Twilio reported its fourth quarter and full year 2024 financial results, marking its first ever quarter of GAAP operating profitability with $14 million in GAAP income from operations, representing a 1.1% margin. Fourth-quarter revenue reached $1,195 million, an 11% increase year-over-year, contributing to a full-year revenue of $4,458 million, up 7% year-over-year.
The company delivered a non-GAAP income from operations of $197 million in Q4, resulting in a 16.5% margin, and $714 million for the full year, a 16.0% margin. Free cash flow for Q4 was $93 million, an 8% margin, and $657 million for the full year, a 15% margin. Twilio also completed its previous $3.0 billion share repurchase program.
Twilio's Board of Directors authorized a new share repurchase program of up to $2.0 billion, set to expire on December 31, 2027, demonstrating a continued commitment to shareholder returns. The company reiterated its full-year 2025 financial targets, including organic revenue growth of 7%-8%, non-GAAP income from operations of $825-$850 million, and free cash flow of $825-$850 million.
For the first quarter ending March 31, 2025, Twilio initiated guidance expecting revenue between $1,130 million and $1,140 million, representing 8%-9% year-over-year growth. Non-GAAP income from operations is projected to be between $180 million and $190 million, with non-GAAP diluted earnings per share between $0.88 and $0.93.
The company noted a $16.8 million bad debt expense in Q4 related to customer Oi SA, a Brazilian telecom company, due to a slowdown in payment activity. Despite this, CEO Khozema Shipchandler expressed confidence in the business momentum and the vision to enhance digital interactions between businesses and consumers.
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