TWLO Financials - 2019Q2 Update

Investment Analysis Clubs Saul’s Investing Discussions
1 

Revenue (millions USD)						
	Q1	Q2	Q3	Q4	Year	YOY
2015					166,919	
2016					277,335	66.15%
2017	87,372	95,870	100,542	115,236	399,020	43.88%
2018	129,116	147,754	168,895	204,302	650,067	62.92%
2019	233,139	275,039			
YOY	80.57%	86.15%				
						

Adj Gross Proft (millions USD)						
	Q1	Q2	Q3	Q4	Year	YOY
2015					92,465	
2016					156,815	69.59%
2017	51,221	54,861	53,718	61,619	221,419	41.20%
2018	70,954	81,205	93,544	110,305	356,008	60.78%
2019	136,319	163,553			
YOY	92.12%	101.41%				
						

Gross margin percent (Non-GAAP)						
	Q1	Q2	Q3	Q4	Year	
2015					55.40%	
2016					56.54%	
2017	58.62%	57.22%	53.43%	53.47%	55.49%	
2018	54.95%	54.96%	55.39%	53.99%	54.76%	
2019	58.47%	59.47%	
						
						
Customers
	Q1	Q2	Q3	Q4	YOY	
2016	28,648	30,780	34,457	36,606		
2017	40,696	43,431	46,489	48,979	33.80%	
2018	53,985	57,350	61,153	64,286	31.25%	
2019	154,797	161,869				
						
						
Dollar-based net expansion rate
	Q1	Q2	Q3	Q4		
2017	141%	131%	122%	118%		
2018	132%	137%	145%	147%		
2019	146%	140%				
						
						
Employees
	Q1	Q2	Q3	Q4		
2019	2,114	2,369				
						
						
Income from Operations (non-GAAP)
	Q1	Q2	Q3	Q4		
2018	-4,693	2,210				
2019	3,363	1,510				
						
						
Net Income per share (non-GAAP)	Q1	Q2	Q3	Q4		
2018	-0.04	0.03				
2019	0.05	0.03

Issues?
GAAP Loss from operations


2019Q2	2018Q2
-93,732	-21,958

Stock-based compensation
2019Q2	2018Q2
70,740	21,006

Amortization of acquired intangibles
2019Q2	2018Q2
19,248	1,351

🆁🅶🅱
If all my days were hills to climb and circles without reason
If all I was, was passing time, my life was just a season

24 Likes
2

Yes. I see the same issue. So Amortization of Acquired Intangibles most likely will be a one time charge. How about SBC? The jump of SBC from $21M to $70M…Did anyone hear from CC if that’s just one time payment to Sendgrid people or this is going to be an ongoing expense?

3

see the same issue. So Amortization of Acquired Intangibles most likely will be a one time charge. How about SBC? The jump of SBC from $21M to $70M…Did anyone hear from CC if that’s just one time payment to Sendgrid people or this is going to be an ongoing expense?

So far, there has been no discussion on SBC and not sure that I expect any as I currently listen to the Q&A session. However, the question one has to ask themselves is whether it matters. It is showing up in dilution, but not hurting the company.

The issues RGB mentioned in his post are GAAP issues. Non-GAAP is holding steady as the company looks to remain relatively break even on that basis.

Twilio appears to be growing quite well. Organic growth was 56% and SendGrid grew about 28% with revenues around $46M.

I think there are bigger things to focus on and there are a couple of items in the call that I don’t think were handled very well by management, namely responses to the expansion rate and robo calls. But those may end up being immaterial and I could be looking into their responses too closely. I wasn’t happy with Lawson’s nonchalance regarding Robo calls.

That said, the company has what looks to be about $1.8B in cash with $440M in debt (convertible notes). They are growing over 50% at a revenue run rate of $1B. Of course, gross margins are less than other companies we follow, but they have increased slightly with SendGrid and are expected to be in the mid to high 50s range going forward (though upcoming pass throughs may lower it slightly).

A.J.

15 Likes