Q4 2025 Twilio Inc Earnings Call

February 12, 2026

Operator: All participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question-and-answer session. To ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. I would now like to hand the conference over to your speaker today, Rodney Nelson, Vice President, Investor Relations.

Speaker #1: Participants are on a listen-only mode. Please be advised that today's conference is being recorded. After the speakers' presentation, there will be a question-and-answer session.

Speaker #1: To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Speaker #1: I would now like to hand the conference over to your speaker today, Rodney Nelson, Vice President and Vice Relations.

Speaker #2: Thank you, Operator. Good afternoon, everyone, and thank you for joining us for TWILIO's fourth-quarter 2025 earnings conference call. Joining me today are Khozema Shipchandler, Chief Executive Officer; Aidan Viggiano, Chief Financial Officer; and Thomas Wyatt, Chief Revenue Officer.

Rodney Nelson: Thank you, operator. Good afternoon, everyone, and thank you for joining us for Twilio's Q4 2025 earnings conference call. Joining me today are Khozema Shipchandler, Chief Executive Officer, Aidan Viggiano, Chief Financial Officer, and Thomas Wyatt, Chief Revenue Officer. As a reminder, we will disclose non-GAAP financial measures on this call. Definitions and reconciliations between our GAAP and non-GAAP results can be found in our earnings presentation posted on our IR website at investors.twilio.com. We will also make forward-looking statements on this call, including statements about our future, outlook, and goals. Such statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those described. Many of those risks and uncertainties are described in our SEC filings, including our most recent Form 10-Q and our forthcoming Form 10-K.

Speaker #2: As a reminder, we will disclose non-GAAP financial measures on this call. Definitions and reconciliations between our GAAP and non-GAAP results can be found in our earnings presentation posted on our IR website at investors.twilio.com.

Speaker #2: We will also make forward-looking statements on this call, including statements about our future, outlook, and goals. Such statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those described.

Speaker #2: Many of those risks and uncertainties are described in our SEC filings, including our most recent Form 10-Q and our forthcoming Form 10-K. Forward-looking statements represent our beliefs and assumptions, only as of the date such statements are made.

Rodney Nelson: Forward-looking statements represent our beliefs and assumptions only as of the date such statements are made. We disclaim any obligation to update any forward-looking statements except as required by law. With that, I'll hand it over to Khozema and Aidan, who will discuss our Q4 results and will then open up the call for Q&A.

Speaker #2: We disclaim any obligation to update any forward-looking statements, except as required by law. With that, I'll hand it over to Khozema and Aidan, who will discuss our Q4 results and will then open up the call for Q&A.

Speaker #1: Thank you, Rodney. Good afternoon, everyone, and thank you for joining us today. TWILIO had a great Q4 as we reached record heights with $1.4 billion in revenue, $256 million of non-GAAP income from operations, and $256 million in free cash flow.

Khozema Shipchandler: Thank you, Rodney. Good afternoon, everyone, and thank you for joining us today. Twilio had a great Q4 as we reached record heights with $1.4 billion in revenue, $256 million of non-GAAP income from operations, and $256 million in Free Cash Flow. For the full year, we generated $5.1 billion in revenue, $924 million of non-GAAP income from operations, and $945 million of Free Cash Flow. Our strong fourth quarter capped off what I believe is one of the most balanced and successful years of execution in our company's history. Throughout 2025, we've operated with a level of discipline, rigor, and focus that has fundamentally transformed our financial profile and innovation velocity.

Speaker #1: For the full year, we generated $5.1 billion in revenue, $924 million of non-GAAP income from operations, and $945 million of free cash flow. Our strong fourth quarter capped off what I believe is one of the most balanced and successful years of execution in our company's history.

Speaker #1: Throughout 2025, we've operated with a level of discipline, rigor, and focus that is fundamentally transformed our financial profile and innovation velocity. Reflecting on 2025, TWILIO stood out with accelerating revenue growth, expanding operating margins, and, by delivering significant growth in free cash flow.

Khozema Shipchandler: Reflecting on 2025, Twilio stood out with accelerating revenue growth, expanding operating margins, and by delivering significant growth in Free Cash Flow. And we did this all while continuing to increase our innovation velocity. Even more validating is what we're hearing from our customers, that we are moving beyond being a provider of communications channels and data toward becoming a foundational infrastructure layer in the age of AI. Revenue from our voice channel continues to accelerate, aided in part by Voice AI, which we believe is just the beginning, as these use cases will evolve to be more conversational and cross-channel, an area where Twilio is uniquely differentiated. Our go-to-market motion is firing on all cylinders. In Q4, we saw particular strength in self-serve as revenue grew 28% year-over-year, led by accelerating voice revenue growth.

Speaker #1: And we did this all while continuing to increase our innovation velocity. Even more validating is what we're hearing from our customers. That we are moving beyond being a provider of communications channels and data toward becoming a foundational infrastructure layer in the age of AI.

Speaker #1: Revenue from our voice channel continues to accelerate. Aided in part by Voice AI, which we believe is just the beginning as these use cases will evolve, to be more conversational and cross-channel, an area where TWILIO is uniquely differentiated.

Speaker #1: Our go-to-market motion is firing on all cylinders. In Q4, we saw particular strength in self-serve as revenue grew 28% year over year. Led by accelerating voice revenue growth, ISVs were also a bright spot with revenue growing 26% year over year.

Khozema Shipchandler: ISVs were also a bright spot, with revenue growing 26% year-over-year. In Q4, the number of large deals closed of $500,000 or more increased 36% year-over-year. With this solid foundation, 2026 is set up to be a great year. We are focused on delivering the essential infrastructure that powers experiences across communications, driven by contextual data and evolving automation, like Voice AI, to help customers build personalized, lifelong relationships with their own customers. During the quarter, our go-to-market team delivered several notable wins, including a nine-figure renewal with a leading marketing automation platform, the largest deal in Twilio's history. Other customer wins included Agnes AI, Creditas, ELISE AI, GenSpark, Grubhub, Lofty, Nestlé, Pneuma, PolyAI, Ramp, Retail AI, Sierra, and others, who are turning to Twilio as their infrastructure partner to help drive outcomes and scale their businesses.

Khozema Shipchandler: Age of AI. Revenue from our voice channel continues to accelerate, aided in part by voice AI, which we believe is just the beginning, as these use cases will evolve to be more conversational and cross-channel, an area where Twilio is uniquely differentiated. Our go-to-market motion is firing on all cylinders. In Q4, we saw particular strength in self-serve, as revenue grew 28% year-over-year, led by accelerating voice revenue growth. ISVs were also a bright spot, with revenue growing 26% year-over-year. In Q4, the number of large deals closed of $500,000 or more increased 36% year-over-year. With this solid foundation, 2026 is set up to be a great year. We are focused on delivering the essential infrastructure that powers experiences across communications, driven by contextual data and evolving automation, like voice AI, to help customers build personalized, lifelong relationships with their own customers.

Speaker #1: Age of AI. Revenue from our voice channel continues to accelerate. Aided in part by Voice AI. Which we believe is just the beginning as these use cases will evolve.

Speaker #1: In Q4, the number of large deals closed of 500,000 or more increased 36% year over year. With this solid foundation, 2026 is set up to be a great year.

Speaker #1: To be more conversational and cross-channel. An area where Twilio is uniquely differentiated. Our go-to-market motion is firing on all cylinders. In Q4 we saw particular strength in self-serve as revenue grew 28% year over year.

Speaker #1: We are focused on delivering the essential infrastructure that powers experiences across communications, driven by contextual data, and evolving automation like Voice AI to help customers build personalized, lifelong relationships with their own customers.

Speaker #1: Led by accelerating voice revenue growth. ISVs were also a bright spot with revenue growing 26% year over year. In Q4 the number of large deals closed of 500,000 or more increased 36% year over year.

Speaker #1: During the quarter, our go-to-market team delivered several notable wins, including a nine-figure renewal with a leading marketing automation platform. The largest deal in TWILIO's history.

Speaker #1: With this solid foundation 2026 is set up to be a great year. We are focused on delivering the essential infrastructure that powers experiences across communications driven by contextual data and evolving automation like Voice AI to help customers build personalized lifelong relationships with their own customers.

Speaker #1: Other customer wins included Agnes AI, Creditas, Elise AI, GenSpark, GrubHub, Lofty, Nestlé, é, Numa, Poly AI, Ramp, Retail AI, Sierra, and others, who are turning to TWILIO as their infrastructure partner to help drive outcomes and scale their businesses.

Speaker #1: We also signed a strategic partnership with an existing customer, AEG, a leading global sports and live entertainment company. AEG will use the TWILIO platform to better understand fan behavior and power real-time personalized communications before, during, and after live events at select venues and for sports teams owned by the organization.

Speaker #1: During the quarter, our go-to-market team delivered several notable wins, including a nine-figure renewal with a leading marketing automation platform—the largest deal in Twilio's history.

Khozema Shipchandler: We also signed a strategic partnership with an existing customer, AEG, a leading global sports and live entertainment company. AEG will use the Twilio platform to better understand fan behavior and power real-time personalized communications before, during, and after live events at select venues and for sports teams owned by the organization. In Q4, we saw healthy signs that reinforced our shift from selling features and products to selling solutions, as our multi-product customer count grew 26% year-over-year, and our software add-on revenue grew over 20% year-over-year. Agent productivity is a great example, as it lets customers take advantage of a bundled offering that spans multiple Twilio products.... One customer, Exalab, an Italian systems integrator, signed a cross-sell agreement for its client, Dental Pro, to adopt our agent productivity solution, powered by Flex, messaging, and voice.

Khozema Shipchandler: During the quarter, our go-to-market team delivered several notable wins, including a nine-figure renewal with a leading marketing automation platform, the largest deal in Twilio's history. Other customer wins included Agnes AI, Creditas, Elise AI, GenSpark, Grubhub, Lofty, Nestlé, Pneuma, PolyAI, Ramp, Retail AI, Sierra, and others, who are turning to Twilio as their infrastructure partner to help drive outcomes and scale their businesses. We also signed a strategic partnership with an existing customer, AEG, a leading global sports and live entertainment company. AEG will use the Twilio platform to better understand fan behavior and power real-time, personalized communications before, during, and after live events at select venues and for sports teams owned by the organization.

Speaker #1: Other customer wins included Agnes AI Creditas Elise AI GenSpark Grubhub Lofty Nestle Numa Poly AI Ramp Retail AI Sierra and others who are turning to Twilio as their infrastructure partner to help drive outcomes and scale their businesses.

Speaker #1: In Q4, we saw healthy signs that reinforced our shift from selling features and products to selling solutions, as our multi-product customer count grew 26% year over year.

Speaker #1: We also signed a strategic partnership with an existing customer AEG a leading global sports and live entertainment company. AEG will use the Twilio platform to better understand fan behavior and power real-time personalized communications before during and after live events at select venues and for sports teams owned by the organization.

Speaker #1: And our software add-on revenue grew over 20% year over year. Agent productivity is a great example as it lets customers take advantage of a bundled offering that spans multiple TWILIO products.

Speaker #1: One customer, ExaLab, an Italian systems integrator, signed a cross-sale agreement for its client, DentalPro, to adopt our agent productivity solution powered by Flex, messaging, and voice.

Speaker #1: In Q4 we saw healthy signs that reinforced our shift from selling features and products to selling solutions. As our multi-product customer count grew 26% year over year and our software add-on revenue grew over 20% year over year.

Khozema Shipchandler: In Q4, we saw healthy signs that reinforced our shift from selling features and products to selling solutions, as our multi-product customer count grew 26% year-over-year, and our software add-on revenue grew over 20% year-over-year. Agent productivity is a great example, as it lets customers take advantage of a bundled offering that spans multiple Twilio products. One customer, Exalab, an Italian systems integrator, signed a cross-sell agreement for its client, Dental Pro, to adopt our agent productivity solution, powered by Flex, Messaging, and Voice. Together, they built a virtual agent for customer care and inbound and outbound booking management. In the first two months, clinics using Conversation Relay for AI agents reported a meaningful uplift in service levels, with the virtual agent handling a significant share of booking confirmations. And finally, during Cyber Week, Twilio hit record highs.

Speaker #1: Together, they build a virtual agent for customer care and inbound and outbound booking management. In the first two months, clinics using conversation relay for AI agents reported a meaningful uplift in service levels, with the virtual agent handling a significant share of booking confirmations.

Khozema Shipchandler: Together, they built a virtual agent for customer care and inbound and outbound booking management. In the first two months, clinics using Conversation Relay for AI agents reported a meaningful uplift in service levels, with the virtual agent handling a significant share of booking confirmations. And finally, during Cyber Week, Twilio hit record highs. Twilio sent 6.99 billion messages, a 34.5% year-over-year increase, handled 1.07 billion calls, up 58% year-over-year, and processed 75.1 billion emails, a 14.6% increase year-over-year. Importantly, this week was a powerful reminder of the trust our customers place in us. As the foundational infrastructure that handles their critical workloads, we help them strengthen the relationships they have with their own customers and earn their trust. On the innovation front, 2025 was a breakout year for Voice.

Speaker #1: Agent productivity is a great example as it lets customers take advantage of a bundled offering that spans multiple customer ExaLab an Italian systems integrator signed a cross-sell agreement for its client DentalPro to adopt our agent productivity solution powered by Flex messaging and voice.

Speaker #1: And finally, during Cyber Week, TWILIO hit record highs. TWILIO sent 6.99 billion messages, a 34.5% year over year increase. Handled 1.07 billion calls, up 58% year over year.

Speaker #1: Together they built a virtual agent for customer care and inbound and outbound booking management. In the first two months clinics using conversation relay for AI agents reported a meaningful uplift in service levels with the virtual agent handling a significant share of booking confirmations.

Speaker #1: And processed 75.1 billion emails, a 14.6% increase year over year. Importantly, this week was a powerful reminder of the trust our customers place in us.

Speaker #1: As the foundational infrastructure, that handles their critical workloads, we help them strengthen the relationships they have with their own customers and earn their trust.

Speaker #1: And finally during Cyber Week Twilio hit record highs Twilio sent 6.99 billion messages a 34.5% year over year increase. Handled 1.07 billion calls up 58% year over year.

Khozema Shipchandler: Twilio sent 6.99 billion messages, a 34.5% year-over-year increase, handled 1.07 billion calls, up 58% year-over-year, and processed 75.1 billion emails, a 14.6% increase year-over-year. Importantly, this week was a powerful reminder of the trust our customers place in us. As the foundational infrastructure that handles their critical workloads, we help them strengthen the relationships they have with their own customers and earn their trust. On the innovation front, 2025 was a breakout year for Voice. Voice year-over-year revenue growth accelerated throughout the year, with customers adopting products like Branded Calling, Conversation Relay, and Conversational Intelligence. For example, Sierra, a leading company in the customer experience AI space, signed a new deal to continue leveraging Twilio's voice functionality to power their platform.

Speaker #1: On the innovation front, 2025 was a breakout year for voice. Voice year over year revenue growth accelerated throughout the year, with customers adopting products like branded calling, conversation relay, and conversational intelligence.

Khozema Shipchandler: Voice year-over-year revenue growth accelerated throughout the year, with customers adopting products like Branded Calling, Conversation Relay, and Conversational Intelligence. For example, Sierra, a leading company in the customer experience AI space, signed a new deal to continue leveraging Twilio's voice functionality to power their platform. Additionally, they will use voice software products like conferencing to support additional use cases like multi-party calling or taking payment over the phone. While still early days, during Q4, Twilio's Branded Calling revenue grew roughly 6x year-over-year. RCS continued to gain traction as volume grew roughly 5x quarter-over-quarter. Ramp, a leading financial operations company, signed a deal to leverage RCS as a branded messaging experience to power account notifications and two-way capabilities, such as adding a purchase reason or sending a receipt. Our innovation strategy and execution continued to be validated by industry analysts.

Speaker #1: And processed 75.1 billion emails a 14.6% increase year over year. Importantly this week was a powerful reminder of the trust our customers place in us.

Speaker #1: For example, Sierra, a leading company in the customer experience AI space, signed a new deal to continue leveraging TWILIO's voice functionality to power their platform.

Speaker #1: As the foundational infrastructure that handles their critical workloads we help them strengthen the relationships they have with their own customers and earn their trust.

Speaker #1: Additionally, they will use voice software products like Conferencing to support additional use cases like multi-party calling, or taking payment over the phone. While still early days, during Q4, TWILIO's branded calling revenue grew roughly 6X year over year.

Speaker #1: On the innovation front, 2025 was a breakout year for Voice. Voice year-over-year revenue growth accelerated throughout the year, with customers adopting products like Branded Calling, Conversation Relay, and Conversational Intelligence.

Speaker #1: RCS continued to gain traction as volume grew roughly 5X quarter over quarter. Ramp, a leading financial operations company, signed a deal to leverage RCS as the branded messaging experience to power account notifications and two-way capabilities.

Speaker #1: For example Sierra a leading company in the customer experience AI space signed a new deal to continue leveraging Twilio's voice functionality to power their platform.

Speaker #1: Such as adding a purchase reason or sending a receipt. Our innovation strategy and execution continued to be validated by industry analysts. Throughout the year, we were recognized as a leader in major evaluations by Gartner, IDC, and Omdia, and ended the year by being named the Company to Beat in CPaaS AI by Gartner.

Speaker #1: Additionally they will use voice software products like conferencing to support additional use cases like multi-party calling or taking payment over the phone. While still early days during Q4 Twilio's branded calling revenue grew roughly 6X year over year.

Khozema Shipchandler: Additionally, they will use voice software products, like conferencing, to support additional use cases, like multi-party calling or taking payment over the phone. While still early days, during Q4, Twilio's Branded Calling revenue grew roughly 6x year-over-year. RCS continued to gain traction as volume grew roughly 5x quarter-over-quarter. Ramp, a leading financial operations company, signed a deal to leverage RCS as a branded messaging experience to power account notifications and two-way capabilities, such as adding a purchase reason or sending a receipt. Our innovation strategy and execution continued to be validated by industry analysts. Throughout the year, we were recognized as a leader in major evaluations by Gartner, IDC, and Omdia, and ended the year by being named the company to beat in CPaaS AI by Gartner.

Khozema Shipchandler: Throughout the year, we were recognized as a leader in major evaluations by Gartner, IDC, and Omdia, and ended the year by being named the company to beat in CPaaS AI by Gartner. They noted, "Twilio's combination of omni-channel communications, contextual data, AI frameworks, developer base, and technology partnerships makes it the company to beat in CPaaS AI," and we're just getting started. A lot of our innovation roadmap is about capturing what's important in AI today and in the future. We're providing customers with the foundational infrastructure layer that embeds persistence, memory, context, and the ability to spin up an agent, no matter what its capabilities are, all on the Twilio platform. Several of these products launched into private beta earlier this month, and we look forward to sharing more at Signal in May. In summary, 2025 was a terrific year.

Speaker #1: RCS continued to gain traction as volume grew roughly 5X quarter over quarter. Ramp a leading financial operations company signed a deal to leverage RCS as the branded messaging experience to power account notifications and two-way capabilities.

Speaker #1: They noted, "TWILIO's combination of omnichannel communications, contextual data, AI frameworks, developer base, and technology partnerships makes it the Company to Beat in CPaaS AI." And we're just getting started.

Speaker #1: Such as adding a purchase reason or sending a receipt. Our innovation strategy and execution continued to be validated by industry analysts. Throughout the year we were recognized as a leader in major evaluations by Gartner IDC and Omdia and ended the year by being named the company to beat in CPAS AI by Gartner.

Speaker #1: A lot of our innovation roadmap is about capturing what's important in AI today and in the future. We're providing customers with the foundational infrastructure layer that embeds persistence, memory, context, and the ability to spin up an agent no matter what its capabilities are.

Khozema Shipchandler: We're providing customers with the foundational infrastructure layer that embeds persistence, memory, context, and the ability to spin up an agent, no matter what its capabilities are, all on the Twilio platform. Several of these products launched into private beta earlier this month, and we look forward to sharing more at Signal in May. In summary, 2025 was a terrific year.

Speaker #1: All on the TWILIO platform. Several of these products launched into private beta earlier this month, and we look forward to sharing more at Signal in May.

Speaker #1: They noted Twilio's combination of omnichannel communications contextual data AI frameworks developer base and technology partnerships makes it the company to beat in CPAS AI.

Khozema Shipchandler: They noted, "Twilio's combination of omni-channel communications, contextual data, AI frameworks, developer base, and technology partnerships makes it the company to beat in CPaaS AI." ... And we're just getting started. A lot of our innovation roadmap is about capturing what's important in AI today and in the future. We're providing customers with the foundational infrastructure layer that embeds persistence, memory, context, and the ability to spin up an agent, no matter what its capabilities are, all on the Twilio platform. Several of these products launched into private beta earlier this month, and we look forward to sharing more at Signal in May. In summary, 2025 was a terrific year. We made tremendous progress against our goals, exceeded our targets for the year, and are well-positioned to sustain this momentum into 2026 with our robust innovation roadmap.

Speaker #1: In summary, 2025 was a terrific year. We made tremendous progress against our goals, exceeded our targets for the year, and are well positioned to sustain this momentum into 2026 with our robust innovation roadmap.

Khozema Shipchandler: We made tremendous progress against our goals, exceeded our targets for the year, and are well-positioned to sustain this momentum into 2026 with our robust innovation roadmap. We remain focused on our vision of creating amazing experiences for brands and are furiously building new and exciting capabilities that capitalize on all that AI has to offer. These innovations will allow Twilio to deliver memory-driven orchestration and agentic interactions that inspire engagement and trust. This is why Twilio is an essential infrastructure layer for every company's tech stack, and our ongoing investments in our platform capabilities will continue to position us to be the foundational layer customers rely on to win in the AI era. With that, I'll turn it over to Aidan.

