KVYO Klaviyo Inc

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

Klaviyo (NYSE: 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 December 31, 2024

Weighted Average 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 the weighted average point-in-time NRR as of the last day of each month in the current trailing twelve-month period to arrive at the NRR, with the weightings determined by the total ARR at the end of each period. We believe NRR 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 represents the expansion in usage of our platform by our existing customers, which is an important measure of the health of our business and future growth prospects. We measure Dollar-Based Net Revenue Retention Rate to measure this growth.

About Klaviyo Klaviyo (CLAY-vee-oh) powers smarter digital relationships, making it easy for businesses to capture, store, analyze, and predictively use their own data to drive measurable, high-value outcomes. Klaviyo’s modern and intuitive SaaS platform enables business users of any skill level to harness their first-party data from more than 350 integrations to send the right message at the right time across email, SMS, and push notifications. Innovative businesses like Mattel, TaylorMade, Liquid Death, Stanley 1913, and more than 167,000 other paying customers leverage Klaviyo to acquire, engage, and retain customers—and grow on their own terms.

Source: Klaviyo, Inc. Tag: IR

Forward Looking Statements This press release includes certain “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Other than statements of historical facts, all statements contained in this press release, including, but not limited to, statements about Klaviyo’s outlook for the first quarter of fiscal year 2025 ending March 31, 2025 and the full fiscal year ending December 31, 2025, and Klaviyo’s expectations regarding possible or assumed business strategies, potential growth and innovation opportunities, new products, potential market opportunities, and other similar matters, are forward-looking statements. Words such as “aim,” “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “future,” “going to,” “guidance,” “intend,” “keep,” “may,” “opportunity,” “outlook,” “plan,” “potential,” “predict,” “project,” “shall,” “should,” “strategy,” “target,” “will,” “would,” or words of similar meaning or similar references to future periods may identify these forward-looking statements, although not all forward-looking statements contain these identifying words.

Forward-looking statements reflect management’s beliefs, expectations and assumptions about future events as of the date hereof, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. These risks include, among others, the following: our ability to achieve future growth and sustain our growth rate; our ability to successfully execute our business and growth strategy, such as the success of our investment in our key growth initiatives and our ability to recognize effective areas for growth; our ability to successfully integrate with third-party platforms; our relationships with third parties, such as our marketing agency and technology partners; unfavorable conditions in our industry; our ability to attract new customers, including mid-market and enterprise customers, retain revenue from existing customers and increase sales from both new and existing customers; our ability to leverage artificial intelligence and machine learning in our products; our ability to sustain strong international growth; success of our marketing and sales strategies; costs and expenses associated with being a public company; as well as other risks and uncertainties set forth under the caption “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as filed with the Securities and Exchange Commission (the “SEC”), and the other filings and reports we make with the SEC from time to time, which may be obtained on our Investor Relations website at https://investors.klaviyo.com and on the SEC website at www.sec.gov. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor(s) may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. In light of the risks, uncertainties, assumptions, and other factors, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Therefore, you should not rely on any of the forward-looking statements. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Other than as required by law, we assume no obligation to update any forward-looking statements contained in this press release in the event of new information, future developments or otherwise.

Statement Regarding Use of Non-GAAP Financial Measures In addition to financial measures prepared in accordance with generally accepted accounting principles in the United States (GAAP), this press release and the accompanying tables contain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, basic, non-GAAP net income per share, diluted, free cash flow, and free cash flow margin. The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Please see the accompanying tables for reconciliations of these non-GAAP financial measures to their nearest GAAP equivalents.

Our non-GAAP gross profit, non-GAAP operating income, non-GAAP operating expenses, and non-GAAP net income exclude significant expenses and income that are required by GAAP to be recorded in our consolidated financial statements, including, but not limited to, (i) amortization of prepaid marketing expenses, (ii) stock-based compensation and related employer payroll taxes, and (iii) restructuring expenses. Our non-GAAP gross margin is calculated as non-GAAP gross profit divided by total revenue. Our non-GAAP operating margin is calculated as non-GAAP operating income divided by total revenue. Our non-GAAP net income per share, basic is calculated as non-GAAP net income divided by weighted average shares outstanding - basic for purposes of calculating non-GAAP net income per share. Our non-GAAP net income per share, diluted is calculated as non-GAAP net income divided by weighted average shares outstanding - diluted for purposes of calculating non-GAAP net income per share. Free cash flow is defined as cash and cash equivalents provided by or used in operating activities less purchases of property and equipment and capitalization of software development costs. Free cash flow margin is a non-GAAP financial measure that is calculated as free cash flow divided by total revenue.

