Twilio Inc (0LHL.L) Q1 2025 Earnings Report

Revenue and profitability:
- Revenue: USD 1,172,463,000; YoY +11.98%; QoQ -1.87%
- Gross Profit: USD 570,110,000; Gross Margin 48.6%; YoY +7.41%; QoQ -3.06%
- Operating Income: USD 34,773,000; Operating Margin 2.97%; YoY +203.62%; QoQ +154.37%
- Net Income: USD 20,017,000; Net Margin 1.71%; YoY +136.17%; QoQ +260.52%
- EPS: USD 0.13; Diluted EPS USD 0.12; YoY +141.94%; QoQ +262.50%

Cash flow and liquidity:
- Net cash provided by operating activities: USD 191,042,000
- Free cash flow: USD 178,315,000
- Operating cash flow per share: USD 1.246; Free cash flow per share: USD 1.163
- Cash and cash equivalents: USD 467,094,000; Total cash and short-term investments: USD 2,448,077,000
- Net change in cash: USD +46,108,000; Cash at end of period: USD 477,545,000

Balance sheet health:
- Total assets: USD 9,814,715,000; Total liabilities: USD 1,810,424,000; Total stockholders’ equity: USD 8,004,291,000
- Cash and cash equivalents: USD 467,094,000; Short-term investments: USD 1,980,983,000; Long-term debt: USD 1,069,054,000; Total debt: USD 1,100,940,000; Net debt: USD 633,846,000
- Goodwill: USD 5,243,266,000; Intangible assets: USD 331,717,000; Goodwill and intangible assets: USD 5,574,983,000
- Current ratio: 4.78; Quick ratio: 4.78; Cash ratio: 0.643

Operational and efficiency signals:
- Cost structure: Cost of revenue USD 602.353 million; R&D USD 254.295 million; SG&A USD 281.042 million; Operating expenses USD 535.337 million; D&A USD 54.735 million; EBITDA USD 81.319 million
- EBITDA margin: 6.93%; Operating margin: 2.97%; Pretax margin: 2.27%; Net margin: 1.71%
- Asset turnover: 0.119; Fixed asset turnover: 10.46; Inventory turnover: 0; Receivables turnover: 2.03; Payables turnover: 5.59

Transcript highlights unavailable: No earnings call transcript data was provided in the supplied materials. As a result, no management quotes or themes from the QQ1 2025 earnings call can be cited here.

Twilio QQ1 2025 results reflect a financially resilient platform with tangible cash generation and a solid gross margin, underpinned by continued investment in product development. The company converted revenue growth into positive net income and meaningful free cash flow, supporting optional capital allocation strategies. However, the equity valuation remains premium in the context of a company that has historically shown limited net profitability and a large goodwill load. The near-term thesis is cautiously constructive: if Twilio sustains revenue momentum, tightens operating expenses, and maintains FCF generation, it could justify re-rating. Investors should monitor revenue growth trajectory, enterprise deal acceleration, operating efficiency, and any impairment risk linked to its sizable goodwill base. A neutral-to-moderately-bullish stance is prudent until clearer evidence of sustained profitability and margin expansion emerges, complemented by credible forward guidance from management.