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Sep 30, 2023
Klaviyo Q3 2023 Earnings Report
Klaviyo's Q3 2023 financial performance was marked by strong revenue growth and expansion of its platform with the launch of Klaviyo CDP.
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.