TWLO
$132.20
Twilio
($5.64)
(4.09%)
Earnings Details
1st Quarter March 2019
Tuesday, April 30, 2019 4:15:00 PM
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Summary

Twilio Misses

Twilio (TWLO) reported a 1st Quarter March 2019 loss of $0.14 per share on revenue of $233.1 million. The consensus earnings estimate was $0.01 per share on revenue of $223.4 million. The Earnings Whisper number was $0.02 per share. Revenue grew 80.6% on a year-over-year basis.

The company said it expects second quarter earnings of $0.02 to $0.03 per share on revenue of $262.0 million to $265.0 million. The current consensus estimate is earnings of $0.03 per share on revenue of $253.2 million for the quarter ending June 30, 2019. The company also said it now expects 2019 earnings of $0.11 to $0.13 per share on revenue of $1.102 billion to $1.111 billion. The company's previous guidance was earnings of $0.08 to $0.11 per share on revenue of $1.065 billion to $1.077 billion and the current consensus earnings estimate is $0.10 per share on revenue of $1.07 billion for the year ending December 31, 2019.

Results
Reported Earnings
($0.14)
Earnings Whisper
$0.02
Consensus Estimate
$0.01
Reported Revenue
$233.1 Mil
Revenue Estimate
$223.4 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Twilio Announces First Quarter 2019 Results

Q1 Total Revenue of $233.1 million, up 81% year-over-year

Q1 Base Revenue of $220.9 million, up 88% year-over-year

Q1 Dollar-Based Net Expansion Rate of 146%

SAN FRANCISCO--(BUSINESS WIRE)-- Twilio (NYSE: TWLO), the leading cloud communications platform, today reported financial results for its first quarter ended March 31, 2019.

“A growing number of customers around the world are rewarding us with their business as they utilize our platform to create better ways to engage with their customers,” said Jeff Lawson, Twilio’s Co-Founder and Chief Executive Officer. “In addition, the early customer reaction regarding the acquisition of SendGrid has validated our strategy of powering the future of customer engagement on one platform, and we look forward to building this future together on behalf of our customers.”

First Quarter 2019 Financial Highlights

  • Total revenue of $233.1 million for the first quarter of 2019, up 81% from the first quarter of 2018 and 14% sequentially from the fourth quarter of 2018. Total Revenue includes revenue from Twilio SendGrid starting on February 1, 2019 (the date of acquisition).
  • Base revenue of $220.9 million for the first quarter of 2019, up 88% from the first quarter of 2018 and 19% sequentially from the fourth quarter of 2018. Base Revenue includes revenue from Twilio SendGrid starting on February 1, 2019 (the date of acquisition).
  • GAAP loss from operations of $87.6 million for the first quarter of 2019, compared with GAAP loss from operations of $24.3 million for the first quarter of 2018. Non-GAAP income from operations of $3.4 million for the first quarter of 2019, compared with non-GAAP loss from operations of $4.7 million for the first quarter of 2018.
  • GAAP net loss per share attributable to common stockholders, basic and diluted, of $0.31 based on 116.6 million weighted average shares outstanding in the first quarter of 2019, compared with GAAP net loss per share attributable to common stockholders, basic and diluted, of $0.25 based on 94.7 million weighted average shares outstanding in the first quarter of 2018.
  • Non-GAAP net income per share attributable to common stockholders, diluted, of $0.05 based on 130.1 million non-GAAP weighted average shares outstanding in the first quarter of 2019, compared with non-GAAP net loss per share attributable to common stockholders, diluted, of $0.04 based on 94.7 million weighted average shares outstanding in the first quarter of 2018.

