurement period adjustment)—  —  —  —  (7,126) —  —  (7,126) 
Net unrealized gain on available-for-sale securities—  —  —  —  —  980  —  980  
Stock-based compensation—  —  —  —  72,361  —  —  72,361