Twilio Inc (TWLO)

The analysis of Twilio Inc.'s Days of Sales Outstanding (DSO) over the period from December 31, 2020, to December 31, 2024, indicates relatively stable receivables management with minor fluctuations.

In 2020, the DSO was approximately 52.04 days, reflecting the period it took for the company to collect revenue after a sale. This metric decreased slightly in 2021 to 49.86 days, suggesting a marginal improvement in the company’s receivables collection efficiency. However, in 2022, the DSO increased again to 52.23 days, indicating a slight elongation in collection periods, potentially attributable to changes in credit policies, customer payment behaviors, or product mix adjustments.

Subsequently, in 2023, the DSO decreased once more to 49.45 days, returning closer to the 2021 levels, which may imply improvements in collection processes or more favorable customer payment terms. In 2024, the DSO further declined to 48.19 days, indicating continued efficiency in receivables collection, with the company generally able to convert sales to cash slightly faster than in previous years.

Overall, the observed pattern reflects a relatively stable collection period with a slight downward trend in the most recent years, suggesting incremental improvements in accounts receivable management. The DSO typically hovers around the mid to high 40s days range, which is consistent with industry norms for software or technology service companies, given their often subscription-based or recurring revenue models. This stability indicates effective credit and collection policies, with only minor fluctuations that may be seasonal or operational in nature.

Peer comparison

Dec 31, 2024