Key Metrics and Recent Business Highlights

  • 154,797 Active Customer Accounts as of March 31, 2019, compared to 53,985 Active Customer Accounts as of March 31, 2018. Active Customer Accounts in the current period include the contribution from Twilio SendGrid customer accounts.
  • Dollar-Based Net Expansion Rate was 146% for the first quarter of 2019, compared to 132% for the first quarter of 2018. Twilio SendGrid results do not impact the calculation of this metric in the current period.
  • 2,114 employees as of March 31, 2019.
  • Introduced new Expert Services offerings to provide customers with options for additional support, education, detailed data and analytics, and expert guidance to help optimize their email programs and drive business results.
  • Launched Twilio for Salesforce on the Salesforce AppExchange to allow organizations using Salesforce to easily send and receive SMS messages directly from their Salesforce CRM.
  • Added a new authentication method in the Twilio Authy two-factor authentication API that enables Transactional TOTP, or time-based one-time passcodes, in support of Payment Services Directive 2 (PSD2) requirements in Europe.
  • Announced support for Accelerated Mobile Pages (AMP) for email, a new technology being implemented by Google that enables a more dynamic and interactive experience for Gmail.

Outlook

Twilio is providing guidance for the second quarter ending June 30, 2019 and full year ending December 31, 2019 as follows (guidance includes outlook for SendGrid from February 1, 2019, the date of acquisition):

Quarter ending June 30, 2019:
Total Revenue (millions)   $ 262.0   to     $ 265.0
Base Revenue (millions) $ 252.0 to $ 254.0
Non-GAAP income from operations (millions) $ - to $ 1.0
Non-GAAP net income per share $ 0.02 to $ 0.03
Non-GAAP weighted average shares outstanding (millions) 140
Non-GAAP income tax rate 25 %
 
Full year ending December 31, 2019:
Total Revenue (millions) $ 1,102.0 to $ 1,111.0
Base Revenue (millions) $ 1,062.0 to $ 1,068.0
Non-GAAP income from operations (millions) $ 5.0 to $ 8.0
Non-GAAP net income per share $ 0.11 to $ 0.13
Non-GAAP weighted average shares outstanding (millions) 141
Non-GAAP income tax rate 25 %
 

Conference Call Information

Twilio will host a conference call today, April 30, 2019, to discuss first quarter financial results, as well as the second quarter and full year 2019 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 https://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 7757278. Following the completion of the call through 11:59 p.m. Eastern Time on May 7, 2019, a replay will be available by dialing (800) 585-8367 or +1 (416) 621-4642 (outside the U.S. and Canada) and entering passcode 7757278. 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.

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,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “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 June 30, 2019 and full year ending December 31, 2019, Twilio’s expectations regarding its products and solutions, and Twilio’s acquisition of SendGrid. 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; 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 our 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 limited operating history, which makes it difficult to evaluate its prospects and future operating results; Twilio’s ability to effectively manage its growth; Twilio’s ability to compete effectively in an intensely competitive market, and risks that the anticipated benefits of the acquisition of SendGrid may not be fully realized or may take longer to realize than expected.

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-K for the year ended December 31, 2018 filed on March 1, 2019. 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 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 gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations and operating margin, non-GAAP net income (loss) attributable to common stockholders, and non-GAAP net income (loss) per share attributable to common stockholders, basic and diluted.

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 stock-based compensation and amortization of acquired intangibles.

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, stock-based compensation, amortization of acquired intangibles, acquisition-related expenses, and payroll taxes related to stock-based compensation.

Non-GAAP Income (Loss) from Operations and Non-GAAP Operating Margin. For the periods presented, Twilio defines non-GAAP income (loss) from operations and non-GAAP operating margin as GAAP loss from operations and GAAP operating margin, respectively, adjusted to exclude stock-based compensation, amortization of acquired intangibles, acquisition-related expenses, and payroll taxes related to stock-based compensation.

Non-GAAP Net Income (Loss) Attributable to Common Stockholders and Non-GAAP Net Income (Loss) Per Share Attributable to Common Stockholders, Basic and Diluted. For the periods presented, Twilio defines non-GAAP net income (loss) attributable to common stockholders and non-GAAP net income (loss) 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 stock-based compensation, amortization of acquired intangibles, acquisition-related expenses, payroll taxes related to stock-based compensation, amortization of debt discount and issuance costs, income tax benefit related to acquisition, and provision for income tax effects related to Non-GAAP adjustments.

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, and should not be considered a substitute for financial information presented in accordance with GAAP, 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 directly comparable 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 (loss) from operations to GAAP loss from operations or non-GAAP net income (loss) 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, Base Revenue, 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.

