Twilio Inc. Canaccord Genuity's 46th Annual Growth Conference

We got 25 minutes. With that, I think we can get right into it.

Yeah. So, one thing that's always been true about Twilio that has remained true over the last couple of years is we are the largest communications platform in the world, and so we provide critical infrastructure to our customers to deliver communications, to harness data, to deliver better, more personalized, more contextual experiences for their customers. The journey that we've been on over the last couple of years is really doing a lot of hard work, to quite frankly, just build a better business. We accrued a lot of really interesting technology assets over the course of the last 10 years. We have this great communications platform. We have these incredible data assets. But what we hadn't done through COVID was do some of the hard work to integrate those assets.

Over the last two and a half years, we've not only really right-sized the cost structure of the business, the last 18 months have been a pretty heavy innovation cycle where we've natively integrated a lot of the data capabilities that we have in the business directly into the communication stack. The net result of that was a series of releases that we launched at our Signal conference in May that now give developers a natively integrated set of tools so they can very easily spin up communications workloads across any channel, messaging, voice, email, and also deliver real-time contextual intelligence in those communications.

Whatever your preferences have been that you've expressed to a business, whatever competitor you mention in the context of a live support call, whatever channels you prefer to interact with, maybe you're a text-only type of person, all of that data can be wielded in real time to drive more relevant, more contextual interactions between businesses and consumers. As a result of that, we've really refocused and doubled down our efforts as being an infrastructure provider. There was a time where Twilio was trying to serve two masters, provide really critical infrastructure on the communication side and also build applications. We've largely abandoned that second initiative to really focus on the infrastructural layer where we have real domain expertise, a real right to win, and we have 12 million developers who love the work that we do there.

The net result of that over the last couple of years is a business that's gone from roughly breakeven non-GAAP operating margins to flirting with 20% here in the last couple of quarters. We've re-accelerated the top line from the high single digits up into the high teens in this most recent quarter. Alongside that, gross profit dollar growth, which is a pretty critical measure for us, has also re-accelerated each of the last five quarters and actually reached 18% in the most recent quarter. So you now have a business that is innovating again, has a really strong financial foundation, and has accelerated the top line and is now providing infrastructure not just to large enterprises, but also now to AI natives as well. So, it's been a pretty transformative couple of years, but the business is on the best footing it's probably ever been on.

Yeah. It is again, the culmination of a lot of the work that we have put in over the last couple of years. We held an investor day in January of last year, and one of the things that we expressed there was we firmly believe that this company can be a double-digit grower with consistency over time. We had not really demonstrated that in the preceding six or eight quarters. I think what Q2 resembled was just the breadth of strength that we are seeing across the business. One of the bigger surprises, I think, in the first half of this year is the strength of our messaging business.

Yeah. It grew 18%, excluding the incremental carrier fees that we are digesting.

Voice has been a very consistent story for us over the last seven quarters. It has been accelerating since the end of 2024. That is getting some benefit from some of these AI natives that need us for communications infrastructure to actually deliver those agentic experiences for their enterprises that they serve. That is also coming on the back of not just volume, but also software add-ons that we deliver within that channel. Voice accelerated to north of 20% growth in Q2, which was really exciting. You look down the revenue stack, you have other add-ons like Verify, which is our multi-factor authentication platform. It accelerated to 30% plus revenue growth. As you look across the business, whether it is messaging, voice, software add-ons, even our support and services offerings continue to see huge attach.

It is just a business that is executing very well as we go to market. Our self-serve channel, which we have put a lot of investment into over the last couple of years, it accelerated to 30% plus growth. We are now serving more customers there than ever. They are being met with a much richer console experience, more AI native tooling to help them get up and running even faster. Q1 was probably the strongest balance of revenue growth and profitability that we have demonstrated as a company since we have gone public.

Yeah. I think first and foremost, we've likely been a share taker over not just the last quarter, but frankly, over probably the last couple of years. We've made a lot of investments in things that probably sound unsexy. Compliance, navigating a very complex regulatory environment, navigating a very fragmented carrier landscape. We have over 4,800 interconnects globally. But another area that we've placed heavy investment in is in deliverability and fraud mitigation. And those two things are pretty critical to be able to say to a customer, "Look, only the messages that you intend to send are going to be the ones that you actually send.