Speaker #1: And we're just getting started. A lot of our innovation roadmap is about capturing what's important in AI today and in the future. We're providing customers with the foundational infrastructure layer that embeds persistence memory context and the ability to spin up an agent no matter what its capabilities are.

Speaker #1: We remain focused on our vision of creating amazing experiences for brands, and are furiously building new and exciting capabilities that capitalize on all the AI has to offer.

Speaker #1: All on the Twilio platform. Several of these products launched into private beta earlier this month and we look forward to sharing more at Signal in May.

Speaker #1: These innovations will allow TWILIO to deliver memory-driven orchestration, and a gentic interactions that inspire engagement and trust. This is why TWILIO is an essential infrastructure layer for every company's tech stack.

Speaker #1: And our ongoing investments in our platform capabilities will continue to position us to be the foundational layer customers rely on to win in the AI era.

Speaker #1: We remain focused on our vision of creating amazing experiences for brands and are furiously building new and exciting capabilities that capitalize on all the AI has to offer.

Khozema Shipchandler: We remain focused on our vision of creating amazing experiences for brands and are furiously building new and exciting capabilities that capitalize on all that AI has to offer. These innovations will allow Twilio to deliver memory-driven orchestration and agentic interactions that inspire engagement and trust. This is why Twilio is an essential infrastructure layer for every company's tech stack, and our ongoing investments in our platform capabilities will continue to position us to be the foundational layer customers rely on to win in the AI era. With that, I'll turn it over to Aidan.

Speaker #1: And with that, I'll turn it over to Aidan.

Speaker #2: Thank you, Khozema, and good afternoon, everyone. TWILIO finished the year strong with a record-breaking fourth quarter. We generated record revenue of $1.4 billion up 14% year over year on a reported basis, and 12% year over year on an organic basis.

Aidan Viggiano: Thank you, Khozema, and good afternoon, everyone. Twilio finished the year strong with a record-breaking Q4. We generated record revenue of $1.4 billion, up 14% year-over-year on a reported basis, and 12% year-over-year on an organic basis. We also generated record non-GAAP income from operations of $256 million. Free cash flow was $256 million as well. We came into 2025 with a focus on execution, and we delivered across the board. For the full year, we generated revenue of $5.1 billion, representing 14% reported growth, and 13% organic growth. We also delivered strong profitability, with non-GAAP income from operations increasing 29% year-over-year to $924 million.

Speaker #1: These innovations will allow Twilio to deliver memory-driven orchestration and a gentic interactions that inspire engagement and trust. This is why Twilio is an essential infrastructure layer for every company's tech stack.

Speaker #2: We also generated record non-GAAP income from operations of $256 million. Pre-cash flow was $256 million, as well. We came into 2025 with a focus on execution, and we delivered across the board.

Speaker #1: And our ongoing investments in our platform capabilities will continue to position us to be the foundational layer customers rely on to win in the AI era.

Speaker #1: And with that I'll turn it over to Aidan.

Speaker #2: For the full year, we generated revenue of $5.1 billion representing 14% reported growth and 13% organic growth. We also delivered strong profitability with non-GAAP income from operations increasing 29% year over year to $924 million.

Speaker #2: Thank you, Khozema, and good afternoon, everyone. Twilio finished the year strong with a record-breaking fourth quarter. We generated record revenue of $1.4 billion, up 14% year over year on a reported basis and 12% year over year on an organic basis.

Aidan Viggiano: Thank you, Khozema, and good afternoon, everyone. Twilio finished the year strong with a record-breaking fourth quarter. We generated record revenue of $1.4 billion, up 14% year-over-year on a reported basis, and 12% year-over-year on an organic basis. We also generated record non-GAAP income from operations of $256 million. Free cash flow was $256 million as well. We came into 2025 with a focus on execution, and we delivered across the board. For the full year, we generated revenue of $5.1 billion, representing 14% reported growth, and 13% organic growth. We also delivered strong profitability, with non-GAAP income from operations increasing 29% year-over-year to $924 million.

Speaker #2: Pre-cash flow was up 44% year over year to $945 million. And finally, we generated $158 million in GAAP income from operations, marking our first full year of GAAP profitability.

Aidan Viggiano: Free cash flow was up 44% year-over-year to $945 million. And finally, we generated $158 million in GAAP income from operations, marking our first full year of GAAP profitability. We're continuing to drive top-line performance through solid execution across our go-to-market initiatives, while delivering product innovations that are seeing encouraging uptake. Voice finished the year strong as revenue growth accelerated to the high teens in Q4, its best growth rate since 2022. This was aided by strong growth from Voice AI customers, as Voice AI revenue growth accelerated above 60% year-over-year. Messaging revenue growth was also solid, driven in part by strong volumes during cyber week and the holiday season.

Speaker #2: We also generated record non-gap income from operations of 256 million dollars. Pre-cash flow was 256 million dollars as well. We came into 2025 with a focus on execution and we delivered across the board.

Speaker #2: We're continuing to drive top-line performance through solid execution across our go-to-market initiatives, while delivering product innovations that are seeing encouraging uptake. Voice finished the year strong as revenue growth accelerated to the high teens in Q4.

Speaker #2: For the full year, we generated revenue of $5.1 billion, representing 14% reported growth and 13% organic growth. We also delivered strong profitability, with non-GAAP income from operations increasing 29% year over year to $924 million.

Speaker #2: Its best growth rate since 2022. This was aided by strong growth from voice AI customers as voice AI revenue growth accelerated above 60% year over year.

Speaker #2: Pre-cash flow was up 44% year over year to 945 million dollars. And finally we generated 158 million dollars in gap income from operations marking our first full year of gap profitability.

Speaker #2: Messaging revenue growth was also solid, driven in part by strong volumes during Cyber Week and the holiday season. Software add-on revenue growth exceeded 20% year over year in the quarter, led by Verify, which grew more than 25% for the second consecutive quarter.

Aidan Viggiano: Software add-on revenue growth exceeded 20% year-over-year in the quarter, led by Verify, which grew more than 25% for the second consecutive quarter. Finally, from a sales channel perspective, we saw continued strength with both self-service and ISV customers, with revenue from each channel growing 25%+ in the quarter. For the full year, self-serve revenue grew 21%, ISV revenue grew 24%, and software add-on revenue grew 21%, led by Verify and Voice add-ons. By product for the year, growth was led by messaging at 18% and voice at 13%. Email grew 7%, Segment 2%, while other revenue grew 8%, led by user identity and authentication offerings such as Verify. Our Q4 dollar-based net expansion rate was 109%, reflecting the improving growth trends we've seen in our business over the last several quarters.

Speaker #2: We're continuing to drive top-line performance through solid execution across our go-to-market initiatives, while delivering product innovations that are seeing encouraging uptake. Voice finished the year strong, as revenue growth accelerated to the high teens in Q4.

Speaker #2: Finally, from a sales channel perspective, we saw continued strength with both self-service and ISV customers with revenue from each channel growing 25% plus in the quarter.

Speaker #2: It's best growth rate since 2022. This was aided by strong growth from Voice AI customers as Voice AI revenue growth accelerated above 60% year over year.

Speaker #2: For the full year, self-serve revenue grew 21%, ISV revenue grew 24%, and software add-on revenue grew 21% led by Verify and voice add-ons. By product for the year, growth was led by messaging at 18%, and voice at 13%.

Speaker #2: Messaging revenue growth was also solid driven in part by strong volumes during Cyber Week and the holiday season. Software add-on revenue growth exceeded 20% year over year in the quarter led by Verify which grew more than 25% for the second consecutive quarter.

Aidan Viggiano: Software add-on revenue growth exceeded 20% year-over-year in the quarter, led by Verify, which grew more than 25% for the second consecutive quarter. Finally, from a sales channel perspective, we saw continued strength with both self-service and ISV customers, with revenue from each channel growing 25%+ in the quarter. For the full year, self-serve revenue grew 21%, ISV revenue grew 24%, and software add-on revenue grew 21%, led by Verify and Voice add-ons. By product for the year, growth was led by Messaging at 18% and Voice at 13%. Email grew 7%, Segment 2%, while other revenue grew 8%, led by user identity and authentication offerings such as Verify. Our Q4 dollar-based net expansion rate was 109%, reflecting the improving growth trends we've seen in our business over the last several quarters.

Speaker #2: Email grew 7%, segment 2%, while other revenue grew 8%, led by user identity and authentication offerings such as Verify. Our Q4 dollar-based net expansion rate was $109%, reflecting the improving growth trends we've seen in our business over the last several quarters.

Speaker #2: Finally, from a sales channel perspective, we saw continued strength with both self-service and ISV customers, with revenue from each channel growing 25% plus in the quarter.

Speaker #2: For the full year self-serve revenue grew 21%. ISV revenue grew 24% and software add-on revenue grew 21% led by Verify and Voice add-ons. By product for the year growth was led by messaging at 18% and Voice at 13%.

Speaker #2: We delivered non-GAAP gross profit of $682 million, for the quarter, with growth accelerating to 10% year over year. This represented a non-GAAP gross margin of 49.9%, down 200 basis points year over year, and 20 basis points quarter over quarter.

Aidan Viggiano: We delivered non-GAAP gross profit of $682 million for the quarter, with growth accelerating to 10% year-over-year. This represented a non-GAAP gross margin of 49.9%, down 200 basis points year-over-year and 20 basis points quarter-over-quarter. We incurred carrier passthrough fees of $23 million associated with increased Verizon A2P fees, which primarily drove the sequential decline in gross margin. For the full year, non-GAAP gross profit was $2.6 billion, up 8% year-over-year, and non-GAAP gross margin was 50.5%. Q4 non-GAAP income from operations came in ahead of expectations at a record $256 million, up 30% year-over-year, driven by strong revenue growth and continued cost discipline.

Speaker #2: Email grew 7%, Segment 2%, while other revenue grew 8%, led by user identity and authentication offerings such as Verify. Our Q4 dollar-based net expansion rate was 109%, reflecting the improving growth trends we've seen in our business over the last several quarters.

Speaker #2: We incurred carrier pass-through fees of $23 million associated with increased Verizon A2P fees, which primarily drove the sequential decline in gross margin. For the full year, non-GAAP gross profit was $2.6 billion, up 8% year over year, and non-GAAP gross margin was 50.5%.

Speaker #2: We delivered non-gap gross profit of 682 million dollars for the quarter with growth accelerating to 10% year over year. This represented a non-gap gross margin of 49.9% down 200 basis points year over year and 20 basis points quarter over quarter.

Aidan Viggiano: We delivered non-GAAP gross profit of $682 million for the quarter, with growth accelerating to 10% year-over-year. This represented a non-GAAP gross margin of 49.9%, down 200 basis points year-over-year and 20 basis points quarter-over-quarter. We incurred carrier pass-through fees of $23 million associated with increased Verizon A2P fees, which primarily drove the sequential decline in gross margin. For the full year, non-GAAP gross profit was $2.6 billion, up 8% year-over-year, and non-GAAP gross margin was 50.5%. Q4 non-GAAP income from operations came in ahead of expectations at a record $256 million, up 30% year-over-year, driven by strong revenue growth and continued cost discipline.

Speaker #2: Q4 non-GAAP income from operations came in ahead of expectations at a record $256 million, up 30% year over year, driven by strong revenue growth and continued cost discipline.

Speaker #2: We incurred carrier pass-through fees of 23 million dollars associated with increased Verizon A2P fees which primarily drove the sequential decline in gross margin. For the full year non-gap gross profit was 2.6 billion dollars up 8% year over year and non-gap gross margin was 50.5%.

Speaker #2: Non-GAAP operating margin was 18.7%, up $220 basis points year over year, and 70 basis points quarter over quarter. The sequential increase was driven by improved gross profit growth and ongoing cost discipline.

Aidan Viggiano: Non-GAAP operating margin was 18.7%, up 220 basis points year-over-year and 70 basis points quarter-over-quarter. The sequential increase was driven by improved gross profit growth and ongoing cost discipline. In addition, we generated $57 million in GAAP income from operations. For the full year, non-GAAP income from operations was $924 million, up 29% year-over-year. Non-GAAP operating margin was 18.2%, up 220 basis points year-over-year. This margin expansion reflects our sustained financial discipline, evidenced by a 1% year-over-year decline in non-GAAP operating expenses. Q4 stock-based compensation as a percentage of revenue was 11.3%, down 180 basis points year-over-year and down 90 basis points quarter-over-quarter.

Speaker #2: In addition, we generated $57 million in GAAP income from operations. For the full year, non-GAAP income from operations was $924 million, up 29% year over year.

Speaker #2: Q4 non-gap income from operations came in ahead of expectations at a record 256 million dollars up 30% year over year driven by strong revenue growth and continued cost discipline.

Speaker #2: Non-GAAP operating margin was 18.2%, up 220 basis points year over year. This margin expansion reflects our sustained financial discipline evidenced by a 1% year over year decline in non-GAAP operating expenses.

Speaker #2: Non-gap operating margin was 18.7% up 220 basis points year over year and 70 basis points quarter over quarter. The sequential increase was driven by improved gross profit growth and ongoing cost discipline.

Aidan Viggiano: Non-GAAP operating margin was 18.7%, up 220 basis points year-over-year and 70 basis points quarter-over-quarter. The sequential increase was driven by improved gross profit growth and ongoing cost discipline. In addition, we generated $57 million in GAAP income from operations.... For the full year, non-GAAP income from operations was $924 million, up 29% year-over-year. Non-GAAP operating margin was 18.2%, up 220 basis points year-over-year. This margin expansion reflects our sustained financial discipline, evidenced by a 1% year-over-year decline in non-GAAP operating expenses. Q4 stock-based compensation as a percentage of revenue was 11.3%, down 180 basis points year-over-year, and down 90 basis points quarter-over-quarter.

Speaker #2: Q4 stock-based compensation as a percentage of revenue was 11.3%, down 180 basis points year over year, and down 90 basis points quarter over quarter.

Speaker #2: In addition, we generated $57 million in GAAP income from operations. For the full year, non-GAAP income from operations was $924 million, up 29% year over year.

Speaker #2: For the full year, stock-based compensation as a percentage of revenue was 11.8%, down 200 basis points year over year, and down 10 percentage points since 2021 when we initiated our efforts to reduce stock-based compensation.

Aidan Viggiano: For the full year, stock-based compensation as a percentage of revenue was 11.8%, down 200 basis points year-over-year, and down 10 percentage points since 2021, when we initiated our efforts to reduce stock-based compensation. In addition, our net burn rate was just 1.5% in 2025, well below the 3% target we set out at our 2025 Investor Day. Our ending share count was 152 million, down slightly year-over-year and down 18% since we initiated our share repurchase efforts in 2023. We generated free cash flow of $256 million in the quarter. Additionally, we completed $198 million in share repurchases in Q4.

Speaker #2: Non-gap operating margin was 18.2% up 220 basis points year over year. This margin expansion reflects our sustained financial discipline evidenced by a 1% year over year decline in non-gap operating expenses.

Speaker #2: In addition, our net burn rate was just 1.5% in 2025, well below the 3% target we set out at our 2025 investor day. Our ending share count was 152 million, down slightly year over year, and down 18% since we initiated our share repurchase efforts in 2023.

Speaker #2: Q4 stock-based compensation as a percentage of revenue was 11.3%, down 180 basis points year over year and down 90 basis points quarter over quarter.

Speaker #2: For the full year stock-based compensation as a percentage of revenue was 11.8% down 200 basis points year over year and down 10 percentage points since 2021 when we initiated our efforts to reduce stock-based compensation.

Aidan Viggiano: For the full year, stock-based compensation as a percentage of revenue was 11.8%, down 200 basis points year over year, and down 10 percentage points since 2021, when we initiated our efforts to reduce stock-based compensation. In addition, our net burn rate was just 1.5% in 2025, well below the 3% target we set out at our 2025 Investor Day. Our ending share count was 152 million, down slightly year over year and down 18% since we initiated our share repurchase efforts in 2023. We generated free cash flow of $256 million in the quarter. Additionally, we completed $198 million in share repurchases in Q4.

Speaker #2: We generated free cash flow of $256 million in the quarter. Additionally, we completed 198 million in share repurchases in Q4. For the full year, we completed 855 million in share repurchases, representing 90% of 2025 free cash flow, well above the 50% target established at our 2025 investor day.

Aidan Viggiano: For the full year, we completed $855 million in share repurchases, representing 90% of 2025 Free Cash Flow, well above the 50% target established at our 2025 Investor Day. Turning to guidance. For Q1, we're initiating a revenue target of $1.335 to 1.345 billion, representing 14% to 15% reported growth and 10% to 11% organic growth. This includes an assumed $44 million in incremental passthrough revenue from US carrier fees, a $21 million increase from Q4, driven by increased T-Mobile fees that took effect in January. As a reminder, our organic revenue excludes the contribution from incremental increases to US carrier fees.

Speaker #2: In addition our net burn rate was just 1.5% in 2025 well below the 3% target we set out at our 2025 investor day. Our ending share count was 152 million down slightly year over year and down 18% since we initiated our share repurchase efforts in 2023.

Speaker #2: Turning to guidance, for Q1, we're initiating a revenue target of $1.335 to $1.345 billion, representing 14 to 15 percent reported growth and 10 to 11 percent organic growth.

Speaker #2: We generated free cash flow of $256 million in the quarter. Additionally, we completed $198 million in share repurchases in Q4. For the full year, we completed $855 million in share repurchases, representing 90% of 2025 free cash flow—well above the 50% target established at our 2025 Investor Day.

Speaker #2: This includes an assumed $44 million in incremental pass-through revenue from US carrier fees, a $21 million increase from Q4, driven by increased T-Mobile fees that took effect in January.

Aidan Viggiano: For the full year, we completed $855 million in share repurchases, representing 90% of 2025 free cash flow, well above the 50% target established at our 2025 Investor Day. Turning to guidance. For Q1, we're initiating a revenue target of $1.335 to 1.345 billion, representing 14% to 15% reported growth and 10% to 11% organic growth. This includes an assumed $44 million in incremental pass-through revenue from US carrier fees, a $21 million increase from Q4, driven by increased T-Mobile fees that took effect in January. As a reminder, our organic revenue excludes the contribution from incremental increases to US carrier fees. Moving to the full year, we're encouraged by the broad-based trends we've seen throughout 2025 and into 2026, though we're continuing to plan prudently given our usage-based revenue model.

Speaker #2: As a reminder, our organic revenue excludes the contribution from incremental increases to US carrier fees. Moving to the full year, we're encouraged by the broad-based trends we've seen throughout 2025 and into 2026, though we're continuing to plan prudently given our usage-based revenue model.

Aidan Viggiano: Moving to the full year, we're encouraged by the broad-based trends we've seen throughout 2025 and into 2026, though we're continuing to plan prudently given our usage-based revenue model. For the full year, we expect reported revenue growth of 11.5% to 12.5% and organic revenue growth of 8% to 9%, above our 2025 Investor Day framework, that we continue to orient the business to double-digit organic revenue growth. In addition, we expect full-year non-GAAP gross profit dollar growth to be similar to our organic revenue growth rate. Since the middle of 2025, all major US carriers have announced A2P fee increases, including AT&T, whose rate increases will go into effect on 1 April. Our full-year revenue guidance assumes approximately $190 million in incremental pass-through revenue from these fees.

Speaker #2: Turning to guidance for Q1 we're initiating a revenue target of 1.335 to 1.345 billion dollars representing 14 to 15 percent reported growth and 10 to 11 percent organic growth.

Speaker #2: For the full year, we expect reported revenue growth of 11.5 to 12.5 percent, and organic revenue growth of 8 to 9 percent, above our 2025 investor day framework that we continue to orient the business to double-digit organic revenue growth.

Speaker #2: This includes an assumed 44 million dollars in incremental pass-through revenue from US carrier fees a 21 million dollar increase from Q4 driven by increased T-Mobile fees that took effect in January.

Speaker #2: In addition, we expect full year non-GAAP gross profit dollar growth to be similar to our organic revenue growth rate. Since the middle of 2025, all major US carriers have announced A2P fee increases including AT&T, whose rate increases will go into effect on April 1st.

Speaker #2: As a reminder our organic revenue excludes the contribution from incremental increases to US carrier fees. Moving to the full year we're encouraged by the broad-based trends we've seen throughout 2025 and into 2026 that we're continuing to plan prudently given our usage-based revenue model.

Speaker #2: Our full year revenue guidance assumes approximately $190 million in incremental pass-through revenue from these fees. The year-over-year impact from these fees will be slightly higher in the first half of 2026 due to the timing of Verizon's increase in June of last year.

Speaker #2: For the full year, we expect reported revenue growth of 11.5 to 12.5 percent and organic revenue growth of 8 to 9 percent, above our 2025 Investor Day framework. We continue to orient the business to double-digit organic revenue growth.

Aidan Viggiano: For the full year, we expect reported revenue growth of 11.5 to 12.5% and organic revenue growth of 8 to 9% above our 2025 Investor Day framework that we continue to orient the business to double-digit organic revenue growth. In addition, we expect full year non-GAAP gross profit dollar growth to be similar to our organic revenue growth rate. Since the middle of 2025, all major US carriers have announced A2P fee increases, including AT&T, whose rate increases will go into effect on 1 April. Our full year revenue guidance assumes approximately $190 million in incremental pass-through revenue from these fees. The year-over-year impact from these fees will be slightly higher in the first half of 2026 due to the timing of Verizon's increase in June of last year.

Aidan Viggiano: The year-over-year impact from these fees will be slightly higher in the first half of 2026 due to the timing of Verizon's increase in June of last year. While the pass-through fees have no impact on our ability to generate gross profit, income from operations, or free cash flow dollars, they do impact our margin rates. For modeling purposes, we would expect the incremental fees to reduce our full year 2026 non-GAAP gross margin by roughly 170 basis points, all else equal. Turning to our profit outlook. For Q1, we expect non-GAAP income from operations of $240 to 250 million. We are initiating our full year 2026 non-GAAP income from operations range of $1.04 to 1.06 billion, reflecting our continued focus on cost discipline and operating leverage across the business.