Base Revenue. Twilio monitors Base Revenue as one of the more reliable indicators of future revenue trends. Base Revenue consists of all revenue other than revenue from large Active Customer Accounts that have never entered into 12-month minimum revenue commitment contracts with Twilio, which the Company refers to as Variable Customer Accounts. While almost all of Twilio’s customers exhibit some level of variability in the usage of its products, based on the experience of Twilio’s management, Twilio believes that Variable Customer Accounts are more likely to have significant fluctuations in usage of its products from period to period, and therefore that revenue from Variable Customer Accounts may also fluctuate significantly from period to period. This behavior is best evidenced by the decision of such customers not to enter into contracts with Twilio that contain minimum revenue commitments, even though they may spend significant amounts on the use of the Company’s products and they may be foregoing more favorable terms often available to customers that enter into committed contracts with Twilio. This variability adversely affects Twilio’s ability to rely upon revenue from Variable Customer Accounts when analyzing expected trends in future revenue.

For historical periods through March 31, 2016, Twilio defined a Variable Customer Account as an Active Customer Account that (i) had never signed a minimum revenue commitment contract with the Company for a term of at least 12 months and (ii) has met or exceeded 1% of the Company’s revenue in any quarter in the periods presented through March 31, 2016. To allow for consistent period-to-period comparisons, in the event a customer account qualified as a Variable Customer Account as of March 31, 2016, or a previously Variable Customer Account ceased to be an Active Customer Account as of such date, Twilio included such customer account as a Variable Customer Account in all periods presented. For reporting periods starting with the three months ended June 30, 2016, Twilio defines a Variable Customer Account as a customer account that (a) has been categorized as a Variable Customer Account in any prior quarter, as well as (b) any new customer account that (i) is with a customer that has never signed a minimum revenue commitment contract with Twilio for a term of at least 12 months and (ii) meets or exceeds 1% of the Company’s revenue in a quarter. Once a customer account is deemed to be a Variable Customer Account in any period, they remain a Variable Customer Account in subsequent periods unless they enter into a minimum revenue commitment contract with Twilio for a term of at least 12 months.

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 tracks its performance in this area is by measuring the Dollar-Based Net Expansion Rate for Active Customer Accounts, other than Variable 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, for reporting periods starting with the three months ended December 31, 2016, 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 on revenue generated from Active Customer Accounts, other than Variable Customer Accounts, provides a more meaningful indication of the performance of the Company’s efforts to increase revenue from existing customers.

Twilio’s Dollar-Based Net Expansion Rate compares the revenue from Active Customer Accounts, other than Variable 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, other than Variable 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.

Source: Twilio Inc.

TWILIO INC.    
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
    Three Months Ended
March 31,
2019 2018
Revenue $ 233,139 $ 129,116
Cost of revenue 107,089 59,582
Gross profit 126,050 69,534
Operating expenses:
Research and development 77,855 37,576
Sales and marketing 71,607 32,822
General and administrative 64,176 23,393
Total operating expenses 213,638 93,791
Loss from operations (87,588) (24,257)
Other income (expense), net (636) 665
Loss before provision for income taxes (88,224) (23,592)
Income taxes (provision) benefit 51,721 (137)
Net loss attributable to common stockholders $ (36,503) $ (23,729)
 
Net loss per share attributable to common stockholders, basic and diluted $ (0.31) $ (0.25)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 116,590,513 94,673,557
 

