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Twilio Reports Strong Q4 Earnings with Revenue Growth and Profitability

Twilio shines in Q4, achieving $1.195 billion revenue amidst significant innovations. The company marks its first-ever GAAP profitability, a notable transformation for investors.

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AI Rating:   7

Earnings Per Share (EPS): The text does not provide specific EPS information for Twilio. However, the focus on GAAP profitability indicates a positive trajectory in net income measures.

Revenue Growth: Twilio reported revenue of $1.195 billion in Q4 2024, which is an 11% increase year over year, showcasing two consecutive quarters of double-digit growth. This rise in revenue is significant as it demonstrates the effectiveness of the company’s strategic shifts.

Net Income: The report indicates that Twilio achieved its first-ever GAAP operating profitability, which is a major turning point for the company, suggesting improvements in overall net income and potentially impacting investor sentiment positively.

Profit Margins (Gross, Operating, Net): Twilio realized a record non-GAAP income from operations of $197 million in Q4, translating to a non-GAAP operating margin of 16.5%—up 40 basis points year over year. This could signal good operational efficiency amid growing revenues. The net burn rate was reduced to 3.3%, showing increased financial discipline.

Free Cash Flow (FCF): The company generated $93 million in free cash flow for Q4 and $657 million for the full year, illustrating strong cash generation capabilities that could enhance shareholder returns and support future growth initiatives.

Return on Equity (ROE): The report does not mention specific ROE figures, limiting the thorough analysis of Twilio’s equity performance.

Overall, the transparency regarding cautious yet positive revenue and profitability guidance along with free cash flow growth could bolster investor confidence. The reported metrics indicate that Twilio is evolving toward a more sustainable and profitable business model, which could positively influence its stock price moving forward.

Stocks:  TWLO