Summary
Klaviyo closed fiscal 2024 with fourth quarter revenue of $270.2 million, up 34.0% from the prior-year quarter. Full year revenue reached $937.5 million, up 34.3%. Gross profit was $198.4 million in the quarter, up 26.7%, and $716.2 million for the full year, up 37.7%. Gross margin slipped to 73.4% in the quarter from 77.7% a year earlier, but full year gross margin improved to 76.4% from 74.5%. The company still posted an operating loss of $34.7 million in the quarter, though that loss narrowed from $36.3 million. Full year operating loss narrowed to $84.1 million from $330.6 million. Net loss for the quarter was $27.0 million, slightly wider than the $26.3 million loss a year earlier. Full year net loss narrowed to $46.1 million from $308.2 million, and diluted loss per share improved to $(0.17) from $(1.27).
Operational metrics showed continued up-market progress. Klaviyo ended fiscal 2024 with more than 167,000 customers, compared with more than 143,000 at the end of fiscal 2023. Customers generating over $50,000 of ARR reached 2,850, up 46% from 1,958 a year earlier. Net revenue retention was 108% as of December 31, 2024. SMS adoption reached 18.2% of customers, compared with 16.0% at the end of 2023. Fourth quarter EMEA and APAC revenue grew 42% year over year. The company opened a Dublin office and expanded its partnership with Woo. It also cited new and expanded accounts such as Ted Baker, Champion, Clarks, and DKNY.
Cash generation remained a bright spot. Operating cash flow was $60.1 million in the fourth quarter, up 55.5%, and $166.0 million for the full year, up 39.0%. Free cash flow, a non-GAAP measure, was $54.5 million in the quarter and $148.7 million for the full year. Capital expenditures were $2.35 million in the quarter, down 17.1%, and $5.92 million for the full year, up 62.1%. Deferred revenue ended the year at $64.5 million, up 60.8% from the prior-year quarter. Remaining performance obligations were $154.5 million, up 85.5%.
Management issued guidance for the first quarter of fiscal 2025 and the full fiscal year 2025. First quarter revenue is expected between $265 million and $269 million, representing 26% to 28% year-over-year growth. Full year 2025 revenue is guided to $1,156 million to $1,164 million, or 23% to 24% growth. Non-GAAP operating income is projected at $25.5 million to $28.5 million for the first quarter, with a 10% to 11% non-GAAP operating margin. For the full year, non-GAAP operating income is guided to $130 million to $136 million, with an 11% to 12% non-GAAP operating margin. The company expects 307 million to 309 million fully diluted shares outstanding. Risks include sustaining growth, integrating with third-party platforms, maintaining partner relationships, attracting and retaining customers, leveraging AI and machine learning, and executing international expansion. Klaviyo also flagged that SMS adoption can pressure gross margin, especially in the fourth quarter, and that NRR declined from 117% at the end of 2023 to 108% at the end of 2024, largely due to lapping a September 2022 price increase.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $270.2M | $235.1M | +14.9% | $201.6M | +34.0% |
| Gross profit | $198.4M | $180.7M | +9.8% | $156.6M | +26.7% |
| Gross margin | 73.5% | 76.9% | -3.4 pp | 77.7% | -4.2 pp |
| Research & development | $70.9M | $55.8M | +27.1% | $52.6M | +34.6% |
| Sales & marketing | $117.8M | $100.0M | +17.8% | $102.5M | +14.9% |
| General & administrative | $44.4M | $38.2M | +16.1% | $37.8M | +17.5% |
| Total operating expenses | $233.1M | $194.0M | +20.1% | $192.9M | +20.8% |
| Operating income (loss) | -$34.7M | -$13.3M | -161.0% | -$36.3M | +4.6% |
| Operating margin | -12.8% | -5.7% | -7.2 pp | -18.0% | +5.2 pp |
| Net income (loss) | -$27.0M | -$1.3M | -1905.4% | -$26.3M | -2.6% |
| Net margin | -10.0% | -0.6% | -9.4 pp | -13.0% | +3.1 pp |
| Diluted EPS | -$0.10 | -$0.01 | -$0.09 | -$0.11 | +$0.01 |
| Customers | 167,000 | 157,000 | +6.4% | 143,000 | +16.8% |
| Net retention rate | 108.0% | 110.0% | -2.0 pp | 117.0% | -9.0 pp |
Risks
Approximately 77.7% of ARR as of December 31, 2024 was derived from customers who also use Shopify's platform, while only 9.4% of new ARR in 2024 came through the Shopify app store. The Shopify agreement expires in 2029, and any disruption to the integration or removal from the app store could cause data synchronization delays and customer loss.
MD&A states SMS has higher associated communication sending costs and expects gross margin to decline modestly as SMS volume increases, with the impact most concentrated in Q4 due to holiday shopping. Reported Q4 gross margin was 73.4%, down 4.2 pp from 77.7% in the prior-year quarter.
Revenue growth was 34.3% for FY2024, down from 47.7% in FY2023, and the company expects its revenue growth rate to decelerate over time. NRR decreased to 108% as of December 31, 2024 from 117% as of December 31, 2023, largely due to lapping the September 2022 price increase.
The market is subject to rapid technological change, and machine learning and AI use has become increasingly prevalent. Klaviyo may be unable to integrate AI features of the quality sought by customers or offered by competitors, and new AI solutions could deliver competitive products at aggressive prices.
As Klaviyo moves up-market, enterprise sales cycles are expected to be longer than with SMBs, with delays increasing the time between sales expenses and revenue. The company may need to spend more on sales and customer support and train teams for enterprise customers.
Klaviyo faces competition from Adobe, Salesforce, Mailchimp, and Braze, many with greater resources. For SMS, Klaviyo does not separate carrier fees from product fees, while some competitors do, which may create the appearance of a lower product fee.
Results depend on demand for marketing services, primarily from retail and eCommerce businesses, and a significant portion of revenue comes from small businesses. Weak economic conditions, inflation, or reduced customer spending could lower demand and increase collection risk.
International operations and marketing products are subject to privacy and communications laws including TCPA, CAN-SPAM, EU GDPR, and foreign equivalents. Changes in regulation or enforcement could affect marketing or pricing practices and increase compliance costs.
Success depends on senior management, including co-founder and CEO Andrew Bialecki, and on attracting and retaining highly skilled software engineers and senior sales executives. Competition is intense, and stock award value affects retention.
Revenue from outside the United States was 37.6% for FY2024, up from 36.5% in FY2023, and Klaviyo added operations in Ireland in 2024. International growth subjects it to regulatory, labor, currency, and tax risks and requires significant management attention.
SaaS KPIs
All quarters →Customers Generating Over $50,000 of ARR
Free Cash Flow
Free Cash Flow Margin
Non-GAAP Operating Margin
Total customers
Net Revenue Retention
Non-GAAP Gross Margin
Summary, forecast, risks and KPIs are extracted from Klaviyo, Inc.'s SEC filings for Q4 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.