TWILIO INC (TWLO)

Twilio provides a customer engagement platform (CEP) of software and communications solutions that lets businesses of all sizes, across nearly every industry, deliver personalized, real-time engagement with their customers over digital channels. As of December 31, 2022, it had over 290,000 Active Customer Accounts, with growth coming mainly from customers expanding usage, extending it to new applications or adopting new products, supplemented by acquisitions such as Segment (2020) and Zipwhip (2021). Beginning in 2023, the company operates as two business units.

Twilio Communications offers customizable APIs and products, mostly priced on a usage basis, that let developers embed messaging, voice, email and account security into applications: Programmable Messaging (SMS, MMS, toll-free and over-the-top channels such as WhatsApp), Programmable Voice (over PSTN and VoIP), the SendGrid Email API (offered on subscription), and Twilio Verify for two-factor authentication and account security. These run on the company's "Super Network," a software layer that interconnects carriers and inbox providers globally and optimizes the quality and cost of communications, and that also provides phone numbers and SIP trunking. Twilio Data & Applications, primarily sold on subscription, includes Twilio Segment, a customer data platform that unifies first-party data into customer profiles; Twilio Engage, which lets marketers build and measure personalized multichannel campaigns; Twilio Flex, a programmable virtual contact center; and Marketing Campaigns, an email campaign tool.

Communications products embedded in Data & Applications offerings are charged separately on a usage basis. The company's strategy is to accelerate growth of Data & Applications, drive simplification and efficiency in Communications by shifting from field sales toward digital inside sales, self-service and product-led growth, and improve operating leverage. Communications customers are largely acquired through a self-service model with a free trial, publicly available tiered pricing and, for larger customers, negotiated contracts with minimum revenue commitments, while Data & Applications uses a solution-oriented sales model.

Twilio also works with technology and consulting partners, offers tiered paid support and fee-based professional services, and competes with regional network providers, CPaaS companies, legacy on-premises vendors, SaaS and marketing cloud vendors, and CRM and customer experience vendors. As of December 31, 2022, it had 8,156 employees, 232 issued U.S. patents, and a Twilio.org program that donates and discounts products for nonprofits.