Klaviyo Announces Fourth Quarter and Fiscal Year 2024 Financial Results
Fourth quarter revenue of $270.2 million, representing 34% year-over-year growth
Full year revenue of $937.5 million, representing 34% year-over-year growth
BOSTON--(BUSINESS WIRE)--February 19, 2025--
Klaviyo $(KVYO)$, the company that powers smarter digital relationships, today announced results for its fourth quarter and fiscal year ended December 31, 2024.
"We had a very strong finish to the year, crossing a $1 billion revenue run rate as we delivered our strongest Black Friday Cyber Monday yet. Our performance in 2024 highlights the critical role our intelligent, flexible data platform plays in driving growth for our more than 167,000 customers," said Andrew Bialecki, co-founder and CEO of Klaviyo. "Klaviyo was built for the speed and scale of the consumer world. Consumer engagement requires integrated marketing, built on an embedded data platform, powered by AI and analytics, and Klaviyo is uniquely positioned to drive this new era of consumer engagement in marketing and beyond."
Recent Business Highlights:
-- Closed new and expanded existing customer accounts, such as Ted Baker,
Champion, Clarks, and DKNY, during the quarter ended December 31, 2024.
-- Over 167,000 customers are using Klaviyo to drive their own revenue
growth at the end of fiscal year 2024, compared to over 143,000 customers
at the end of fiscal year 2023.
-- Increased our penetration up-market, ending the quarter with 2,850
customers generating over $50,000 of ARR, compared to 1,958 at the end of
the fourth quarter of 2023, an increase of 46% year over year.
-- Continued to expand our current customer base, with NRR of 108% as of
December 31, 2024.
-- Ended the year with 18.2% of our customers using our SMS offering
compared to 16.0% at the end of 2023.
-- Expanded our partnership with Woo, making Klaviyo the preferred marketing
automation vendor for WooCommerce.
-- Continued execution of international expansion with combined fourth
quarter EMEA and APAC revenue growth of 42% year-over-year, and opened a
new office in Dublin, Ireland to support international growth.
"Klaviyo delivered another quarter of strong financial performance in Q4 to close out a great year as we continue to deliver efficient growth at scale," said Amanda Whalen, CFO of Klaviyo. "We grew full year revenue 34%, generated $166 million in cash from operating activities and $149 million in free cash flow. As we move to 2025, our priorities remain consistent as we invest behind our growth strategy and we're excited to expand our scope to power and improve even more of the consumer journey."
Financial Highlights:
$ in millions (except per share amounts)
------- -------
Q4 FY24 FY24
------- -------
Revenue $270.2 $937.5
YoY Growth 34% 34%
------- -------
Gross Profit $198.4 $716.2
Gross Margin 73% 76%
Non-GAAP Gross Profit $200.6 $725.9
Non-GAAP Gross Margin 74% 77%
Operating Loss $(34.7) $(84.1)
Operating Margin (13)% (9)%
Non-GAAP Operating Income $15.1 $112.5
Non-GAAP Operating Margin 6% 12%
Net loss per share, basic and diluted $(0.10) $(0.17)
Non-GAAP net income per share, basic $0.08 $0.56
Non-GAAP net income per share, diluted $0.07 $0.50
Cash from Operating Activities $60.1 $166.0
Free Cash Flow $54.5 $148.7
Financial Outlook
$ in millions FY25-Q1 Guidance FY25 Guidance
------------------ ---------------
Low High Low High
Revenue $265 $269 $1,156 $1,164
Year-over-year Growth Rate 26% 28% 23% 24%
Non-GAAP Operating Income $25.5 $28.5 $130 $136
Non-GAAP Operating Margin 10% 11% 11% 12%
Fully Diluted Shares Outstanding
(Millions) 307 309
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. Accordingly, a reconciliation is not available without unreasonable effort. Stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change.
Dilutive Securities
Klaviyo has various dilutive securities. The table below details these securities (shares in millions; rounding differences may occur):
Price as of Weighted
December 31, Average
2024 Exercise Price Shares
--------------- ----------------- ------
Share price $ 41.24
Common stock outstanding as of
12/31/2024 272.8
Warrants outstanding 3.8
RSUs outstanding 17.4
Options outstanding $ 0.29 25.2
ESPP outstanding 0.3
------
Total estimated fully diluted
shares 319.5
We have excluded the impact of the Shopify investment option of 15,743,174 shares at $88.93 per share as it was out of the money as of December 31, 2024. The investment option expires on July 28, 2030.
Conference Call Information
In conjunction with this announcement, Klaviyo will host a conference call for investors at 4:30 p.m. ET (1:30 p.m. PT) today to discuss the results for its fourth quarter and fiscal year ended December 31, 2024 and its outlook for its first quarter ending March 31, 2025 and fiscal year ending December 31, 2025. The live webcast and a replay of the webcast will be available at the Investor Relations section of Klaviyo's website: https://investors.klaviyo.com (live and replay).
Select Defined Terms
Customers. We define a customer as a distinct paid subscription to our platform. A single organization could have multiple discrete contracting divisions or subsidiaries or brands each with paid subscriptions to our platform, which would, in general, constitute multiple distinct customers. In some cases at the customer's request, we allow subscriptions under the same parent organization to be consolidated into a single paid subscription in which case such consolidated paid subscriptions would constitute a single customer. We measure our total number of customers as a point-in-time calculation measured as of the end of a particular period. Customers do not include persons or entities that use our platform on a free trial basis.
Customers Generating Over $50,000 of ARR. We calculate our number of customers generating over $50,000 of ARR (as defined below) as those customers that have an average ARR of greater than $50,000 over the prior twelve months (or the entire duration of the customer's paying relationship, if it is less than twelve months) as of the date of determination. We believe the number of customers generating over $50,000 of ARR is a key performance metric to help investors and others understand and evaluate our results of operations in the same manner as our management team, as it is an indicator of our ability to grow the number of customers that are exceeding this ARR threshold, both from our existing customers expanding their usage of our platform and from our sales to larger customers. We believe this is an important indicator of our ability to continue to successfully move up market.
Dollar-Based Net Revenue Retention Rate. We calculate our Dollar-Based Net Revenue Retention Rate ("NRR") by first identifying the cohort of customers as of twelve months prior to the date of determination. We then calculate the Annualized Recurring Revenue ("ARR") from this customer cohort as of twelve months prior to the date of determination (the "Prior Period ARR") and the ARR from this customer cohort as of the date of determination (the "Current Period ARR"). ARR, for any date of determination, is the annualized value of existing paid subscriptions, which we calculate by taking the amount of revenue that we expect to receive in the next monthly period for our existing paid subscriptions, assuming no changes to such subscriptions in the next month, as of that date of determination, and multiplying that amount by twelve. Current Period ARR includes any expansion, price increases, and customer subscriptions that are deactivated and subsequently reactivated during the applicable twelve-month period and reflects contraction or attrition over the last twelve months from this customer cohort, but excludes any ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time NRR. We then calculate
(MORE TO FOLLOW) Dow Jones Newswires
February 19, 2025 16:05 ET (21:05 GMT)