Twilio Inc.

Good day and thank you for standing by. Rodney Nelson, Vice President, Investor Relations.

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 Kozema Shipchandler, Chief Executive Officer, Aiden Vigiano, 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.trilio.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. 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 Kozaman Aden, who will discuss our Q4 results, and will then open up the call for Q&A.

Thank you, Rodney. Good afternoon, everyone, and thank you for joining us today. Tulio 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. 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. 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, Nestle, Numa, 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. 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, DentalPro, 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. 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. 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 the 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 Amdia, 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 a 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. 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. And with that, I'll turn it over to Aiden.