TWILIO INC.    
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
        As of As of
March 31, December 31,
Assets 2019 2018
Current assets:
Cash and cash equivalents $ 377,730 $ 487,215
Short-term marketable securities 541,167 261,128
Accounts receivable, net 105,149 97,712
Prepaid expenses and other current assets 39,081 26,893
Total current assets 1,063,127 872,948
Restricted cash 1,101 18,119
Property and equipment, net 105,158 63,534
Operating right of use asset 156,511 -
Intangible assets, net 503,947 27,558
Goodwill 2,277,220 38,165
Other long-term assets 13,009 8,386
Total assets $ 4,120,073 $ 1,028,710
 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 22,418 $ 18,495
Accrued expenses and other current liabilities 107,295 96,343
Deferred revenue and customer deposits 23,348 22,972
Operating lease liability, current 21,147 -
Financing lease liability, current 6,044 -
Note payable, current 2,087 -
Total current liabilities 182,339 137,810
Deferred tax liability, net 11,734 5,181
Operating lease liability, noncurrent 143,950 -
Financing lease liability, noncurrent 9,124 -
Note payable, noncurrent 2,773
Convertible senior notes, net 440,337 434,496
Other long-term liabilities 2,303 12,988
Total liabilities 792,560 590,475
Commitments and contingencies
Stockholders’ equity:
Common stock 126 100
Additional paid-in capital 3,733,241 808,527
Accumulated other comprehensive income 2,323 1,282
Accumulated deficit (408,177) (371,674)
Total stockholders’ equity 3,327,513 438,235
Total liabilities and stockholders’ equity $ 4,120,073 $ 1,028,710
 

TWILIO INC.    
Condensed Consolidated Statements of Cash Flow
(In thousands)
(Unaudited)
      Three Months Ended
March 31,
2019 2018
Operating Activities:
Net loss $ (36,503 ) $ (23,729 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization 21,248 5,631

Right of use asset amortization

4,854
Net amortization of investment premium and discount (1,359 ) 28
Amortization of debt discount and issuance costs 5,841 -
Stock-based compensation 58,324 17,540
Amortization of deferred commissions 670 -
Provision for doubtful accounts 11 375
Tax benefit related to acquisition (51,644 )
Write-off of internally developed software and intangible assets 245 182
Changes in assets and liabilities:
Accounts receivable (206 ) (14,612 )
Prepaid expenses and other current assets (9,479 ) 2,512
Other long-term assets (2,959 ) (1,169 )
Accounts payable 1,161 6,703
Accrued expenses and other current liabilities 4,348 22,789
Operating right-of-use liability (1,784 ) -
Deferred revenue and customer deposits 377 1,185
Other long-term liabilities (2,258 ) (499 )
Net cash provided by (used in) operating activities $ (9,113 ) $ 16,936  
 
Investing Activities:
Purchases of marketable securities $ (419,498 ) $ (42,693 )
Maturities of marketable securities 126,810 27,600
Proceeds from sale of marketable securities 13,708 -
Capitalized software development costs (5,351 ) (4,795 )
Purchases of property and equipment (2,653 ) (940 )
Purchases of intangible assets - (112 )
Acquisition, net of cash acquired 156,783   -  
Net cash used in investing activities $ (130,201 ) $ (20,940 )
 
Financing Activities:
Proceeds from exercises of stock options $ 15,328 $ 6,678
Payments of note payable (494 ) -
Payments on financing leases (961 ) -
Value of equity awards withheld for tax liabilities (1,062 ) (371 )
Net cash provided by financing activities $ 12,811   $ 6,307  
 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash - 148
   
Net increase (decrease) in cash, cash equivalents, and restricted cash (126,503 ) 2,451
Cash, cash equivalents, and restricted cash at beginning of period 505,334   120,788  
Cash, cash equivalents, and restricted cash at end of period $ 378,831   $ 123,239  
 

TWILIO INC.    
Reconciliation to Non-GAAP Financial Measures
(In thousands, except shares, per share amounts, and percentages)
(Unaudited)
Three Months Ended
March 31,
2019 2018
Gross profit $ 126,050 $ 69,534
Non-GAAP adjustments:
Stock-based compensation 1,809 222
Amortization of acquired intangibles 8,460 1,198
Non-GAAP gross profit $ 136,319 $ 70,954
 
Non-GAAP gross margin 58% 55%
 
Research and development $ 77,855 $ 37,576
Non-GAAP adjustments:
Stock-based compensation (25,339) (7,872)
Amortization of acquired intangibles - (22)
Payroll taxes related to stock-based compensation (3,136) (314)
Non-GAAP research and development $ 49,380 $ 29,368
 
