Twilio Concludes Operational Review of Segment Business and Announces $2 Billion Expansion of Share Repurchase Authorization - Seite 3

Shipchandler continued, “We are thrilled to welcome Thomas to our leadership team as President of Segment. Thomas brings a passion for innovation that we value highly at Twilio, as well as a proven ability to grow and scale businesses. With Thomas at the helm, we believe that Segment will be well-positioned to embrace a leaner, more focused approach to achieve its financial and operational goals, capitalize on the opportunities presented by AI and continue delivering best-in-class services to our customers.”

Capital Allocation and Financial Targets

Concurrent with the conclusion of the operational review of Segment, Twilio announced that its Board of Directors has authorized an additional $2 billion share repurchase program expiring on December 31, 2024, which is in addition to the $1 billion program previously authorized by the Board in 2023. To date, Twilio has completed almost $800 million of repurchases from the initial program and is targeting to complete both programs, representing further share repurchases of approximately $2.2 billion, between now and the end of 2024.¹

Twilio affirms its guidance for the first quarter of 2024 that it originally provided on February 14, 2024. The company is also providing targets for FY 2024 and FY 2025:²

	2024
Organic Y/Y Revenue Growth	5%-10%3
Non-GAAP Income from Operations	$550M - $600M4

	2025
GAAP Operating Profitability	Achieve by Q4 2025
Segment BU Non-GAAP Income from Operations	Achieve break-even by Q2 2025

1. Subject to legal requirements, price, and economic market conditions.
2. Targets are representative of the changes Twilio implemented over the last year and the plans laid out today. As a result, these targets replace the previous medium-term financial framework that was most recently provided by Twilio on May 9, 2023.
3. Includes an estimated 150 basis points of headwinds associated with the end of life of Twilio’s video product and the software portion of its Zipwhip business.
4. Includes an estimated $90M of incremental expenses associated with a new employee cash bonus program aimed at reducing stock-based compensation expense over time.

Investor Presentation and Conference Participation