Twilio Reports 13% Revenue Growth to $1.23 Billion, Achieves Net Income of $22.4 Million

Twilio Inc. reported significant financial performance improvements in its latest quarterly filing, with total revenue reaching $1.23 billion for the three months ended June 30, 2025, a 13% increase from $1.08 billion in the same period last year. The company also achieved a net income of $22.4 million, a notable recovery from a net loss of $31.9 million in the prior year. For the first half of 2025, Twilio's revenue totaled $2.40 billion, up from $2.13 billion in the first half of 2024, while net income for the period was $42.4 million compared to a loss of $87.2 million a year earlier.

The company's operational metrics showed positive trends, with the number of Active Customer Accounts increasing to 349,000, up from 316,000 a year ago. The Dollar-Based Net Expansion Rate also improved to 108%, indicating that existing customers are increasing their spending on Twilio's services. The Communications segment, which includes key offerings such as Messaging and Voice, generated $1.15 billion in revenue, a 14% increase year-over-year, while the Segment segment's revenue remained relatively flat at $75.5 million.

Twilio's cost of revenue rose to $625.7 million, a 19% increase from the previous year, primarily driven by higher network service provider costs. Despite this, the gross profit increased to $602.7 million, reflecting an 8% growth. Operating expenses decreased slightly to $565.8 million, down from $574.9 million, with general and administrative expenses seeing a notable decline of 11% due to reduced charitable contributions.

Strategically, Twilio has realigned its business structure to enhance operational efficiency, consolidating its operations under a single organization while maintaining two reportable segments. The company has also initiated a share repurchase program, authorizing up to $2 billion in stock buybacks, with $176.7 million spent in the second quarter. Looking ahead, Twilio aims to leverage product innovation and artificial intelligence to drive growth and improve customer engagement, while also managing costs to enhance profitability. The company believes its current cash and marketable securities, totaling approximately $2.54 billion, will support its operational needs and strategic initiatives in the coming year.