Speaker #2: In addition we expect full year non-gap gross profit dollar growth to be similar to our organic revenue growth rate. Since the middle of 2025 all major US carriers have announced A2P fee increases including AT&T whose rate increases will go into effect on April 1st.

Speaker #2: While the pass-through fees have no impact on our ability to generate gross profit, income from operations, or free cash flow dollars, they do impact our margin rates.

Speaker #2: For modeling purposes, we would expect the incremental fees to reduce our full year 2026 non-GAAP gross margin by roughly 170 basis points, all else equal.

Speaker #2: Our full year revenue guidance assumes approximately 190 million dollars in incremental pass-through revenue from these fees. The year over year impact from these fees will be slightly higher in the first half of 2026 due to the timing of Verizon's increase in June of last year.

Speaker #2: Turning to our profit outlook, for Q1, we expect non-GAAP income from operations of $240 to $250 million. We are initiating our full year 2026 non-GAAP income from operations range of 1.04 to 1.06 billion dollars, reflecting our continued focus on cost discipline and operating leverage across the business.

Speaker #2: While the pass-through fees had no impact on our ability to generate gross profit, income from operations, or free cash flow dollars, they do impact our margin rates.

Aidan Viggiano: While the pass-through fees have no impact on our ability to generate gross profit, income from operations, or free cash flow dollars, they do impact our margin rates. For modeling purposes, we would expect the incremental fees to reduce our full year 2026 non-GAAP gross margin by roughly 170 basis points, all else equal. Turning to our profit outlook. For Q1, we expect non-GAAP income from operations of $240 to 250 million. We are initiating our full year 2026 non-GAAP income from operations range of $1.04 to 1.06 billion, reflecting our continued focus on cost discipline and operating leverage across the business.

Speaker #2: For modeling purposes, we would expect the incremental fees to reduce our full-year 2026 non-GAAP gross margin by roughly 170 basis points, all else equal.

Speaker #2: Consistent with 2025, free cash flow in Q1 will be impacted by $140 million payment related to our company-wide cash bonus program that we implemented in 2024 as part of our efforts to reduce stock-based compensation.

Aidan Viggiano: Consistent with 2025, Free Cash Flow in Q1 will be impacted by a $140 million payment related to our company-wide cash bonus program that we implemented in 2024 as part of our efforts to reduce stock-based compensation. This will limit Free Cash Flow generation in the first quarter to roughly $100 million as planned. That said, we continue to expect to generate strong quarterly Free Cash Flow over the balance of the year, and for the full year 2026, we expect Free Cash Flow in the range of $1.04 to 1.06 billion. We are confident in our outlook for 2026 and have made substantial progress against the financial framework established last January. Our cost savings and efficiency initiatives are tracking ahead of plan, and our 2027 outlook looks strong.

Speaker #2: Turning to our profit outlook for Q1 we expect non-gap income from operations of 240 to 250 million dollars. We are initiating our full year 2026 non-gap income from operations range of 1.04 to 1.06 billion dollars reflecting our continued focus on cost discipline and operating leverage across the business.

Speaker #2: This will limit free cash flow generation in the first quarter to roughly $100 million as planned. That said, we continue to expect to generate strong quarterly free cash flow over the balance of the year and for the full year 2026, we expect free cash flow in the range of 1.04 to 1.06 billion dollars.

Speaker #2: Consistent with 2025, free cash flow in Q1 will be impacted by a $140 million payment related to our company-wide cash bonus program that we implemented in 2024 as part of our efforts to reduce stock-based compensation.

Speaker #2: We are confident in our outlook for 2026 and have made substantial progress against the financial framework established last January. Our cost savings and efficiency initiatives are tracking ahead of plan and our 2027 outlook looks strong.

Speaker #2: This will limit free cash flow generation in the first quarter to roughly 100 million dollars as planned. That said we continue to expect to generate strong quarterly free cash flow over the balance of the year and for the full year 2026 we expect free cash flow in the range of 1.04 to 1.06 billion dollars.

Speaker #2: While our 2027 non-GAAP operating margin target did not account for the recent fee increases initiated by all major US carriers absent fees we are on track to meet or exceed the financial framework we provided last year.

Aidan Viggiano: While our 2027 non-GAAP operating margin target did not account for the recent fee increases initiated by all major US carriers, absent fees, we are on track to meet or exceed the financial framework we provided last year. Given these incremental fees are passed through at cost, they are a headwind to our margin rate, but it's important to note that they have no impact on our ability to generate profit dollars. As an alternative, we are providing a 2027 non-GAAP operating income target of at least $1.23 billion, which is unaffected by carrier fees and aligns with the high end of our Investor Day framework. We will provide complete full year 2027 guidance during our Q4 2026 earnings call next year. I'm proud of the execution we delivered in 2025, resulting in accelerating organic revenue growth and strong profitability.

Speaker #2: Given these incremental fees, our pass-through at cost, they are a headwind to our margin rate, but it's important to note that they have no impact on our ability to generate profit dollars.

Speaker #2: As an alternative, we are providing a income target of at least 1.23 billion dollars, which is unaffected by carrier fees and aligns with the high end of our investor day framework.

Speaker #2: While our 2027 non-gap operating margin target did not account for the recent fee increases initiated by all major US carriers absent fees we are on track to meet or exceed the financial framework we provided last year.

Aidan Viggiano: While our 2027 non-GAAP operating margin target did not account for the recent fee increases initiated by all major US carriers, absent fees, we are on track to meet or exceed the financial framework we provided last year. Given these incremental fees are passed through at cost, they are a headwind to our margin rate. But it's important to note that they have no impact on our ability to generate profit dollars. As an alternative, we are providing a 2027 non-GAAP operating income target of at least $1.23 billion, which is unaffected by carrier fees and aligns with the high end of our Investor Day framework. We will provide complete full year 2027 guidance during our Q4 2026 earnings call next year. I'm proud of the execution we delivered in 2025, resulting in accelerating organic revenue growth and strong profitability.

Speaker #2: We will provide complete full year 2027 guidance during our Q4 26 earnings call next year. I'm proud of the execution we delivered in 2025, resulting in accelerating organic revenue growth and strong profitability.

Speaker #2: Given these incremental fees our pass-through at cost they are a headwind to our margin rate but it's important to note that they have no impact on our ability to generate profit dollars.

Speaker #2: I'm excited by our opportunity to be the foundational infrastructure layer that powers seamless, intelligent interactions for our customers. And I'm confident that our go-to-market execution and product innovation will help us drive durable, profitable organic growth in 2026 and beyond.

Aidan Viggiano: I'm excited by our opportunity to be the foundational infrastructure layer that powers seamless, intelligent interactions for our customers. I'm confident that our go-to-market execution and product innovation will help us drive durable, profitable, organic growth in 2026 and beyond. With that, we'll now open it up for questions.

Speaker #2: As an alternative we are providing a 2027 non-gap operating income target of at least 1.23 billion dollars which is unaffected by carrier fees and aligns with the high end of our investor day framework.

Speaker #2: And with that, we'll now open it up for questions. Thank you. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced.

Speaker #2: We will provide complete full year 2027 guidance during our Q4 26 earnings call next year. I'm proud of the execution we delivered in 2025 resulting in accelerating organic revenue growth and strong profitability.

Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. One moment for questions. Our first question comes from Alex Zukin with Wolfe Research. You may proceed.

Speaker #2: To withdraw your question, please press star 11 again. One moment for questions. And our first question comes from Alex Zukin with Wolf Research. He may proceed.

Speaker #2: I'm excited by our opportunity to be the foundational infrastructure layer that powers seamless intelligent interactions for our customers. And I'm confident that our go-to-market execution and product innovation will help us drive durable profitable organic growth in 2026 and beyond.

Speaker #3: Hey, guys. Thanks for taking the question and really congrats on a solid end to the year. Maybe just the first one for me, is can you break out what drove some of the voice strength in Q4?

Alex Zukin: Hey, guys. Thanks for taking the question, and really congrats on a solid end to the year. Maybe just the first one for me is, can you break out what drove some of the voice strength in Q4? How much were voice AI-driven use cases versus traditional voice, and maybe the outlook for 2026 on that front?

Speaker #3: How much were voice AI-driven use cases versus traditional voice? And maybe the outlook for 2026 on that front.

Speaker #2: And with that we'll now open it up for questions. Thank you. As a reminder to ask a question please press star one one on your telephone and wait for your name to be announced.

Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. One moment for questions. And our first question comes from Alex Zukin with Wolfe Research. You may proceed.

Speaker #4: Hey, Alex. This is Thomas here. So we saw a broad adoption of voice across all of our different customer cohorts. So there was definitely really good strength in our self-service channel.

Thomas Wyatt: Hey, Alex, this is Thomas here. So we saw a broad adoption of voice across all of our different customer cohorts, so there was definitely really good strength in our self-service channel. Some of that's the voice AI startups, some of that's just the existing self-service customers. We also saw a lot of interest and momentum in the ISV community as well. Talked about the growth we're seeing in the ISV business in the mid-20s, and that's a lot of voice adding, accelerating to that as the ISV community builds more voice AI agents into their core platforms. And we're also seeing it in the direct enterprise space as well, where there's a lot of use cases, specifically around customer care and sales automation, that's voice is being a big part of internal AI assistants that are being built there.

Speaker #2: To withdraw your question please press star one one again. One moment for questions. And our first question comes from Alex Zukin with Wolf Research.

Speaker #4: Some of that's the voice AI startups. Some of that's just the existing self-service customers. We also saw a lot of interest and momentum in the ISV community as well.

Speaker #2: He may proceed.

Speaker #3: Hey guys thanks for taking the question. and and really congrats on a on a solid end to the year. maybe just the first one for me is can you break out what drove some of the voice strength in Q4?

Alex Zukin: Hey, guys. Thanks for taking the question, and really congrats on a solid end to the year. Maybe just the first one for me, can you break out what drove some of the voice strength in Q4? How much were Voice AI-driven use cases versus traditional voice, and maybe the outlook for 2026 on that front?

Speaker #4: Talked about the growth we're seeing in the ISV business in the mid-20s, and that's a lot of voice adding accelerating to that as the ISV community builds more voice AI agents into their core platforms.

Speaker #3: How much were voice AI-driven use cases versus traditional voice? And maybe the outlook for 2026 on that front.

Speaker #4: And we're also seeing it in the direct enterprise space as well where there's a lot of use cases specifically around customer care, and sales automation that's voice is being a big part of internal AI assistants that are being built there.

Speaker #4: Hey Alex this is Thomas here. So we saw a a broad adoption of voice across all of our different customer cohorts. So there was definitely really good strength in our self-service channel some of that's the voice AI startups some of that's just the existing self-service customers.

Speaker #4: So it's been pretty broad, and whether it's on the infrastructure or on the voice add-ons, software, we've seen great penetration there as well.

Thomas Wyatt: So it's been pretty broad, and whether it's on the infrastructure or on the voice add-ons, software, we've seen great penetration there as well.

Speaker #4: We also saw a lot of interest and momentum in the ISV community as well. Talked about the growth we're seeing in the ISV business in the mid-twenties and that's a lot of voice adding accelerating to that as the ISV community builds more voice AI agents into their core platforms.

Speaker #3: Perfect. And then, Aidan, maybe just a follow-up for you. First, really appreciate a lot more detail, a lot of the detail that you put into the guidance, both for the gross profit commentary in the letter and the operating income dollar amount that you provided for 27.

Alex Zukin: Perfect. And then, Aidan, maybe just a follow-up for you. First, really appreciate a lot more detail, a lot of the detail that you put into the guidance, both for the gross profit commentary in the letter, and the operating income dollar amount that you provided for 27. But maybe just frame it for us a little bit. If you look at the Q1 guide organically, it's actually a little bit more aggressive than this time last year. So maybe what gives you the visibility there? And then contrast that to the full year and the level of conservatism that you're providing. And then finally, apologize for the three-parter. Yeah, the gross profit dollar growth commentary for fiscal 26, similar to revenue growth, just maybe a finer point on that.

Speaker #3: But maybe just frame it for us a little bit if you look at the Q1 guide organically, it's actually a little bit more aggressive than this time last year.

Speaker #4: And we're also seeing it in the direct enterprise space as well, where there's a lot of use cases, specifically around customer care and sales automation, where voice is being a big part of internal AI assistants that are being built there.

Speaker #3: So maybe what gives you the visibility there and then contrast that to the full year and the level of conservatism that you're providing? And then finally, apologize for the three-parter, the gross profit dollar growth commentary for fiscal 26, similar to revenue growth, just maybe a finer point on that.

Speaker #4: So it's been pretty broad and whether it's on the infrastructure or on the voice add-ons software we've seen great penetration there as well.

Thomas Wyatt: So it's been pretty broad, and whether it's on the infrastructure or on the voice add-ons, software, we've seen great penetration there as well.

Speaker #3: Perfect. And then Aidan maybe just to follow up for you first really appreciate a lot more detail a lot of the detail that you put into the guidance both for the gross profit commentary in the letter and the operating income dollar amount that you provided for twenty-seven.

Alex Zukin: Perfect. And then, Aidan, maybe just a follow-up for you. First, really appreciate a lot more detail - a lot of the detail that you put into the guidance, both for the gross profit commentary in the letter, and the operating income dollar amount that you provided for 2027. But maybe just frame it for us a little bit. If you look at the Q1 guide organically, it's actually a little bit more aggressive than this time last year. So maybe what gives you the visibility there? And then contrast that to the full year and the level of conservatism that you're providing. And then finally, apologize for the three-parter. Yeah, the gross profit dollar growth commentary for fiscal 2026, similar to revenue growth, just maybe a finer point on that.

Speaker #5: Yeah, I'll start with Q1. I mean, we feel really good about our guidance coming into Q1. The 10 to 11 percent, as you noted, it's higher than where we've been.

Aidan Viggiano: Yeah, I'll start with Q1. I mean, we feel really good about our guidance coming into Q1. The 10 to 11%, as you noted, is higher than where we've been. It's our highest quarterly guidance in over 3 years, and it really just, you know, kind of speaks to the broad-based strength that we're talking about here. We look at it by product, both voice and messaging, growing in the high teens in the quarter. You look at it by sales channel, ISVs, you know, self-serve, both growing very strongly above 25%. You look at our multi-product adoption, and it's really accelerating. So we feel really good about how the sales team is executing. We feel really good about our product innovation, and we've seen these trends kind of consistently over several quarters.

Speaker #5: It's our highest quarterly guidance in over three years. And it really just kind of speaks to the broad-based strength that we're talking about here.

Speaker #3: But maybe just frame it for us a little bit. If you look at the Q1 guide organically, it's actually—it's actually a little bit more aggressive than this time last year.

Speaker #5: We look at it by product, both voice and messaging growing in the high teens in the quarter. You look at it by sales channel, ISVs, self-serve, both growing very strongly above 25 percent.

Speaker #3: So maybe what gives you the visibility there and then contrast that to the full year and the level of conservatism that you're providing and then finally apologize for the three-parter you know the gross profit dollar growth commentary for fiscal twenty-six similar to revenue growth just maybe a finer point on that.

Speaker #5: You look at our multi-product adoption, and it's really accelerating. So we feel really good about how the sales team is executing. We really feel really good about our product innovation.

Speaker #5: And we've seen these trends kind of consistently over several quarters. So we had the confidence kind of coming into the quarter to guide at a 10 to 11 percent.

Speaker #5: Yeah I'll start with Q1. I mean we feel really good about our our guidance coming into Q1. The ten to eleven percent as you noted it's higher than than where we've been.

Aidan Viggiano: Yeah, I'll start with Q1. I mean, we feel really good about our guidance coming into Q1. The 10 to 11%, as you noted, is higher than where we've been. It's our highest quarterly guidance in over 3 years, and it really just, you know, kind of speaks to the broad-based strength that we're talking about here. We look at it by product, both voice and messaging, growing in the high teens in the quarter. You look at it by sales channel, ISVs, you know, self-serve, both growing very strongly above 25%. You look at our multi-product adoption, and it's really accelerating. So we feel really good about how the sales team is executing. We really feel really good about our product innovation, and we've seen these trends kinda consistently over several quarters.

Aidan Viggiano: So we have the confidence kind of coming into the quarter to guide at 10 to 11%. Now, when you think about the year, we're guiding 8 to 9% organically. As you know, Alex, you know, our revenues are primarily usage based, and with that comes a certain level of prudent planning. You know, but as we said, we feel really good about the guidance for Q1. Our full year guidance is 100 basis points higher than our initial 2025 organic revenue growth, and again, we're encouraged by the broad-based trends. I'd just say we're seeing a lot of opportunity, our teams are executing well, and we feel optimistic about the setup for the year.

Speaker #5: Now, when you think about the year we're guiding 8 to 9 percent organically, as you know, Alex, our revenues are primarily usage-based. And with that comes a certain level of prudent planning.

Speaker #5: It's our highest quarterly guidance in over three years. And it really just you know it kinda speaks to the broad-based strength that we're talking we're talking about here.

Speaker #5: When we look at it by product, both voice and messaging are growing in the high teens in the quarter. If you look at it by sales channel, ISVs and self-serve are both growing very strongly, above 25%.

Speaker #5: But as we said, we feel really good about the guidance for Q1. Our full-year guidance is 100 basis points higher than our initial 2025 organic revenue growth.

Speaker #5: You look at our multi-product adoption and it's really accelerating. So we feel really good about how the sales team is executing. We really feel really good about our product innovation.

Speaker #5: And again, we're encouraged by the broad-based trends. I just say we're seeing a lot of opportunity. Our teams are executing well. And we feel optimistic about the setup for the year.

Speaker #5: And we've seen these trends kinda consistently over several quarters. So we had the confidence kinda coming into the quarter to guide at a ten to eleven percent.

Aidan Viggiano: As it relates to the 2026 growth profit, growth, we did say we expect it to be similar to the organic growth. You know, I think if you look at the trends over 2025, you started to see the gross profit growth accelerate over the year. And importantly, you saw the gap between gross profit growth and organic growth narrow as we moved throughout the year. That's driven by a lot of proactive actions that we've taken. Now, as we head into 2026, you know, there are a couple of factors at play. First, I'd say, and most exciting, is the accelerated growth for many of our higher margin products. I just talked about a lot of them, but voice in particular, a lot of the software add-ons that Thomas just talked about, you know, Verify, Lookup, SMS Pumping Protection.

Speaker #5: As it relates to the 2026 gross profit growth, we did say we expect it to be similar to the organic growth. I think if you look at the trends over 2025, you started to see the gross profit growth accelerate over the year.

Aidan Viggiano: So we have the confidence kind of coming into the quarter to guide at 10 to 11%. Now, when you think about the year, we're guiding 8 to 9% organically. As you know, Alex, you know, our revenues are primarily usage-based, and with that comes a certain level of prudent planning. You know, but as we said, we feel really good about the guidance for Q1. Our full year guidance is 100 basis points higher than our initial 2025 organic revenue growth. And again, we're encouraged by the broad-based trends. I'd just say we're seeing a lot of opportunity. Our teams are executing well, and we feel optimistic about the setup for the year.

Speaker #5: Now, when you think about the year, we're guiding eight to nine percent organically. As you know, Alex, our revenues are primarily usage-based.

Speaker #5: And with that comes a certain level of prudent planning, you know. But as we said, we feel really good about the guidance for Q1.

Speaker #5: And importantly, you saw the gap between gross profit growth and organic growth narrow as we move throughout the year. That's driven by a lot of proactive actions that we've taken.

Speaker #5: our full year guidance is a hundred basis points higher than our initial twenty twenty-five organic revenue growth. And again we're encouraged by the broad-based ten trends.

Speaker #5: Now, as we head into 2026, there are a couple of factors at play. First, I'd say, and most exciting, is the accelerated growth for many of our higher-margin products.

Speaker #5: I'd just say we're seeing a lot of opportunity. Our teams are executing well, and we feel optimistic about the setup for the year. As it relates to the 2026 gross profit growth, we did say we expect it to be similar to the organic growth.

Speaker #5: I just talked about a lot of them, but voice, in particular, a lot of the software add-ons that Thomas just talked about, Verify, Lookup, SMS pumping protection.

Aidan Viggiano: As it relates to the 2026 gross profit growth, we did say we expect it to be similar to the organic growth. You know, I think if you look at the trends over 2025, you started to see the gross profit growth accelerate over the year. And importantly, you saw the gap between gross profit growth and organic growth narrow as we moved throughout the year. That's driven by a lot of proactive actions that we've taken. Now, as we head into 2026, you know, there are a couple of factors at play. First, I'd say, and most exciting, is the accelerated growth for many of our higher-margin products. I just talked about a lot of them, but Voice in particular, a lot of the software add-ons that Thomas just talked about, you know, Verify, Lookup, SMS Pumping Protection.

Speaker #5: We're getting a lot of traction on these products. So we're seeing that really take hold. In addition to that, as we've kind of mentioned over the past few quarters, we're taking a more critical eye towards supply chain costs.

Aidan Viggiano: We're getting a lot of traction on these products, so we're seeing that really take hold. In addition to that, as we've kind of mentioned over the past few quarters, we're taking a more critical eye towards supply chain costs. That has resulted in certain cost optimizations on the carrier side, in the form of more direct connections or more optimization across our kind of carrier supply chain. We're also leveraging our balance sheet to secure discounts in some cases. So we're starting to see some of those things materialize. And then the last thing I'll talk about is on the hosting cost side. As we talked about in 2025, we completed a migration for our email business. They went from on-prem to the cloud. We experienced a double bubble of cost in 2025.

Speaker #5: You know, I think if you look at the trends over 2025, you started to see the gross profit growth accelerate over the year.

Speaker #5: That has resulted in certain cost optimizations on the carrier side. In the form of more direct connections or more optimization across our kind of carrier supply chain, we're also leveraging our balance sheet to secure discounts in some cases.

