So Twilio has been on a crazy rollercoaster journey since IPO. It started off with hyper growth, then had a Covid Boost, and then growth radically slowed thereafter.
And now? Growth at Twilio is re-accelerating again. And the stock is up a super impressive 51% this year!
It’s not the Go-Go Days of years past, but Twilio is back. SaaS is back.
Today Twilio is at:
- $4.5 Billion in ARR
- Back to 10%+ Growth
- NRR Up, Back to 105%
- 9% Non-GAAP Proft Margins and 17% Free Cash Flow Margins
5 Interesting Learnings:
#1. Growth Has Bounced Back to 10%
A big rebound for Twilio here, driven in part by a big increase in NRR. This isn’t easy at scale.
#2. NRR Up to 105%, From 101%
Mathematically. a big part of Twilo’s reacceleration is from increasing NRR.
#3. Top 10 Customers Steady at 10% of Revenue
Revenue concentration has always been a small issue at Twilio. Before the IPO it lost its largest customer, Uber. But it bounced right back. A bigger issue for Twilio and similar vendors is their largest customers often push hard on margins and pricing. Net net, the story here is — The Same as It’s Always Been
#4. Still Non-GAAP Profitable and Strong Free Cash Flow, But Not Increasing Profitability
Twilio is non-GAAP Profitable and has 17%+ free cash flow margins. But it’s not pushing hard to get to epic levels of profitability. Instead, it’s pushed to re-ignite growth. And it’s worked. The stock is up 50%+ as growth re-accelerated.
#5. NRR For Segment Product 91%, Growth 0%
Twilio has looked at spinning out its Segment acquisition, but for now it’s retained the product. It’s ended up being a tough road, with 91% revenue retention and 0% growth. Twilio made some big M&A bets, some worked, and quite a few didn’t.
And a great look at the earlier days at Twilio in the run-up to IPO with founder Jeff Lawson here:
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- Source: https://www.saastr.com/5-interesting-learnings-from-twilio-at-4-5-billion-in-arr/