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Sep 30, 2024
Klaviyo Q3 2024 Earnings Report
Klaviyo's position as an intuitive, centralized data platform was reinforced, key initiatives such as international and upmarket expansion saw significant progress, and the leadership team within R&D was bolstered.
Key Takeaways
Klaviyo reported strong third quarter results with revenue growth of 34% year-over-year, driven by expansion in new customers, mid-market growth, existing customer expansion, and international growth. Revenue reached $235.1 million, with operating cash flow at $38.8 million and free cash flow at $34.2 million.
Launched Klaviyo in five new languages and now support seven languages on the platform.
Expanded SMS offering to 18 countries with availability in Norway, Denmark, Sweden, Finland, Italy, and Portugal.
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.
Klaviyo
Klaviyo
Forward Guidance
Klaviyo provided financial outlook for Q4 FY24 with revenue between $256.0 million and $258.0 million, representing a year-over-year growth rate of 27% to 28%. Non-GAAP operating income is expected to be between $7.0 million and $9.0 million, with a non-GAAP operating margin of 3%.
Positive Outlook
- Revenue between $256.0 million and $258.0 million
- Year-over-year Growth Rate 27% to 28%
- Non-GAAP Operating Income between $7.0 million and $9.0 million
- Non-GAAP Operating Margin of 3%
- Full year revenue guidance raised
Challenges Ahead
- Non-GAAP operating income guidance includes an expense related to the cost of implementing a new employee cash bonus program in the fourth quarter.
- Stock-based compensation-related charges are impacted by the timing of employee stock transactions and the future fair market value of common stock, which are difficult to predict.
- The company operates in a very competitive and rapidly changing environment, and new risks may emerge from time to time.
- The amount of employer payroll tax-related items on employee stock transactions is dependent on restricted stock unit settlements, option exercises, related stock price, and other factors that are beyond Klaviyo’s control.
- 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.