Stock-based compensation expense includes the net effects of capitalization and amortization of stock-based compensation expense related to capitalized software. Stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of the compensation provided to our employees. Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company’s non-cash expenses, we believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for meaningful comparisons between our operating results from period to period. When evaluating the performance of its business and making operating plans, Klaviyo does not consider these items (for example, when considering the impact of equity award grants, the company places a greater emphasis on the amount of overall stockholder dilution than the accounting charges associated with such grants). The amount of employer payroll tax-related items on employee stock transactions is dependent on restricted stock unit settlements, option exercises, related stock price, and other factors that are beyond Klaviyo’s control and that do not correlate to the operation of the business. The amount of employer payroll tax-related items on employee stock transactions was immaterial prior to being publicly listed. The expense related to amortization of prepaid marketing expense of warrants issued to Shopify is dependent upon estimates and assumptions; therefore, Klaviyo believes non-GAAP measures that adjust for the amortization of prepaid marketing expense provide investors a consistent basis for comparison across accounting periods. Klaviyo believes that the economic impact of the partnership is best measured in the form of stockholder dilution and as such we have provided a reconciliation that shows the full dilutive impact of all outstanding equity instruments. Overall, Klaviyo believes it is useful to exclude these expenses in order to better understand the long-term performance of its core business and to facilitate comparison of its results period-over-period and to those of peer companies. All of these non-GAAP financial measures are important tools for financial and operational decision-making and for evaluating Klaviyo’s own operating results over different periods of time.

We believe that all these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to decision making by our management, who use these measures as important tools for financial and operational decision-making and for evaluating Klaviyo’s own operating results over different periods of time.

Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures versus their nearest GAAP equivalents. Other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Further, stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in Klaviyo’s business and an important part of the compensation provided to attract and retain its employees to create long-term incentive alignment with stockholders.

 

Klaviyo, Inc.

Consolidated Balance Sheet

(In Thousands)

 

As of

 

December 31, 2024

December 31, 2023

Assets

 

 

Current assets:

 

 

Cash and cash equivalents

$

881,473

 

$

738,562

 

Restricted cash

 

375

 

 

409

 

Accounts receivable, net of allowance for doubtful accounts

 

43,095

 

 

23,076

 

Deferred contract acquisition costs, current

 

20,544

 

 

15,198

 

Prepaid expenses and other current assets

 

34,262

 

 

26,244

 

Total current assets

 

979,749

 

 

803,489

 

Property and equipment, net

 

48,200

 

 

43,450

 

Right-of-use assets, net

 

42,917

 

 

36,987

 

Deferred contract acquisition costs, non-current

 

32,527

 

 

23,177

 

Restricted cash, non-current

 

739

 

 

686

 

Prepaid marketing expense

 

153,346

 

 

173,844

 

Other non-current assets

 

15,830

 

 

7,417

 

Total assets

$

1,273,308

 

$

1,089,050

 

Liabilities, redeemable common stock, and stockholders' equity

 

 

Current liabilities:

 

 

Accounts payable

$

14,579

 

$

13,597

 

Accrued expenses

 

99,828

 

 

62,838

 

Lease liabilities, current

 

20,989

 

 

14,081

 

Deferred revenue

 

64,497

 

 

40,100

 

Total current liabilities

 

199,893

 

 

130,616

 

Lease liabilities, non-current

 

32,449

 

 

37,498

 

Other non-current liabilities

 

6,979

 

 

6,159

 

Total liabilities

 

239,321

 

 

174,273

 

Stockholders' equity

 

 

Preferred stock

 

—

 

 

—

 

Common stock - Series A

 

89

 

 

41

 

Common stock - Series B

 

184

 

 

219

 

Additional paid-in capital

 

1,878,899

 

 

1,713,560

 

Accumulated deficit

 

(845,185

)

 

(799,043

)

Total stockholders' equity

 

1,033,987

 

 

914,777

 

Total liabilities, redeemable common stock, and stockholders' equity

$

1,273,308

 

$

1,089,050

 

 

 

 

Klaviyo, Inc.

