Twilio concludes review of segment business

Twilio announced the results of its operational review of its segment business. The company also provided targets for FY 2024 and FY 2025, and announced an additional $2B share repurchase authorization that it is targeting to complete during FY 2024. In consideration of the recent underperformance of the Segment business, and upon Khozema Shipchandler’s appointment as CEO in January, the Twilio board and management team initiated an operational review of Segment to determine the best path forward. Over the course of eight weeks, the company engaged with customers and internal stakeholders to determine the root causes of the business’s challenges and assess its ability to address these issues. As part of this process, the board and management team also considered various hypothetical non-operational alternatives for segment, including a sale of the business, with input from independent strategic and financial advisors. After a thorough evaluation, the board and management team determined that implementing and executing tangible near-term operational changes to accelerate segment’s path to break-even non-GAAP income from operations by Q2 2025 and non-GAAP operating profitability thereafter, ultimately is expected to create the most value for shareholders compared to all alternatives considered.