Twilio Inc.

My name is David, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. I will now turn the call over to Andrew Zille, Vice President of Investor Relations. Mr. Zille, you may begin.

Thanks. Good afternoon, everyone, and thank you for joining us for Trulio's second quarter 2020 earnings conference call. We are once again conducting our earnings call from separate locations, so we appreciate your understanding if we run into any technical glitches. Our earnings results press release, SEC filings, and a replay of today's call can be found on our IR website at investors.twilio.com. Joining me virtually today are Jeff Lawson, co-founder and CEO, George Hu, COO, and Khozema Shipchandler, CFO. As a reminder, some of our commentary today will be in non-GAAP terms. Reconciliations between our GAAP and non-GAAP results and guidance can be found in our earnings press release. Additionally, some of our discussion and responses may contain forward-looking statements which are subject to risks, uncertainties, and assumptions. In particular, our expectations around the impact of the COVID-19 pandemic on our business, results of operations, and financial condition, and that of our customers and partners is subject to change. Should any of these risks materialize, or should our assumptions prove to be incorrect, actual financial results could differ materially from our projections or those implied by these forward-looking statements. A description of these risks, uncertainties, and assumptions, and other factors that could affect our financial results are included in our SEC filings, including our most recent report on Form 10-K and subsequent reports on Form 10-Q. and our remarks during today's discussion should be considered to incorporate this information by reference. Forward-looking statements represent our beliefs and assumptions only as of the date such statements are made. We undertake no obligation to update any forward-looking statements made during this call to reflect events or circumstances after today or to reflect new information or the occurrence of unanticipated events, except as required by law. With that, I'll hand it over to you, Jeff.

Thank you, Zilli, and good afternoon, everyone. Thank you for joining. Before we begin, I'd like to take a knee, so to speak. As you all know, the last several months have been very difficult. It started with COVID and the impact that this has had on the world. And then we saw the much needed broader social movement around Black Lives Matter. This year has shown, more than ever, the important role corporations play in the lives of our employees, our customers, and society at large. And we take that role seriously. Racial justice is an area where companies, Twilio included, can step up and help drive improvements in multiple areas. It starts by introspecting personally as leaders and people in a position of power and as a company and how we can use our power to instigate change. It begins inside our walls. One of our core values of the Twilio magic is be inclusive. and we have a body of work to do in order to truly build the company that's representative of the world around us where every person knows they belong. But we are committed to that work and make small strides of progress each day. But we also know the power of coming together as a company to fight systemic injustice as we commit as a company to the principles of anti-racism. And as I've talked with Tullians around the world in the past couple of months, I found that we have a company full of people who support this cause. Both the issue of racial injustice facing Black Americans and other groups like Latinx and Indigenous Americans, similar issues that face communities around the world. In EMEA, APJ, LATAM, I found similar desires to engage, to do the work, and to fight in each one of our communities for the issues of diversity, inclusion, and belonging that face every community. I'm humbled and inspired by all of you, especially in a year where people could say, look, we have enough other problems right now. So thank you, Torians, for engaging and committing to doing this work. We know our work as individuals, as leaders, as a company is just getting started. And we stand in solidarity with the Black community and believe, equivocably, Consider this my taking a knee to begin this earnings call. Now, on to Q2 results. We saw continued broad-based strength in our business in the second quarter as our customers leveraged Twilio to build the future of customer engagement. Over the last several years, we have built a well-diversified customer base across industries, regions, and company size that has driven our great results. And now we're seeing the strength of that diversification really play out during COVID as we've seen new industries, new use cases offset some of the more negatively impacted areas. Companies are adapting quickly to this changing environment. Over the last few months, we've seen years long digital transformation roadmaps compressed into days and weeks in order to adapt to the new normal as a result of COVID-19. Our customers in nearly every industry have had to identify new ways to communicate with their customers and stakeholders, from patients to students to shoppers and even employees, essentially overnight. In fact, in a recent Twilio global survey of more than 2,500 enterprise decision makers, 90-70% believe COVID-19 has accelerated their company's digital transformation efforts. We also found that companies' digital communication strategies were accelerated by an average of six years. Barriers like lack of clear strategy or getting executive approval or reluctance to replace legacy software and lack of time have broken down and budgets are increasing as companies are seeing new ways of engaging customers. As we remarked on the last call, Twilio was built for this. The things we've always brought to our customers Digital engagement, software agility, and cloud scale are enabling organizations to innovate now even faster than ever. Messaging, email, voice, and video are allowing companies to engage with their customers safely while reimagining their digital engagement strategies in ways that will be resilient for years to come. This effort is the focus of every executive team at nearly every company. Not only are we helping companies figure this out now, but we are an engagement platform that was built for the future, and we believe the solutions being built today will be the standard for digital engagement going forward. In addition to the traditional use cases we've always powered, we continue to see additional traction in healthcare, education, financial services, retail, contactless delivery, and e-commerce. In fact, I was recently speaking with the CIO of a major retailer who said they saw their e-commerce adoption experience five years of growth in the second quarter alone. The need to scale every part of the business to meet that demand is substantial. And in order to service those customers and meet that surge in demand, they turned to Twilio. We're also seeing companies face the same challenge when it comes to their workforces. How do we adapt to this new dynamic of work, where work and homes are blended and we don't go into the office every day? While it would be nice if we could flip a switch and return to normalcy, I think that the coming years will present a more fluid version of work. Companies who adapt now and prepare to serve the needs of a more agile workforce will be the ones who thrive. For example, companies must prepare for customer service agents to work from home rather than a crowded call center. Retailers who rely on the expertise of their in-store sales associates will need to create workflows where those employees can still advise customers digitally. Banks will need to replace their traditional in-person branch processes to online services. And the tools and services that keep these agile workforces up and running like Twilio will continue to see demand increase. We are just scratching the surface of this huge opportunity as companies around the world reimagine their customer engagement for the digital world. This is what Twilio has always been focused on. And now this opportunity has been supercharged as customers continue to use our customer engagement platform for new use cases brought about by the current environment. While there's a lot of uncertainty in the macro environment, we remain cautiously optimistic about our opportunity for the remainder of this year. And we're even more excited about what we can do in the long run. Before I hand it over to George, I want to highlight a couple of other items. I want to welcome Michelle Grover as Twilio's new Chief Information Officer. Michelle joins us from SAP Concur and will be responsible for the technology systems and processes that drive innovation and growth at Twilio, ultimately empowering the company to better serve customers. We're thrilled to welcome her to the team. I also want to remind everyone that Signal, our customer and developer conference, is coming soon. From expert speaker sessions, product deep dives, speaker panels, and more, Signal delivers powerful and practical sessions to build legendary customer relationships with Twilio. You'll learn how to unlock the power of a single communications platform to engage with your customers anywhere on any channel. It will be a virtual event held September 30th to October 1st, and you can register today at twilio.com slash signal. Finally, I want to thank our employees for their dedication to our customers during this unprecedented time and for delivering these great results. I also want to thank all of those who are on the front lines of this pandemic and continue to fight to keep us healthy and safe, our food supplies continuing and our stores stocked. Thank you for everything you're doing for the rest of us. With that, I'll hand it over to George. George?