Klaviyo Reports 33.7% Revenue Growth, Narrowing Losses in Latest Quarter

Klaviyo, Inc. reported significant financial improvements in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved a revenue of $235.1 million for the three months ended September 30, 2024, marking a 33.7% increase from $175.8 million in the same period of 2023. For the nine months ended September 30, 2024, revenue reached $667.3 million, up 34.4% from $496.5 million year-over-year. This growth was driven by both new customer acquisitions and increased sales to existing customers, with approximately 41% of the revenue increase in Q3 attributed to existing customers.

Gross profit for the third quarter was $180.7 million, a 54.5% increase from $116.9 million in Q3 2023. The gross margin improved to 76.9%, up from 66.5% in the prior year. Operating losses also showed substantial improvement, with a loss of $13.3 million in Q3 2024 compared to a loss of $302.2 million in Q3 2023. For the nine-month period, operating losses decreased to $49.4 million from $294.3 million in the previous year.

Klaviyo's total current assets increased to $916.2 million as of September 30, 2024, up from $803.5 million at the end of 2023. Cash and cash equivalents rose to $826.7 million, compared to $738.6 million at the end of 2023. The company reported a net loss of $1.3 million for Q3 2024, a significant reduction from a net loss of $297.1 million in Q3 2023. For the nine months, the net loss was $19.2 million, down from $281.9 million in the same period last year.

Strategically, Klaviyo has focused on expanding its customer base, which grew to over 157,000 as of September 30, 2024, up from approximately 71,000 a year earlier. The company has also seen a notable increase in its workforce, rising from 1,640 employees to 2,081 in the same timeframe. Additionally, Klaviyo has continued to invest in its platform, enhancing its offerings with new features such as SMS capabilities and AI tools.

In terms of expenses, selling and marketing costs decreased significantly, reflecting a reduction in stock-based compensation expenses. Research and development costs also saw a decline, primarily due to lower stock-based compensation related to the company's IPO. The company anticipates continued investment in technology and infrastructure to support its growth trajectory.

Klaviyo's partnership with Shopify remains crucial, with a significant portion of its revenue derived from customers using Shopify's platform. The company is also navigating challenges related to operational efficiency and customer satisfaction as it scales its operations.