Twilio Inc.

Good day and thank you for standing by. Welcome to Twilio, Inc.' 's first quarter 2026 earnings conference 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 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 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, Rodney Nelson, VP, Investor Relations. Please go ahead.

Good afternoon, everyone, and thank you for joining us for Twilio's first quarter 2026 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.tulio.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. With that, I'll hand it over to Kozema and Aiden, who will discuss our Q1 results, and we'll then open up the call for Q&A.

Thank you, Rodney. Good afternoon, everyone, and thank you for joining us today. Twilio had a terrific Q1, accelerating revenue and gross profit to their highest growth rates in more than three years. We delivered over $1.4 billion in revenue, up 20% year-over-year on a reported basis, and drove 16% growth in both organic revenue and non-GAAP gross profits. We also generated $279 million of non-GAAP income from operations and $132 million of free cash flow. Today's results are the outcome of a multi-year company-wide evolution that has fundamentally transformed Twilio's innovation velocity, go-to-market efficiency, and financial rigor. In Q1, we continued to see unprecedented demand for voice, reimagined through the lens of AI, which is increasingly an entry point to the Twilio platform for AI natives and enterprises alike. Customers no longer view Twilio as just a provider of communications channels. Instead, they are relying on us to be a foundational infrastructure layer for the era of AI. I can't wait to unveil the next evolution of Twilio's platform at Signal next week. Our voice channel revenue grew 20% year over year, marking its sixth consecutive quarter of accelerated growth, with AI being a catalyst. We expect voice AI use cases will continue to evolve to be more conversational and cross-channel over time. We've already begun to see evidence of this as our customers expand their footprint on Twilio's platform. For example, software add-ons such as branded calling and conversational intelligence both grew revenue more than 100% year over year. Our platform strategy is delivering immediate, measurable ROI for our customers. As an example, Scorpion, a leading digital marketing and technology partner for local businesses, developed an AI agent by integrating voice, messaging, and conversation relay. In just three months, the agent boosted its booking rates by 39%, capturing 6,500 appointments that otherwise would have been lost and generated $8.4 million in revenue. That same performance is why AI-native leaders like Sierra and Bland.ai are also deepening their relationships with Twilio. a leading customer experience AI company, signed a significant cross-sell deal to fuel their global expansion, while Bland.ai committed to a multi-year partnership to use messaging, voice, and software add-ons such as recordings and branded calling to power their AI agent platform. Finally, Twilio's reputation for reliability is what won over a historic professional sports league, which signed a seven-figure deal to use Verify as the high-trust authentication layer for millions of fans. Messaging revenue growth also accelerated in the quarter, aided by strong growth in WhatsApp and RCS. RCS volume more than doubled quarter over quarter, and we saw significant traction in our international markets, inking notable RCS deals with KPN Netherlands to power RCS across all major mobile operators in the Netherlands, and with Televox to enable RCS for organizations in regulated industries. We are encouraged by the continued strength in messaging, even as carriers have raised fees on our customers. While this dynamic doesn't impact Twilio's profitability directly, We recognize the pressure it puts on our customers, particularly small businesses. This is exactly why our platform strategy is so important. Our priority is to ensure our customers understand the choice of channels available to them, including over the top channels, so they can deliver on their use cases and cost effectively reach their customers while maintaining high ROI. Our go-to-market initiatives continue to perform, with our self-serve and ISV cohorts driving exceptional revenue growth again this quarter at 25% plus year-over-year. On the self-serve front, we've made significant investments to simplify our onboarding and upgrade process, which has driven higher conversion rates. I'm excited to share more on how we've reimagined the Twilio console experience next week at Signal. In Q1, the team also signed customers including AloeWare, Grupo Pro TG, Posh, Sela AI, and Solace, and landed a key multi-year partnership with the PGA of America. The PGA of America will be expanding their usage of the Twilio platform to power personalized engagement for 30,000 PGA of America golf professionals and millions of golfers. Without giving too much away today, next week at Signal, we'll launch some of the most consequential innovations in our company's history, introducing new capabilities that orchestrate context-rich conversations with persistent memory across every channel for humans and AI agents. We will also unveil new partners, and most importantly, we'll show how Twilio is becoming the foundation for how businesses engage their customers in the age of AI. This moment in time demands a new kind of infrastructure, and Twilio has been building just that. It's been amazing watching our marquee customers experience Twilio's new platform and products during our private beta and many of them will be speaking about their early experiences at the conference. We can't wait to share more on the signal stage in San Francisco on May 6 and 7. Twilio's innovations continue to get industry analyst recognition as Twilio was positioned as a leader in the inaugural IDC Worldwide Communications Engagement Platform's 2026 MarketScape. scoring highest in both strategies and capabilities. Twilio was also named a leader for the fourth time by Omdia in its CEP universe report. This validation coupled with our strong execution this quarter illustrates why we believe that Twilio is truly positioned to be a critical infrastructure leader in the age of AI. Before closing, I also wanted to officially welcome Doug Robinson to Twilio's Board of Directors. Doug is known for growing teams and businesses, helping to scale Workday to the multi-billion dollar business that it is today. His expertise will be invaluable at Twilio as we drive operational excellence and continue to transform our go-to-market organization. Welcome, Doug. And with that, I'll turn it over to Aiden.