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October 10, 2016

Twilio files for second public offer to raise $400m

A majority of shares in the offer will be sold by its existing investors.

By CBR Staff Writer

Cloud comms firm Twilio has filed an application with the US Securities and Exchange Commission to raise an additional $400m.

In the latest offer, which is its second in less than five months, a majority of the shares are expected to be sold by its existing investors.

However, Twilio said that it will not receive any proceeds from the sale.

For the proposed offering, Goldman Sachs and J.P. Morgan Securities will act as joint book-running managers. The firms also backed its previous initial public offer (IPO).

In June, San Francisco-based Twilio offered 10 million shares at $15 each in an IPO, planning to raise $150m.

Founded in 2008, Twilio currently employs over 650 people, with offices in Bogotá, Dublin, Hong Kong, London, Mountain View, Munich, New York City, Singapore and Tallinn.

In July 2015, Twilio raised $130m in a series E round of funding, led by Fidelity and T. Rowe Price, along with Altimeter Capital Management, Arrowpoint Partners, Amazon.com and Salesforce Ventures.

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It had more than 30,000 active customer accounts as of 30 June 2016, according to company’s filing with the US regulator.

Twilio’s developer-first platform approach consists of three things such as programmable communications cloud, super network and business model for innovators.

The company said: “With our platform, our customers are disrupting existing industries and creating new ones. For example, our customers have reinvented hired transportation by connecting riders and drivers, with communications as a critical part of each transaction.

“Our customers’ software applications use our platform to notify a diner when a table is ready, a traveler when a flight is delayed or a shopper when a package has shipped. The range of applications that developers build with the Twilio platform has proven to be nearly limitless.”

The company reported revenue of $123.8m for the six months ending 30 June this year, with a net loss of $17.5m.

The company’s filing showed the revenue contribution from WhatsApp, one of its top customers, accounted for 12% of its overall revenue during the same period.

Twilio said: “Although this customer has entered into a minimum commitment contract with us, its usage historically has significantly exceeded the minimum revenue commitment in its contract, and it could significantly reduce its usage of our products without notice or penalty.”

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