My Twilio Conference call notes

My Twilio Conference call notes (paraphrased for the most part)

Dollar-Based Net Expansion Rate of 137%, up from 131% a year ago and from 132% sequentially. It was 145% excluding Uber.

The top 10 customer accounts accounted for 17% of total revenue in Q2, down from 18% sequentially, and from 21% a year ago. (They are diversifying).

If you look at Base Revenue growth excluding Uber, that was in the mid 60% range, and that number has been in the low and mid 60% range over the last eight quarters, so as we scale this business we maintain consistently high revenue growth.

As far as contact centers, 90% of the world is still on-premise versus cloud, even though they want to be on cloud, and we will help them with Flex.

Well those products typically have very expensive footprints inside these companies, and so what we’re doing is we’re typically not ripping up the whole thing day one, we’re taking out piece by piece and I think honestly, for some of these companies, it’s going to take them years to honestly rip the whole thing out. So, I think that’s actually a good opportunity for us over time. I think that that means there’s a runway for us for many, many years to be replacing old legacy technology. I think there is going to be no shortage of opportunity for us to do that for years to come.

We’re still finalizing the pricing for Flex as we work with the customers; the way we’ve looked at it, we’re targeting some of the most demanding contact centers that are out there, some of the largest with the most customer issue requirements of the contact center market that are out there, and so as we work with customers we’re not trying to be the lowest cost transaction out there, we’re trying to be a very sophisticated solutions for some of the most demanding customers that are out there.

The conference call was very, very, very positive, as I saw it. By the way, almost every month I was saying that I was trimming something or other to add to my Twilio. I hope that some of you got on board too.
Saul

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Twilio just overtook Pivotal as my largest holding. We will see how long that lasts when Pivotal reports.

I think the market is greatly underestimating the growth potential here.

I believe Flex will eventually become their largest product by revenue. That market is begging for a better solution. Flex is it (I think).

Their new Partner Program was a hidden gem of the quarter. This will give them access to a lot more customers and let Twilio focus on what it does best. Building great products.

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Thanks Saul for the write up. This thread pushed me over the edge to start my TWLO position, and likely PVTL as well.

bjurasz
3-year SA member, branching out into high-growth

Great great quarter! In addition to the Flex’s massive potential market, management also seemed quite giddy over the prospects of Twilio Wireless as well! (connecting to the IoT). Another segment to keep an eye on.

They were also somewhat coy about how many accounts were using Flex (still in beta), but mentioned they were over subscribed quickly, and that nearly all were enterprise accounts (over 1,000 employees).

Good stuff!

Matt

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