Twilio Reports 12% Revenue Growth to $1.17 Billion and Net Income Turnaround in Q1 2025

Twilio Inc. reported a significant increase in its financial performance for the first quarter of 2025, with total revenue reaching $1.17 billion, a 12% increase from $1.05 billion in the same period last year. The company achieved a net income of $20.0 million, compared to a net loss of $55.3 million in the first quarter of 2024. This turnaround in profitability was attributed to increased usage of its communications products, particularly in the Twilio Communications segment, which generated $1.10 billion in revenue, up 13% year-over-year.

The company's operating expenses decreased to $558.5 million from $587.5 million, primarily due to a significant reduction in general and administrative costs, which fell by 18% to $92.1 million. Research and development expenses also saw a slight decline of 2%, while sales and marketing expenses decreased marginally by 1%. The overall reduction in operating expenses contributed to a positive income from operations of $23.1 million, a notable improvement from the loss of $43.5 million reported in the previous year.

In terms of operational metrics, Twilio reported an increase in Active Customer Accounts, which rose to 335,000 from 313,000 a year earlier. The company also noted a Dollar-Based Net Expansion Rate of 107%, indicating that existing customers are increasing their spending on Twilio's services. The revenue from U.S. customers accounted for approximately 64% of total revenue, with international revenue also showing growth, rising to $423.0 million from $360.5 million.

Strategically, Twilio has realigned its business unit structure to enhance operational efficiency and streamline its offerings. The company continues to focus on product innovation and expanding its market share through partnerships and improved self-service capabilities. Looking ahead, Twilio anticipates continued revenue growth driven by its core communications products and the integration of artificial intelligence into its platform. The company remains committed to optimizing its operations and reducing costs while maintaining a strong liquidity position, with cash and cash equivalents totaling $467.1 million and short-term marketable securities of $2.0 billion as of March 31, 2025.