Speaker #5: And importantly, you saw the gap between gross profit growth and organic growth narrow as we moved throughout the year. That's driven by a lot of proactive actions that we've taken.

Speaker #5: Now, as we head into 2026, you know there are a couple of factors at play. First, I'd say—and most exciting—is the accelerated growth for many of our higher-margin products.

Speaker #5: So we're starting to see some of those things materialize. And then the last thing I'll talk about is on the hosting cost side. As we talked about in '25, we completed a migration for our email business.

Speaker #5: I just talked about a lot of them. But voice in particular a lot of the software add-ons that Thomas just talked about. You know Verify Lookup SMS Pumping Protection.

Speaker #5: They went from on-prem to the cloud. We experienced a double bubble of cost in 2025. That doesn't repeat in 2026. So that's kind of now behind us.

Speaker #5: We're getting a lot of traction on these products, so we're seeing that really take hold. In addition to that, as we've kind of mentioned over the past few quarters, we're taking a more critical eye towards supply chain costs.

Aidan Viggiano: We're getting a lot of traction on these products, so we're seeing that really take hold. In addition to that, as we've kind of mentioned over the past few quarters, we're taking a more critical eye towards supply chain costs. That has resulted in certain cost optimizations on the carrier side in the form of more direct connections or more optimization across our kind of carrier supply chain. We're also leveraging our balance sheet to secure discounts in some cases. So we're starting to see some of those things materialize. And then the last thing I'll talk about is on the hosting cost side. As we talked about in 2025, we completed a migration for our email business. They went from on-prem to the cloud. We experienced a double bubble of cost in 2025.

Aidan Viggiano: That doesn't repeat in 2026, so that's kind of now behind us. It's really all of those things that give us the confidence to say that we expect gross profits to grow in line with organic revenue.

Speaker #5: So it's really all of those things that gave us the confidence to say that we expect gross profits to grow in line with organic revenue.

Speaker #5: that has resulted in certain cost optimizations on the carrier side. In the form of more direct connections or more optimization across our kinda carrier supply chain.

Speaker #3: We love it. Thank you, guys.

Alex Zukin: We love it. Thank you, guys.

Speaker #6: Thank you. Our next question comes from Taylor McGinnis with UBS. You may proceed.

Operator: Thank you. Our next question comes from Taylor McGinnis with UBS. You may proceed.

Speaker #5: We're also leveraging our balance sheet to secure discounts in some cases, so we're starting to see some of those things materialize. And then the last thing I'll talk about is on the hosting cost side.

Speaker #7: Yeah, hi. Thanks so much for taking my questions. Aidan, first one, just if you were to adjust for all the incremental A2P fees, can you offer us what the operating income margin guide would have been relative to the 8.5 percent reported number?

Taylor McGinnis: Yeah, hi. Thanks so much for taking my questions. Aidan, first one, just if, if you were to adjust for all the incremental A2P fees, can you offer us what the operating income margin guide would have been relative to the 8.5% reported number? And as a second, you know, part to this question, if we look at the Q1 operating margin guide, it actually looks pretty solid relative to the full year. So can you comment, are you guys anticipating any uptick in expenses or investments as, you know, you move throughout the year, and anything that might have been different or new relative to when you first gave this guide at the Analyst Day?

Speaker #5: as we talked about in twenty-five we completed a migration for our email business. They went from on-prem to the cloud. We experienced a double bubble of cost in twenty twenty-five.

Speaker #7: And as a second, part to this question, if we look at the one-queue operating margin guide, it actually looks pretty solid relative to the full year.

Speaker #5: That doesn't repeat in twenty twenty-six. So that's kinda now behind us. So it's really all of those things that gave us the confidence to say that we expect gross profits to grow in line with organic revenue.

Aidan Viggiano: That doesn't repeat in 2026, so that's kind of now behind us. So it's really all of those things that give us the confidence to say that we expect gross profits to grow in line with organic revenue.

Speaker #7: So can you comment, are you guys anticipating any uptick in expenses or investments as you move throughout the year? And anything that might have been different or new relative to when you first gave this guide at the analyst's desk?

Speaker #3: We love it. Thank you guys.

Khozema Shipchandler: We love it. Thank you, guys.

Alex Zukin: We love it. Thank you, guys.

Speaker #6: Thank you. Our next question comes from Taylor McGinnis with UBS. You may proceed.

Operator: Thank you. Our next question comes from Taylor McGinnis with UBS. You may proceed.

Speaker #5: Yeah, great. So I'm not sure I connected the dots on the 8.5 percent that you mentioned, Taylor. But let me just talk about how fees impact our guides for 2026.

Aidan Viggiano: Yeah, great. So I'm not sure I connected the dots on the 8.5% that you mentioned, Taylor, but let me just talk about how fees impact our guides for 2026. So I called it out in the prepared remarks, but we expect about $190 million in incremental pass-through fees passing through our revenue. That's year-over-year. Remember, Verizon went into effect in June of last year, and then AT&T and T-Mobile are coming into effect in 2026. That's roughly 170 basis points tailwind on gross margin, and on operating margin, the equivalent is about 60 to 70 basis points. So I think the important thing is, we are seeing leverage in the business from our cost savings and our efficiency initiatives.

Speaker #7: Yeah hi. Thanks so much for taking my questions. Aidan first one just if if you were to adjust for all the incremental A2P fees can you offer us what the operating income margin guide would have been relative to the eight point five percent reported number?

Taylor McGinnis: Yeah, hi. Thanks so much for taking my questions. Aidan, first one, just if, if you were to adjust for all the incremental A2P fees, can you offer us what the operating income margin guide would have been relative to the 8.5% reported number? And as a second, you know, part to this question, if we look at the Q1 operating margin guide, it actually looks pretty solid relative to the full year. So can you comment, are you guys anticipating any uptick in expenses or investments as, you know, you move throughout the year and anything that might have been different or new relative to when you first gave this guide at the Analyst Day?

Speaker #5: So I called it out in the prepared remarks, but we expect about $190 million in incremental pass-through fees passing through our revenue. That's year over year.

Speaker #7: And as a second you know part to this question if we look at the one Q operating margin guide it actually looks pretty solid relative to the full year.

Speaker #5: Remember, Verizon went into effect in June of last year and then AT&T and T-Mobile are coming into effect in 2026. That's roughly $170 basis point headwind on gross margin.

Speaker #7: So can you comment are you guys anticipating any uptick in expenses or investments as you know you move throughout the year and anything that might have been different or new relative to when you first gave this guide at the analyst side?

Speaker #5: And on operating margin, the equivalent is about 60 to 70 basis points. So I think the important thing is we are seeing leverage in the business from our cost savings and our efficiency initiatives.

Speaker #5: Yeah great. so I'm not sure I re I connected the dots on the eight point five percent that you mentioned Taylor. But let me just talk about how fees impact our guides for for twenty twenty-six.

Aidan Viggiano: Yeah, great. So I'm not sure I connected the dots on the 8.5% that you mentioned, Taylor, but let me just talk about how fees impact our guides for 2026. So I called it out in the prepared remarks, but we expect about $190 million in incremental pass-through fees, passing through our revenue. That's year-over-year. Remember, Verizon went into effect in June of last year, and then AT&T and T-Mobile are coming into effect in 2026. That's roughly 170 basis point headwind on gross margin, and on operating margin, the equivalent is about 60 to 70 basis points. So I think the important thing is we are seeing leverage in the business from our cost savings and our efficiency initiatives.

Speaker #5: It's just masked by the impact of these carrier fees on a margin basis. Though, again, as we've said many times, they have no impact on our ability to generate gross profit dollars or income from operations or free cash flow.

Aidan Viggiano: It's just masked by the impact of these carrier fees on a margin basis. Though again, as we've said many times, they have no impact on our ability to generate gross profit dollars, or income from operations, or free cash flow. And then on your next question on just the operating expenditures for Q1, we do have a little bit of kind of front loading of some expenses. First, we have a full quarter of our Stitch acquisition in Q1, and then we are making some product investments. We're making really around the platform as well as some systems to support our efforts to cross-sell and to move more towards solution selling. So we expect the pace to kind of moderate as we move throughout the year, but a little, little heavier in Q1.

Speaker #5: So I called it out in the prepared remarks. But we expect about a hundred and ninety million dollars in incremental pass-through fees impact passing through our revenue.

Speaker #5: And then on your next question on just the operating expenditures for Q1, we do have a little bit of kind of front-loading of some expenses.

Speaker #5: That's year over year. Remember, Verizon went into effect in June of last year, and then AT&T and T-Mobile are coming into effect in 2026.

Speaker #5: First, we have a full quarter of our stitch acquisition in Q1. And then we are making some product investments we're making really around the platform as well as some systems to support our efforts to cross-sell and to move more towards solution selling.

Speaker #5: That's roughly a 170 to 170 basis point headwind on gross margin. And on operating margin, the equivalent is about 60 to 70 basis points.

Speaker #5: So I think the important thing is we are seeing leverage in the business from our cost savings and our efficiency initiatives. It's just masked by the impact of these carrier fees on a margin basis.

Speaker #5: So we expect the pace to kind of moderate as we move throughout the year. But a little heavier in Q1.

Aidan Viggiano: It's just masked by the impact of these carrier fees on a margin basis, though, again, as we've said many times, they have no impact on our ability to generate gross profit dollars, or income from operations, or Free Cash Flow. Then on your next question on just the operating expenditures for Q1, we do have a little bit of kind of front-loading of some expenses. First, we have a full quarter of our Stitch acquisition in Q1, and then we are making some product investments. We're making really around the platform as well as some systems to support our efforts to cross-sell and to move more towards solution selling. So we expect the pace to kind of moderate as we move throughout the year, but a little heavier in Q1.

Speaker #7: Perfect. Thanks. And then Kozema, one for you. If we look at the messaging growth, excluding A2P fees, I think the growth in the quarter was around 14% despite some of the tougher comparison that you guys are coming against.

Taylor McGinnis: Perfect. Thanks. And then, Khozema, one for you. If we look at the messaging growth, excluding A2P fees, I think the growth in the quarter was around 14%, despite, you know, some of the tougher compares that you guys are coming against. So maybe you could just talk through, like, what's driving, you know, the strength of that business as then you guys look into 2026, how are you thinking about, you know, the durability of double-digit growth potentially?

Speaker #5: Though again as we've said many times they have no impact on our ability to generate gross profit dollars or or income from operations or free cash flow.

Speaker #5: And then on your next question on just the operating expenditures for Q1. We do have a little bit of kind of front-loading of some expenses.

Speaker #7: So maybe you could just talk through what's driving the strength of that business as you guys look into 2026, how are you thinking about the durability of double-digit growth

Speaker #5: first we have a full quarter of our stitch acquisition in Q1. And then we are making some product investments we're making really around the platform as well as some systems to support our efforts to cross-sell and to move more towards solution selling.

Speaker #8: Yeah, Taylor, I wouldn't point to anything specific as it relates to any one of our products, actually. Most of our products are performing pretty well.

Khozema Shipchandler: ... Yeah, Taylor, I wouldn't point to, like, anything specific as it relates to any one of our products, actually. Like, most of our products are performing pretty well. I think we're seeing broad-based strength across the business. You know, we parse it by channel, we parse it by industry, we look at it by use case, and I think across the board, we're just seeing a lot of strength across a number of different products, which includes messaging. We gave the guidance in terms of, you know, the year, and Aidan commented on the fact that for Q1, which obviously encompasses messaging, given that that's our largest product, but Q1 is the highest it's been for us in three years in terms of the guide.

Speaker #8: I think we're seeing broad-based strength across the business. We parse it by channel. We parse it by industry. We look at it by use case.

Speaker #5: So we expect the pace to kinda moderate as we move throughout the year. But a little a little heavier in Q1.

Speaker #7: Perfect. Thanks. And then Khozema one for you. If we look at the messaging growth excluding A2P fees I think the growth in the quarter was around fourteen percent despite you know some of the tougher comparison that you guys are coming against.

Speaker #8: And I think across the board, we're just seeing a lot of strength across a number of different products, which includes messaging. We gave the guidance in terms of the year and Aidan commented on the fact that for Q1, which obviously encompasses messaging, given that that's our largest product, but Q1 is the highest it's been for us in three years in terms of the guide.

Speaker #7: So maybe you could just talk through like what's driving you know the strength of that business as you guys look into twenty twenty-six how are you thinking about you know the durability of double-digit growth potentially?

Speaker #8: And we stepped up the full-year guide 100 basis points relative to last year. And hopefully, you can take from some of our commentary. We feel pretty good about the outlook for 2026.

Khozema Shipchandler: You know, we stepped up the full year guide 100 basis points relative to last year, and, you know, hopefully you can take from some of our commentary, like, we feel pretty good about the outlook for 2026.

Speaker #4: Yeah Taylor I wouldn't point to like anything specific as it relates to any one of our products actually. Like most of our products are performing pretty well.

Khozema Shipchandler: Yeah, Taylor, I wouldn't point to, like, anything specific as it relates to any one of our products, actually. Like, most of our products are performing pretty well. I think we're seeing broad-based strength across the business. You know, we parse it by channel, we parse it by industry, we look at it by use case, and I think across the board, we're just seeing a lot of strength across a number of different products, which includes messaging. We gave the guidance in terms of, you know, the year, and Aidan commented on the fact that for Q1, which obviously encompasses messaging, given that that's our largest product, but Q1 is the highest it's been for us in three years in terms of the guide. And, you know, we stepped up the full year guide 100 basis points relative to last year.

Speaker #7: Thank you guys so much.

Operator: Thank you guys so much. Thank you. Our next question comes from Mark Murphy with JP Morgan. You may proceed.

Speaker #4: I think we're seeing broad-based strength across the business. You know we parse it by channel. We parse it by industry. We look at it by use case.

Speaker #6: Thank you. Our next question comes from Mark Murphy with JPMorgan. You may proceed.

Speaker #4: And I think across the board we're just seeing a lot of strength across a number of different products which includes messaging. We gave the guidance in terms of you know the year and and Aidan commented on the fact that for Q1 which obviously encompasses messaging given that that's our largest product.

Speaker #9: Yeah, thank you so much. I'll add my congrats. Kozema, a lot of us are probably starting to feel the presence of RCS more tangibly in the last several months.

Mark Murphy: Thank you so much. I'll add my congrats. Khozema, a lot of us are probably starting to feel the presence of RCS, you know, more tangibly in the last several months. When we look at our own SMS text inboxes, I see them from Verizon and United Airlines and banks and hospitals. I think you mentioned a 5x sequential increase, which is hard to fathom. Could you just explain that? What is driving it, the shape of that adoption curve, and then remind us, you know, any real economics to Twilio. We're hearing about 70%+ open rates on the messages, and then, you know, and presumably some of them are gonna be rich messages. So just wondering what you're seeing there.

Speaker #9: When we look at our own SMS text inboxes, I see them from Verizon and United Airlines and banks and hospitals. I think you mentioned a 5x sequential increase, which is hard to fathom.

Speaker #4: But Q1 is the highest it's been for us in three years in terms of the guide. And you know we stepped up the full-year guide a hundred basis points relative to last year.

Speaker #4: And you know hopefully you can take from some of our commentary like we feel pretty good about the outlook for twenty twenty-six.

Khozema Shipchandler: You know, hopefully, you can take from some of our commentary, like, we feel pretty good about the outlook for 2026.

Speaker #9: Could you just explain that? What is driving it, the shape of that adoption curve? And then remind us any real economics to Twilio. We're hearing about 70% plus open rates on the messages and then presumably some of them are going to be rich messages.

Speaker #7: Thank you guys so much.

Taylor McGinnis: Thank you guys so much.

Speaker #6: Thank you. Our next question comes from Mark Murphy with JP Morgan. You may proceed.

Operator: Thank you. Our next question comes from Mark Murphy with JP Morgan. You may proceed.

Speaker #3: Yeah thank you so much. I'll add my congrats. Khozema m+m a lot of us are probably starting to feel the presence of RCS you know more tangibly in the last several months.

Mark Murphy: Thank you so much. I'll add my congrats. Khozema, a lot of us are probably starting to feel the presence of RCS, you know, more tangibly in the last several months. When we look at our own SMS text inboxes, I see them from Verizon and United Airlines and banks and hospitals. You, I think you mentioned a 5x sequential increase, which is hard to fathom. Could you just explain that? What is driving it, the shape of that adoption curve, and then remind us, you know, any real economics to Twilio. We're hearing about 70%+ open rates on the messages, and then, you know, and presumably some of them are gonna be rich messages. So I'm just wondering what you're seeing there.

Speaker #9: I'm just wondering what you're seeing there.

Speaker #8: Yeah, let me just answer a couple of your questions, and I'll take a step back and give you just our views on it generally.

Khozema Shipchandler: Yeah, let me just answer a couple of your questions, and I'll take a step back and give you just our views on it generally. I think in terms of the 5x, I mean, it is important to kind of characterize that as off of a relatively smaller base, right? So yes, it's growing incredibly quickly. Yes, we're very excited about the prospect of what RCS can do for customers, but it is growing off of a relatively small base. That said, given that kind of momentum, we are very excited about where it goes going forward. I think in terms of, like, what's driving the shape of the adoption curve is, it's sort of embedded in your question in a way. Like, these rich experiences, I think they really are great for many of our customers.

Speaker #3: It w+when we look at our own SMS text inboxes I see them from Verizon and and banks and hospitals. You I think you mentioned a five X sequential increase which is hard to fathom.

Speaker #8: I think in terms of the 5x, I mean, it is important to kind of characterize that as off of a relatively smaller base, right?

Speaker #8: So yes, it's growing incredibly quickly. Yes, we're very excited about the prospect of what RCS can do for customers, but it is growing off of a relatively small base.

Speaker #3: Can you just explain what is driving it, the shape of that adoption curve, and then remind us, you know, any real economics to Twilio?

Speaker #8: That said, given that kind of momentum, we are very excited about where it goes going forward. I think in terms of what's driving the shape of the adoption curve is it's sort of embedded in your question in a way.

Speaker #3: We're hearing about seventy percent plus open rates on the messages, and then, you know, presumably some of them are going to be rich messages.

Speaker #8: These rich experiences I think they really are great for many of our customers. I think that you'll start to see more of it shift towards I think increasingly marketing-oriented use cases where RCS is particularly strong.

Speaker #3: I'm just wondering what you're seeing there.

Speaker #4: Yeah. I l+let me just answer a couple of your questions and I'll take a step back and give you just our our views on it generally.

Khozema Shipchandler: Yeah, let me just answer a couple of your questions, and I'll take a step back and give you just our, our views on it generally. I, I think in terms of the 5x, I mean, it is important to kind of characterize that as off of a relatively smaller base, right? So yes, it's growing incredibly quickly. Yes, we're very excited about the prospect of what RCS can do for customers, but it is growing off of a relatively small base. That said, given that kind of momentum, we are very excited about where it goes going forward. I think in terms of, like, what's driving the shape of the adoption curve is, it's sort of embedded in your question in a way. Like, these rich experiences, I think they really are great for many of our customers.

Khozema Shipchandler: I think that you'll start to see more of it shift towards, I think, increasingly marketing-oriented use cases, where RCS is particularly strong. You haven't really seen that breakout just yet. The open rates are very high for all the reasons that I just alluded to a second ago. I think what's really interesting, actually, right now is you've got, like, two corners of it that I think can be really interesting. So one, like, for if you're a small business that probably will not get real estate on somebody's phone, it is an awesome way for you to be able to engage your customer, and it is a lot different and differentiated therefore, relative to just kind of standard messaging. So I think that's an awesome use case.

Speaker #4: I I think in terms of the five X I mean it is important to kinda characterize that as off of a relatively smaller base right?

Speaker #8: You haven't really seen that breakout just yet. The open rates are very high for all the reasons that I just alluded to a second ago.

Speaker #4: So yes, it's growing incredibly quickly. Yes, we're very excited about the prospect of what RCS can do for customers. But it is growing off of a relatively small base.

Speaker #8: I think what's really interesting actually right now is you've got two corners of it that I think can be really interesting. So one, if you're a small business that probably will not get real estate on somebody's phone, it is an awesome way for you to be able to engage your customer and it is a lot different and differentiated therefore relative to just kind of standard messaging.

Speaker #4: That said given that kind of momentum we are very excited about where it goes going forward. I think in terms of like what's driving the shape of the adoption curve is it's sort of embedded in your question in a way.

Speaker #4: Like these rich experiences I think they really are great for many of our customers. I think that you'll start to she see more of it shift towards I think increasingly marketing-oriented use cases where RCS is particularly strong.

Khozema Shipchandler: I think that you'll start to see more of it shift towards, I think, increasingly marketing-oriented use cases, where RCS is particularly strong. You haven't really seen that breakout just yet. The open rates are very high for all the reasons that I just alluded to a second ago. I think what's really interesting actually right now is you've got, like, 2 corners of it that I think can be really interesting. So 1, like, for if you're a small business that probably will not get real estate on somebody's phone, it is an awesome way for you to be able to engage your customer, and it is a lot different and differentiated therefore, relative to just kind of standard messaging. So I think that's an awesome use case.

Speaker #8: So I think that's an awesome use case. You'll start to see that, I think, from a lot of small businesses. Which will include a lot of startups.

Khozema Shipchandler: You'll start to see that, I think, from a lot of small businesses, which will include a lot of startups. On the flip side, I think it's also an excellent use case for things that perhaps a certain cohort of the population will have real estate on their phone, but infrequent users will not. So you know, things like providing a ticket, you referenced United a moment ago. Like, I think that's a great vehicle to offer the capability to send someone information in a rich way that's better than, you know, kind of conventional SMS. So very, very excited about where it is today, very excited about the growth that we've experienced recently, and I think just given the nature of it, you know, we've said many times that we're sort of cautiously optimistic about it. I think we're gaining optimism as we go.

Speaker #4: You haven't really seen that breakout just yet. The open rates are very high for all the reasons that that I just alluded to a second ago.

