Klaviyo (KVYO) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $235.1M, up 34% year-over-year, with over 157,000 customers and strong international and upmarket expansion.

• Customers generating over $50,000 ARR grew 54% to 2,619, with notable new deals including Authentic Brands Group, Lulus, Rag & Bone, and The Body Shop.

• Product innovation included new AI features, expanded SMS coverage to 18 countries, and platform launched in five new languages.

• Leadership strengthened with new CTO and CPO appointments; co-founder transitioned to Chief Strategy Officer.

• Net loss narrowed significantly to $1.3M for Q3 2024 from $297.1M in Q3 2023, reflecting lower stock-based compensation.

Financial highlights

• Q3 2024 revenue: $235.1M (+34% YoY); non-GAAP gross profit: $183.0M (78% margin); gross profit: $180.7M (77% margin).

• Non-GAAP operating income was $33.7M (14% margin), up from $17.8M (10% margin) last year.

• Free cash flow was $34.2M (15% margin), up 57% year-over-year.

• Net loss per share was $(0.01), versus $(1.24) a year ago; non-GAAP net income per share was $0.17 (basic) and $0.15 (diluted).

• Cash, cash equivalents, and restricted cash totaled $827.9M at quarter end.

Outlook and guidance

• Q4 2024 revenue guidance: $256.0M–$258.0M (27–28% YoY growth); FY24 revenue guidance: $923.0M–$925.0M (32–33% YoY growth).

• Q4 non-GAAP operating income expected at $7.0M–$9.0M (3% margin); FY24 non-GAAP operating income $104.0M–$106.0M (11% margin).

• Guidance includes a new employee cash bonus program expense in Q4.

• 2025 revenue growth rate expected to decelerate modestly; operating margin to remain consistent as investments continue.

• Sufficient liquidity is expected for at least the next twelve months based on current operations and cash flow.