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Dec 31, 2024

Klaviyo Q4 2024 Earnings Report

Klaviyo reported strong revenue growth in Q4 2024, achieving 34% year-over-year growth and reaching a $1 billion revenue run rate.

Key Takeaways

Klaviyo delivered another quarter of strong financial performance, reporting Q4 revenue of $270.2 million, up 34% year-over-year. The company continued expanding its customer base, with over 167,000 customers by the end of the fiscal year. Non-GAAP operating income reached $15.1 million, and non-GAAP net income per diluted share was $0.07. Klaviyo also generated $60.1 million in cash from operating activities and $54.5 million in free cash flow.

Q4 revenue increased 34% year-over-year to $270.2 million.

Non-GAAP net income per diluted share was $0.07.

Generated $60.1 million in cash from operating activities.

Expanded enterprise customer base, with 2,850 customers generating over $50K ARR.

Total Revenue
$270M
Previous year: $202M
+34.0%
EPS
$0.07
Previous year: $0.09
-22.2%
Total Customers
167K
Customers > $50k ARR
2.85K
NRR
108%
Gross Profit
$198M
Previous year: $157M
+26.7%
Cash and Equivalents
$882M
Previous year: $739M
+19.3%
Free Cash Flow
$54.5M
Previous year: $34.7M
+56.9%
Total Assets
$1.27B
Previous year: $1.09B
+16.9%

Klaviyo

Klaviyo

Forward Guidance

Klaviyo expects continued revenue growth in FY25, forecasting Q1 revenue between $265M and $269M, representing a 26-28% year-over-year increase. The company aims to maintain profitability with a non-GAAP operating margin of 10-11%.

Positive Outlook

  • Projected Q1 FY25 revenue growth of 26-28%.
  • FY25 revenue guidance between $1.156B and $1.164B.
  • Non-GAAP operating margin expected to reach 10-11%.
  • Continued expansion into international markets, with strong EMEA and APAC growth.
  • Ongoing investments in AI-driven marketing and analytics solutions.

Challenges Ahead

  • Operating losses continue to impact profitability.
  • Market conditions may pose challenges to growth rates.
  • Stock-based compensation expenses remain significant.
  • Increased competition in the digital marketing space.
  • Potential macroeconomic headwinds affecting customer budgets.