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Revenue was over $1.4B, up 20% YoY reported and 16% organically. Voice grew 20%, messaging grew 25%, and software add-ons like Branded Calling and Conversational Intelligence both grew more than 100%.
For Twilio, AI is pushing Voice into the spotlight, even as roughly 60% of the business is still messaging, and the identity products continue to land and expand.
The Good
Twilio put up another record-breaking quarter. Revenue, gross profit, and operating income all accelerated, and the company raised the full-year guide on both growth and profit. Non-GAAP gross profit grew 16%. Non-GAAP income from operations hit a record $279M; free cash flow was $132M.
Voice—its first product—grew 20% YoY, its sixth straight quarter of accelerated growth. CRO Thomas Wyatt shared that self-serve Voice was up 45%. Voice add-on software grew in the mid-30s, while Branded Calling and Conversational Intelligence both grew more than 100% YoY.
Messaging held up well too, even after you strip out the carrier-fee noise. CFO Aidan Viggiano said about seven points of the 25% messaging growth came from pass-through fees, which still leaves the business growing at a healthy high-teens clip. RCS volume more than doubled quarter over quarter. It is still too small to move the company, but it is moving.
DBNE reached 114%, self-serve and ISV both grew 25%+, and multiproduct customer count rose 29%. That is the strongest evidence that the platform story is showing up in customer buying behavior.
Sidebar: The Featherweight HBS Twilio Study
For what Twilio has pulled off in the last three years, eighteen pages isn’t an analysis; it’s a summary.
Harvard’s Twilio case is worth reading, but it is closer to a management summary than a structural analysis. It captures the boardroom tension, activist pressure, and portfolio sprawl, yet it understates the infrastructure layer that actually shaped Twilio’s decline and recovery.
That is the missing piece. Twilio’s story was never just about leadership or org design. It was about messaging economics, carrier pass-through, interoperability, and the long shadow of acquisitions like ZipWhip. If you do not understand the plumbing, you do not really understand the turnaround.
That is why the best companion reading is not another case study. It is the work that follows the mechanics. Start with The Exclusive Untold Story Behind Twilio and ZipWhip, then read Messaging and Growth in the Pandemic, Pass-Thru Fees: The Asymmetric SMS Market, and Why Cross-Selling Is So Hard. Those four pieces explain more of Twilio’s actual operating reality than the case does.
From there, Twilio Announces a Transition and The Growth Endurance Calculation help frame the leadership reset and the discipline question, while Buybacks, Confidence, and the Limits of R&D Spend puts the capital allocation story in context. If you want the sector lens, Twilio vs. Sinch: The Tussle of Two Reports is the right contrast.
So yes, read Case 9-826-132. But if you want the industry version, understand the plumbing.
The Interesting
The Identity startup within Twilio continues to grow. The company reported a seven-figure Verify deal with a historic sports league as the high-trust authentication layer for millions of fans. Branded Calling more than doubled, as did Conversational Intelligence.
In this age of AI, Voice gets the customer in the door, trust products attach on top, and cross-channel orchestration is the upsell.
Twilio is seeing AI assistants for small businesses, copilots in contact centers, inbound and outbound sales motions, compliance use cases, and after-hours service for Main Street businesses.
Khozema added that less-regulated verticals are moving faster, while regulated industries are still earlier and slower. That probably means the bigger enterprise dollars are still ahead.
The Unknown
Cross-sell is still in the unknown column. Thomas says the software layer is accelerating overall spend consolidation, and that is probably true. But he also admitted it is hard to quantify exactly how much AI is accelerating cross-sell financially. So the direction is right. The math is still catching up.
RCS barely registered. In fact, two years after Apple announced support, it’s not showing up on anyone’s revenue top line, let alone Twilio’s. You could argue that Twilio is too big of a company for RCS to appear this quickly. But the unknown is what’s causing this lag between something being interoperable and feature complete, yet not getting the big deals. Is it SMS’s resiliency, RCS’s clunky pricing model, or its steep learning curve? Or all of the above?
Finally
Twilio had its best quarter in years, maybe ever, and that’s good for everyone. It’s good for the carriers, who will get $235M in pass-through fees this year. It’s good for competition, because quarters like this prove market size more than a Juniper or Gartner report. It’s also good for competition because there will still be deals where you can undercut Twilio. And it’s good for the customer, because Twilio is showing that even infrastructure plays still have room to innovate.