Twilio, Inc. (TWLO) Q4 2020 Earnings Call Transcript

Twilio, Inc.  (NYSE: TWLO) Q4 2020 earnings call dated Feb. 17, 2021

Corporate Participants:

Andrew Zilli — Vice President of Investor Relations and Treasurer

Jeff Lawson — Founder, Chief Executive Officer and Chairman

George Hu — Chief Operating Officer

Khozema Shipchandler — Chief Financial Officer

Peter Reinhardt — Chief Executive Officer, Twilio Segment

Analysts:

Derrick Wood — Cowen & Company — Analyst

Mark Murphy — J.P. Morgan — Analyst

Will Power — Baird — Analyst

Frederick Havemeyer — Macquarie Capital — Analyst

Meta Marshall — Morgan Stanley — Analyst

Michael Turrin — Wells Fargo Securities — Analyst

Matt Stotler — William Blair — Analyst

Parker Lane — Stifel — Analyst

Richard Valera — Needham & Company — Analyst

Ryan Koontz — Rosenblatt Securities — Analyst

Alex Kurtz — KeyBanc Capital Markets — Analyst

Patrick Walravens — JMP Securities — Analyst

Ittai Kidron — Oppenheimer — Analyst

Prepared Remarks:

Operator

Good afternoon and welcome to Twilio’s Q4 2020 Earnings Conference Call. My name is Jason and I will be your operator for today’s call. [Operator Instructions]

I will now turn the call over to Andrew Zilli, Vice President of Investor Relations and Treasury. Mr. Zilli, you may begin.

Andrew Zilli — Vice President of Investor Relations and Treasurer

Thanks. Good afternoon, everyone, and thank you for joining us for Twilio’s fourth quarter and full year 2020 earnings conference call. Our results press release, SEC filings and a replay of today’s call can be found on our IR website at investors.twilio.com.

Joining me virtually today are Jeff Lawson, Co-Founder and CEO; George Hu, COO; and Khozema Shipchandler, CFO. We also have Peter Reinhardt, CEO of Twilio Segment joining us for Q&A.

As a reminder, some of our commentary today will be in non-GAAP terms. Reconciliations between our GAAP and non-GAAP results and guidance can be found in our earnings press release. Additionally, some of our discussion and responses may contain forward-looking statements, which are subject to risks, uncertainties and assumptions. In particular, our expected business benefits and financial impacts from the Segment acquisition and our expectations around the impact of the COVID-19 pandemic on our business, results of operations and financial condition and none of our customers and partners is subject to change.

Should any of these risks materialize or should our assumptions prove to be incorrect, actual financial results could differ materially from our projections or those implied by these forward-looking statements. A description of these risks, uncertainties and assumptions and other factors that could affect our financial results are included in our SEC filings, including our most recent report on Form 10-K and subsequent reports on Form 10-Q. And our remarks during today’s discussion should be considered to incorporate this information by reference.

Forward-looking statements represent our beliefs and assumptions only as of the date such statements are made. We undertake no obligation to update any forward-looking statements made during this call to reflect events or circumstances after today or to reflect new information or the occurrence of unanticipated events, except as required by law.

With that, I’ll hand it over to you, Jeff.

Jeff Lawson — Founder, Chief Executive Officer and Chairman

Thanks, Zilli and thanks everybody for joining the call today. I want to begin today’s call by recognizing that it’s Black History Month here in the United States. Doing the work of overcoming systemic racism is the work of understanding Black history, not just the surface level history or the story of the civil rights movement, but understanding the deep history of oppression and racism that manifest today in less overt, less intentional ways, but is just as impactful on black lives today. Black history isn’t something of the past, it continues through today and there is an acknowledgment that we’re writing Black history and American history today. Twilio’s commitment to anti-racism is a commitment to write a better future. That’s how I’m contextualizing Black History Month in 2021, differently than I’ve ever thought of it in the past.

Now on to company earnings. Our fourth quarter continued the strength and momentum we saw throughout the year. Let me quickly touch on a few of the highlights for the full year. We delivered nearly $1.8 billion in total revenue, up 55% over last year; incredible growth at this scale. We acquired Segment combining the market-leading customer data platform with our leading communications platform. We ended the year with more than 221,000 active customers and more than 10 million developer accounts. And we hosted our first ever virtual SIGNAL with more than 32,000 registrations.