Twilio Raises Full-Year Revenue Guidance as Growth Accelerates
The cloud communications company raised its full-year reported revenue growth forecast to a range of 18% to 18.5% following a second quarter with $1.50 billion in sales.
Twilio (TWLO), the cloud communications company, reported second-quarter revenue of $1.50 billion, marking a 22% increase year-over-year.
The result indicated an acceleration in momentum for the company, as revenue growth rose from the 20% year-over-year increase recorded in the first quarter. Organic revenue growth followed a similar trajectory, rising 17% year-over-year in the second quarter from 16% in the prior period.
Customer expansion also trended upward. The company's dollar-based net expansion rate increased to 116% in the second quarter, up from 114% in the first quarter.
Cash generation improved significantly on a sequential basis. Free cash flow rose to $352.6 million in the second quarter, compared with $132.3 million in the first quarter. Non-GAAP operating margin contracted slightly to 19%, down from 20% in the prior quarter.
GAAP net income of $6.68 a share for the quarter included a non-cash benefit of $5.91 a share resulting from the release of a valuation allowance against U.S. deferred tax assets. The company also disclosed a new impairment loss on prepaid assets of $32.8 million, a charge not present in the first quarter.
Twilio raised its full-year 2026 reported revenue growth guidance to a range of 18% to 18.5%, up from a previous forecast of 14% to 15%. Organic revenue growth guidance was similarly increased to 13% to 13.5% from 9.5% to 10.5%.
The company also increased its full-year guidance for non-GAAP income from operations and free cash flow to a range of $1.135 billion to $1.155 billion, up from the previous range of $1.08 billion to $1.10 billion.
Headcount continued to decline as part of the company's operational shifts. The employee count fell to 5,492 as of June 30, 2026, from 5,558 as of March 31, 2026.