Consolidated GAAP Statement of Operations

(In Thousands, Except Share and Per Share Data)

 

 

 

 

Three Months Ended December 31,

 

 

2024

 

 

2023

 

Revenue

$

270,164

 

$

201,618

 

Cost of revenue

 

71,738

 

 

45,013

 

Gross profit

 

198,426

 

 

156,605

 

Operating expenses:

 

 

Selling and marketing

 

117,832

 

 

102,524

 

Research and development

 

70,858

 

 

52,635

 

General and administrative

 

44,390

 

 

37,776

 

Total operating expenses

 

233,080

 

 

192,935

 

Operating loss

 

(34,654

)

 

(36,330

)

Other income (expense)

 

526

 

 

(126

)

Interest income

 

9,553

 

 

9,567

 

Total other income

 

10,079

 

 

9,441

 

Loss before income taxes

 

(24,575

)

 

(26,889

)

Provision for income taxes

 

2,398

 

 

(594

)

Net loss

$

(26,973

)

$

(26,295

)

 

 

 

Net loss per share attributable to Series A and Series B common stockholders, basic and diluted

$

(0.10

)

$

(0.10

)

Weighted average common shares outstanding, basic and diluted

 

270,839,378

 

 

258,899,189

 

 

 

 

Klaviyo, Inc.

Consolidated GAAP Statement of Operations

(In Thousands, Except Share and Per Share Data)

 

 

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

Revenue

$

937,464

 

$

698,099

 

Cost of revenue

 

221,305

 

 

177,888

 

Gross profit

 

716,159

 

 

520,211

 

Operating expenses:

 

 

Selling and marketing

 

404,209

 

 

394,369

 

Research and development

 

238,459

 

 

262,177

 

General and administrative

 

157,569

 

 

194,287

 

Total operating expenses

 

800,237

 

 

850,833

 

Operating loss

 

(84,078

)

 

(330,622

)

Other income (expense)

 

816

 

 

(470

)

Interest income

 

39,582

 

 

24,051

 

Total other income

 

40,398

 

 

23,581

 

Loss before income taxes

 

(43,680

)

 

(307,041

)

Provision for income taxes

 

2,462

 

 

1,192

 

Net loss

$

(46,142

)

$

(308,233

)

 

 

 

Net loss per share attributable to Series A and Series B common stockholders, basic and diluted

$

(0.17

)

$

(1.27

)

Weighted average common shares outstanding, basic and diluted

 

266,336,826

 

 

242,889,272

 

 

 

 

Klaviyo, Inc.

Consolidated Statement of Cash Flows

(In Thousands)

 

Three Months Ended December 31,

 

 

2024

 

 

2023

 

Operating activities

 

 

Net loss

$

(26,973

)

$

(26,295

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

Depreciation and amortization expense

 

4,946

 

 

3,828

 

Non-cash operating lease costs

 

3,120

 

 

3,348

 

Amortization of deferred contract acquisition costs

 

5,911

 

 

4,384

 

Amortization of prepaid marketing expense

 

13,224

 

 

13,225

 

Loss on disposal of property and equipment

 

203

 

 

6

 

Bad debt expense

 

610

 

 

156

 

Stock-based compensation expense

 

34,522

 

 

38,482

 

Deferred income tax

 

1,117

 

 

(3,229

)

Other

 

10

 

 

10

 

Changes in operating assets and liabilities:

 

 

Accounts receivable

 

(9,242

)

 

(5,852

)

Deferred contract acquisition costs

 

(9,949

)

 

(7,911

)

Prepaid expenses, prepaid taxes, and other assets

 

(3,275

)

 

3,104

 

Accounts payable

 

2,182

 

 

4,116

 

Accrued expenses

 

36,851

 

 

7,998

 

Deferred revenue

 

11,565

 

 

7,234

 

Operating lease liabilities

 

(4,917

)

 

(3,715

)

Other non-current liabilities

 

184

 

 

(245

)

Net cash provided by operating activities

 

60,089

 

 

38,644

 

Investing activities

 

 

Acquisition of property and equipment

 

(2,346

)

 

(2,830

)

Capitalization of software development costs

 

(3,282

)

 

(1,093

)

Net cash used in investing activities

 

(5,628

)

 

(3,923

)

Financing activities

 

 

Proceeds from exercise of common stock awards

 

3,497

 

 

182

 

Cash paid for finance leases

 

(3

)

 

(5

)

Proceeds from exercise of warrants

 

4

 

 

5

 

Payment of offering costs

 

—

 

 

(933

)

Employee taxes paid related to net share settlement of stock-based awards

 

(4,401

)

 

(18,762

)

Proceeds from employee stock purchase plan

 

1,131

 

 

—

 

Net cash provided by (used in) financing activities

 

228

 

 

(19,513

)

Net increase in cash, cash equivalents, and restricted cash

 

54,689

 

 

15,208

 

Cash, cash equivalents, and restricted cash, beginning of period

 

827,898

 

 

724,449

 

Cash, cash equivalents, and restricted cash, end of period

$

882,587

 

$

739,657

 

 

Klaviyo, Inc.

Consolidated Statement of Cash Flows

(In Thousands)

 

Year Ended December 31,

 

 

2024

 

 

2023

 

Operating activities

 

 

Net loss

$

(46,142

)

$

(308,233

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

Depreciation and amortization expense

 

17,717

 

 

13,651

 

Non-cash operating lease costs

 

12,682

 

 

12,997

 

Amortization of deferred contract acquisition costs

 

19,752

 

 

15,764

 

Amortization of prepaid marketing expense

 

52,897

 

 

52,897

 

Loss on disposal of property and equipment

 

235

 

 

6

 

Bad debt expense

 

741

 

 

524

 

Stock-based compensation expense

 

135,212

 

 

340,799

 

Deferred income tax

 

559

 

 

(3,229

)

Other

 

10

 

 

118

 

Changes in operating assets and liabilities:

 

 

Accounts receivable

 

(20,761

)

 

(12,877

)

Deferred contract acquisition costs

 

(34,448

)

 

(26,941

)

Prepaid expenses, prepaid taxes, and other assets

 

(17,296

)

 

(2,375

)

Accounts payable

 

113

 

 

4,505

 

Accrued expenses

 

36,169

 

 

26,666

 

Deferred revenue

 

24,397

 

 

14,991

 

Operating lease liabilities

 

(16,722

)

 

(15,197

)

Other non-current liabilities

 

840

 

 

5,305

 

Net cash provided by operating activities

 

165,955

 

 

119,371

 

Investing activities

 

 

Acquisition of property and equipment

 

(5,921

)

 

(3,653

)

Capitalization of software development costs

 

(11,305

)

 

(5,705

)

Net cash used in investing activities

 

(17,226

)

 

(9,358

)

Financing activities

 

 

Proceeds from exercise of common stock options

 

9,741

 

 

4,216

 

Cash paid for finance leases

 

(19

)

 

(21

)

Proceeds from exercise of warrants

 

14

 

 

62

 

Proceeds from issuance of common stock in initial public offering, net of issuance costs

 

—

 

 

320,096

 

Employee taxes paid related to net share settlement of stock-based awards

 

(23,665

)

 

(81,625

)

Proceeds from employee stock purchase plan

 

8,130

 

 

—

 

Net cash (used in) provided by financing activities

 

(5,799

)

 

242,728

 

Net increase in cash, cash equivalents, and restricted cash

 

142,930

 

 

352,741

 

Cash, cash equivalents, and restricted cash, beginning of year

 

739,657

 

 

386,916

 

Cash, cash equivalents, and restricted cash, end of year

$

882,587

 

$

739,657

 

 

Klaviyo, Inc.

Reconciliation of Gross Profit to Non-GAAP Gross Profit

(In Thousands)

 

 

 

 

Three Months Ended December 31,

 

 

2024

 

 

2023

 

Gross profit

$

198,426

 

$

156,605

 

Stock-based compensation

 

1,885

 

 

3,028

 

Employer payroll tax on employee stock transactions

 

261

 

 

135

 

Non-GAAP gross profit

$

200,572

 

$

159,768

 

Gross margin

 

73.4

%

 

77.7

%

Non-GAAP gross margin

 

74.2

%

 

79.2

%

 

Klaviyo, Inc.

