Twilio Announces First Quarter 2019 Results

▤ Summary

SAN FRANCISCO--( BUSINESS WIRE )--Twilio (NYSE: TWLO), the leading cloud communications platform, today reported financial results for its first quarter ended March 31, 2019. 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. By making communications a part of every software developers 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. 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. 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 EndedMarch 31,20192018Gross 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 EndedMarch 31,20192018Net 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

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