Twilio Inc.

Good day and thank you for standing by. Welcome to the Twilio first quarter 2025 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Brian Vanderman, Senior Vice President, Investor Relations. Please go ahead.

Good afternoon, everyone, and thank you for joining us for Twilio's first quarter 2025 earnings conference call. Joining me today are Kazama Shipchandler, Chief Executive Officer, Aidan Maggiano, 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 release and 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-K and our forthcoming Form 10-Q. 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. And with that, I'll hand it over to Kazem and Aiden, who will discuss our Q1 results, and we'll then open the call for Q&A.

Kazem Aiden Thank you, Brian. Good afternoon, everyone, and thank you for joining us today. Twilio had a strong Q1, reaching $1.172 billion in revenue, a 12% increase year over year. This marked another quarter of year-over-year revenue growth acceleration and double-digit growth. We also delivered another solid quarter of non-GAAP income from operations and continued to generate meaningful levels of free cash flow. I'm very pleased with our solid execution in Q1, and I'm encouraged by the momentum we've established to start the year. Our commitment to operating with more rigor, discipline, and focus continues. And all things being equal, I feel good about the setup for Q2 and the remainder of the year. Clearly, it's a dynamic macro environment. And while we have not yet seen any notable adverse impacts to our business through the end of April, we're continuing to monitor the situation closely. In the meantime, we're focused on what's in our control. On the innovation front, we're laser focused on shipping great products from a single platform that are purpose-built for today and for the future that AI is creating. In go-to-market, we're continuing to make good progress with our key growth levers, including ISVs and self-serve. We also saw solid growth in cross-sell as well as multi-product adoption. And finally, we're focused on taking care of our customers. by ensuring the Twilio platform will aid them in creating enriching relationships with their own customers. In fact, recent conversations validate that during these uncertain times, our customers are leaning on the Twilio platform to drive revenue, recognize further operating efficiencies, and ultimately deliver higher ROI. During the quarter, we released a number of new products and introduce new partnerships to help customers realize the full potential of the Twilio platform. Today, we're at a major inflection point across industries where Twilio is at the center of the technology value chain, helping our hundreds of thousands of active customer accounts capitalize on the profound shifts in the age of AI. For example, our new Conversation Relay product is proving to be a key tool in helping developers easily build AI voice agents. In Q1, we entered into a partnership with Eleven Labs, an AI audio research and deployment company, bringing premium, natural-sounding voices to Twilio's conversation relay. With this collaboration, brands can now gain access to over 1,000 voices across 40 languages delivering low latency, high fidelity conversational experiences. Cedar, the leading patient financial experience platform for healthcare providers, recently announced that their new AI voice agent, Quora, was built using Twilio's Conversation Relay. With Twilio's technology, Cedar projects Quora will automate 30% of inbound calls by the end of 2025. Additionally, Conversation Relay became HIPAA eligible, supporting healthcare use cases. With all the new AI workloads we've released, customers are using these AI-enabled voice capabilities to unlock more value. We also introduced a new voice intelligence feature that's powered by generative AI called Generative Custom Operators. which allows brands to use natural language to describe what you want to understand from customer interactions. While it just went into public beta a few weeks ago, we're excited about the opportunity to help customers automate complex tasks, as we've already seen customers deploy a variety of use cases spanning custom call scoring, conversation topic detection, compliance monitoring, and tailored summarization. Twilio continues to receive high praise for our innovation. This quarter, Twilio was recognized as a leader in the IDC marketscape, worldwide CPaaS 2025 vendor assessment, and a leader by Omdia for its CDP universe leadership. And in a few weeks, we're hosting our user conference, Signal, where we'll share more details on our innovations across communications, data, plus AI, and new partnerships that will fuel our aggressive roadmap. The growth acceleration that we delivered in Q1 reflects a combination of continued progress across our key go-to-market levers and the overall broad-based strength of our business. Additionally, we saw customer enthusiasm for our AI products and software add-ons. During the quarter, we had notable wins across Twilio. we landed an eight figure deal with the leading identity and access management platform to continue leveraging Twilio messaging for two factor authentication. And we signed a segment partnership with the Chelsea football club who will use Twilio segment to create highly personalized experiences for its 615 million strong global fan base. During Q1, we saw solid traction with our ISV customers as this cohort delivered another quarter of strong revenue growth. As a result of our superior reliability, ability to scale globally, and value-added software add-ons, we're continuing to see success in landing competitive takeout wins with new ISV customers, including Yalopo, a real estate digital marketing platform that's leveraging Twilio's voice to enhance its calling capabilities and Textus, an SMS engagement company that has consolidated all of their messaging traffic onto Twilio. In self-serve, we're leveraging AI to help builders get started on our platform faster. This quarter, our AI-enabled technology and automation that we developed in-house drove significant efficiency for our sales team and better experiences for customers. In Q1, We handled 85% of inbound leads with AI and also used ESA, our AI assistant, to serve as a personal concierge post-sales by helping customers set up their accounts and encouraging new customers to upgrade to a paid account. As a result, customers that engaged with our AI assistant were 3x more likely to upgrade from a free trial to a paid account. As we continue to make it easier for builders to get started on Twilio, we're seeing AI startups, particularly those with AI voice needs, bring their workloads to us. One example that helps bring this to life is Bland.ai, an AI agent platform. The integration provides the scalability and reliability Bland.ai needs to support larger and more complex customer engagements. Bland AI originated as a self-serve customer from a single developer signup just a few quarters ago. By leveraging our targeted activation and expansion strategies within self-serve, we've scaled this customer into a significant account. In summary, I'm very pleased with the hard work of our team and our Q1 results and equally excited about the future. We're demonstrating that we can drive improved top-line performance with continued operating leverage and strong cash flow while delivering meaningful product innovation. As we continue to execute against our plans, we'll continue to partner with our customers and help them unlock the power of communications, contextual data, plus AI. And now I'd like to turn it over to Aiden, who will walk you through our financial results.