The News: Twilio reported Q1 2022 revenue of $875.4 million, up 48 percent from the same quarter one year ago, while also reporting a net loss of $221.6 million as the customer engagement platform vendor continues to work toward profitability. Read the full Press Release from Twilio.
Twilio Q1 2022 Revenue Jumps 48% to $875.4M as the Customer Engagement Platform Vendor Also Grows Active Customer Accounts to 268K, Up 14% from 2021
Analyst Take: Twilio is at an interesting place. The customer engagement platform vendor continues to post double-digit top line revenue growth even as it works to be profitable in 2022. But the company has a strong product mix and a growing number of active customer accounts, so I believe there are positive signs on the horizon.
Here are Twilio’s Q1 2022 results by the numbers:
- Q1 revenue of $875.4 million, up 48 percent from $590 million in the same quarter one year ago. That revenue figure handily beat average analyst estimates of $863.6 million, according to Yahoo Finance.
- Q1 net loss of $222 million, up 7.3 percent from a $206.5 million loss in the quarter one year ago.
- Q1 non-GAAP net income per diluted share of $0.00 per share, compared to a non-GAAP net income per diluted share of $0.05 one year ago.
Executive Leadership Changes Unveiled
Twilio also announced the resignation of Marc Boroditsky, who had served as the company’s chief revenue officer, and the appointment of Elena Donio as its new president of revenue. Donio takes the new post after resigning from Twilio’s Board of Directors. Formerly the CEO of Axiom, Donio spent most of her career at Concur in roles spanning product, go-to-market, general management, and as president of SAP Concur, where she oversaw growth and profitability for the entire business. That add should bode well for Twilio.
Twilio was founded in 2008 but has not yet been profitable. That said, this is a company that appears to be continuing its fight to reach that goal, narrowing its losses to barely breakeven this quarter. In a conference call with analysts back in February, Twilio COO Khozema Shipchandler said he expects that 2022 will be the last year for the company to report a non-GAAP operating loss. If that proceeds as expected, that would be a significant step for the customer engagement platform vendor, its future, and its customers.
Twilio’s customer engagement platform products are designed to help enterprises provide real-time, personalized, and customized online experiences to their end-user customers, providing enterprises with tools to better engage with buyers, and assist with their efforts to close on sales and services.
In good news, in its Q1 2022 results, Twilio reported that it now has 268,000 active customer accounts, a 14 percent increase from one year ago when it listed 235,000 active customers. The continued growth in new customers is encouraging and will play a critical role in Twilio moving from growth mode to profit mode — which is increasingly important given the current market sentiment.
Twilio is clearly is a company to watch in the fiercely-competitive customer engagement platform space as the post-COVID-19 global economy continues to morph and head toward a new sense of normal, with all its challenges. Getting customers to engage with enterprises at higher rates is a huge benefit for companies of all kinds, which is Twilio’s sweet spot.
With its incredibly strong developer community and large recurring customer base, there is a lot to feel positive about for Twilio. We believe that Twilio is well positioned to navigate its path and the current more challenging economic conditions that lay ahead of it — especially as enterprise customers look for efficient ways to reach customers effectively using data and automation.
Disclosure: Futurum Research is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum Research as a whole.