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Reorganization and Segment Reporting
 9 Months Ended
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,
2023202220232022
(In thousands)
Revenue:
     Communications$906,714 $866,193 $2,703,079 $2,470,350 
     Data & Applications126,956 116,837 374,916 331,397 
          Total$1,033,670 $983,030 $3,077,995 $2,801,747 
Non-GAAP gross profit:
      Communications451,330 401,236 1,316,541 1,160,683 
      Data & Applications101,268 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 $1,440,124 
Stock-based compensation(7,053)(6,114)(18,677)(14,631)
Amortization of acquired intangibles(29,045)(30,729)(88,675)(92,601)
Payroll taxes related to stock-based compensation(181)(215)(499)(457)
Gross profit516,319 462,075 1,512,764 1,332,435 
Operating expenses(625,222)(919,072)(2,027,578)(2,319,176)
Other expenses, net(31,057)(21,750)(122,261)(36,666)
Loss before provision for income taxes$(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.