Reconciliation of Operating Loss to Non-GAAP Operating Income

(In Thousands)

 

 

 

 

Three Months Ended December 31,

 

 

2024

 

 

2023

 

Operating loss

$

(34,654

)

$

(36,330

)

Stock-based compensation

 

34,522

 

 

38,482

 

Employer payroll tax on employee stock transactions

 

2,054

 

 

822

 

Amortization of prepaid marketing

 

13,224

 

 

13,225

 

Non-GAAP operating income

$

15,146

 

$

16,199

 

Operating margin

 

(12.8

)%

 

(18.0

)%

Non-GAAP operating margin

 

5.6

%

 

8.0

%

 

Klaviyo, Inc.

Reconciliation of Net Loss to Non-GAAP Net Income

(In Thousands, Except Share and Per Share Data)

 

 

 

 

Three Months Ended December 31,

 

 

2024

 

 

2023

 

Net loss

$

(26,973

)

$

(26,295

)

Stock-based compensation

 

34,522

 

 

38,482

 

Employer payroll tax on employee stock transactions

 

2,054

 

 

822

 

Amortization of prepaid marketing

 

13,224

 

 

13,225

 

Non-GAAP net income

$

22,827

 

$

26,234

 

 

 

 

Non-GAAP net income per share attributable to Series A and Series B common stockholders:

 

 

Basic

$

0.08

 

$

0.10

 

Diluted

$

0.07

 

$

0.09

 

 

 

 

Shares used in non-GAAP per share calculations:

 

 

Basic

 

270,839,378

 

 

258,899,189

 

Diluted

 

304,521,874

 

 

296,187,784

 

 

Klaviyo, Inc.

Reconciliation of Operating Expenses to Non-GAAP Expenses

(In Thousands)

 

 

 

 

Three Months Ended December 31,

 

 

2024

 

 

2023

 

Selling and marketing

$

117,832

 

$

102,524

 

Stock-based compensation

 

(10,929

)

 

(11,813

)

Employer payroll tax on employee stock transactions

 

(705

)

 

(232

)

Amortization of prepaid marketing

 

(13,224

)

 

(13,225

)

Non-GAAP Selling and marketing

$

92,974

 

$

77,254

 

 

 

 

Research and development

$

70,858

 

$

52,635

 

Stock-based compensation

 

(13,014

)

 

(14,542

)

Employer payroll tax on employee stock transactions

 

(923

)

 

(277

)

Non-GAAP Research and development

$

56,921

 

$

37,816

 

 

 

 

General and administrative

$

44,390

 

$

37,776

 

Stock-based compensation

 

(8,694

)

 

(9,099

)

Employer payroll tax on employee stock transactions

 

(165

)

 

(178

)

Non-GAAP General and administrative

$

35,531

 

$

28,499

 

 

 

 

Total operating expenses

$

233,080

 

$

192,935

 

Stock-based compensation

 

(32,637

)

 

(35,454

)

Employer payroll tax on employee stock transactions

 

(1,793

)

 

(687

)

Amortization of prepaid marketing

 

(13,224

)

 

(13,225

)

Non-GAAP Total operating expenses

$

185,426

 

$

143,569

 

 

Klaviyo, Inc.

Reconciliation of Operating Cash Flow to Free Cash Flow

(In Thousands)

 

Three Months Ended December 31,

 

 

2024

 

 

2023

 

Cash Provided by operating activities

$

60,089

 

$

38,644

 

Acquisition of property and equipment

 

(2,346

)

 

(2,830

)

Capitalization of software development costs

 

(3,282

)

 

(1,093

)

Free cash flow

$

54,461

 

$

34,721

 

Operating cash flow margin

 

22.2

%

 

19.2

%

Free cash flow margin

 

20.2

%

 

17.2

%

 

Klaviyo, Inc.

Reconciliation of Gross Profit to Non-GAAP Gross Profit

(In Thousands)

 

 

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

Gross profit

$

716,159

 

$

520,211

 

Stock-based compensation

 

8,917

 

 

24,973

 

Employer payroll tax on employee stock transactions

 

863

 

 

1,586

 

Restructuring expense

 

—

 

 

1,156

 

Non-GAAP gross profit

$

725,939

 

$

547,926

 

Gross margin

 

76.4

%

 

74.5

%

Non-GAAP gross margin

 

77.4

%

 

78.5

%

 

Klaviyo, Inc.

