Klaviyo Announces Third Quarter 2024 Financial Results
Third quarter revenue of $235.1 million, representing 34% year-over-year growth
Raises full year 2024 revenue guidance
Boston, November 6, 2024 – Klaviyo (NYSE: KVYO), the company that powers smarter digital relationships, today announced results for its third quarter ended September 30, 2024.
“We’re proud to deliver another quarter of strong performance, reinforcing Klaviyo’s position as an intuitive, centralized data platform essential to customers’ businesses,” said Andrew Bialecki, co-founder and CEO of Klaviyo. “We made significant progress across a number of key initiatives such as international and upmarket expansion, and we bolstered our leadership team within R&D as we look to solve the future needs of our customers.”
Recent Business Highlights:
- Launched Klaviyo in five new languages — German, Portuguese, Korean, Spanish and Italian — and now support seven languages on the platform.
- Expanded SMS offering to 18 countries with availability in Norway, Denmark, Sweden, Finland, Italy, and Portugal.
- Announced a new integration with Canva, enabling customers to bring designs directly into Klaviyo for use within email templates, SMS content and more.
- New and expansion deals closed with Authentic Brands Group, Lulus, Rag & Bone, The Body Shop and others during the quarter ended September 30, 2024.
- Over 157,000 customers were using Klaviyo to drive their own revenue growth as of September 30, 2024, compared to over 135,000 customers as of September 30, 2023.
- Increased penetration up market, ending the quarter with 2,619 customers generating over $50,000 of ARR, compared to 1,699 as of September 30, 2023, an increase of 54% year-over-year.
- Continued to expand with current customer base, with NRR of 110% as of September 30, 2024.
- Announced the hiring of Surabhi Gupta as our new Chief Technology Officer, as well as the addition of Adil Wali, who will join us this month as our new Chief Product Officer, adding deep experience in scaling world-class businesses.
“We delivered another quarter of strong financial performance with revenue growth of 34%, operating cash flow of $38.8 million and free cash flow of $34.2 million,” said Amanda Whalen, CFO of Klaviyo. “We are delivering on our four growth vectors of adding new customers, growing in the mid-market, expanding with existing customers and expanding internationally as Klaviyo is a must have platform for our customers.”
Third Quarter 2024 Financial Highlights:
- Revenue: Total revenue of $235.1 million, up from total revenue of $175.8 million in the third quarter of 2023, representing year-over-year growth of 34%.
- Gross profit: Gross profit of $180.7 million, representing a gross margin of 77%, compared to gross profit of $117.0 million in the third quarter of 2023, representing a gross margin of 67%.
- Non-GAAP gross profit: Non-GAAP gross profit of $183.0 million, representing a non-GAAP gross margin of 78%, compared to non-GAAP gross profit of $140.3 million in the third quarter of 2023, representing a non-GAAP gross margin of 80%.
- Operating loss: Operating loss of $(13.3) million, representing operating margin of (6)%, compared to operating loss of $(302.2) million in the third quarter of 2023, representing an operating margin of (172)%.
- Non-GAAP operating income: Non-GAAP operating income of $33.7 million, representing non-GAAP operating margin of 14%, compared to non-GAAP operating income of $17.8 million in the third quarter of 2023, representing non-GAAP operating margin of 10%.
- Net loss per share attributable to Klaviyo Series A and Series B common stockholders – basic and diluted: Net loss per basic and diluted share attributable to Klaviyo Series A and Series B common stockholders was $(0.01) and $(0.01), respectively, for the third quarter of 2024, compared to $(1.24) and $(1.24), respectively, for the third quarter of 2023.
- Non-GAAP net income per share attributable to Klaviyo Series A and Series B common stockholders – basic and diluted: Non-GAAP net income per basic and diluted share attributable to Klaviyo Series A and Series B common stockholders was $0.17 and $0.15, respectively, for the third quarter of 2024, compared to $0.10 and $0.08, respectively, for the third quarter of 2023.
- Balance sheet and cash flow: Cash, cash equivalents, and restricted cash as of the end of the third quarter was $827.9 million. Cash from operating activities was $38.8 million, representing a margin of 16%. Free cash flow for the third quarter was $34.2 million, representing free cash flow margin of 15%.
Financial Outlook
$ in millions | Q4 FY24 Guidance | FY24 Guidance | |||
Low | High | Low | High | ||
Revenue | $256.0 | $258.0 | $923.0 | $925.0 | |
Year-over-year Growth Rate | 27% | 28% | 32% | 33% | |
Non-GAAP Operating Income1 | $7.0 | $9.0 | $104.0 | $106.0 | |
Non-GAAP Operating Margin | 3% | 3% | 11% | 11% | |
1 The Company’s non-GAAP operating income guidance includes an expense, expected to be in the low-teens millions of dollars, related to the cost of implementing a new employee cash bonus program in the fourth quarter. Going forward, the Company will accrue for this program throughout each fiscal year. |
Klaviyo has not provided a reconciliation of non-GAAP operating income guidance measures to the most directly comparable GAAP measures because certain items excluded from GAAP cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort. Stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change.
Dilutive Securities
Klaviyo has various dilutive securities. The table below details these securities (shares in millions; rounding differences may occur):
Price as of September 30, 2024 | Weighted Average Exercise Price | Shares | ||||||
Share price | $ | 35.38 | ||||||
Common stock outstanding as of 9/30/2024 | 269.2 | |||||||
Warrants outstanding | 4.1 | |||||||
RSUs outstanding | 17.1 | |||||||
Options outstanding | $ | 0.40 | 26.6 | |||||
ESPP shares outstanding | 0.4 | |||||||
Total estimated fully diluted shares | 317.4 |
We have excluded the impact of the Shopify investment option of 15,743,174 shares at $88.93 per share as it was out of the money as of September 30, 2024. The investment option expires on July 28, 2030.
Conference Call Information
In conjunction with this announcement, Klaviyo will host a conference call for investors at 4:30 p.m. ET (1:30 p.m. PT) today to discuss the results for its third quarter ended September 30, 2024 and its outlook for its fourth quarter and fiscal year ending December 31, 2024. The live webcast and a replay of the webcast will be available at the Investor Relations section of Klaviyo’s website: https://investors.klaviyo.com.
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