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Sep 30
Klaviyo Q3 2025 Earnings Report
Klaviyo reported strong third-quarter results with significant revenue growth and increased customer numbers, driven by product innovation and international expansion.
Key Takeaways
Klaviyo delivered an outstanding third quarter, with revenue reaching $310.9 million, marking a 32% year-over-year increase. The company saw substantial growth in its customer base, particularly among large customers, and demonstrated strong international performance. Klaviyo also raised its full-year revenue guidance, reflecting confidence in its business momentum and strategic initiatives, including new AI-powered products.
Third-quarter revenue grew 32% year-over-year to $310.9 million, exceeding expectations.
Total customers increased to over 183,000, with a 36% rise in customers generating over $50,000 of ARR.
International expansion continued strongly, with EMEA and APAC revenue growing 43% year-over-year.
Klaviyo launched new AI-powered products, K:Service and Marketing Agent, enhancing its B2C CRM platform.
Klaviyo
Klaviyo
Klaviyo Revenue by Geographic Location
Revenue by Geographic Location
EMEA and APAC Revenue
CapyFin.com Forward Guidance
Klaviyo has raised its full-year 2025 revenue guidance to a range of $1.215 billion to $1.219 billion, representing a 30% year-over-year growth. The company also provided Q4 2025 guidance with expected revenue between $331 million and $335 million and non-GAAP operating income between $43.5 million and $46.5 million.
Positive Outlook
- Raised full-year 2025 revenue guidance, indicating strong business performance and outlook.
- Projected full-year revenue growth of 30% year-over-year.
- Anticipated strong revenue for Q4 2025, with a range of $331 million to $335 million.
- Expected non-GAAP operating income for Q4 2025 to be between $43.5 million and $46.5 million.
- Non-GAAP operating margin for FY25 is projected to be between 13% and 14%.
Challenges Ahead
- No specific negative forward guidance was provided in the report.
- The company has not provided a reconciliation of non-GAAP operating income guidance to GAAP measures due to the unpredictability of certain excluded items.
- Stock-based compensation and related payroll taxes are difficult to predict and subject to constant change, impacting GAAP reconciliation.
- The impact of the Shopify investment option was excluded from diluted shares as it was out of the money.
- Forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially.