Mark Murphy: Okay. Understood. Very clear. Thank you.
Operator: Your next question comes from the line of Jim Fish with Piper Sandler. Your line is open.
Quinton Gabrielli: Hey, guys, this is Quinton on for Jim Fish. Thanks for taking our question. Maybe first, a narrative that’s been out in the market has been competitors potentially getting more aggressive from a pricing standpoint, specifically in the core messaging segment. Is that something you’re seeing already here in Q1 or anything you saw in Q4, and then anything you can point to in terms of changes from a competitive landscape positioning? Thank you.
Khozema Shipchandler: Yes, this is Khozema. I’ll take the question. In short, no. The way that I would characterize it is that, the success of the company is really built on the innovation and quality of our offering. And so I’m aware of what you’re kind of referring to, and we never really comment on any specific competitor. I think the reality of what we do is that, we deliver a really broad and innovative set of solutions for our Communications customers and we charge a fair price for it. And so whether it’s the breadth of our channels, the reliability of our super network, or the global scale, all of those factors are in the mix in terms of the way that we serve customers and serve them very, very well. We’ve made a lot of investments in compliance and fraud mitigation as well, to ensure users aren’t stuck paying for fraudulent messages either.
And we just want to ensure that we deliver great experiences. And fundamentally, we think that that’s a better setup for Twilio and our customers. And we’ve had a long history, really, of maintaining price discipline. And so, we’ve been able to compete very, very successfully with folks that are on the lower end of the market and maintain, if not grow, our market share over time.
Quinton Gabrielli: Makes sense. Thank you. And then maybe just as a quick follow-up. Understand the crypto headwinds here, but I think one interesting point is, you’ve seen kind of a rebound in kind of the crypto pricing. And so maybe are you seeing any sort of improvement from a quarter-over-quarter basis of the crypto-specific activity? And how do you expect that to trend in 2024 as we see a potential kind of increase in the pricing landscape? Do we still see that relationship of — as crypto pricing increases, we see activity increase on Twilio? Thank you.
Aidan Viggiano: Yes. So from a crypto perspective, a couple of things. Last year, in the second quarter and third quarter, we talked about those periods kind of being the peak of our — the crypto volume on our platform. So we played through the last several quarters with that headwind. We expect the headwind in Q1 to be roughly in line with the headwind that we saw in Q4, after which we expect crypto kind of pressures our headwinds on growth to kind of abate a little bit. Beyond that, I’m not going to provide any kind of outlook in terms of the specific industry, but we are kind of starting to lap those higher periods of crypto volume.
Operator: Your next question comes from the line of Michael Turrin with Wells Fargo Securities. Your line is open.
Michael Turrin: Great. Thanks. Appreciate you taking the question. Just on the — I understand there’s a number of moving pieces as you’re fine-tuning the organization and just the underlying customer profile. But when we’re looking at the customer metrics, I think the Communication segment is not one where we’ve seen that metric down. So maybe you can just add some detail on what’s driving the customer metrics currently. And then in terms of the Segment evaluation as just the second part, I think we’ve often viewed that as maybe a strategic opportunity to add more data-driven intelligence to the Communications portfolio. If at all possible, is that something you can address independently where Segment to go a different route? I’m just wondering if you can just add more on kind of the data enablement piece of what Twilio has in its portfolio across the Communications segment as it’s currently built as well. Thank you.
Aidan Viggiano: Why don’t I start? I’ll start on the customer question, then I’ll hand it over to Khozema. So just to start with the numbers. So customer count was 305,000 at the company level, down 30 basis points quarter-over-quarter, up 5% year-over-year. Really what we’re seeing is on the Communication side, we saw a reduction in customer count, really driven by smaller dollar self-serve customers. And maybe just to take a step back and a reminder on the metric itself, customers are only included in our customer account if they generated at least $5 of revenue in the final month of the quarter. And so, what we saw was customers that might have been slightly above $5, like slip below $5. And so that’s really what drove the change kind of quarter-over-quarter.
Importantly, when we look at revenue churn, which is kind of how we look at that metric, that’s the more relevant metric, that remains very low. And we’re seeing customer account growth in our largest spending cohorts and ARPU actually increased quarter-over-quarter with revenue up, but customer count down, you can see that that metric would naturally go up. So overall, it’s really driven by just small-dollar self-serve customers on the Communication side. But revenue churn remains low, as it has historically been in this business.
