Twilio’s active customer accounts continued to grow
Twilio’s (TWLO) spectacular growth, which has fueled its stock market run, continued in the fourth quarter. The cloud communications company is seeing impressive growth in its revenue on the back of strong growth in its active user base, which is a gauge of the health of the company’s business.
Twilio defines active customer accounts as “a unique account identifier, for which Twilio has recognized at least $5 of revenue in the last month of the period.”
Twilio continues to see robust growth in its number of active customers. At the end of the fourth quarter, the cloud communications company had 64,286 active customer accounts, a rise of 31.25% year-over-year.
Twilio continues to eke more revenue from existing customers
As the graph above shows, while the company’s growth continues to slow, the slowdown hasn’t been pronounced. The continuing strong growth in the company’s active customer accounts bodes well for its revenue growth in the current year.
Twilio continues to make more money from its active customer accounts. Twilio’s dollar-based net expansion rate, which is the revenue growth from its active customer accounts (this metric excludes customer growth), is an indicator of whether Twilio can increase its revenue from its existing customers.
The company’s dollar-based net expansion rate for the fourth quarter was 147%, meaning that its revenue from active customer accounts had risen 47% in the fourth quarter of 2018 compared to the fourth quarter of 2017.