The Top 5 Analyst Questions From Twilio’s Q1 Earnings Call

Twilio’s first quarter results were shaped by robust demand for its AI-enabled communications platform and continued expansion in international messaging. Management attributed the quarter’s revenue acceleration to increased adoption across its largest industry verticals, including financial services, technology, and retail, with notable progress in multi-product usage and cross-selling. CEO Khozema Shipchandler highlighted new customer wins and the company’s success in landing competitive takeout deals with independent software vendors, stating, “Recent conversations validate that during these uncertain times, our customers are leaning on the Twilio platform to drive revenue and recognize further operating efficiencies.”

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Twilio (TWLO) Q1 CY2025 Highlights:

• Revenue: $1.17 billion vs analyst estimates of $1.14 billion (12% year-on-year growth, 2.8% beat)

• Adjusted EPS: $1.14 vs analyst estimates of $0.96 (18.5% beat)

• Adjusted Operating Income: $213.4 million vs analyst estimates of $188.5 million (18.2% margin, 13.2% beat)

• Revenue Guidance for Q2 CY2025 is $1.19 billion at the midpoint, above analyst estimates of $1.17 billion

• Adjusted EPS guidance for Q2 CY2025 is $1.02 at the midpoint, below analyst estimates of $1.03

• Operating Margin: 2%, up from -4.2% in the same quarter last year

• Customers: 335,000, up from 325,000 in the previous quarter

• Net Revenue Retention Rate: 107%, up from 106% in the previous quarter

• Billings: $1.17 billion at quarter end, up 12% year on year

• Market Capitalization: $18.29 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Twilio’s Q1 Earnings Call

• Michael Turrin (Wells Fargo Securities) asked about the drivers behind growth acceleration and guidance conservatism; CFO Aidan Viggiano explained broad-based strength and noted that guidance reflects caution, not a weaker outlook.

• Nick Altmann (Scotiabank) questioned the medium-term outlook for AI-driven voice adoption; CEO Khozema Shipchandler described increasing interest from both startups and established customers, especially for multi-channel use cases.

• Alex Zukin (Wolfe Research) probed gross margin headwinds; Viggiano attributed this to non-recurring prior-year hosting credits and a higher mix of international messaging, noting variability quarter to quarter.

• Billy Fitzsimmons (Jefferies) inquired about drivers of customer growth; Chief Revenue Officer Thomas Wyatt pointed to accelerated self-serve onboarding, AI startup demand, and improved performance in acquiring new and larger accounts.

• Jim Fish (Piper Sandler) asked about competitive risks and capital allocation; Shipchandler saw limited disruption from new ISV solutions, and Viggiano noted an opportunistic approach to M&A and a disciplined buyback strategy.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will watch for (1) sustained AI product adoption and expansion of multi-product use across Twilio’s customer base, (2) continued growth in international messaging and progress on large enterprise deals, and (3) effective management of gross margin variability as messaging mix evolves. The pace of self-serve channel growth and success of new product launches will also be key markers for tracking execution.

Twilio currently trades at $121.20, up from $97.91 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

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