Twilio(NYSE) TWLO

Twilio Inc. helps companies talk to their customers digitally. Businesses use its software to send texts, emails, and calls. Its platform makes it easier for apps to reach users.

Tools for Digital Conversations

• Usage-based products: Communications tools like Messaging and Voice where fees depend on volume; accounts for 75% of revenue in the three months ended June 30, 2026.
• Subscription-based products: Software including Email and Segment for customer data management; accounts for 25% of revenue in the three months ended June 30, 2026.
• Developer APIs: Flexible application programming interfaces that let developers embed video and authentication features directly into their own applications.

Growing the Digital Platform

• Authorized a $2.0 billion share repurchase program in January 2025 to return capital to stockholders.
• Prioritized the integration of predictive and generative artificial intelligence (AI) across its communication and data products.
• Focused on expanding international presence and strengthening relationships with independent software vendors and resellers.

Connecting Through Data and AI

Twilio combines its communications channels with a customer data layer to help businesses personalize every digital interaction. This orchestration of data and AI allows companies to improve customer loyalty and increase total customer value through more relevant engagement.

Key Financial Performance Facts

• Revenue reached $1.5 billion in the three months ended June 30, 2026, up 22% year over year.
• The Dollar-Based Net Expansion Rate (DBNE), a metric tracking revenue growth from existing customers, hit 116% in the three months ended June 30, 2026.
• Net income was $1.1 billion in the three months ended June 30, 2026, largely due to a $944.1 million income tax benefit.
• Non-GAAP free cash flow was $352.6 million in the three months ended June 30, 2026, up from $263.5 million year over year.
• The company held $2.6 billion in cash and marketable securities as of June 30, 2026.

Bottom Line

Twilio has evolved from providing simple messaging tools to offering a comprehensive engagement platform powered by customer data and AI. Its transition toward automated business processes supports its focus on durable, profitable growth.