Klaviyo Q3 2023 Earnings Report
Key Takeaways
Klaviyo reported a strong third quarter with revenue of $175.8 million, representing a 48% year-over-year growth. The company ended the quarter with over 135,000 customers and a net revenue retention rate of 119%.
Revenue reached $175.8 million, a 48% increase year-over-year.
Ended the quarter with over 135,000 customers, compared to over 109,000 customers in the third quarter of 2022.
Customers generating over $50,000 of ARR increased by 89% year-over-year, reaching 1,699.
Net Revenue Retention Rate (NRR) was 119% as of September 30, 2023, marking the 10th straight quarter with a NRR of at least 115%.
Klaviyo
Klaviyo
Forward Guidance
For the fourth quarter of fiscal year 2023, Klaviyo expects revenue between $195.0 million and $197.0 million, representing a year-over-year growth rate of 34% to 36%, and non-GAAP operating income between $14.0 million and $17.0 million, with a non-GAAP operating margin of 7% to 9%. For the full fiscal year 2023, the company anticipates revenue between $691.5 million and $693.5 million, a year-over-year growth rate of 46% to 47%, and non-GAAP operating income between $75.9 million and $78.9 million, resulting in a non-GAAP operating margin of 11%.
Positive Outlook
- Revenue is expected to be between $195.0 million and $197.0 million.
- Year-over-year revenue growth rate is projected to be between 34% and 36%.
- Non-GAAP operating income is anticipated to be between $14.0 million and $17.0 million.
- Non-GAAP operating margin is expected to be between 7% and 9%.
- Full year revenue is projected to be between $691.5 million and $693.5 million.
Challenges Ahead
- Stock-based compensation-related charges are difficult to predict.
- Employer payroll tax-related items on employee stock transactions are difficult to predict.
- Future fair market value of common stock is difficult to predict.
- Future hiring and retention needs are difficult to predict.
- Reconciliation of non-GAAP operating income guidance measures to the most directly comparable GAAP measures cannot be reasonably calculated or predicted at this time.