Twilio Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showcasing significant revenue growth and improved profitability metrics compared to the previous fiscal period.
For Q3 2024, Twilio generated revenue of $1,133.6 million, a 10% increase from $1,033.7 million in Q3 2023. The revenue for the nine months ended September 30, 2024, also rose to $3,263.2 million, up from $3,078.0 million in the same period last year. The growth in revenue was primarily driven by the Twilio Communications segment, which reported a 10% increase in revenue to $1,060.3 million for Q3 2024, attributed to increased usage by existing customers and new customer accounts.
Gross profit for Q3 2024 was $578.6 million, reflecting a 12% increase from $516.3 million in Q3 2023. The gross margin improved to 51% from 50% year-over-year. Total operating expenses decreased to $583.5 million in Q3 2024 from $625.2 million in Q3 2023, leading to a loss from operations of $(4.9) million, a significant improvement from $(108.9) million in the prior year. The net loss attributable to common stockholders for Q3 2024 was $(9.7) million, compared to $(141.7) million in Q3 2023, resulting in a net loss per share of $(0.06) versus $(0.78) in the same quarter last year.
For the nine months ended September 30, 2024, the net loss was $(96.9) million, a substantial reduction from $(650.0) million in the same period of 2023. The company reported a non-GAAP income from operations of $182.4 million for Q3 2024, up from $136.4 million in Q3 2023, indicating improved operational efficiency.
Strategically, Twilio has undergone significant restructuring, reducing its workforce by approximately 35% since September 2022, which has contributed to lower operating expenses. The company has also implemented a share repurchase program, repurchasing $1.9 billion worth of shares in the nine months ended September 30, 2024, compared to $548.9 million in the same period of 2023.
Despite these positive developments, Twilio faces challenges, including macroeconomic uncertainties that may impact customer spending and usage-based revenue. The company is also navigating the wind-down of the software component of its Zipwhip business, which is expected to negatively affect revenue growth rates in Q4 2024.
As of September 30, 2024, Twilio's total current assets were $3,548.3 million, down from $4,904.0 million at the end of 2023, with cash and cash equivalents at $584.0 million. The accumulated deficit increased to $7.1 billion, reflecting ongoing investments in growth and operational improvements.
About TWILIO INC
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