Twilio, a prominent customer engagement platform, has announced its financial results for the second quarter ending June 30, 2025, showcasing a solid performance that emphasizes its growth trajectory and innovative solutions in the industry.
The company reported total revenue of $1.23 billion for the quarter, reflecting a 13% increase year-over-year. Strong contributions were made by its communications segment, which generated $1.15 billion in revenue, a 14% rise compared to the same quarter in 2024. This positive trend in financial performance has also extended to net income, with a GAAP net income per share of $0.14, a significant improvement from a loss of $0.19 per share a year earlier.
CEO Khozema Shipchandler expressed optimism about the company’s initiatives, citing the success of their recent user conference, Signal, which highlighted Twilio’s newest innovations. The firm is focusing on integrating communications, data, and artificial intelligence to enhance customer experiences, positioning itself as a key infrastructure player in customer engagement.
During the quarter, Twilio achieved an impressive $263.5 million in free cash flow, which is a 21% increase from the previous year, and bolstered its operational efficiency with a GAAP income from operations of $37 million, transitioning from a loss of $19 million in Q2 2024.
The company also reported significant improvements in its key operational metrics, including over 349,000 active customer accounts, an increase from 316,000 a year prior, and a Dollar-Based Net Expansion Rate of 108%, up from 102% the previous year. This indicates enhanced customer retention and expansion within existing accounts, showing tangible progress in Twilio’s growth strategy.
Looking ahead, Twilio is raising its organic revenue growth forecast for the fiscal year 2025 to 9% – 10%, up from 7.5% – 8.5%, and expects reported revenue growth of 10% – 11%.
In addition to these promising results, Twilio continues to focus on returning value to shareholders as evidenced by an authorized share repurchase program worth $2 billion, with $176.7 million allocated for repurchases in Q2 2025 alone.
These developments reflect Twilio’s commitment to driving innovation and operational excellence in customer engagement, and position the company for continued growth and success in a competitive market landscape. Looking forward, there is a palpable sense of optimism surrounding Twilio’s strategic direction and potential impact in the industry, suggesting that they are well-positioned to capitalize on the evolving needs of global brands.