Speaker #8: On the flip side, I think it's also an excellent use case for things that perhaps a certain cohort of the population will have real estate on their phone but infrequent users will not.

Speaker #4: I think what's really interesting actually right now is you've got, like, two corners of it that I think can be really interesting. So, one, like for if you're a small business that probably will not get real estate on somebody's phone—

Speaker #8: So things like providing a ticket, you were referenced, United a moment ago, I think that's a great vehicle to offer the capability to send someone information in a rich way that's better than kind of conventional SMS.

Speaker #4: It is an awesome way for you to be able to engage your customer and it is a lot different and differentiated therefore relative to just kind of standard messaging.

Speaker #8: So very, very excited about where it is today, very excited about the growth that we've experienced recently. And I think just given the nature of it, we've said many times we're sort of cautiously optimistic about it.

Khozema Shipchandler: So very, very excited about where it is today, very excited about the growth that we've experienced recently, and I think just given the nature of it, you know, we've said many times that we're sort of cautiously optimistic about it. I think we're gaining optimism as we go.

Speaker #4: So I think that's an awesome use case. You'll start to see that I think from a lot of small businesses. which will include a lot of startups.

Khozema Shipchandler: You'll start to see that, I think, from a lot of small businesses, which will include a lot of startups. On the flip side, I think it's also an excellent use case for things that perhaps a certain cohort of the population will have real estate on their phone, but infrequent users will not. So, you know, things like providing a ticket, you referenced, United a moment ago. Like, I think that's a great vehicle to offer the capability to send someone information in a rich way that's better than, you know, kind of conventional SMS. So very, very excited about where it is today, very excited about the growth that we've experienced recently, and I think just given the nature of it, you know, we've said many times that we're sort of cautiously optimistic about it. I think, we're gaining optimism as we go.

Speaker #4: On the flip side, I think it's also an excellent use case for things that perhaps a certain cohort of the population will have real estate on their phone.

Speaker #8: I think we're gaining optimism as we go.

Speaker #9: And thank you. That's a great answer, Kozema. The other question for you, and maybe Aidan, is we look back at the last year or two, it actually did not feel like a rising tide for the space that you operate in because all I mean is several of your competitors just have not grown at all in a while.

Mark Murphy: And thank you. That's a great answer, Khozema. The other question for you, and maybe Aidan, is, you know, we look back at the last year or two, it actually did not feel like a rising tide, you know, for the space that you operate in, because all I mean is several of your competitors just have not grown at all in a while. And I'm wondering, when you reflect back on that, where do you think the Achilles heels have been for your peers who are struggling in this kind of environment? And you know, the ways that you've outflanked them, does that feel like it's gonna be structurally durable here this year and then into 2027, where you're given really strong operating income guidance?

Speaker #4: But infrequent users will not. So you know things like providing a ticket. You were referenced United a moment ago. Like I think that's a great vehicle to offer the capability to send someone information in a rich way that's better than you know kinda conventional SMS.

Speaker #9: And I'm wondering when you reflect back on that, where do you think the Achilles heels have been for your peers who are struggling in this kind of environment and how you've the ways that you've outflanked them, does that feel like it's going to be structurally durable here this year and then into '27 where you're given really strong operating income guidance?

Speaker #4: So, very, very excited about where it is today. Very excited about the growth that we've experienced recently. And I think, just given the nature of it, you know, we've said many times, like, we're sort of cautiously optimistic about it.

Speaker #4: I think we're gaining optimism as we go.

Mark Murphy: And then thank you. That's a great answer, Khozema. The other question for you, and maybe Aidan, is, you know, we look back at the last year or two, it actually did not feel like a rising tide, you know, for the space that you operate in, because, all I mean is several of your competitors just have not grown at all in a while. And I'm wondering, when you reflect back on that, where do you think the Achilles heels have been for your peers who are struggling in this kind of environment? And, you know, how you've, you know, the ways that you've outflanked them, does that feel like it's gonna be structurally durable here this year and then into 2027, where you're given really strong operating income guidance?

Speaker #8: I mean, I can't speak for those guys. I don't, frankly, pay a lot of attention to them. But I think with respect to Twilio, I mean, it's differentiated technology, right?

Khozema Shipchandler: I mean, I can't speak for those guys. I don't, frankly, pay a lot of attention to them, but I think with respect to Twilio, I mean, it's differentiated technology, right? I mean, we, we've always had a phenomenal developer experience. Like, we work really, really hard to cultivate that. Many of our customers that start as developers, they grow into some of the largest enterprise customers in the world. Thomas alluded to the growth that we've seen in ISVs, Aidan did too. You know, so you have kind of two ends of the spectrum that are experiencing really rapid growth, and that is almost entirely, I would say, a technology story. Like, customers would not buy the higher priced product, which we are in almost all cases, unless they were getting superior ROI.

Speaker #3: It did not feel like a rising tide, you know, for the space that you operate in. Because all I mean is several of your competitors just have not grown at all in a while.

Speaker #8: I mean, we've always had a phenomenal developer experience. We work really, really hard to cultivate that. Many of our customers that start as developers, they grow into some of the largest enterprise customers in the world.

Speaker #3: And I'm I'm wondering when when you reflect back on that w+w+where do you think the Achilles heels have been f+for your peers who are struggling in in this kind of environment?

Speaker #8: Thomas alluded to the growth that we've seen in ISVs. Aidan did too. So you have kind of two ends of the spectrum that are experiencing really rapid growth.

Speaker #3: And m you know how you've you know the the ways that you've outflanked them. Does that feel like it's gonna be structurally durable here this year?

Speaker #8: And that is almost entirely, I would say, a technology story. Customers would not buy the higher-priced product, which we are in almost all cases, unless they were getting superior ROI.

Speaker #3: And then into '27, where you're given really strong operating income guidance?

Speaker #4: I mean I can't speak for those guys. I don't frankly pay a lot of attention to them. But I think with respect to Twilio I mean it's differentiated technology right?

Khozema Shipchandler: I mean, I can't speak for those guys. I don't, frankly, pay a lot of attention to them. But I think with respect to Twilio, I mean, it's differentiated technology, right? I mean, we, we've always had a phenomenal developer experience. Like, we work really, really hard to cultivate that. Many of our customers that start as developers. They grow into some of the largest enterprise customers in the world. Thomas alluded to the growth that we've seen in ISVs. Aidan did, too. You know, so you have kind of two ends of the spectrum that are experiencing really rapid growth, and that is almost entirely, I would say, a technology story. Like, customers would not buy the higher priced product, which we are in almost all cases, unless they were getting superior ROI.

Speaker #8: And credit to our R&D team, they are constantly innovating, whether it's in the channels, whether it's in terms of some of this add-on technology, whether it's in many of the exciting things, which I'm not going to get into today, that we're going to talk about in Signal in a few months.

Khozema Shipchandler: Credit to our R&D team. They are constantly innovating, whether it's in the channels, whether it's on in terms of some of this add-on technology, whether it's in many of the exciting things, which I'm not gonna get into today, that we're gonna talk about in Signal in a few months. Like, that level of velocity in terms of innovation and being able to continuously offer new and improved features and products to our customers, that's what sets this company apart. And then I think our ability to leverage data on top of that, which adds a level of context...

Speaker #4: I mean, we've always had a phenomenal developer experience. Like, we work really, really hard to cultivate that. Many of our customers that start as developers, they grow into some of the largest enterprise customers in the world.

Speaker #8: That level of velocity in terms of innovation and being able to continuously offer new and improved features and products to our customers, that's what sets this company apart.

Speaker #4: Thomas alluded to the growth that we've seen in ISVs. Aidan did too. You know so you have kinda two ends of the spectrum that are experiencing really rapid growth.

Speaker #8: And then I think our ability to leverage data on top of that, which adds a level of context, that I think is missing not just from maybe our classic competitive set, but really from any company, that's trying to provide this kind of essential infrastructure and then being able to going forward build your own AI agents on top of our platform, be able to integrate into anybody, agnostic of who the players are.

Speaker #4: And that is almost entirely, I would say, a technology story. Like, customers would not buy the higher-priced product— which we are, in almost all cases— unless they were getting superior ROI.

Khozema Shipchandler: that I think is missing, not just from maybe our classic competitive set, but really from any company that's trying to provide this kind of essential infrastructure, and then being able to, you know, going forward, build your own AI agents on top of our platform, be able to integrate into anybody agnostic of who the players are, like, that's pretty differentiated. And so we feel good about our business. Can't speak to the others, but I think we're doing a pretty good job right now.

Speaker #4: And credit to our R&D team. They are constantly innovating, whether it's in the channels, whether it's in terms of some of this add-on technology.

Khozema Shipchandler: And credit to our R&D team, they are constantly innovating, whether it's in the channels, whether it's in terms of some of this add-on technology, whether it's in many of the exciting things, which I'm not gonna get into today, that we're gonna talk about in Signal in a few months. Like, that level of velocity in terms of innovation and being able to continuously offer new and improved features and products to our customers, that's what sets this company apart. And then I think our ability to leverage data on top of that, which adds a level of context, that I think is missing, not just from maybe our classic competitive set, but really from any company that's trying to provide this kind of essential infrastructure.

Speaker #4: Whether it's in many of the exciting things which I'm not gonna get into today. That we're gonna talk about in signal in a few months.

Speaker #8: That's pretty differentiated. And so we feel good about our business, can't speak to the others, but I think we're doing a pretty good job right now.

Speaker #4: Like that level of velocity in terms of innovation and being able to continuously offer new and improved features and products to our customers. That's what sets this company apart.

Speaker #5: One more thing I'd like to add just to that, Kozema, is just what we're seeing is a lot of the point product competitors just don't have the multi-channel capabilities that we have and what we've seen is our ability to add, whether it's an existing messaging customer, add another channel, whether it's voice or email or something, and then adding AI add-ons on top of it has been really pretty compelling.

Thomas Wyatt: One more thing I'd like to add just to that, Khozema, is just what we're seeing is a lot of the point product competitors just don't have the multi-channel capabilities that we have. And what we've seen is our ability to add, whether it's an existing messaging customer, add another channel, whether it's voice or email or something, and then adding AI add-ons on top of it has been pretty, pretty compelling. And so one of the things in particular in the enterprise we're seeing is our large enterprise customers, you know, the companies that spend at least $500,000 with us, they're up 36% year-over-year. So this is just a matter of winning market share based on having a platform play, and I think it's playing out.

Speaker #4: And then I think our ability to leverage data on top of that which adds a level of context that I think is missing not just from maybe our classic competitive set but really from any company that's trying to provide this kind of essential infrastructure.

Speaker #4: And then being able to you know going forward build your own AI agents on top of our platform. Be able to integrate into anybody agnostic of who the players are.

Khozema Shipchandler: And then, being able to, you know, going forward, build your own AI agents on top of our platform, be able to integrate into anybody, agnostic of who the players are, like, that's pretty differentiated. And so we feel good about our business. Can't speak to the others, but I think we're doing a pretty good job right now.

Speaker #5: And so one of the things in particular in the enterprise we're seeing is our large enterprise customers, the companies that spend at least $500,000 with us, they're up 36% year over year.

Speaker #4: Like, that's pretty differentiated. And so we feel good about our business. Can't speak to the others. But I think we're—we're—we're doing a pretty good job right now.

Speaker #5: So this is just a matter of winning market share based on having a platform play and I think it's playing out.

Speaker #3: One one more thing I'd like to add just that Khozema is just we're we're we're seeing is a lot of the point product competitors just don't have the multi-channel capabilities that we have.

Thomas Wyatt: One more thing I'd like to add just to that, Khozema, is just what we're seeing is a lot of the point product competitors just don't have the multi-channel capabilities that we have. And what we've seen is our ability to add, whether it's an existing messaging customer, add another channel, whether it's voice or email or something, and then adding voice AI add-ons on top of it, has been pretty, pretty compelling. And so one of the things in particular in the enterprise we're seeing is our large enterprise customers, you know, the companies that spend at least $500,000 with us, they're up 36% year-over-year. So this is just a matter of winning market share based on having a platform play, and I think it's playing out.

Speaker #9: Thank you. Our next question comes from Samad Samana with Jefferies, you may proceed.

Operator: Thank you. Our next question comes from Samad Samana with Jefferies. You may proceed.

Speaker #10: Hi, good evening. And it's great to see the strong quarter. I wondered to maybe go back to the voice AI side just as I think about enterprise versus serving as infrastructure inside of next-gen companies.

Samad Samana: Hi, good evening, and it's great to see the strong quarter. I wanted to maybe go back to the Voice AI side, just as I think about enterprise versus serving as infrastructure inside of next-gen companies, where are you seeing stronger growth today? And as you think about 2026, which of those do you think is the earlier opportunity that will ramp? And I have a follow-up question as well. Thank you so much.

Speaker #3: And what we've seen is our ability to add whether it's an existing messaging customer. Add an+another channel. Whether it's voice or email or something.

Speaker #3: And then adding vo v AI a+add-ons on top of it has been pretty pretty compelling. And so one of the things in particular in the enterprise we're seeing is our our large enterprise customers.

Speaker #10: Where are you seeing stronger growth today? And as you think about 2026, which of those do you think is the earlier opportunity that will ramp?

Speaker #3: You know, the companies that spend at least $500,000 with us—they're up 36% year over year. So this is just a matter of winning market share based on having a platform play.

Speaker #10: And I have a follow-up question as well. Thank you so much.

Speaker #8: Can I just, Samad, can I just parse your question and make sure that we have got it? You're asking whether or not we see more growth from kind of pure-play voice AI companies or whether we see it on the enterprise side.

Khozema Shipchandler: Can I just, Samad, can I just parse your question and make sure that we have got it? You're asking whether or not we see more growth from kind of pure play Voice AI companies, or whether we see it on the enterprise side. Is that right?

Speaker #3: And I think it's playing out.

Speaker #2: Thank you. Our next question comes from Samad Samana with Jefferies. You may proceed.

Mark Murphy: Thank you. Our next question comes from Samad Samana with Jefferies. You may proceed.

Speaker #8: Is that right?

Speaker #10: Correct. Right. Our large enterprises directly leveraging it more. We see more growth there versus the Sierras and Polys of the world. And how are you thinking about that trend line maybe through '26?

Samad Samana: Correct. Right. Like, are large enterprises directly leveraging it more, or are you seeing more growth there versus, like, the Sierras and Polys of the world? And how are you thinking about that trend line maybe through 2026?

Samad Samana: Hi, good evening, and it's great to see the strong quarter. I wanted to maybe go back to the Voice AI side. Just as I think about enterprise versus serving as infrastructure inside of next-gen companies, where are you seeing stronger growth today? And as you think about 2026, which of those do you think is the earlier opportunity that will ramp? And I have a follow-up question as well. Thank you so much.

Speaker #5: Hi, good evening. And it's great to see the strong quarter. I wanted to maybe go back to the Voice AI side, just as I think about enterprise versus serving as infrastructure inside of next-gen companies.

Speaker #8: Yeah. I think, I mean, we're not going to guide it based on specific cohorts of the customer segment. At that level of detail, Samad.

Khozema Shipchandler: Yeah, I think, I mean, we're not going to guide it based on, like, specific cohorts of the customer segment in at that level of detail, Samad. But what I will say is, and we're kind of seeing it on both sides, but I think ultimately, like, it'll be the enterprise that ends up carrying the day here. Like, I think, yes, we're seeing an incredible velocity with the Voice AI side of it. I mean, you have literally, like, hundreds of Voice AI companies. We have partnerships with a lot of these guys. We count most of them as our customers. They're definitely helping influence the growth characteristics that we're seeing in the voice channel. But as Thomas said earlier, I mean, the voice business is growing great anyway, and that kind of tends to be the icing on top.

Speaker #5: Where are you seeing stronger growth today? And as you think about twenty twenty-six which of those do you think is the earlier opportunity that will ramp?

Speaker #8: But what I will say is we're kind of seeing it on both sides. But I think ultimately, it'll be the enterprise that ends up carrying the day here.

Speaker #5: And I have a follow-up question as well. Thank you so much.

Speaker #4: Can I just Samad can I just parse your question and make sure that we have got it? you're asking whether or not we see more growth o from kinda pure-play voice AI companies?

Speaker #8: I think, yes, we're seeing an incredible velocity with the voice AI side of it. I mean, you have literally hundreds of voice AI companies.

Speaker #8: We have partnerships with a lot of these guys. We count most of them as our customers. They're definitely helping influence the growth characteristics that we're seeing in the voice channel.

Khozema Shipchandler: We have partnerships with a lot of these guys. We count most of them as our customers. They're definitely helping influence the growth characteristics that we're seeing in the voice channel. But as Thomas said earlier, I mean, the voice business is growing great anyway, and that kind of tends to be the icing on top.

Speaker #4: Or whether we see it on the enterprise side? Is that right?

Speaker #5: Correct. Right. Like our large enterprises directly leveraging it more. We're seeing more growth there versus like the Sierras and Polys of the world. and how are you thinking about that trend line maybe through twenty-six?

Samad Samana: Correct, right. Like, are large enterprises directly leveraging it more? Are you seeing more growth there versus, like, the Sierras and Polys of the world? How are you thinking about that trend line maybe through 2026?

Speaker #8: But as Thomas said earlier, I mean, the voice business is growing great anyway. And that kind of tends to be the icing on top.

Speaker #4: Yeah, I think—I mean, we're not going to guide it based on specific cohorts of the customer segment. Not at that level of detail, Samad.

Khozema Shipchandler: Yeah, I think, I mean, we're not gonna guide it based on, like, specific cohorts of the customer segment in at that level of detail, Samad. But what I will say is, and we're kind of seeing it on both sides, but I think ultimately, like, it'll be the enterprise that ends up carrying the day here. Like, I think, yes, we're seeing incredible velocity with the voice AI side of it. I mean, you have literally, like, hundreds of voice AI companies. We have partnerships with a lot of these guys. We count most of them as our customers. They're definitely helping influence the growth characteristics that we're seeing in the voice channel. But as Thomas said earlier, I mean, the voice business is growing great anyway, and that kind of tends to be the icing on top.

Speaker #8: I think the reality of it, though, is the big spenders are on the enterprise side, right? And I think as Thomas again alluded to, in a lot of these sales use cases, support use cases, you are seeing a lot of adoption there.

Khozema Shipchandler: I think the reality of it, though, is like the big spenders are on the enterprise side, right? And I think, as Thomas again alluded to, like in a lot of these like sales use cases, support use cases, you are seeing a lot of adoption there. I think you've got this stage right now where there are a lot of early adopters, you've got a lot of heavy experimenters, and I think the heavy experiments, based on the ROI that we're delivering for customers right now, is going to start to translate into more durable volume.

Speaker #4: But what I will say is, I mean, we're kind of seeing it on both sides. But I think, ultimately, it'll be the enterprise that ends up carrying the day here.

Speaker #8: I think you've got the stage right now where there are a lot of early adopters. You've got a lot of heavy experimenters. And I think the heavy experiments based on the ROI that we're delivering for customers right now is going to start to translate into more durable volume.

Speaker #4: Like, I think, yes, we're seeing an incredible velocity with the voice AI side of it. I mean, you have literally like hundreds of voice AI companies.

Speaker #4: We have partnerships with a lot of these guys. We count most of them as our customers. They're definitely helping influence the growth characteristics that we're seeing in the voice channel.

Speaker #8: And then if you layer on top of that, what Thomas said in answer to the last question, our ability to offer this multi-channel orchestration because customers are telling us directly, based on their own consumer's usage patterns, they want the ability to go in and out of session.

Khozema Shipchandler: And then, if you layer on top of that, what Thomas said in answer to the last question, like, our ability to offer this multi-channel orchestration, because customers are telling us directly, like, based on their own consumers' usage patterns, they want the ability to go in and out of session. They want to be able to do it async, sync, and having multi-channel capabilities is really important based on the lifestyles of the customers that we deal with, based on connectivity issues, based on the complexity of the workloads. And so my bet would be probably enterprise is what drives it and carries the day ultimately, but not at the expense of what we're seeing in voice AI. I don't know, Thomas, anything different than that?

Speaker #4: But as Thomas said earlier I mean the voice business is growing great anyway. And that kinda tends to be the icing on top. I think the reality of it though is like the big spenders are on the enterprise side.

Khozema Shipchandler: I think the reality of it, though, is, like, the big spenders are on the enterprise side, right? And I think, as Thomas again alluded to, like, in a lot of these, like, sales use cases, support use cases, you are seeing a lot of adoption there. I think you've got this stage right now where there are a lot of early adopters, you've got a lot of heavy experimenters, and I think the heavy experiments, based on the ROI that we're delivering for customers right now, is gonna start to translate into more durable volume. And then, if you layer on top of that, what Thomas said in answer to the last question, like, our ability to offer this multi-channel orchestration, because customers are telling us directly, like, based on their own consumers' usage patterns... They want the ability to go in and out of session.

Speaker #4: Right? And and I think as Thomas again alluded to like in a lot of these like sales use cases. Support use cases. You are seeing a lot of adoption there.

Speaker #8: They want to be able to do it async, sync, and having multi-channel capabilities is really important based on the lifestyles the customers that we deal with, based on connectivity issues, based on the complexity of the workloads.

Speaker #4: I think you've got this stage right now where there are a lot of early adopters. You've got a lot of heavy experimenters. And I think the heavy experiments, based on the ROI that we're delivering for customers right now, are gonna start to translate into more durable volume.

Speaker #8: And so my bet would be probably enterprises what drives it and carries the day ultimately. But not at the expense of what we're seeing in voice AI.

Speaker #8: I don't know, Thomas, anything different than that?

Speaker #5: The only thing I'd add to that is just the other cohort that's really leaning into voice is the larger more established ISV community. So it's not necessarily AI natives, but it's the larger players that are software players that are embedding voice capabilities as part of their core platform.

