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Reorganization and Segment Reporting | 9 Months Ended
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Sep. 30, 2023
Restructuring and Related Activities [Abstract] |
Reorganization and Segment Reporting | Reorganization and Segment ReportingIn February 2023, the Company announced a reorganization of its business into two business units, Twilio Communications and Twilio Data & Applications (the “Reorganization”). With the Reorganization, the Company changed the organizational structure of its business, including the way management operates the business. The Company’s Chief Executive Officer is its CODM. In the second quarter of 2023, the Company began regularly providing the CODM with discrete financial information for each business unit, as presented below, which required a reevaluation of the Company’s operating and reportable segments in accordance with ASC 280. The Company concluded that as of June 30, 2023, it had two operating and reportable segments: Twilio Communications and Twilio Data & Applications. Twilio Communications: The Communications segment consists of a variety of application programming interfaces (“APIs”) and software solutions to optimize communications between Twilio customers and their end users. The key products from which the segment derives its revenue are Messaging, Voice and Email. Twilio Data & Applications: The Data & Applications segment consists of software products that enable businesses to achieve more effective customer engagement by providing the tools necessary for customers to build direct, personalized relationships with their end users. The key products from which the segment derives its revenue are Segment, Engage, Flex and Marketing Campaigns. Presented below is the discrete financial information by reportable segment for the three and nine months ended September 30, 2023 and 2022, that is regularly reviewed by the CODM for performance assessment and resource allocation decisions. Asset information is not presented below since it is not reviewed by the CODM on a segment by segment basis. Revenue and costs of revenue are generally directly attributable to each segment. Certain costs of revenue are allocated based on methodologies that best reflect the patterns of consumption of these costs. Prior period comparative financial information presented below was restated to conform to the current period presentation.
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
|  | (In thousands)
Revenue: |  |  |  |  |  |  |  |
Communications |  | $ | 906,714 |  |  | $ | 866,193 |  |  | $ | 2,703,079 |  |  | $ | 2,470,350 |
Data & Applications |  | 126,956 |  |  | 116,837 |  |  | 374,916 |  |  | 331,397 |
Total |  | $ | 1,033,670 |  |  | $ | 983,030 |  |  | $ | 3,077,995 |  |  | $ | 2,801,747 |
Non-GAAP gross profit: |  |  |  |  |  |  |  |
Communications |  | 451,330 |  |  | 401,236 |  |  | 1,316,541 |  |  | 1,160,683 |
Data & Applications |  | 101,268 |  |  | 97,897 |  |  | 304,074 |  |  | 279,441 |
Total |  | $ | 552,598 |  |  | $ | 499,133 |  |  | $ | 1,620,615 |  |  | $ | 1,440,124 |
Reconciliation of non-GAAP gross profit to gross profit: |  |  |  |  |  |  |  |
Total non-GAAP gross profit |  | $ | 552,598 |  |  | $ | 499,133 |  |  | $ | 1,620,615 |  |  | $ | 1,440,124 |
Stock-based compensation |  | (7,053) |  |  | (6,114) |  |  | (18,677) |  |  | (14,631) |
Amortization of acquired intangibles |  | (29,045) |  |  | (30,729) |  |  | (88,675) |  |  | (92,601) |
Payroll taxes related to stock-based compensation |  | (181) |  |  | (215) |  |  | (499) |  |  | (457) |
Gross profit |  | 516,319 |  |  | 462,075 |  |  | 1,512,764 |  |  | 1,332,435 |
Operating expenses |  | (625,222) |  |  | (919,072) |  |  | (2,027,578) |  |  | (2,319,176) |
Other expenses, net |  | (31,057) |  |  | (21,750) |  |  | (122,261) |  |  | (36,666) |
Loss before provision for income taxes |  | $ | (139,960) |  |  | $ | (478,747) |  |  | $ | (637,075) |  |  | $ | (1,023,407) |
Depreciation and amortization expenses included in non-GAAP gross profit for the Communications reportable segment was $13.0 million and $7.7 million in the three months ended September 30, 2023 and 2022, respectively, and $36.1 million and $21.4 million in the nine months ended September 30, 2023 and 2022, respectively. Depreciation and amortization expenses included in non-GAAP gross profit for the Data & Applications reportable segment was $3.2 million and $1.9 million in the three months ended September 30, 2023 and 2022, respectively, and $9.8 million and $4.7 million in the nine months ended September 30, 2023 and 2022, respectively.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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