Twilio Inc.

Hello and welcome to the Twilio first quarter 2023 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star 1 on your telephone keypad. I will now turn the conference over to Brian Vanneman, Senior Vice President, Investor Relations. Please go ahead.

Thanks, Sarah. Good afternoon, everyone, and thank you for joining us for Twilio's first quarter 2023 earnings conference call. Our prepared remarks, earnings press release, investor presentation, SEC filings, and a replay of today's call can be found on our IR website at investors.twilio.com. Joining me today for Q&A are Jeff Lawson, co-founder and CEO, Elena Donio, president, Twilio Data Applications, Kazama Ship Chandler, president, Twilio Communications, and Aiden Vigiano, Chief Financial Officer. As a reminder, some of our commentary today will include non-GAAP financial measures and key metrics. Reconciliations between our GAAP and non-GAAP results and further information related to guidance, definitions, and key metrics can be found in our earnings press release and the appendix of our prepared remarks, both of which can be found on our IR website. The information provided and discussed today also will include in more detail in our most recent periodic reports filed with the SEC, including our most recent annual report on Form 10-K and our forthcoming quarterly report on Form 10-Q, which are available on our website and at sec.gov. Forward-looking statements represent our beliefs and assumptions only as of the date such statements are made. Actual results may vary significantly, and we expressly assume no obligation to update any forward-looking statement except as required by law. With that, I'll hand it over to Jeff for some opening remarks, and then we'll open the call for Q&A.

Thank you, Brian. Before we hop into the call, I wanted to really take note of three things today. First, I wanted to note that the substantial actions that we took in Q1 are working, as you can see from our strong non-GAAP operating profit results. One quarter in, we're really starting to show the profit potential for this business. We're also one quarter into our new structure, and as you can see from our Q2 guide, we're We're looking into continued headwinds as we built the sales capacity of our data and apps business and doing that in a very tough macro environment as well. But the good news is I see our leadership role continuing and even expanding in this environment. And I don't see things like changes in our churn or us losing share in the market. I see moderation in our consumer-facing usage patterns as well as us lapping our peak crypto usage from last year. And these are some of the headwinds that we'll talk about. But through all of this, what I really want to do is to thank the Twilio team. We've been navigating a lot of change over the last quarter, and I see Twilions every day navigating these changes with grace, with energy, and understanding of the job that is to be done here. And it's truly energizing for me and for the rest of the leaders of the organization. That's really, truly the Twilio magic in action. So thank you. Second, I'm sure this is on people's minds. The AI platform shift is upon us. Like the PC to web transition, the web to mobile, this is the next major technology shift in our society. Working with customers, we see many ways to activate customer data in segment across the whole customer lifecycle using artificial intelligence. Now, we'll have more to say about this during the course of this quarter and, of course, at Signal in August in terms of products, in terms of partnerships, and in terms of customer use cases. Really looking forward to that.