Thomas Wyatt: The only thing I'd add to that is just the other cohort that's really leaning into voice is the larger, more established ISV community. So it's not necessarily AI natives, but it's the larger players that are software players that are embedding voice capabilities as part of their core platform, and they're a big consumer of our voice business as well.

Speaker #4: And then if you layer on top of that what what Thomas said in answer to the last question. Like our ability to offer this multi-channel orchestration because customers are telling us directly like based on their own consumer's usage patterns.

Speaker #4: They want the ability to go in and out of session. They wanna be able to do it async sync. And having multi-channel capabilities is really important based on the lifestyles the customers that we deal with based on connectivity issues.

Speaker #5: And they're a big consumer of our voice business as well.

Khozema Shipchandler: They want to be able to do it async, sync, and having multi-channel capabilities is really important based on the lifestyles of the customers that we deal with, based on connectivity issues, based on the complexity of the workloads. And so my bet would be probably enterprise is what drives it and carries the day ultimately, but not at the expense of what we're seeing in voice AI. I don't know if, Thomas, anything different than that?

Speaker #9: Thank you. Our next question comes from Siti Panagrahi with Mizuho. You may proceed.

Operator: Thank you. Our next question comes from Siddharth Panigrahi with Mizuho. You may proceed.

Speaker #4: Based on the complexity of the workloads. And so my bet would be probably enterprises what drives it and carries the day ultimately. But not at the expense of what we're seeing in voice AI.

Siti Panigrahi: Great. Thanks for taking my question, and congrats on a great quarter. I just want to extend Samad's question and also your comment about Twilio becoming this AI infrastructure layer. So it's not just a Voice AI. Is there a way to quantify in terms of revenue contribution coming from all the AI-related use cases, not just Voice AI, maybe even the messaging side? Are you seeing where Agentic AI adoption, where a customer trying to use? And what's, what kind of a jump in you have backed into next couple of years, like when you guided in 2027? Where do you, when do you think this Agentic AI tech software, you know, you'll see both your messaging and voice adoption?

Speaker #3: Great. Thanks for taking my question and congrats on a great quarter. I just want to extend Samad's question and also your comment about Twilio becoming this AI infrastructure layer.

Speaker #4: I don't know if Thomas has anything different than that.

Speaker #3: The only thing I'd add to that is just that the other cohort that's really leaning into voice is the larger, more established ISV community.

Speaker #3: So it's not just the voice AI. Is there a way to quantify in terms of revenue contribution coming from all the AI-related use cases, not just voice AI?

Speaker #3: So it's not necessarily AI natives, but it's the larger players that are software players that are embedding voice capabilities as part of their core platform.

Speaker #3: Maybe even the messaging side, are you seeing where agentic AI adoption where customer trying to use? And what kind of adjunction you have baked into next couple of years when you guide even '27?

Speaker #3: And they're a big consumer of our voice business as well.

Speaker #2: Thank you. Our next question comes from CD Panagrahi with Mizuho. You may proceed.

Operator: Thank you. Our next question comes from Siddhi Panigrahi with Mizuho. You may proceed.

Siti Panigrahi: Great. Thanks for taking my question, and congrats on a great quarter. I just want to extend Samad's question and also your comment about Twilio becoming this AI infrastructure layer. So it's not just a voice AI. Is there a way to quantify in terms of revenue contribution coming from all the AI-related use cases, not just voice AI, maybe even the messaging side? Are you seeing where agentic AI adoption, where a customer trying to use? And what kind of a jump do you have backed into next couple of years? Like, when you guided in 2027, when do you think this agentic AI tech software, you know, you'll see both your messaging and voice adoption?

Speaker #4: great. Thanks for taking my question and congrats on a great quarter. I I just wanna extend Samad's question and also your comment about Twilio becoming this AI infrastructure layer.

Speaker #3: Where do you think this agentic AI tech software you'll see both your messaging and voice adoption?

Siti Panigrahi: Great. Thanks for taking my question, and congrats on a great quarter. I just want to extend Samad's question and also your comment about Twilio becoming this AI infrastructure layer. So it's not just a voice AI. Is there a way to quantify in terms of revenue contribution coming from all the AI-related use cases, not just voice AI, maybe even the messaging side? Are you seeing where agentic AI adoption, where a customer trying to use? And what kind of a jump do you have backed into next couple of years? Like, when you guided in 2027, when do you think this agentic AI tech software, you know, you'll see both your messaging and voice adoption?

Speaker #5: Yeah. Thanks for the question. So the way we think about it really is Twilio is the platform where AI agents can get infrastructure services, whether it's the ability to communicate across any channel, whether it's the ability to create customer memory or understanding and personalization from the data substrate that we have, largely powered by our CDP and segment capabilities.

Thomas Wyatt: Yeah. Thanks for the question. So the way we think about it really is Twilio is the platform where AI agents can get infrastructure services, whether it's the ability to communicate across any channel, whether it's the ability to create customer memory or understanding and personalization from the data substrate that we have, largely powered by our CDP and Segment capabilities, and the ability to validate somebody and make sure that the person is who they say they are with our identification and identity and security products. So really think about Twilio as a platform where you come as a critical ingredient to build the next generation agents.

Speaker #4: so it's not just the voice AI. Is there a way to quantify in terms of revenue contribution coming from all the AI-related use cases?

Speaker #4: Not just voice AI, maybe even the messaging side. Are you seeing where agentic AI adoption—where customers are trying to use it? And what kind of a jump zone have you baked into the next couple of years, like when you guide even '27?

Speaker #5: And the ability to validate somebody and make sure that the person is who they say they are with our identification and identity and security products.

Speaker #5: So really think about Twilio as a platform where you come as a critical ingredient to build the next generation agents. Now, that being said, each of our channels does have AI capabilities embedded on top of it.

Speaker #4: Where do you—when do you think this agentic AI tech software, you know, you'll see both your messaging and voice adoption?

Nick Altmann: ... Now, that being said, each of our channels does have AI capabilities embedded on top of it, and we talk a little bit about voice, you know, voice orchestration, Conversation Relay, as an example. If you talk about the area of account security, we do a lot of AI in the way we do fraud detection and identity, you know, verification. So just to give you an example of some of that, and of course, around personalization, we use a lot of AI to be able to determine anonymous people and make them known people based on synthesizing data and applying AI to it. So really, it's more of a platform play for us than any individual channel.

Thomas Wyatt: ... Now, that being said, each of our channels does have AI capabilities embedded on top of it, and we talk a little bit about voice, you know, voice orchestration, Conversation Relay, as an example. If you talk about the area of account security, we do a lot of AI in the way we do fraud detection and identity, you know, verification. So just to give you an example of some of that, and of course, around personalization, we use a lot of AI to be able to determine anonymous people and make them known people based on synthesizing data and applying AI to it. So really, it's more of a platform play for us than any individual channel.

Speaker #3: Yeah, thanks for the question. So the way we think about it really is, Twilio's the platform where AI agents can get infrastructure services, whether it's the ability to communicate across any channel.

Thomas Wyatt: Yeah, thanks for the question. So the way we think about it really is Twilio is the platform where AI agents can get infrastructure services, whether it's the ability to communicate across any channel, whether it's the ability to create customer memory or understanding and personalization from the data substrate that we have, largely powered by our CDP and Segment capabilities, and the ability to validate somebody and make sure that the person is who they say they are with our identification and identity and security products. So really think about Twilio as a platform where you come as a critical ingredient to build the next generation agents. Now, that being said, each of our channels does have AI capabilities embedded on top of it, and we talk a little bit about voice, you know, voice orchestration, conversation relay, as an example.

Speaker #5: And we talk a little bit about voice, voice orchestration, conversation relay as an example. If you talk about in the area of account security, we do a lot of AI in the way we do fraud detection and identity verification.

Speaker #3: Whether it's the ability to create customer memory or understanding and personalization from the data substrate that we have. Largely powered by our CDP and segment capabilities.

Speaker #5: So just to give you an example of some of that. And of course, around personalization, we use a lot of AI to be able to determine anonymous people and make them known people based on synthesizing data and applying AI to it.

Speaker #3: And the ability to validate somebody and make sure that the person is who they say they are with our identification and identity and security product.

Speaker #5: So really, it's more of a platform play for us than any individual channel.

Speaker #3: So really think about Twilio as a platform where you come as a c a critical ingredient to build the next generation agents. Now that being said each of our channels does have AI capabilities embedded on top of it.

Speaker #8: Yeah. I would just add one thing to what Thomas said. I think what you're seeing today is a tremendous amount of investment and excitement in the voice AI space to just maybe underscore part of what he said is we view this as ultimately multi-channel orchestration.

Khozema Shipchandler: I would just add one thing to what Thomas said. Like, I think what you're seeing today is a tremendous amount of investment and excitement in the Voice AI space. To just maybe underscore part of what he said, is we view this as, like, ultimately, like, multi-channel orchestration. I think it's... Like, Conversation Relay, the product that we launched a little while ago, like, that's also experiencing really great growth, again, off of a relatively small base, but we're very excited about it. But the promise of that product is to be able, to be able to handle these very complex workloads across multiple channels without ever losing the customer, and in fact, not just not losing them, but engaging them better than one of our customers ever has before. And so, like, that's kind of the promise going forward.

Speaker #3: And we talk a little bit about voice. You know voice orchestration. Conversation relate relay as an example. If you talk about in the in the area of account security we do a lot of AI in the way we do fraud detection.

Thomas Wyatt: If you talk about in the area of account security, we do a lot of AI in the way we do fraud detection and identity, you know, verification. So just to give you an example of some of that, and of course, around personalization, we use a lot of AI to be able to determine anonymous people and make them known people based on synthesizing data and applying AI to it. So really, it's more of a platform play for us than any individual channel.

Speaker #8: I think it's conversation relay, the product that we launched, a little while ago. That's also experiencing really great growth. Again, off of relatively small base, but we're very excited about it.

Speaker #3: And identity you know verification. So just to give you an example of some of that. And of course around personalization we use a lot of AI to be able to determine anonymous people and make them known people based on synthesizing data and applying AI to it.

Speaker #8: But the promise of that product is to be able to handle these very complex workloads across multiple channels without ever losing the customer. And in fact, not just not losing them, but engaging them better than one of our customers ever has before.

Khozema Shipchandler: But the promise of that product is to be able, to be able to handle these very complex workloads across multiple channels without ever losing the customer, and in fact, not just not losing them, but engaging them better than one of our customers ever has before. And so, like, that's kind of the promise going forward.

Speaker #3: So really it's more of a platform play for us than any individual channel.

Speaker #8: And so that's kind of the promise going forward. And I think what's going to happen most likely is that a lot of the activity that you're seeing in voice is going to end up transitioning or also start happening in some of the other channels but again, as Thomas rightly pointed out, it's across the platform, right?

Speaker #4: Yeah. I would just add one thing to what Thomas said. Like, I think what you're seeing today is a tremendous amount of investment and excitement in the voice AI space.

Khozema Shipchandler: I would just add one thing to what Thomas said. Like, I think what you're seeing today is a tremendous amount of investment and excitement in the Voice AI space. To just maybe underscore part of what he said, we view this as, like, ultimately, like, multi-channel orchestration. I think it's... Like, Conversation Relay, the product that we launched a little while ago, like, that's also experiencing really great growth, again, off of relatively small base, but we're very excited about it. But the promise of that product is to be able to handle these very complex workloads across multiple channels without ever losing the customer, and in fact, not just not losing them, but engaging them better than one of our customers ever has before. And so, like, that's kind of the promise going forward.

Khozema Shipchandler: I think what's gonna happen most likely is that a lot of the activity that you're seeing in voice is gonna end up transitioning or also start happening in some of the other channels. But again, as Thomas rightly pointed out, like, it's across the platform, right? So the point is not to, per se, necessarily focus on any one channel, but rather meet the customer where they are, serve as the control plane across whether it's an agent-to-agent interaction, whether it's a human-to-agent interaction or a human-to-human interaction. Like, we want to make sure that we're the infrastructure that allows for all of it to happen in the most seamless way possible.

Speaker #4: To just maybe underscore part of what he said, we view this as, like, ultimately, like multi-channel orchestration. I think it's like conversation relay.

Speaker #4: The product that we launched. A little while ago. Like that's also experiencing really great growth. Again off of relatively small base. But we're very excited about it.

Speaker #8: So the point is not to per se necessarily focus on any one channel, but rather meet the customer where they are serve as the control plane across whatever it's an agent-to-agent interaction, whether it's a human-to-agent interaction or a human-to-human interaction.

Speaker #4: But the promise of that product is to be able to handle these very complex workloads across multiple channels without ever losing the customer.

Speaker #4: And in fact, not just not losing them, but engaging them better than one of our customers ever has before. And so, like, that's kind of the promise going forward.

Speaker #8: We want to make sure that we're the infrastructure that allows for all of it to happen in the most seamless way possible.

Speaker #9: Thank you. Our next question comes from Ryan McWilliams with Wells Fargo. You may proceed.

Speaker #4: And I think what's gonna happen mo+most likely is is that a lot of the activity that you're seeing in voice is gonna end up transitioning or also start happening in some of the other channels.

Operator: Thank you. Our next question comes from Ryan McWilliams with Wells Fargo. You may proceed.

Khozema Shipchandler: And I think what's gonna happen most likely is that a lot of the activity that you're seeing in voice is gonna end up transitioning or also start happening in some of the other channels. But again, as Thomas rightly pointed out, like, it's across the platform, right? So the point is not to, per se, necessarily focus on any one channel, but rather meet the customer where they are, serve as the control plane across whether it's an agent to agent interaction, whether it's a human to agent interaction, or a human to human interaction. Like, we want to make sure that we're the infrastructure that allows for all of it to happen in the most seamless way possible.

Speaker #10: Hey, thanks for the question. Good to see Twilio verify growth. And look, I'm going to try to take a big, deep breath before asking this.

Ryan MacWilliams: Hey, thanks for the question. Good to see Twilio Verify growth. And look, I'm gonna try to take a big, big, deep breath before asking this, but I know how kind of crazy this sounds, but let's just say that there is an increase in spam communications traffic due to AI agents, and I know there's a lot of legal reasons why that'd be difficult to occur, but, you know, in that kind of environment, how do you think this would help Twilio Verify and maybe RCS, as I think things would be important, as would help, you know, authorize the appropriate messages that people actually want?

Speaker #4: But again as as as Thomas rightly pointed out. Like it's across the platform. Right? So the point is not to per se necessarily focus on any one channel.

Speaker #10: But I know just say that there is an increase in spam communications traffic due to AI agents and I know there's a lot of legal reasons why that'd be difficult to occur.

Speaker #4: But rather meet the customer where they are. Serve as the control plane across whatever whether it's an agent-to-agent interaction. Whether it's a human-to-agent interaction.

Speaker #4: Or a human-to-human interaction. Like, we want to make sure that we're the infrastructure that allows for all of it to happen in the most seamless way possible.

Speaker #10: But in this and that kind of environment, how do you think this would help Twilio verify and maybe RCS as these things would be important as would help authorize the appropriate messages that people actually want?

Speaker #2: Thank you. Our next question comes from Ryan McWilliams with Wells Fargo. You may proceed.

Operator: Thank you. Our next question comes from Ryan Williams with Wells Fargo. You may proceed.

Speaker #5: You said spam, right? That was the nut of your question?

Khozema Shipchandler: You said spam, right? That was, that was the nut of your question.

Speaker #10: Correct. Yeah. Yeah.

Ryan MacWilliams: Right. Yeah. Yeah.

Speaker #5: Hey. Thanks for the question. 'cause Aiman good to see Twilio verify growth. And look I'm gonna try to take a deep big deep breath before asking this.

Ryan MacWilliams: Hey, thanks for the question. Good to see Twilio Verify growth. And look, I'm gonna try to take a deep, big, deep breath before asking this, but I know how kind of crazy this sounds, but let's just say that there is an increase in spam communications traffic due to AI agents, and I know there's a lot of legal reasons why that'd be difficult to occur. But, you know, in that kind of environment, how do you think this would help Twilio Verify and maybe RCS, as I think things would be important, as would help, you know, authorize the appropriate messages that people actually want?

Speaker #5: Yeah. Yeah. I mean, I think this is actually a place where Twilio is ideally positioned. And the whole notion of being branded is key here, right?

Khozema Shipchandler: Yeah. Yeah, I mean, I think this is actually a place where Twilio is ideally positioned, and, you know, the whole notion of being branded is key here, right? So we've done a lot of work around Branded Calling, for example, to make sure that not only are you getting a number or getting a call from a number that you recognize, that's specifically identified, but it's also logoed so that you really understand what's gonna happen on the other side of that interaction. Very, very difficult to replicate otherwise. And so there's a technology lift that you get there, and the data kind of validates that that's a great solution because the pickup rates on those kind of calls are much, much more significant. So you get kind of a twofer. One is that you get better authentication and identity.

Speaker #5: But I know how kinda crazy this sounds. But let's just say that there is an increase in spam communications traffic due to AI agents.

Speaker #5: So we've done a lot of work around branded calling, for example, to make sure that not only are you getting a number or getting a call from a number that you recognize that's specifically identified, but it's also logoed so that you really understand what's going to happen on the other side of that interaction very, very difficult to replicate otherwise.

Speaker #5: And I know there's a lot of legal reasons why that'd be difficult to occur. But you know in in this envi in that kind of environment.

Speaker #5: How do you think this would help Twilio verify and maybe RCS as as these things would be important as would help you know authorize the appropriate messages that people actually want?

Khozema Shipchandler: Very, very difficult to replicate otherwise. And so there's a technology lift that you get there, and the data kind of validates that that's a great solution because the pickup rates on those kind of calls are much, much more significant. So you get kind of a twofer. One is that you get better authentication and identity.

Speaker #5: And so there's a technology lift that you get there. And the data kind of validates that that's a great solution because the pickup rates on those kind of calls are much, much more significant.

Speaker #3: You said spam right? That was that was the nut of your question?

Khozema Shipchandler: You said spam, right? That was, that was the nut of your question.

Speaker #5: Correct. Yeah. Yeah.

Ryan MacWilliams: Right. Yeah. Yeah.

Speaker #3: Yeah, yeah. I mean, I think this is actually a place where Twilio is ideally positioned. And, you know, the whole notion of being branded is key here.

Khozema Shipchandler: Yeah. Yeah, I mean, I, I think this is actually a place where Twilio is ideally positioned, and, you know, the whole notion of being branded is key here, right? So we've done a lot of work around Branded Calling, for example, to make sure that not only are you getting a number or getting a call from a number that you recognize that's specifically identified, but it's also logoed so that you really understand what's gonna happen on the other side of that interaction. Very, very difficult to replicate otherwise. And so there's a technology lift that you get there, and the data kind of validates that that's a great solution because the pickup rates on those kind of calls are much, much more significant. So you get kind of a twofer. One is that you get better authentication and identity.

Speaker #5: So you get kind of a twofer. One is that you get better authentication and identity; two is that you get better pickup rates because the other side isn't just looking at some random number.

Speaker #3: Right? So we've done a lot of work around branded calling for example. To make sure that not only are you getting a number or g+getting a call from a number that you recognize.

Khozema Shipchandler: Two is, is that you get better pickup rates because the other side isn't just looking at some random number, they're getting a known, identified number on the other side. I think what... You know, this is already technology that we have, and I think you'll start to see it more broadly adopted, is you'll have the exact same thing end up happening over SMS. And I think that, again, kind of reinforces, like, what we're trying to accomplish. The products that you reference, like Verify, certainly RCS already has kind of branding innate in the nature of the product. Like, you'll start to see pickups in those products because, you know, the channels only work if you know that everything's authenticated, especially in an agent-to-agent interaction.

Speaker #5: They're getting a known identified number on the other side. I think what this is already technology that we have, and I think you'll start to see it more broadly adopted is you'll have the exact same thing end up happening over SMS.

Speaker #3: That's specifically identified, but it's also logoed, so that you really understand what's gonna happen on the other side of that interaction. Very, very difficult to replicate otherwise.

Speaker #5: And I think that, again, kind of reinforces what we're trying to accomplish. The products that you reference, like a verify, certainly RCS already has kind of branding innate in the nature of the product.

Speaker #3: And so there's a technology lift that you get there. And the data kind of validates that that's a great solution, because the pickup rates on those kinds of calls are much, much more significant.

Speaker #5: You'll start to see pickups in those products because the channels only work if you know that everything's authenticated, especially in an agent-to-agent interaction. That's one where we've got to make sure that we know who the originator is, who the receiver is, so that we're conducting a proper transaction.

Speaker #3: So you get kind of a twofer. One is that you get better, authentic authentication and identity. Two is that you get better pickup rates.

Khozema Shipchandler: Two is that you get better pickup rates because the other side isn't just looking at some random number; they're getting a known identified number on the other side. I think what, you know, this is already technology that we have, and I think you'll start to see it more broadly adopted: you'll have the exact same thing end up happening over SMS. And I think that, again, kind of reinforces, like, what we're trying to accomplish. The products that you reference, like Verify, certainly RCS already has kind of branding innate in the nature of the product. Like, you'll start to see pickups in those products because, you know, the channels only work if you know that everything's authenticated, especially in an agent-to-agent interaction.

Khozema Shipchandler: Like, that's one where we've got to make sure that we know who the originator is, who the receiver is, so that we're conducting a proper transaction. By the way, that's also one of the reasons that we picked up this identity company a quarter or so ago. Like, we think they can be really important to validating and reconciling these, these different kinds of interactions, especially agent to agent, and we think all of that is ultimately an uplift for every one of our products.

Speaker #3: Because the other side isn't just looking at some random number. They're getting a known, identified number on the other side. I think what you know is this is already technology that we have.

Speaker #5: By the way, that's also one of the reasons that we picked up this identity company a quarter or so ago. We think they can be really important to validating and reconciling these different kinds of interactions, especially agent-to-agent.

Speaker #3: And I think you'll start to see it more broadly adopted. Is you'll have the exact same thing end up happening over SMS. And I think that again kind of reinforces like what we're trying to accomplish.

