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Twilio Revenue Hits $943M in Q2 2022, Up 41% From 2021
by Daniel Newman and Todd R. Weiss | August 8, 2022

The News: Twilio revenue jumped 41 percent to $943.4 million in the second quarter of 2022, up from $668.9 million in 2021, as the customer engagement software platform vendor reported its Q2 2022 earnings August 4. Read the full Press Release on the Twilio website.

Twilio Revenue Hits $943M in Q2 2022, Up 41% From 2021

Analyst Take: Twilio’s revenue of $943.4 million for Q2 2022, which increased by 41 percent from a year ago, is a positive sign for the customer engagement software platform vendor, despite the continuing macroeconomic conditions that are adversely affecting many tech and consumer markets around the world. Almost $1 billion in revenue is not something to ignore.

Here are the Twilio Q2 2022 earnings by the numbers:

  • Q2 2022 revenue of $943.4 million, up 41 percent from $668.9 million one year ago. The revenue figure handily beat analyst consensus estimates of $919.4 million for the quarter from Yahoo Finance.
  • Q2 2022 non-GAAP loss from operations of $7.3 million, up 74 percent from a loss of $4.2 million one year ago.
  • Q2 2022 non-GAAP net loss per basic share of $0.11, unchanged from one year ago. The loss per share beat analyst consensus estimates from Yahoo Finance, which expected a loss of $0.20 per share.

It was a mixed quarter for Twilio, which saw dramatically increased revenue while losses continue, with the company remaining focused on finding a path to profitability in the near term in a challenging marketplace. Twilio is not unique in its position today, as a wide range of tech companies missed analyst estimates and are displaying more mixed results lately—a byproduct of markets normalizing following the wild demand pull forward that saw many technology, software, and cloud plays see outsized growth in 2020 and 2021.

Like other companies, Twilio’s revenue and other earnings results are being affected by macroeconomic issues including inflation, as well as by lingering effects from the Covid-19 pandemic, Russia’s war in Ukraine, ongoing supply chain issues, and other complications around the world.

Despite these growing pains, we believe Twilio is a company to watch in the fiercely-competitive CPaaS, messaging, and 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 and its target for growing its business and reaching profitability.

Twilio’s portfolio continues to be a standout as the company is well positioned to handle the complex data landscape and help companies meet more complex privacy requirements while still seeking to drive highly personalized interactions. With Twilio’s customer engagement platform products are compelling and are designed to help enterprises provide real-time, personalized, and customized online experiences for their end-user customers. These important and useful tools give enterprises critical capabilities that let them better engage with buyers and assist with their efforts to close on sales and services.

Also reported in the Twilio revenue and earnings announcement is that the company now has more than 275,000 active customer accounts, up 14 percent from 240,000 accounts one year ago. This growth in new customers continues from the prior quarter and will play a critical role in Twilio moving from growth mode to profit mode — which is increasingly important given the ongoing market sentiment.

Twilio Outlook for Q3 2022

As part of its Q2 earnings report, Twilio also provided guidance for the third quarter of 2022, ending September 30, 2022.

The company said it expects Q3 revenue between $965 million to $975 million, with YoY growth between 30 percent to 32 percent. The company expects a non-GAAP loss from operations between $70 million to $60 million for Q3, as well as a non-GAAP loss per share of $0.43 to $0.37 per share.

Twilio, which has not been profitable since it was founded in 2008, is taking some time to reach critical success for sure, but its strengths are readily apparent as well. Twilio has an incredibly strong developer community and a continuously growing recurring customer base, so there is a lot to feel positive about for the company. We believe that Twilio remains 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.

It will be interesting to watch Twilio through the rest of 2022 and into 2023 as it continues to fight for profitability and expand its markets and products lines with critical customer engagement tools that deliver more personalized digital interactions to its customers.

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.

Other insights from Futurum Research:

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 

Twilio Sees Revenue Accelerate in Q4, Edges Closer to Profitability

Twilio Launches Twilio Engage, First-of-its-Kind Growth Automation Platform

Image Credit: Bloomberg

About the Authors

Daniel Newman is the Principal Analyst of Futurum Research and the CEO of Broadsuite Media Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise. Read Full Bio

Todd is an experienced Analyst with over 21 years of experience as a technology journalist in a wide variety of tech focused areas.