Reconciliation of Operating Loss to Non-GAAP Operating Income

(In Thousands)

 

 

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

Operating loss

$

(84,078

)

$

(330,622

)

Stock-based compensation

 

135,212

 

 

340,799

 

Employer payroll tax on employee stock transactions

 

8,491

 

 

7,660

 

Amortization of prepaid marketing

 

52,897

 

 

52,897

 

Restructuring expense

 

—

 

 

7,366

 

Non-GAAP operating income

$

112,522

 

$

78,100

 

Operating margin

 

(9.0

)%

 

(47.4

)%

Non-GAAP operating margin

 

12.0

%

 

11.2

%

 

Klaviyo, Inc.

Reconciliation of Net Loss to Non-GAAP Net Income

(In Thousands, Except Share and Per Share Data)

 

 

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

Net loss

$

(46,142

)

$

(308,233

)

Stock-based compensation

 

135,212

 

 

340,799

 

Employer payroll tax on employee stock transactions

 

8,491

 

 

7,660

 

Amortization of prepaid marketing

 

52,897

 

 

52,897

 

Restructuring expense

 

—

 

 

7,366

 

Non-GAAP net income

$

150,458

 

$

100,489

 

 

 

 

Non-GAAP net income per share attributable to Series A and Series B common stockholders:

 

 

Basic

$

0.56

 

$

0.41

 

Diluted

$

0.50

 

$

0.36

 

 

 

 

Shares used in non-GAAP per share calculations

 

 

Basic

 

266,336,826

 

 

242,889,272

 

Diluted

 

299,068,507

 

 

277,467,933

 

 

Klaviyo, Inc.

Reconciliation of Operating Expenses to Non-GAAP Expenses

(In Thousands)

 

 

Year Ended December 31,

 

 

2024

 

 

2023

 

Selling and marketing

$

404,209

 

$

394,369

 

Stock-based compensation

 

(40,907

)

 

(107,954

)

Employer payroll tax on employee stock transactions

 

(2,551

)

 

(2,747

)

Restructuring expense

 

—

 

 

(1,802

)

Amortization of prepaid marketing

 

(52,897

)

 

(52,897

)

Non-GAAP Selling and marketing

$

307,854

 

$

228,969

 

 

 

 

Research and development

$

238,459

 

$

262,177

 

Stock-based compensation

 

(50,693

)

 

(120,184

)

Employer payroll tax on employee stock transactions

 

(3,566

)

 

(1,952

)

Restructuring expense

 

—

 

 

(3,300

)

Non-GAAP Research and development

$

184,200

 

$

136,741

 

 

 

 

General and administrative

$

157,569

 

$

194,287

 

Stock-based compensation

 

(34,695

)

 

(87,688

)

Employer payroll tax on employee stock transactions

 

(1,511

)

 

(1,375

)

Restructuring expense

 

—

 

 

(1,108

)

Non-GAAP General and administrative

$

121,363

 

$

104,116

 

 

 

 

Total operating expenses

$

800,237

 

$

850,833

 

Stock-based compensation

 

(126,295

)

 

(315,826

)

Employer payroll tax on employee stock transactions

 

(7,628

)

 

(6,074

)

Restructuring expense

 

—

 

 

(6,210

)

Amortization of prepaid marketing

 

(52,897

)

 

(52,897

)

Non-GAAP Total operating expenses

$

613,417

 

$

469,826

 

 

Klaviyo, Inc. Reconciliation of Operating Cash Flow to Free Cash Flow (In Thousands)

 

Year Ended December 31,

 

 

2024

 

 

2023

 

Cash provided by operating activities

$

165,955

 

$

119,371

 

Acquisition of property and equipment

 

(5,921

)

 

(3,653

)

Capitalization of software development costs

 

(11,305

)

 

(5,705

)

Free cash flow

$

148,729

 

$

110,013

 

Operating cash flow margin

 

17.7

%

 

17.1

%

Free cash flow margin

 

15.9

%

 

15.8

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250219017711/en/

Investor Relations Andrew Zilli ir@klaviyo.com

Press Amy Hufft press@klaviyo.com