Non-GAAP research and development as % of revenue 21% 23%
 
Sales and marketing $ 71,607 $ 32,822
Non-GAAP adjustments:
Stock-based compensation (11,749) (3,859)
Amortization of acquired intangibles (5,003) (220)
Payroll taxes related to stock-based compensation (1,425) (74)
Non-GAAP sales and marketing $ 53,430 $ 28,669
 
Non-GAAP sales and marketing as % of revenue 23% 22%
 
General and administrative $ 64,176 $ 23,393
Non-GAAP adjustments:
Stock-based compensation (19,427) (5,587)
Amortization of acquired intangibles (153) (20)
Acquisition-related expenses (12,543) -
Payroll taxes related to stock-based compensation (1,907) (176)
Non-GAAP general and administrative $ 30,146 $ 17,610
 
Non-GAAP general and administrative as % of revenue 13% 14%
 
Loss from operations $ (87,588) $ (24,257)
Non-GAAP adjustments:
Stock-based compensation 58,324 17,540
Amortization of acquired intangibles 13,616 1,460
Acquisition-related expenses 12,543 -
Payroll taxes related to stock-based compensation 6,468 564
Non-GAAP income (loss) from operations $ 3,363 $ (4,693)
 
Non-GAAP operating margin 1% (4%)
 

TWILIO INC.    
Reconciliation to Non-GAAP Financial Measures
(In thousands, except shares, per share amounts, and percentages)
(Unaudited)
Three Months Ended
March 31,
2019 2018
Net loss attributable to common stockholders $ (36,503 ) $ (23,729 )
Non-GAAP adjustments:
Stock-based compensation 58,324 17,540
Amortization of acquired intangibles 13,616 1,460
Acquisition-related expenses 12,543 -
Payroll taxes related to stock-based compensation 6,468 564
Amortization of debt discount and issuance costs 5,841 -
Income tax benefit related to acquisition (51,644 ) -
Provision for income tax effects related to Non-GAAP adjustments** (2,219 ) -  
Non-GAAP net income (loss) attributable to common stockholders $ 6,426   $ (4,165 )
 
Non-GAAP net income (loss) attributable to common stockholders as % of revenue 3 % (3 %)
 
 
Net loss per share attributable to common stockholders, basic* $ (0.31 ) $ (0.25 )
Non-GAAP adjustments:
Stock-based compensation 0.45 0.19
Amortization of acquired intangibles 0.10 0.02
Acquisition-related expenses 0.10 -
Payroll taxes related to stock-based compensation 0.05 0.01
Amortization of debt discount and issuance costs 0.04 -
Income tax benefit related to acquisition (0.40 ) -
Provision for income tax effects related to Non-GAAP adjustments** (0.02 ) -
Dilutive securities 0.03   -  
Non-GAAP net income (loss) per share attributable to common stockholders, diluted $ 0.05   $ (0.04 )
 
 

GAAP weighted-average shares used to compute net loss per share attributable to common stockholders, basic

116,590,513   94,673,557  
 
Effect of dilutive securities (stock options and restricted stock units) 13,492,268 -
 
Non-GAAP weighted-average shares used to compute Non-GAAP net income (loss) per share attributable to common stockholders, diluted 130,082,781   94,673,557  
 
 
* 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%
 

                 
TWILIO INC.
Key Metrics

(Unaudited)

Three Months Ended

March 31, June 30, Sept. 30, Dec. 31, March 31, June 30, Sept. 30, Dec. 31, March 31,
2017   2017   2017   2017  

2018

  2018   2018   2018   2019
 
Number of Active Customers (as of period end date) 40,696 43,431 46,489 48,979 53,985 57,350 61,153 64,286 154,797
Base Revenue (in thousands) $80,643 $87,583 $91,965 $105,299 $117,507 $135,004 $154,348 $186,158 $220,885
Base Revenue Growth Rate 62% 55% 43% 40% 46% 54% 68% 77% 88%
Dollar-Based Net Expansion Rate 141% 131% 122% 118% 132% 137% 145% 147% 146%

Investor Contact:
Greg Kleiner
ir@Twilio.com

or

Media Contact:
Caitlin Epstein
press@Twilio.com

Source: Twilio Inc.