TWLO Twilio (TWLO) Q2 FY25 earnings call
Twilio delivered a robust quarter, marked by accelerating revenue growth and significant profitability improvements, driven by strong execution across its communications business and initial monetization of AI offerings. The company is strategically investing in R&D to capitalize on AI opportunities while navigating gross margin pressures from messaging mix and carrier fees. Management is focused on durable growth and cash generation, with a strong emphasis on cross-selling and platform efficiency.
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TWLO operating KPIs by quarter
| KPI | Dec 2024 Q4 FY24 | Mar 2025 Q1 FY25 | This call Jun 2025 Q2 FY25 | Sep 2025 Q3 FY25 | Dec 2025 Q4 FY25 | Mar 2026 Q1 FY26 | Jun 2026 Q2 FY26 | Change vs prior quarter |
|---|---|---|---|---|---|---|---|---|
| Net revenue retention rate | 106%Our Q4 dollar-based net expansion rate was 106%, representing our best performance since Q1 of 2023 and reflecting the improving growth trends we've seen in our Communications business over the last several quarters.Source: earnings call transcript | 107%Our Q1 dollar-based net expansion rate was 107%, reflecting the improving growth trends we've seen in our Communications business over the last several quarters.Source: earnings call transcript | 108%This momentum is reflected in our dollar-based net expansion rate of 108% in Q2, our best rate in over 2 years.Source: earnings call transcript | 109%Our Q3 dollar-based net expansion rate was 109%, reflecting the improving growth trends we've seen in our business over the last several quarters.Source: earnings call transcript | 109%Our Q4 dollar-based net expansion rate was 109%, reflecting the improving growth trends we've seen in our business over the last several quarters.Source: earnings call transcript | 114%Our Q1 dollar-based net expansion rate was 114%, reflecting the improving growth trends we've seen in our business over the last several quarters.Source: earnings call transcript | 116%Our Q2 dollar-based net expansion rate was 116%, reflecting the improving growth trends we've seen in our business over the last several quarters.Source: earnings call transcript | +2 pt |
| Net revenue retention rate Communications | 108%Our dollar-based net expansion rate for Communications was 108% and the dollar-based net expansion rate for Segment was 93%.Source: earnings call transcript | 108%Our dollar-based net expansion rate for Communications was 108% and the dollar-based net expansion rate for Segment was 94%.Source: earnings call transcript | 109%Our DBNE rate for communications was 109% and the DBNE rate for segment was 95%.Source: earnings call transcript | — | — | — | — | +1 pt |
| Net revenue retention rate Segment | 93%Our dollar-based net expansion rate for Communications was 108% and the dollar-based net expansion rate for Segment was 93%.Source: earnings call transcript | 94%Our dollar-based net expansion rate for Communications was 108% and the dollar-based net expansion rate for Segment was 94%.Source: earnings call transcript | 95%Our DBNE rate for communications was 109% and the DBNE rate for segment was 95%.Source: earnings call transcript | — | — | — | — | +1 pt |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.