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Q3 2026 Earnings Results October 29, 2026 1
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Legal Disclaimer 2 This presentation and the accompanying conference call contain forward-looking statements within the meaning of the federal securities laws, including statements about our future performance and goals. These statements involve substantial risks and uncertainties that may cause our actual results, performance or achievement to differ materially, as further described in the Appendix, as well as in our most recent periodic reports filed with the SEC, including our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available on our website and at sec.gov. This presentation and the accompanying conference call also contain operating metrics, including Active Customer Accounts and Dollar-Based Net Expansion Rate. We rely on assumptions to calculate these metrics, they are calculated using internal company data that has not been independently verified, and they are not based on any standardized industry methodology. More information about these operating metrics can be found in the Appendix. This presentation and the accompanying conference call also contain non-GAAP financial measures. The non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. More information about and definitions of these non-GAAP financial measures, and reconciliations to their most directly comparable GAAP measures, can be found in the Appendix.
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Financial Overview 3
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4 Company Results Note: Organic revenue growth, non-GAAP gross profit, non-GAAP gross profit growth, non-GAAP gross margin, non-GAAP income from operations, and free cash flow are non-GAAP financial measures. See Appendix for non-GAAP definitions and reconciliations. Note: Numbers are rounded to the nearest million (other than percentages). Reported Revenue $1,560M Reported / Organic Revenue Growth Y/Y 20% / 16% Non-GAAP Gross Profit $768M Non-GAAP Gross Profit Growth Y/Y 18% Non-GAAP Income from Operations $326M Free CashFlow $370M Dollar-Based Net Expansion Rate 114% Q3 2026 Non-GAAP Gross Margin 49.2%
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Q4 2026 Guidance: ● Reported revenue: $1.595 billion to $1.605 billion, up 17% to 17.5% year-over-year ● Organic revenue growth: 11% to 12% year-over-year ● Non-GAAP gross profit growth similar to organic revenue growth ● Non-GAAP income from operations: $300 million to $310 million ● Non-GAAP diluted earnings per share1: $1.48 - $1.53 ● Non-GAAP weighted average diluted shares outstanding: 163 million Full Year 2026 Guidance: ● Reported revenue growth: 20% year-over-year, up from 18% to 18.5% previously ● Organic revenue growth: 15% year-over-year, up from 13% to 13.5% previously ● Non-GAAP gross profit growth similar to organic revenue growth ● Non-GAAP income from operations: $1.19 billion to $1.20 billion, up from $1.135 billion to $1.155 billion previously ● Free cash flow: $1.19 billion to $1.20 billion, up from $1.135 billion to $1.155 billion previously Q4 2026 & Full Year 2026 Guidance 5 1 Non-GAAP diluted earnings per share guidance assumes no impact from volatility of foreign exchange rates. Note: Organic revenue growth, non-GAAP income from operations, non-GAAP diluted earnings per share, non-GAAP gross profit growth and free cash flow are non-GAAP financial measures. See Appendix for non-GAAP definitions and reconciliations.
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Quarterly Revenue 6 Note: Numbers are rounded to the nearest million (other than percentages). Q3’26 Reported Revenue Growth Y/Y20%
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Quarterly Organic Revenue Growth 7 Note: Organic revenue growth is a non-GAAP financial measure. See Appendix for non-GAAP definitions and reconciliations. Q3’26 Organic Revenue Growth Y/Y16%
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Dollar-Based Net Expansion Rate 8 Note: See Appendix for our definition of Dollar-Based Net Expansion Rate.
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Messaging Revenue Mix % 9 Note: Messaging Revenue Mix % refers to Messaging revenue as a percentage of revenue. As previously reported, RCS Messaging and WhatsApp Messaging were reclassified from Other to Messaging as of Q4'25; and prior periods were reclassified to conform with this presentation.
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Non-GAAP Gross Profit 10 Note: Non-GAAP gross profit and non-GAAP gross margin are non-GAAP financial measures. See Appendix for non-GAAP definitions and reconciliations. Q3’26 Non-GAAP Gross Margin49% Q3’26 Non-GAAP Gross Profit Growth Y/Y18%
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Non-GAAP Income from Operations 11 Q3’26 Non-GAAP Operating Margin21% Q3’26 Non-GAAP Income from Operations Growth Y/Y 39% Note: Non-GAAP income from operations and non-GAAP operating margin are non-GAAP financial measures. See Appendix for non-GAAP definitions and reconciliations.
