Klaviyo (KVYO) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $235.1M, up 34% year-over-year, with over 157,000 customers and strong international and upmarket expansion.

• Customers generating over $50,000 ARR grew 54% year-over-year to 2,619.

• Notable new deals included Authentic Brands Group, Lulus, Rag & Bone, Pressed, and The Body Shop.

• Leadership strengthened with new CTO and CPO appointments.

• Continued product innovation, including AI-driven features, expanded language support, and new integrations such as Canva.

Financial highlights

• Q3 2024 revenue: $235.1M (+34% YoY); gross profit: $180.7M (77% margin); non-GAAP operating income: $33.7M (14% margin); free cash flow: $34.2M (15% margin).

• Non-GAAP gross margin was 78%, down 200 basis points YoY due to SMS growth and BFCM prep.

• Net loss narrowed to $1.3M for Q3 2024 from $297.1M in Q3 2023; net loss per share was $(0.01).

• Cash, cash equivalents, and restricted cash totaled $827.9M at quarter end.

• Stock-based compensation for Q3 2024 was $32.4M, down from $301.2M in Q3 2023.

Outlook and guidance

• Q4 2024 revenue guidance: $256–$258M (27–28% YoY growth); FY24 revenue guidance: $923–$925M (32–33% YoY growth).

• Q4 non-GAAP operating income expected at $7–$9M (3% margin), impacted by a new employee cash bonus program.

• FY24 non-GAAP operating income projected at $104–$106M (11% margin).

• 2025 revenue growth expected to decelerate modestly; operating margin to remain consistent as investments continue.

• Guidance includes a new employee cash bonus program expense in Q4.