Turnaround plan seems to be working. Margins are improving. There's been this whole restructuring since you came in as CEO or jumped to CEO. Which bit is working best? Yeah, I wouldn't call it a restructuring. I would say it's steady progress, really good financial discipline, operating rigor, a lot of innovation focus. And I think what you're starting to see is that show up in terms of accelerated growth. And I think increasingly we're starting to become a beneficiary of the same wave. All right. Let's expand on the innovation part. The back story with Twilio was investors who really want to see sort of discipline and a growth plan. But you're doing things in the world of technology that matter. Yeah, I mean, I think you're starting to see margins really improve over the last several years, which I think has been exciting for investors, certainly been exciting for us. I think on top of that, though, we've

also seen a real return to innovation. So we're making some really focused bets in terms of where that innovation lies. And for us, it's really about delivering for consumers vis-à-vis our customers, personalization at scale. And what that really means is how do we combine communications plus contextual data plus AI to deliver these amazing consumer experiences through digital interaction? Cosima, the magic of television, your IFB pops out. Feel free to pop it back in. And I'll point out that a lot of the sell-side analysts have raised price targets on this idea. I think they see a clearer future. Just very quick, someone want to come in, you think that's fair? There's a clearer longer-term path for you. Yeah, I do think so. I mean, I think we feel pretty optimistic about our long-term growth ambitions. Obviously, we want to balance our ability to grow the company as well as drive ongoing profitability and free cash flow.

And finding that balance really is the trick. But as I look out and see what's happening in sort of the stage of I think we're going to be one of the real beneficiaries. Let's talk about monetizing that. I my if you can hear me well, because Morgan Stanley says, look, it's encouraging this product integration, but they want to see the monetization. How do you turn that on? I mean, I think the way that it happens is, is that we've got this great data asset that we bought several years ago in segment and on kind of a standalone basis. It's a relatively small piece of our revenue. But the long term play here is, is that what segment does is extract contextual data out of the businesses that we serve and our ability to combine that with communications capabilities and then use a little bit of AI to create that awesome consumer outcome on the other.

side. Like that's really what we're going for. And what it kind of means is that whether it's you, whether it's the two of us, or whether it's thousands of other consumers all at the same time, us being able to achieve that personalization as if a business knows every single thing about us in the way that they interact with us. That's what we unlock. It's really interesting you bring up that segment part because that was the area of the business that activist investors wanted you to shirk to sell off. There is still some weakness within it. Are you standing by the decision to keep it as part of Twilio? And how do you tell that story going forward? Yeah, I mean, look, I think we've made progress in that business. We made a number of commitments at the start of the year in terms of what we intended to do to improve the ongoing performance of that business. We're very much on track to get that

business to break even. We've made a number of improvements in the go-to-market capacity of that business. It's not like our work is done yet. It still kind of continues apace. Again, I think it's important to remember that it's really less than 7% of our revenues overall. And so when you consider it in the totality of Twilio, the business growth is really accelerating. The margins have been fantastic, free cash flows have been activating, and now segment really becomes an activation engine for using data and communications. Cosima, the stock is up 15% on track for its biggest jump since 2022 at one point, biggest jump since 2020. I know that this is a technology show and that many executives are very disciplined about talking about the stock, but the market's rewarding you here. What do you make of it? Look, I think we're making steady progress, right?

And we're not necessarily focused on the day-to-day movement of the stock price. I think this is the long game that we're fundamentally playing here. And I think the age of AI is going to play out for a long time to come. That's what we're excited about. How can we deliver for customers in a very personalized way, again, using communications plus contextual data, plus A.I. to deliver those amazing consumer outcomes.

Twilio CEO: Making Focused Bets with AI

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