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GAAP Income from Operations 12 Q3’26 GAAP Operating Margin10%
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Stock-Based Compensation Expense 13 Q3’26 Stock-Based Compensation as a % of Revenue9.9%
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Free Cash Flow 14 Note: Free cash flow and free cash flow margin are non-GAAP financial measures. See Appendix for non-GAAP definitions and reconciliations. Q3’26 Free Cash Flow Margin24% Q3’26 Free Cash Flow Y/Y49%
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Q3 2026: Representative Customer Wins 15
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● Meera AI, an AI reachability platform connecting humans and AI agents with hard-to-reach consumers, expanded their messaging use case to include Voice and our Conversations Layer. They're using both to coordinate multi-channel outreach, preserve conversation context, and support consultative sales conversations with proper lead qualification. ● Ushur, the AI-native platform for agentic customer experiences in healthcare, insurance, and the public sector, signed a seven figure expansion with Twilio. Ushur uses Twilio Voice, Messaging, and WhatsApp for multichannel engagement and is expanding its voice AI capabilities with Conversation Relay. Major health plans use Ushur to engage millions of members through multilingual, two-way conversations and have achieved 3x higher Medicaid re-enrollment completion rates compared with human-led outreach. Beyond Medicaid, Ushur's AI agents resolve inquiries and complete complex customer journeys end to end, with customers automating 20% or more of inbound call volume. ● ElevenLabs, an AI audio research and deployment company, signed a cross-sell deal to add WhatsApp and Personalized Support to its Twilio deployment. ● Gong, the leading Revenue AI company, signed a seven figure deal to continue using Voice and other software add-ons for Gong Engage, its AI-powered sales engagement solution. ● Eltropy, an Agentic AI platform for credit unions and community banks, has invested in Twilio’s Conversations layer, and its voice agents now resolve up to 70% of routine member calls on their own. The company also signed an expansion deal in Q3 to use both RCS and Branded Calling to improve its trusted customer interactions across multiple channels. Top Customer Wins from the Quarter 16
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● HUGO BOSS, a global premium fashion house headquartered in Germany, signed a new business deal with Twilio, leveraging Messaging and Chat to power global clienteling and customer communications. ● Chapter, a consumer services company, signed a seven figure deal to migrate its contact center onto Flex, standing up a fully live deployment in a matter of weeks as part of a broader move to make Twilio the backbone of its customer service operations. In addition, they will leverage Messaging, Voice, and software add-ons like Branded Calling to power a multi-channel experience for their customers. ● Rivian, an American automotive technology and electric vehicle manufacturer, signed an expansion deal to continue using Flex, Voice, Messaging, and Branded Calling to power customer support for its rapidly expanding customer base. ● A health insurance provider signed an eight figure deal to leverage our Conversations Layer solution, using Conversation Relay to build their Voice AI agent and real-time transcription from Conversational Intelligence to enhance call tracking and reduce agent wrap-up time. ● A leading financial technology and payments company signed an eight figure deal to consolidate its contact center operations onto Flex, unifying Voice, Messaging, and Chat in a single platform. The expansion also adds Conversational Intelligence and Branded Calling capabilities to further support their customer service operations. ● A leading marketing automation platform signed a seven figure expansion deal to increase their Messaging footprint across international markets to support high-volume customer communications as it grows in those markets. Top Customer Wins from the Quarter (cont.) 17
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Top Customer Wins from the Quarter (cont.) 18 ● A leading satellite internet company signed a deal to use Messaging, Voice, Verify, and Branded Calling for vital communications with their customers, including interactions in remote markets. ● A leading airline signed a seven figure deal to use Messaging and SMS Pumping Protection for two-factor authentications. The company selected Twilio for its global scale, reliability, security capabilities, and long-term platform strategy. ● A leading online travel company signed a cross sell deal to use RCS for appointment notifications and scheduling through its contact center solution, with WhatsApp and SMS providing failover channels. ● An energy and utilities company signed a cross sell deal to use Voice and Conversation Relay to build a conversational IVR that includes real-time streaming, contextual transcription, and AI-driven automation to support agent productivity. ● An online review platform signed an expansion deal to use Voice and Conversational Intelligence to support building their Voice AI agents. Conversational Intelligence transcription and redaction capabilities help them meet payment-data compliance requirements while scaling their AI-powered customer and business call handling. ● A global retail company signed a cross sell deal to expand its use of Branded Calling for its contact center operations. ● An online marketplace company signed a cross sell deal to use Voice and Real-Time Transcription to monitor marketplace calls, support compliance and dispute resolution, and distinguish speakers. ● A retail marketing company signed a cross sell deal to leverage Conversation Relay and Voice to help support its contact center operations.