Speaker #3: The products that you reference like a verify. Certainly RCS already has kind of branding innate in the nature of the product. Like you'll start to see pickups in those products.

Speaker #5: And we think all of that is ultimately an uplift for every one of our products.

Speaker #9: Thank you. Our next question comes from Nick Altman with BTIG. You may proceed.

Operator: Thank you. Our next question comes from Nick Altmann with BTIG. You may proceed.

Speaker #3: Because you know the channels only work if you know that everything's authenticated. Especially in an agent-to-agent interaction. Like that's one where we've gotta make sure that we know who the originator is.

Speaker #11: Awesome. Thanks for taking the question. It's great to hear there's another quarter of acceleration in voice and the continued traction with voice AI. But Kozama and Thomas, I know it's early, but what can you share with investors whether it's how use cases are scaling in production?

Nick Altmann: Awesome. Thanks for taking the question. It's great to hear there's another quarter of acceleration in Voice and the continued traction with Voice AI. But Khozema and Thomas, I know it's early, but what can you share with investors, whether it's how use cases are scaling in production, longer term commitments from customers around Voice and Voice AI, or just anything else that can get us help, get us, you know, kind of more comfortable with the durability over the next couple of years in the Voice side of the business? Thanks.

Speaker #3: Who the receiver is, so that we're conducting a proper transaction. By the way, that's also one of the reasons that we picked up this identity company a quarter or so ago.

Speaker #3: Like we think they can be really important to validating and reconciling these these different kinds of interactions. Especially agent-to-agent. And we think all of that is ultimately an uplift for every one of our products.

Speaker #11: Longer-term commitments from customers around voice and voice AI, or just anything else that can get us help get us kind of more comfortable with the durability over the next couple of years in the voice side of the business?

Speaker #2: Thank you. Our next question comes from Nick Altman with BTIG. You may proceed.

Operator: Thank you. Our next question comes from Nick Altmann with BTIG. You may proceed.

Speaker #11: Thanks.

Speaker #5: Yeah. Hey, Nick. It's Thomas. So a couple of thoughts. And the first thing I'd say is the voice growth and strength has been broad-based; it's not just the startups.

Khozema Shipchandler: Yeah. Hey, Nick, it's Thomas. So a couple of thoughts. The first thing I'd say is the voice growth and strength has been broad-based. It's not just the startups, it is the enterprise, it is the ISVs, and it's been a global phenomenon for us as well. So that's part of it. We're also seeing it in the context of not just a self-service channel, which is usually where most customers onboard into Twilio, but also our direct sales team and the way they go after new logos and new business. Voice has been a big driver of that team's success this past quarter. In fact, it was the best new business quarter we've had in years across the globe. So I think just fundamentally, there's the voice is having its renaissance.

Thomas Wyatt: Yeah. Hey, Nick, it's Thomas. So a couple of thoughts. The first thing I'd say is the voice growth and strength has been broad-based. It's not just the startups, it is the enterprise, it is the ISVs, and it's been a global phenomenon for us as well. So that's part of it. We're also seeing it in the context of not just a self-service channel, which is usually where most customers onboard into Twilio, but also our direct sales team and the way they go after new logos and new business. Voice has been a big driver of that team's success this past quarter. In fact, it was the best new business quarter we've had in years across the globe. So I think just fundamentally, there's the voice is having its renaissance.

Speaker #6: Awesome. Thanks for taking the question. It's great to hear there's another quarter of acceleration in Voice, and the continued traction with Voice AI. But Khozema and Thomas,

Nick Altmann: Awesome. Thanks for taking the question. It's great to hear there's another quarter of acceleration in voice and the continued traction with voice AI. But Khozema and Thomas, I know it's early, but what can you share with investors, whether it's how use cases are scaling in production, longer term commitments from customers around voice and voice AI, or just anything else that can get us, you know, kind of more comfortable with the durability over the next couple of years in the voice side of the business? Thanks.

Speaker #5: It is the enterprise. It is the ISVs, and it's been a global phenomenon for us as well. So that's part of it. We're also seeing it in the context of not just the self-service channel, which is usually where most customers onboard into Twilio, but also our direct sales team and the way they go after new logos and new business.

Speaker #6: I know it's early. But what can you share with investors? Whether it's how use cases are scaling in production. longer-term commitments from customers around voice and voice I.

Speaker #6: Or just anything else that can help us get, you know, kind of more comfortable with the durability over the next couple of years in the voice side of the business.

Speaker #5: Voice has been a big driver of that team's success this past quarter. In fact, it was the best new business quarter we've had in years across the globe.

Speaker #5: So I think just fundamentally, voice is having its renaissance. It is a key part of the next generation user experience of AI. Powered applications and agents.

Speaker #6: Thanks.

Speaker #3: Yeah. Hey Nick, it's Thomas. So, a couple thoughts. And the first thing I'd say is the voice growth and strength has been broad-based.

Thomas Wyatt: Yeah. Hey, Nick, it's Thomas. So a couple of thoughts. And the first thing I'd say is the voice growth and strength has been broad-based. It's not just the startups, it is the enterprise, it is the ISVs, and it's been a global phenomenon for us as well. So that's part of it. We're also seeing it in the context of not just the self-service channel, which is usually where most customers onboard into Twilio, but also our direct sales team and the way they go after new logos and new business. Voice has been a big driver of that team's success this past quarter. In fact, it was the best new business quarter we've had in years across the globe. So I think just fundamentally, voice is having its renaissance.

Khozema Shipchandler: It is a key part of the next generation user experience of AI-powered applications and agents.

Thomas Wyatt: It is a key part of the next generation user experience of AI-powered applications and agents.

Speaker #3: it's not just the startups. It is the enterprise. It is the ISVs. And it's been a global phenomenon for us as well. So that's part of it.

Speaker #5: And so we feel it's pretty durable, and we're doing everything we can to accelerate our product capabilities and our go-to-market partnerships to scale it even faster.

Thomas Wyatt: ... And so we feel it's pretty durable, and we're doing everything we can to accelerate our product capabilities and our go-to-market partnerships to scale it even faster.

Speaker #3: we're we're also seeing it in the context of not just the self-service channel. Which is usually where most customers onboard into Twilio. But also our our direct sales team.

Speaker #9: Thank you. Our next question comes from Jamie Reynolds with Morgan Stanley. You may proceed.

Operator: Thank you. Our next question comes from Jamie Reynolds with Morgan Stanley. You may proceed.

Speaker #3: And the way they go after new logos and new business. Voice has been a big driver of that team's success this past quarter. In fact, it was the best new business quarter we've had in years across the globe.

Speaker #10: Great. Thank you so much. This is Jamie on for Elizabeth Porter. It's just the question from our side of really impressive list of customer wins that you guys had flagged.

Jamie Reynolds: Great. Thank you so much. This is, Jamie on for Elizabeth Porter. It's just, the question from our side is, you know, really impressive list of customer wins that, that you guys had flagged. So just trying to get a better sense, are you guys getting better at just sort of, you know, that upfront portion of the selling motion as opposed to, you know, landing and expanding with more functionality later?

Speaker #3: So I think just fundamentally there's there voice is having its its renaissance. It is a key part of the next-generation user experience of AI.

Speaker #10: So just trying to get a better sense, are you guys getting better at just sort of that upfront portion of the selling motion as opposed to landing and expanding with more functionality, later?

Thomas Wyatt: It is a key part of the next generation user experience of AI-powered applications and agents, and so we feel it's pretty durable, and we're doing everything we can to accelerate our product capabilities and our go-to-market partnerships to scale it even faster.

Speaker #3: Powered applications and agents. And so we feel it's pretty durable. And we're doing everything we can to accelerate our product capabilities and our go-to-market partnerships to scale it even faster.

Thomas Wyatt: Yeah. So the way to think about it is we have really two different ways of acquiring customers. The first way is the self-service channel, which is largely product-led growth. It's marketing, it's more efficient marketing. It's using AI to help us make onboarding and activating customers more seamless than ever. There's a lot of product capabilities that we've implemented in the last year that reduce the friction of customers getting started with Twilio. And then there's the direct sales team that is focused primarily on going after named new accounts, logos that we want to take in. Generally, they're larger ISVs or enterprise-type customers, and that business has been really strong for us in the last six months. And that motion is largely about the AEs hunting these logos.

Speaker #5: Yeah. So the way to think about it is we have really two different ways of acquiring customers. The first way is the self-service channel, which is largely product-led growth.

Speaker #2: Thank you. Our next question comes from Jamie Reynolds with Morgan Stanley. You may proceed.

Operator: Thank you. Our next question comes from Jamie Reynolds with Morgan Stanley. You may proceed.

Speaker #5: It's marketing. It's more efficient marketing. It's using AI to help us make onboarding and activating customers more seamless than ever. There's a lot of product capabilities that we've implemented in the last year that reduce the friction of customers getting started with Twilio.

Speaker #5: Great. Thank you so much. This is Jamie on for Elizabeth Porter. it's just the question from our side is you know really impressive list of customer wins that that you guys had flagged.

Speaker #5: So just trying to get a better sense. Are you guys getting better at just sort of you know that upfront portion of the selling motion?

Speaker #5: And then there's the direct sales team that is focused primarily on going after named new accounts, logos that we want to take in. Generally, they're larger ISVs or enterprise-type customers.

Speaker #5: As opposed to you know landing and expanding with more functionality later?

Speaker #3: Yeah. So the way to think about it is, we have really two different ways of acquiring customers. The first way is the self-service channel.

Speaker #5: And that business has been really strong for us in the last six months. And that motion is largely about the AEs are hunting these logos.

Speaker #3: Which is largely product-led growth. It's marketing. It's more efficient marketing. It's using AI. To help us make onboarding and activating customers more seamless than ever.

Speaker #5: They get customers started on the Twilio capabilities. And then once the customers are starting to see some value, we shift that logo over to strategic account over time.

Thomas Wyatt: They get customers started on the Twilio capabilities, and then once the customers are starting to see some value, we shift that logo over to strategic AEs that will help grow that account over time. And so this motion has been working for us for some time, and we're just continuing to fuel it.

Speaker #3: There are a lot of product capabilities that we've implemented in the last year that reduced the friction of customers getting started with Twilio. And then there's the direct sales team that is focused primarily on going after named new accounts.

Speaker #5: And so this motion has been working for us for some time. And we're just continuing to fuel it.

Speaker #9: Thank you. Our next question comes from James Fish with Piper Sandler. You may proceed.

Operator: Thank you. Our next question comes from James Fish with Piper Sandler. You may proceed.

Speaker #3: Lo+logos that we wanna take in. Generally they're larger ISVs or enterprise-type customers. And that business has been really strong for us in the last six months.

Speaker #10: Hey, guys. Thanks for the question. Just quickly, are you guys planning any change in comp plans for '26? Is it going to be an idea to drive more cross-sell to drive that multi-product adoption including incentivizing maybe the ISVs through their customer base to kind of adopt more of your APIs?

James Fish: Hey, guys. Thanks for the question. Just quickly, are you guys planning any change in comp plans for 2026? Is there going to be an idea to drive more cross-sell to drive that multi-product adoption, including incentivizing maybe the ISVs through their customer base to kind of adopt more of your APIs? Thanks, guys.

Speaker #3: and that and that motion is is largely about there the the AEs are hunting these logos. They get customers started on the on the Twilio capabilities.

Speaker #3: And then, once the customers are starting to see some value, we shift that logo over to strategic AEs that will help grow that account over time.

Speaker #10: Thanks, guys.

Speaker #5: Yeah. Great question, Jim. So yes, we did make some changes in our comp plan in 2026 to drive more cross-sell and upsell incentives into the sales plan.

Thomas Wyatt: Yeah, great question, Jim. So yes, we did make some changes in our comp plan in 2026 to drive more cross-sell, and upsell incentives into the, the sales plan. And again, just to remind people that we did bring the total global sales team together this past year in 2026, and then we created a specialist function as well to support the global sales team with our more advanced technologies. And so the combination is that, the AEs are very incented to, to land a customer and then show them the value of the platform and get expansions through that. And I think in Q4, we had, 26% growth in new product customer count. And so this is the beginning of a, a journey that we're on, but we're feeling pretty good about the, the multi-product customer, count acceleration.

Speaker #3: And so this motion has been working for us for some time, and we're just continuing to fuel it.

Speaker #2: Thank you. Our next question comes from James Fish with Piper Sandler. You may proceed.

Operator: Thank you. Our next question comes from Jim Fish with Piper Sandler. You may proceed.

Speaker #5: And again, just to remind people that we did bring the total global sales team together this past year in 2026. And then we created a specialist function as well to support the global sales team with our more advanced technologies.

Speaker #7: Hey guys. Thanks for the question. Just quickly. Are you guys planning any change in comp plans for for twenty-six? Is it is there gonna be an idea to drive more cross-sell to to drive that multi-product adoption in including incentivizing maybe the ISVs through through their customer base to to kind of adopt more o+of your APIs?

Khozema Shipchandler: Hey, guys. Thanks for the question. Just quickly, are you guys planning any change in comp plans for 26? Is there going to be an idea to drive more cross-sell to drive that multi-product adoption, including incentivizing maybe the ISVs through their customer base to kind of adopt more of your APIs? Thanks, guys.

James Fish: Hey, guys. Thanks for the question. Just quickly, are you guys planning any change in comp plans for 26? Is there going to be an idea to drive more cross-sell to drive that multi-product adoption, including incentivizing maybe the ISVs through their customer base to kind of adopt more of your APIs? Thanks, guys.

Speaker #5: And so the combination is that the AEs are very incented to land the customer and then show them the value of the platform and get expansions through that.

Speaker #5: And I think in Q4, we had 26% growth in new product customer count. And so this is the beginning of a journey that we're on, but we're feeling pretty good about the multi-product customer count acceleration.

Speaker #7: Thanks guys.

Speaker #3: Yeah, great question, Jim. So yes, we did make some changes in our comp plan in 2026 to drive more cross-sell and upsell incentives into the sales plan.

Thomas Wyatt: Yeah, great question, Jim. So yes, we did make some changes in our comp plan in 2026 to drive more cross-sell and upsell incentives into the sales plan. And again, just to remind people that we did bring the total global sales team together this past year in 2026, and then we created a specialist function as well to support the global sales team with our more advanced technologies. And so the combination is that the AEs are very incented to land a customer and then show them the value of the platform and get expansions through that. And I think in Q4, we had 26% growth in new product customer count. And so this is the beginning of a journey that we're on, but we're feeling pretty good about the multi-product customer count acceleration.

Speaker #9: Thank you. Our next question comes from Joshua Reilly with Needham. You may proceed.

Operator: Thank you. Our next question comes from Joshua Riley with Needham. You may proceed.

Speaker #3: And again, just to remind people that we did bring the total global sales team together this past year in 2026. And then we created a specialist function as well to support the global sales team with our more advanced technologies.

Joshua Reilly: Yeah, thanks for taking my question. As you look at the strengths in the international messaging business, can you speak to the margin dynamics you're seeing around these deals as customers may be adding more higher margin add-on products now than they would have a few years ago, with these deals that kind of offsets the inherent lower gross margin on international, international messaging, and can this accelerate further in the next couple of years? Thank you.

Speaker #12: Yeah. Thanks for taking my question. As you look at the strengths and the international messaging business, can you speak to the margin dynamics you're seeing around these deals?

Speaker #3: And so the combination is that the AEs are very incented to land a customer, and then to show them the value of the platform.

Speaker #12: Is customers maybe adding more higher-margin add-on products now than they would have a few years ago with these deals that kind of offsets the inherent lower gross margin on international messaging?

Speaker #3: And get expansions through that. And I think in Q4 we had 26% growth in new product customer count. And so this is the beginning of a journey that we're on.

Speaker #12: And can this accelerate further in the next couple of years? Thank you.

Speaker #3: But we’re feeling pretty good about the multi-product customer count acceleration.

Speaker #13: Yeah. From an international messaging perspective, I'll just say we focus on unit economics. And that's always been our approach. So we continue to do the same.

Aidan Viggiano: Yeah. From an international messaging perspective, I'll just say we focus on unit economics, and that's always been our approach. So we continue to do the same. We've seen a lot of success in international messaging over the course of 2025, very strong growth. And then in terms of, you know, multi-product adoption, like in general, we're seeing it pretty broad-based, so with our international messaging customers and others. So that tends to mix us up on margins, as you know, but I'll let Thomas talk about some of the upsells and other things that he's noting in the market.

Speaker #2: Thank you. Our next question comes from Joshua Riley with Needham. You may proceed.

Operator: Thank you. Our next question comes from Joshua Riley with Needham. You may proceed.

Speaker #13: We've seen a lot of success in international messaging over the course of 2025. Very strong growth. And then in terms of multi-product adoption, in general, we're seeing it pretty broad-based.

Speaker #8: Yeah, thanks for taking my question. As you look at the strengths in the international messaging business, can you speak to the margin dynamics you're seeing around these deals?

William Power: Yeah, thanks for taking my question. As you look at the strengths in the international messaging business, can you speak to the margin dynamics you're seeing around these deals as customers may be adding more higher margin add-on products now than they would have a few years ago, with these deals that kind of offsets the inherent lower gross margin on international, international messaging? And can this accelerate further in the next couple of years? Thank you.

Joshua Reilly: Yeah, thanks for taking my question. As you look at the strengths in the international messaging business, can you speak to the margin dynamics you're seeing around these deals as customers may be adding more higher margin add-on products now than they would have a few years ago, with these deals that kind of offsets the inherent lower gross margin on international, international messaging? And can this accelerate further in the next couple of years? Thank you.

Speaker #13: So with our international messaging, customers and others. So that tends to mix us up on margins, as you know. But I'll let Thomas talk about some of the upsells and other things that he's noting in the market.

Speaker #8: Is customers maybe m adding more higher margin add-on products now than they would have a few years ago with these deals that kinda offsets the inherent lower gross margin on international international messaging?

Speaker #5: Yeah. I think the other thing that we're seeing is that SI partners, systems integrators, have been really helpful for us to scale internationally and bringing some of these multi-product capabilities to the international markets and helping our customers have success with more integrations with other systems that they use.

Thomas Wyatt: Yeah, I think the other thing that we're seeing is that SI partners, system integrators, have been really helpful for us to scale internationally in bringing some of these multi-product capabilities to the international markets and helping our customers have success with more integrations with other systems that they use. So the combination of the platform itself plus the partnerships is helping us accelerate in international markets.

Speaker #8: And can this accelerate further in the next couple of years? Thank you.

Speaker #9: Yeah. From an international messaging perspective I'll just say we we focus on unit economics. And that's always been our approach. so we continue to do the same.

Aidan Viggiano: Yeah, from an international messaging perspective, I'll just say we focus on unit economics, and that's always been our approach. So we continue to do the same. We've seen a lot of success in international messaging over the course of 2025, very strong growth. And then in terms of, you know, multi-product adoption, like, in general, we're seeing it pretty broad-based, so it with our international messaging customers and others. So, that tends to mix us up on margins, as you know, but I'll let Thomas talk about some of the upsells and other things that he's noting in the market.

Speaker #9: We've seen a lot of success in international messaging over the course of twenty twenty-five. very strong growth. and then in terms of you know multi-product adoption.

Speaker #5: So the combination of the platform itself plus the partnerships is helping us accelerate in international markets.

Speaker #9: Like, in general, we're seeing it pretty broad-based. So, with our international messaging customers and others. So that tends to mix us up on margins, as you know.

Speaker #9: Thank you. Our next question comes from Will Power with Baird. You may proceed.

Operator: Thank you. Our next question comes from Will Power with Baird. You may proceed.

Speaker #9: But I'll let Thomas Thomas talk about some of the upsells and other things that he's he's noting in the market.

Speaker #14: Oh, great. Thank you. Maybe first, just a quick follow-up. Nice to see the improving trends in gross profit growth. I know Aiden, you laid out some of the visibility drivers that help with the '26 guidance.

Will Power: Oh, great. Thank you. Maybe first, just a quick follow-up. Nice to see, you know, the improving trends in, in gross profit growth. I know, Aidan, you laid out, you know, some of the, the visibility drivers that, you know, help with the 2026 guidance. I guess, anything else you call out on the Q4 improvement? Is it all those same factors or, or anything else to note? And then my other question, just to come back to, you know, the voice strength. I, you know, I know it was still earlier and I guess, you know, in the, in the, software add-on bucket, but, you know, anything you can share just on the, on the trends with Conversation Relay and, and Conversational Intelligence, would be great. Thanks.

Speaker #3: Yeah, I think the other thing that we're seeing is that SI partners, systems integrators, have been really helpful for us to scale internationally in bringing some of these multi-product capabilities to the international markets.

Thomas Wyatt: Yeah, I think, I think the other thing that we're seeing is that, SI partners, system integrators, have been really helpful for us to scale internationally in bringing some of these multi-product capabilities to the international markets and helping our customers, have success with more integrations with other systems that they use. So the combination of, of the platform itself, plus the partnerships, is helping us accelerate in international markets.

Speaker #14: I guess, anything else you'd call out on the Q4 improvement? Is it all those same factors, or anything else to note? And then my other question, just to come back to the voice strength, I know it's still earlier, and I guess in the software add-on bucket.

Speaker #3: And helping our customers have success with more integrations with other systems that they use. So the combination of the platform itself, plus the partnerships, is helping us accelerate in international markets.

Speaker #2: Thank you. Our next question comes from Will Power with Baird. You may proceed.

Operator: Thank you. Our next question comes from Will Power with Baird. You may proceed.

Speaker #14: But anything you could share just on the trends with conversation relay and conversation intelligence would be great. Thanks.

Speaker #10: Oh great, thank you. Maybe first just a quick follow-up. Nice to see you know the improving trends in gross profit growth. I know, Aidan, you laid out, you know, that help with the 2026 guidance.

