Klaviyo (KVYO) Q2 2024 earnings summary

Executive summary

• Achieved Q2 2024 revenue of $222.2 million, up 35% year-over-year, with strong customer, upmarket, and international growth across segments and geographies.

• Customer base reached over 151,000, with 2,386 customers generating over $50,000 in ARR, up 64% year-over-year.

• Dollar-based net revenue retention rate was 112% as of June 30, 2024, reflecting healthy expansion but a decline from 119% a year ago.

• Expanded product offerings and integrations, including new AI features, SMS reach to 12 countries, and partnerships with major platforms.

• Free cash flow margin was 14–17% for Q2 2024, supporting continued investment and operational discipline.

Financial highlights

• Q2 2024 revenue: $222.2M (+35% YoY); non-GAAP gross margin: 78.6–79%; non-GAAP operating margin: 15–15.4%.

• Non-GAAP operating income was $34.3M in Q2 2024; free cash flow was $37.1M (17% margin).

• Q2 2024 gross profit: $171.9M (77.4% margin); non-GAAP gross profit: $174.7M (79% margin).

• Net loss for Q2 2024 was $4.9M, with EPS of $(0.02) basic and diluted; non-GAAP net income per share: $0.16 (basic), $0.15 (diluted).

• Cash, cash equivalents, and restricted cash at quarter-end: $794.6M.

Outlook and guidance

• Q3 2024 revenue guidance: $225–$227M (28–29% YoY growth); Q3 non-GAAP operating income: $21.5–$24.5M (10–11% margin).

• FY24 revenue guidance raised to $910–$918M (30–31% YoY growth); FY24 non-GAAP operating income: $103–$111M (11–12% margin).

• Fully diluted share count expected to be approximately 301–316.5 million for the year.

• Management expects revenue growth to decelerate over time as the business matures.

• Gross margin may decline modestly as SMS usage increases, but gross profit dollars are expected to rise.