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THANK YOU 19
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Appendix 20
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Forward-Looking Statements 21 This presentation and the accompanying conference call contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “can,” “will,” “would,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “forecasts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this presentation and the accompanying conference call include, but are not limited to, statements about: our future financial and operating performance and outlook, including our expected financial and operating results, guidance and targets, including the assumptions underlying such guidance and targets; our anticipated strategies and business plans and our ability to successfully execute them; our ability to drive growth, profitability and free cash flow; our ability to maintain cost discipline and drive operating leverage; future investments and expenses; our expectations regarding carrier fees, and our related actions, and the impact of such fees on our financial and operating performance, including guidance; our expectations regarding our margins, including regarding price actions, product mix and growth in higher-margin products; our expectations regarding capital returns to shareholders and our capital allocation strategy, including share repurchases and potential mergers and acquisitions; our expectations regarding revenue from ISVs and self-serve customers; our expectations regarding our cross-sell, upsell and solution selling efforts; our pipeline of new business; the benefits our customers derive from our products; our ability to expand into new and existing markets; our innovation roadmap and the development, release and adoption of our products (and the timing thereof); the effects of our go-to-market efforts to drive profitable growth and capture market share; our expectations related to being a foundational infrastructure layer in the AI era and our vision, strategy and expected benefits related to AI opportunities; and our expectations regarding the macroeconomic environment. You should not rely upon forward-looking statements as predictions of future events. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to differ materially from those described in the forward-looking statements, including, among other things: the impact of global economic and political conditions and uncertainties; the accuracy of our forecasts and metrics; fluctuations in our results of operations and the levels of our customers' usage of our platform; our ability to attract and retain customers and expand their usage of our platform; our ability to develop new products and integrate our products with third-party products effectively; our ability to manage our growth and strategic changes to our business; our ability to compete effectively in intensely competitive markets; the occurrence of and our ability to manage cybersecurity breaches and other incidents impacting our networks and systems or those of our third-party service providers; our ability to manage changes in network service provider fees and optimize our network service provider coverage and connectivity; the rapidly evolving AI landscape; and our compliance with industry standards, laws and regulations. The forward-looking statements contained in this presentation and the accompanying conference call are also subject to additional risks, uncertainties, and factors, including those more fully described in our most recent filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Should any of these risks materialize, or should our assumptions prove to be incorrect, actual financial results could differ materially from our projections or those implied by these forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment, and new risks and uncertainties may emerge that could have an impact on the forward-looking statements contained in this presentation and the accompanying conference call. All forward-looking statements contained in this presentation and the accompanying conference call represent our management’s beliefs and assumptions only as of the date such statements are made and we do not assume any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date on which the statements were made, or to reflect new information or the occurrence of unanticipated events, except as required by law.
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Operating Metrics 22 We review a number of operational and financial metrics, including Dollar-Based Net Expansion Rate (“DBNE”), to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. Our DBNE is not based on any standardized industry methodology and is not necessarily calculated in the same manner or comparable to similarly titled measures presented by other companies. Similarly, our DBNE may differ from estimates published by third parties or from similarly titled metrics of our competitors due to differences in methodology. The numbers that we use to calculate DBNE are based on internal data. While these numbers are based on what we believe to be reasonable judgments and estimates for the applicable period of measurement, there are inherent challenges in measuring usage. We regularly review and may adjust our processes for calculating our internal metrics to improve their accuracy. If investors or analysts do not perceive our metrics to be accurate representations of our business, or if we discover material inaccuracies in our metrics, our reputation, business, results of operations, and financial condition would be harmed. Dollar-Based Net Expansion Rate. Our DBNE compares the total revenue in a quarter from all individual customer accounts, as identified by a unique account identifier, for which we have recognized at least $5 of revenue in the last month of the quarter, to revenue from those same accounts in the same quarter in the prior year. A single customer organization may constitute multiple unique customer accounts if it has multiple account identifiers. To calculate DBNE, we first identify the cohort of such customer accounts in the same quarter of the prior year. DBNE is the quotient obtained by dividing the revenue generated from that cohort in a quarter, by the revenue generated from that same cohort in the corresponding quarter in the prior year. When we calculate DBNE for periods longer than one quarter, we use the average of the applicable quarterly DBNEs for each of the quarters in such period. Revenue from acquisitions does not impact the DBNE calculation until the quarter following the one-year anniversary of the applicable acquisition, unless the acquisition closing date is the first day of a quarter. Revenue from divestitures does not impact the DBNE calculation beginning in the quarter the divestiture closed, unless the divestiture closing date is the last day of a quarter. We believe that measuring DBNE provides an important indication of the performance of our efforts to increase revenue from existing customers. Our ability to drive growth and generate incremental revenue depends, in part, on our ability to maintain and grow our relationships with existing customers and to increase their use of the platform. An important way in which we have historically tracked performance in this area is by measuring the DBNE for such customer accounts. Our DBNE increases when these customers increase their usage of a product, extend their usage of a product to new applications or adopt a new product. Our DBNE decreases when these customers cease or reduce their usage of a product or when we lower usage prices on a product. As our customers grow their businesses and extend the use of our platform, they sometimes create multiple customer accounts with us for operational or other reasons. As such, when we identify a significant customer organization (defined as a single customer organization generating more than 1% of revenue in a quarterly reporting period) that has created a new customer account, this new account is tied to, and revenue from this new account is included with, the original customer account for the purposes of calculating this metric.