William Power: Oh, great. Thank you. Maybe first, just a quick follow-up. Nice to see, you know, the improving trends in gross profit growth. I know, Aidan, you laid out, you know, some of the visibility drivers that, you know, help with the 26 guidance. I guess, anything else you call out on the Q4 improvement? Is it all those same factors or anything else to note? And then my other question, just to come back to, you know, the voice strength. You know, I know it was still early and I guess, you know, in the software add-on bucket, but, you know, anything you could share just on the trends with Conversation Relay and Conversational Intelligence would be great. Thanks.

Will Power: Oh, great. Thank you. Maybe first, just a quick follow-up. Nice to see, you know, the improving trends in gross profit growth. I know, Aidan, you laid out, you know, some of the visibility drivers that, you know, help with the 26 guidance. I guess, anything else you call out on the Q4 improvement? Is it all those same factors or anything else to note? And then my other question, just to come back to, you know, the voice strength. You know, I know it was still early and I guess, you know, in the software add-on bucket, but, you know, anything you could share just on the trends with Conversation Relay and Conversational Intelligence would be great. Thanks.

Speaker #15: Yeah. I'll start with gross margins well. Yeah. It's more of the same, really. So when you look at Q4 on a reported basis, we were down 200 basis points year over year.

Aidan Viggiano: Yeah, I'll start with gross margins, Will. Yeah, it's more of the same, really. So when you look at Q4, on a reported basis, we were down 200 basis points year-over-year. That was really driven by two things. About 80 basis points was the fees. So we had them in Q4 of this year. They didn't exist in Q4. They, they were increased, you know, after Q4 of last year. So that was about an 80 basis point headwind, and the remainder was really messaging mix. And we provide some information in our, our presentation, but when you look at it, you know, messaging as a percentage of a revenue is up about 200 basis points year-over-year. As you know, that's, you know, our lowest margin product.

Speaker #15: That was really driven by two things. About 80 basis points was the fees. So we had them in Q4 of this year. They didn't exist in Q4.

Speaker #10: I guess anything else you'd call out on on the Q four improvement? Is is it all those same factors or or or anything else to note?

Speaker #15: They were increased after Q4 of last year. So that was about an 80 basis point headwind. And the remainder was really messaging mix. And we provide some information in our presentation.

Speaker #10: A+ and then my other question, just to come back to, you know, the Voice strength. I, you know, I know it's still early. And I guess, you know, in the software add-on bucket—

Speaker #15: But when you look at it, messaging as a percentage of a revenue is up about 200 basis points year over year. As you know, that's our lowest margin product.

Speaker #10: But you know, anything you could share just on the trends with conversation relay and conversation intelligence would be great. Thanks.

Speaker #15: And so as that business grows faster than the average, obviously, it mixes us down in gross margin. Again, we really look at it from a unit economic perspective.

Aidan Viggiano: And so as that business grows faster than the average, obviously it mixes us down in gross margin. Again, we really look at it from a unit economic perspective and, you know, we take on business that we think hurdles a certain rate. So those are the two dynamics that we saw in the quarter, messaging mix and the US carrier fee increase.

Speaker #9: Yeah, I'll start with gross margins, Will. Yeah, it's more of the same, really. So when you look at Q4, on a reported basis, we were down 200 basis points year over year.

Aidan Viggiano: Yeah, I'll start with gross margins, Will. Yeah, it's more of the same, really. So when you look at Q4, on a reported basis, we were down 200 basis points year-over-year. That was really driven by two things. About 80 basis points was the fees. So we had them in Q4 of this year. They didn't exist in Q4. They, they were increased, you know, after Q4 of last year. So that was about an 80 basis point headwind. And the remainder was really messaging mix. And we provide some information in our presentation, but when you look at it, you know, messaging as a percentage of a revenue is up about 200 basis points year-over-year. As you know, that's, you know, our lowest margin product.

Speaker #15: And we take on business that we think hurdles a certain rate. So those are the two dynamics that we saw in the quarter: messaging mix and the US carrier fee increase.

Speaker #9: That was really driven by two things. About eighty basis points was the fees. So we had them in Q4 of this year. They didn't exist in Q4.

Speaker #9: They were increased, you know, after Q4 of last year. So that was about an 80 basis point headwind. And the remainder was really messaging mix.

Operator: Thank you.

Speaker #15: And then I'll hand it to Thomas because they're going to talk about the voice question.

Aidan Viggiano: And then I'll hand it to Thomas, or because I'm going to talk about the, the voice question.

Speaker #9: And we provide some information in our presentation. But when you look at it, you know messaging as a percentage of revenue is up about 200 basis points year over year.

Speaker #14: Yeah. So just in terms of voice, I mean, the three components, I'd say the voice infrastructure, connectivity layer has been very strong across all the key use cases, whether it's marketing, customer care, etc.

Thomas Wyatt: Yeah. So just in terms of voice, I mean, there's the, the three components I'd say, the voice infrastructure connectivity layer has been very strong across all the key use cases, whether it's marketing, customer care, et cetera. Then there's the software application sit on top, more of the AI orchestration, Conversational Intelligence, conferencing, recording, transcribing, all of those features are growing very fast on top of the existing voice infrastructure, including Conversation Relay. So this is just, again, the beginning. It's early on this, voice acceleration, but we feel good about where we're at.

Speaker #9: As you know, that's our lowest-margin product. And so, as that business grows faster than the average, obviously it mixes us down in gross margin.

Speaker #14: Then there's the software applications sit on top, more of the AI orchestration conversational insights, conferencing, recording, transcribing, all of those features are growing very fast on top of the existing voice infrastructure, including conversational relay.

Aidan Viggiano: And so as that business grows faster than the average, obviously, it mixes us down in gross margin. Again, we really look at it from a unit economic perspective and, you know, we take on business that we think hurdles a certain rate. So those are the two dynamics that we saw in the quarter, messaging mix and the US carrier fee increase.

Speaker #9: Again, we really look at it from a unit economics perspective. And, you know, we take on business that we think hurdles a certain rate.

Speaker #9: So, those are the two dynamics that we saw in the quarter: messaging mix and the US carrier fee increase. And then I'll hand it to Thomas or Khozema—they're going to talk about the voice question.

Speaker #14: So this is just, again, the beginning. It's early on this voice acceleration. But we feel good about where we're at.

William Power: Thank you.

Will Power: Thank you.

Aidan Viggiano: And then I'll hand it to Thomas, or because he's going to talk about the voice question.

Speaker #9: Thank you. Our next question comes from Jackson Ader with KeyBank Capital Markets. You may proceed.

Operator: Thank you. Our next question comes from Jackson Nader with KeyBank Capital Markets. You may proceed.

Speaker #3: Yeah, so just in terms of voice, I mean there's the three components, I'd say. The voice infrastructure connectivity layer has been very strong across all the key use cases, whether it's marketing, customer care, etcetera.

Thomas Wyatt: Yeah, so just in terms of voice, I mean, there's the three components I'd say. The voice infrastructure connectivity layer has been very strong across all the key use cases, whether it's marketing, customer care, et cetera. Then there's the software application sit on top, more of the AI orchestration, conversational insights, conferencing, recording, transcribing. All of those features are growing very fast on top of the existing voice infrastructure, including Conversation Relay. So this is just, again, the beginning. It's early on this voice acceleration, but we feel good about where we're at.

Speaker #16: Hey. Thanks, guys, for taking the question. This is Jack On for Jackson Ader. I was wondering if you could talk about kind of the biggest levers for the NRR acceleration year over year and then also if these levers are going to continue into 2026.

Jackson Ader: Hey, thanks, guys, for taking the question. This is Jack on for Jackson Nader. I was wondering if you talk about kind of the biggest levers for the NRR acceleration year-over-year, and then also if these levers are going to continue into 2026? And then as a follow-up question on multiproduct customers, how are you thinking about the pipeline of single product customers adopting, you know, the incremental one or two throughout 2026, driving that growth higher?

Speaker #3: Then there's the software application set on top, more of the AI orchestration, conversational insights, conferencing, recording, transcribing. All of those features are growing very fast on top of the existing voice infrastructure, including conversational relay.

Speaker #16: And then as a follow-up question, on multi-product customers, how are you thinking about the pipeline of single-product customers adopting the incremental one or two throughout 2026, driving that growth higher?

Speaker #3: So, this is just, again, the beginning. It's early on this voice acceleration, but we feel good about where we're at.

Speaker #15: Yeah. On the DB&E side, so we saw, is it 109% this quarter? Roughly flat quarter over quarter. It was a couple of things. In terms of where we've seen the acceleration over the course of the year, it kind of talks ties back to what Thomas has been saying about multi-product adoption.

Aidan Viggiano: Yeah, on the DBNE side, so we saw it at 109%, this quarter, roughly flat quarter-over-quarter. It was a couple of things. In terms of where we've seen the acceleration over the course of the year, it kind of talks, ties back to what Thomas has been saying about multiproduct adoption. It's really expansion, is where we're seeing the acceleration, and it's pretty broad-based. Like, we see it across our ISVs as well as our other kind of direct enterprise customers. And then, in particular, I'd say voice and messaging tend to be the drivers of where we're seeing it. And given our guide of 10 to 11% for the quarter in Q1 and 8 to 9% for the year, yes, we would expect that level of strength to continue.

Speaker #2: Thank you. Our next question comes from Jackson Aider with KeyBank Capital Markets. You may proceed.

Operator: Thank you. Our next question comes from Jackson Nader with KeyBank Capital Markets. You may proceed.

Speaker #11: Hey, thanks, guys, for taking the question. This is Jack On for Jackson Aider. I was wondering if you could talk about kind of the biggest levers for the NRR acceleration year over year.

William Power: Hey, thanks, guys, for taking the question. This is Jack on for Jackson Nader. I was wondering if you talk about kind of the biggest levers for the, NRR acceleration, year over year, and then also if these levers are going to continue into 2026. And then as a follow-up question on multi-product customers, how are you thinking about the pipeline of single product customers adopting, you know, the incremental one or two, throughout 2026, driving that growth higher?

Jack Nichols: Hey, thanks, guys, for taking the question. This is Jack on for Jackson Nader. I was wondering if you talk about kind of the biggest levers for the, NRR acceleration, year over year, and then also if these levers are going to continue into 2026. And then as a follow-up question on multi-product customers, how are you thinking about the pipeline of single product customers adopting, you know, the incremental one or two, throughout 2026, driving that growth higher?

Speaker #15: It's really expansion is where we're seeing the acceleration. And it's pretty broad-based. We see it across our ISVs as well as our other kind of direct enterprise customers.

Speaker #11: And then also, if these levers are going to continue into 2026. And then as a follow-up question on multi-product customers: how are you thinking about the pipeline of single-product customers adopting, you know, the incremental one or two throughout 2026, driving that growth higher?

Speaker #15: And then in particular, I'd say voice and messaging tend to be the drivers of where we're seeing it. And given our guide of 10 to 11 percent for the quarter in Q1 and 8 to 9 percent for the year, yes, we would expect that level of strength to continue.

Speaker #14: Yeah. I'll just comment on the multi-product customers. So there's really two different ways that we see this scaling. The first is the self-service channel itself.

Thomas Wyatt: Yeah, I'll just comment on the multiproduct customers. So there's really two different ways that we see the scaling. The first is the self-service channel itself, and we've got some really awesome new product capabilities that are coming to market shortly that's going to make it even easier for customers to take advantage of more products on the Twilio platform. So, and that's the lion's share of the customers that are single product, are actually self-service customers, and so our goal is to get them using more and more channels and more and more software on top of that.

Speaker #9: Yeah. On the DB&E side so we saw it was at a hundred and nine percent this quarter roughly flat quarter over quarter. It was a couple of things.

Aidan Viggiano: Yeah, on the DBNE side, so we saw it at 109%, this quarter, roughly flat quarter-over-quarter. It was a couple of things. In terms of where we've seen the acceleration over the course of the year, it kind of ties back to what Thomas has been saying about multi-product adoption. It's really expansion, is where we're seeing the acceleration, and it's pretty broad-based. Like, we see it across our ISVs as well as our other kind of direct enterprise customers. And then, in particular, I'd say voice and messaging tend to be the drivers of where we're seeing it. And given our guide of 10% to 11% for the quarter in Q1 and 8% to 9% for the year, yes, we would expect that level of strength to continue.

Speaker #14: And we've got some really awesome new product capabilities that are coming to market shortly that's going to make it even easier for customers to take advantage of more products on the Twilio platform.

Speaker #9: In terms of where we've seen the acceleration over the course of the year, it kind of ties back to what Thomas has been saying about multi-product adoption.

Speaker #9: It's really expansion where we're seeing the acceleration. And it's pretty broad-based. Like we see it across our ISVs as well as our other kind of direct enterprise customers.

Speaker #14: And that's the lion's share of the customers that are single-product are actually self-service customers. And so our goal is to get them using more and more channels and more and more software on top of that.

Speaker #9: And then, in particular, I'd say voice and messaging tend to be the drivers of where we're seeing it. And given our guide of 10 to 11 percent for the quarter in Q1 and 8 to 9 percent for the year, yes, we would expect that level of strength to continue.

Speaker #14: Then when it comes to the direct selling motion, going back to the earlier question around compensation plans and account planning and how we're doing that, the global AEs this year are really focused on helping customers see the value of multiple channels and multiple services across the Twilio platform.

Thomas Wyatt: When it comes to the direct selling motion, going back to the earlier question around compensation plans and account planning and how we're doing that, the global AEs this year are really focused on helping customers see the value of multiple channels and multiple services across the Twilio platform, and their compensation is tied to that as well. And so what we find, though, is that customers see a lot more ROI with Twilio when they use 2, 3, and 4 channels. Their spend goes up, and their ROI goes up significantly. And so we know if we can get them to that second and third channel, they're going to have a lot of benefits.

Speaker #10: Yeah, I'll just comment on the multi-product customers. So, there are really two different ways that we see this scaling. The first is the self-service channel itself.

Thomas Wyatt: Yeah, I'll just comment on the multi-product customers. So the there's really two different ways that we see the scaling. The first is the self-service channel itself, and we've got some really awesome new product capabilities that are coming to market shortly that's going to make it even easier for customers to take advantage of more products on the Twilio platform. So... And that's the lion's share of the customers that are single product, are actually self-service customers, and so our goal is to get them using more and more channels and more and more software on top of that.

Speaker #14: And their compensation is tied to that as well. And so what we find, though, is that customers see a lot more ROI with Twilio when they use two, three, and four channels; their spend goes up, and their ROI goes up significantly.

Speaker #10: And we've got some really awesome new product capabilities that are coming to market shortly that's gonna make it even easier for customers to take advantage of more products on the Twilio platform.

Speaker #10: So, and that's the lion's share of the customers that are single-product are actually self-service customers. And so our goal is to get them using more and more channels and more and more software on top of that.

Speaker #14: And so we know if we can get them that second and third channel, they're going to have a lot of benefits. And so our goal is to use the specialist organization, combined with the new comp plan, to help our AEs be even more effective in doing that this year than ever before.

Thomas Wyatt: And so our goal is to use a specialist organization, combined with the new comp plan, to help our AEs be even more effective in doing that this year than ever before.

Speaker #10: Then, when it comes to the direct selling motion, going back to the earlier question around compensation plans and account planning and how we're doing that.

Thomas Wyatt: Then when it comes to the direct selling motion, going back to the earlier question around compensation plans and account planning and how we're doing that, the global AEs this year are really focused on helping customers see the value of multiple channels and multiple services across the Twilio platform, and their compensation is tied to that as well. And so what we find, though, is that customers-

Speaker #9: Thank you. And our last question comes from Koji Akita with Bank of America you may proceed.

Operator: Thank you. And our last question comes from Koji Ikuta with Bank of America. You may proceed.

Speaker #10: The global AEs this year are really focused on helping customers see the value of multiple channels and multiple services across the Twilio platform.

Speaker #17: Yeah. Hey, guys. Thanks so much for taking the question. I wanted to go back to an earlier question about the gross profit tracking to organic revenue growth.

Koji Ikeda: Yeah. Hey, guys. Thanks so much for taking the question. I wanted to go back to an earlier question about the gross profit tracking to organic revenue growth. I totally get that, you know, that's in reference to the guidance, but how should we think about it if there's upside to organic revenue? I mean, it sounds like it should at least flow directly to gross profit, and it sounds like there's a few ways that gross profit could grow even faster than organic revenue. And so is that the right way to think about this? And if that is not the case, then why would it be that way?

Speaker #10: And their compensation is tied to that as well. And so what we find, though, is that customers see a lot more ROI with Twilio when they use two, three, and four channels—their spend goes up and their ROI goes up significantly.

Aidan Viggiano: ... see a lot more ROI with Twilio when they use 2, 3, and 4 channels. Their spend goes up, and their ROI goes up significantly. And so we know if we can get them to that second and third channel, they're going to have a lot of benefits. And so our goal is to use the specialist organization, combined with the new comp plan, to help our AEs be even more effective in doing that this year than ever before.

Thomas Wyatt: ... see a lot more ROI with Twilio when they use 2, 3, and 4 channels. Their spend goes up, and their ROI goes up significantly. And so we know if we can get them to that second and third channel, they're going to have a lot of benefits. And so our goal is to use the specialist organization, combined with the new comp plan, to help our AEs be even more effective in doing that this year than ever before.

Speaker #17: And I totally get that in reference to the guidance. But how should we think about it if there's upside to organic revenue? I mean, it sounds like it should at least flow directly to gross profit.

Speaker #10: And so we know if we can get them to that second and third channel, they're going to have a lot of benefits. And so our goal is to use the specialist organization, combined with the new comp plan, to help our AEs be even more effective in doing that this year than ever before.

Speaker #17: And it sounds like there's a few ways that gross profit could grow even faster than organic revenue. And so is that the right way to think about this?

Speaker #2: Thank you. And our last question comes from Koji Akita with Bank of America. You may proceed.

Operator: Thank you. And our last question comes from Koji Akita with Bank of America. You may proceed.

Speaker #17: And if that is not the case, then why would it be that way?

Speaker #15: Well, I'd say for the year, we said it should grow similar to. And so that's kind of the guidance that we've given. I think a big factor in how to think about it is product mix.

Aidan Viggiano: Well, I'd say for the year, you know, we said it should grow similar to, and so that's kind of the guidance that we've given. I think a big factor in how to think about it is product mix. Now, we've seen some of our higher margin products really accelerate, voice being the big one. Really over the back half of the year, we saw voice tick up quite a bit. That's very helpful in terms of, you know, expanding gross margins and also getting gross profit to grow more in line with organic revenue growth. But messaging is still a very big part of our business. It's almost 58% of our revenue. So, you know, I'd say, you know, that could be a factor in how much higher gross profit could grow relative to revenue for 2026.

Speaker #12: Yeah. Hey, guys. Thanks so much for taking the question. I wanted to go back to an earlier question about the gross profit tracking to organic revenue growth.

Koji Ikeda: Yeah. Hey, guys. Thanks so much for taking the question. I wanted to go back to an earlier question about the gross profit tracking to organic revenue growth. I totally get that, you know, that's in reference to the guidance, but how should we think about it if there's upside to organic revenue? I mean, it sounds like it should at least flow directly to gross profit, and it sounds like there's a few ways that gross profit could grow even faster than organic revenue. So is that the right way to think about this? And if that is not the case, then why would it be that way?

Speaker #15: Now, we've seen some of our higher margin products really accelerate voice being the big one, really over the back half of the year. We saw voice tick up quite a bit.

Speaker #12: A+ and I totally get that, you know, that's in reference to the guidance. But how should we think about it if there's upside to organic revenue?

Speaker #15: That's very helpful in terms of expanding gross margins and also getting gross profit to grow more in line with organic revenue growth. But messaging is still a very big part of our business.

Speaker #12: I mean, it sounds like it should at least flow directly to gross profit, and it sounds like there’s a few ways that gross profit could grow even faster.

Speaker #15: It's almost 58% of our revenue. So I'd say that could be a factor in how much higher gross profit could grow relative to revenue for 2026.

Speaker #12: Then organic revenue. And so, is that the right way to think about this? And if that is not the case, then why would it be that way?

Speaker #15: For now, we're saying we expect it to be similar to, which is better than what we've been tracking.

Aidan Viggiano: For now, we're saying it's- we expect it to be similar to, which is better than what we've been tracking.

Speaker #9: Well, I'd say for the year, you know, we said it should grow similar to— and so that's kind of the guidance that we've given.

Aidan Viggiano: Well, I'd say for the year, you know, we said it should grow similar to, and so that's kind of the guidance that we've given. I think a big factor in how to think about it is product mix. Now, we've seen some of our higher-margin products really accelerate, voice being the big one. Really over the back half of the year, we saw voice tick up quite a bit. That's very helpful in terms of, you know, expanding gross margins and also getting gross profit to grow more in line with organic revenue growth. But messaging is still a very big part of our business. It's almost 58% of our revenue. So, you know, I'd say, you know, that could be a factor in how much higher gross profit could grow relative to revenue for 2026.

Operator: Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.

Speaker #9: I think a big factor in how to think about it is product mix. Now, we've seen some of our higher-margin products really accelerate, Voice being the big one.

Speaker #9: Really, over the back half of the year, we saw voice tick up quite a bit. That's very helpful in terms of, you know, expanding gross margins and also getting gross profit to grow more in line with organic revenue growth.

Speaker #9: But messaging is still a very big part of our business. It's almost fifty-eight percent of our revenue. So you know I'd say you know that could be a factor in in in how much higher gross profit could grow relative to revenue for twenty twenty-six.

Speaker #9: For now, we're saying we expect it to be similar to, which is better than what we've been tracking.

Aidan Viggiano: For now, we're saying we expect it to be similar to, which is better than what we've been tracking.

Speaker #2: Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.

Operator: Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.

Speaker #12: Hello.

Aidan Viggiano: Oh.

Ryan MacWilliams: Goodbye.

Q4 2025 Twilio Inc Earnings Call

Request a DemoDemo

TWLO

Twilio

Earnings