Twilio Inc (0LHL.L) Q4 2024 Earnings Report

Twilio reported Q4 2024 revenue of $1.1948 billion, up 11.0% year over year, signaling continued demand for its cloud communications platform. Gross profit reached $588.1 million with a stable gross margin of 49.2%, reflecting a resilient cost structure amid higher volumes. Operating income of $13.7 million yielded an operating margin of 1.14%, while net income remained negative at $12.5 million, reflecting ongoing investment and a still-narrow bottom-line trajectory. The company generated $108.4 million of cash from operations and delivered $93.5 million of free cash flow, contributing to a cash and short-term investment position of approximately $2.38 billion against $1.11 billion of total debt, resulting in a net debt position of $688.9 million per the report data. These results underscore Twilio’s ability to grow the top line while funding R&D and platform expansion, albeit with continued profitability challenges on a GAAP basis. From a balance sheet perspective, Twilio maintains a robust liquidity profile and strong asset totals (~$9.87 billion) driven in large part by goodwill and intangible assets (~$5.48 billion). The current ratio stands at 4.20, reflecting ample short-term liquidity. The quarterly free cash flow generation and the sizable cash & short-term investments position provide a buffer for strategic investments and potential deleveraging should the growth trajectory require it. However, the scale of goodwill and intangibles warrants continued attention for impairment risk under a softer demand environment. Looking ahead, investors should monitor TNPL (total net profitability), platform monetization efficiency, cohort revenue growth, and the progression toward consistent GAAP profitability as the company continues to scale its multi-product CPaaS ecosystem. Overall, the QQ4 2024 print supports a cautiously constructive view: solid revenue momentum, meaningful cash flow generation, and a platform with substantial growth potential in messaging, voice, video, and engagement tooling. The primary investment questions remain around profitability trajectory, return on incremental R&D spend, and the durability of customer adds in a competitive CPaaS landscape.