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Non-GAAP Financial Measures 23 In addition to financial information presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation and the accompanying conference call include certain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP net income attributable to common stockholders, non-GAAP net income per share attributable to common stockholders, diluted (which we refer to as “non-GAAP diluted earnings per share”), non-GAAP income from operations, organic revenue and organic revenue growth, free cash flow and free cash flow margin. We use these non-GAAP financial measures to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that these non-GAAP financial measures may be helpful to investors because they provide consistency and comparability with past financial performance, facilitate period-to-period comparisons of results of operations and assist in comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. We believe organic revenue and organic revenue growth are useful in understanding the ongoing results of our operations. We believe free cash flow and free cash flow margin provide useful supplemental information to help investors understand underlying trends in our business and our liquidity. These non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered substitutes for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies. A reconciliation of these measures to the most directly comparable GAAP measures is included in the appendix. We have not provided the forward-looking GAAP equivalents for certain forward-looking non-GAAP measures presented in this presentation or the accompanying conference call, or a GAAP reconciliation, as a result of the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. Accordingly, a reconciliation of these non-GAAP guidance metrics to their corresponding forward-looking GAAP equivalents is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. Non-GAAP Gross Profit and Non-GAAP Gross Margin. For the periods presented, we define non-GAAP gross profit and non-GAAP gross margin as GAAP gross profit and GAAP gross margin, respectively, adjusted to exclude stock-based compensation, amortization of acquired intangibles and payroll taxes related to stock-based compensation. Non‑GAAP Income from Operations and Non‑GAAP Operating Margin. For the periods presented, we define non‑GAAP income from operations and non‑GAAP operating margin as GAAP income from operations and GAAP operating margin, respectively, adjusted to exclude, as applicable, stock-based compensation, amortization of acquired intangibles, loss on net assets divested, acquisition and divestiture related expenses, payroll taxes related to stock-based compensation, charitable contributions, restructuring costs, impairment of long-lived assets, gains or losses on lease termination and impairment loss on prepaid assets.
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Non-GAAP Financial Measures 24 Non‑GAAP Net Income Attributable to Common Stockholders and Non‑GAAP Net Income Per Share Attributable to Common Stockholders. For the periods presented, we define non-GAAP net income attributable to common stockholders and non‑GAAP net income per share attributable to common stockholders, diluted (which we refer to as “non-GAAP diluted earnings per share”) as GAAP net income (loss) attributable to common stockholders and GAAP net income (loss) per share attributable to common stockholders, diluted, respectively, adjusted to exclude, as applicable, stock-based compensation, amortization of acquired intangibles, loss on net assets divested, acquisition and divestiture related expenses, losses (gains) on strategic investments, payroll taxes related to stock-based compensation, accretion of debt discount and issuance costs, provision of income tax effects related to non-GAAP adjustments, income tax benefit related to acquisitions, charitable contributions, share of losses from equity method investment, impairment of equity method investment, restructuring costs, impairment of long-lived assets, gains or losses on or impairment of strategic investments, gains or losses on lease termination and impairment loss on prepaid assets. Organic Revenue. For the periods presented, we define organic revenue as GAAP revenue, excluding (i) revenue from each acquired business and revenue from incremental increases to application-to-person (“A2P”) fees imposed by major U.S. carriers on our core messaging business, in each case until the beginning of the first full quarter following the one-year anniversary of the closing date of such acquisition or the initial date such fees were charged and (ii) revenue from each divested business beginning in the quarter of the closing date of such divestiture; provided that (a) if an acquisition closes or such fees are initially charged on the first day of a quarter, such revenue will be included in organic revenue beginning on the one-year anniversary of the closing date of such acquisition or the initial date such fees were charged and (b) if a divestiture closes on the last day of a quarter, such revenue will be included in organic revenue for that quarter. As used in this definition, A2P fees refers to fees imposed by U.S. mobile carriers for A2P messages delivered to their subscribers, and we pass these fees to our messaging customers at cost. Organic Revenue Growth. For the periods presented, we calculate organic revenue growth by dividing (i) organic revenue for the period presented less organic revenue in the comparative period by (ii) organic revenue in the comparative period. If revenue from certain acquisitions, divestitures or A2P fees is included or excluded in organic revenue in the period presented, then revenue from the same acquisitions, divestitures and A2P fees is included or excluded in organic revenue in the comparative period for purposes of the organic revenue growth calculation. As a result, organic revenue used in this calculation for the comparative period will not always equal organic revenue reported for the comparative period. Free Cash Flow and Free Cash Flow Margin. For the periods presented, we define free cash flow as net cash provided by operating activities, excluding capitalized software development costs and purchases of long-lived assets, and we define free cash flow margin as free cash flow divided by revenue.
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