Core Insights - Klaviyo, Inc. reported quarterly earnings of $0.07 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, but down from $0.09 per share a year ago, representing an earnings surprise of 16.67% [1] - The company achieved revenues of $270.16 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 5% and increasing from $201.62 million year-over-year [2] - Klaviyo has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was 36.36%, with actual earnings of $0.15 per share compared to an expected $0.11 per share [1] - The current consensus EPS estimate for the upcoming quarter is $0.14, with projected revenues of $264.58 million, and for the current fiscal year, the EPS estimate is $0.57 on revenues of $1.15 billion [7] Stock Performance - Klaviyo's shares have increased approximately 14.6% since the beginning of the year, outperforming the S&P 500's gain of 4.2% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for it to outperform the market in the near future [6] Industry Outlook - The Internet - Software industry is currently ranked in the top 33% of over 250 Zacks industries, suggesting a favorable environment for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Revenue Growth and Financial Performance - Revenue for the year ended December 31, 2024, was $937.5 million, representing a growth rate of 34.3% compared to $698.1 million in 2023, which had a growth rate of 47.7%[101] - The company incurred net losses of $46.1 million, $308.2 million, and $49.2 million for the years ended December 31, 2024, 2023, and 2022, respectively[128] - Future revenue growth may decelerate due to market maturation and other factors, indicating that historical growth rates may not be indicative of future performance[102] - The company anticipates increasing operating expenses in the future, which may impact profitability if revenue does not grow correspondingly[129] - The company’s revenue growth is dependent on the ability to attract new customers and expand usage among existing customers[124] Customer and Market Dynamics - The customer count increased from approximately 76,000 as of December 31, 2023, to approximately 92,000 as of December 31, 2024[104] - Approximately 77.7% of annual recurring revenue (ARR) was derived from customers using Shopify's platform as of December 31, 2024[116] - The majority of customer subscriptions are month-to-month, making it challenging to predict long-term customer retention[125] - The company relies significantly on small businesses for revenue, which may be adversely affected by economic downturns[128] - The company expects longer sales cycles when engaging enterprise customers compared to small and mid-size businesses[130] Competition and Market Position - The company faces significant competition from established players like Adobe, Salesforce, and Mailchimp, which may affect its market position[110] - The current agreement with Shopify expires in 2029, and any disruption in this relationship could adversely impact the company's business and financial condition[116] - The company’s ability to enhance its platform and product offerings is critical to maintaining competitiveness in a rapidly changing market[134] International Operations and Risks - The company plans to continue expanding its international operations, having opened offices in the UK, Australia, and Ireland[104] - For the years ended December 31, 2024, 2023, and 2022, the company derived 37.6%, 36.5%, and 35.0% of its revenue, respectively, from customer accounts outside of the United States[140] - The company faces risks in international operations, including political, economic, and regulatory changes, which could adversely affect its business and financial condition[141] - The company faces exposure to foreign currency exchange rate fluctuations as it expands international operations, which could affect results of operations[169] Employee and Operational Challenges - Employee headcount grew from 1,815 as of December 31, 2023, to 2,182 as of December 31, 2024[104] - The company faces challenges in attracting and retaining skilled personnel, particularly software engineers and senior sales executives[137] - The company may experience difficulties in maintaining its culture and core values as it grows, which could impact recruitment and retention of personnel[156] Compliance and Legal Risks - The company is subject to various legal obligations related to privacy and data security, which could harm its business if not complied with[189] - Cybersecurity incidents or data breaches could lead to significant liabilities and reputational damage for the company[193] - The company faces potential legal liabilities and significant costs associated with mandatory disclosures of security breaches, which could damage customer confidence and brand reputation[198] - Regulatory compliance costs are expected to rise due to stringent and evolving privacy laws, such as the California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA), which impose civil penalties for violations[206] Financial Structure and Capital Management - As of December 31, 2024, the company had cash holdings of $882.6 million, consisting of cash, cash equivalents, and restricted cash[416] - The company does not currently have any debt, eliminating potential market risk for interest expense[416] - The company may require additional capital to support business growth, which might not be available on acceptable terms[177] - The company has funded operations primarily through equity financings and cash generated from subscription sales[177] Technology and Innovation - The integration with third-party platforms, especially eCommerce platforms like Shopify, is critical for sustaining and growing the business[114] - The integration of AI technology into products may expose the company to increased risks, including reputational damage and compliance with emerging regulations[250] - The company anticipates that the incorporation of AI technology will require additional resources and incur costs to address legal and regulatory issues[252] Stock and Market Risks - The company went public in September 2023, resulting in a short period of public trading for its Series A common stock, which may experience volatility regardless of operating performance[254] - The relatively small public float due to the size of the IPO and concentrated ownership may lead to greater stock price volatility compared to companies with broader public ownership[255] - The trading price of the Series A common stock may fluctuate significantly in response to various factors, including overall market performance and anticipated fluctuations in revenue[256]

Revenue Growth - Fourth quarter revenue reached $270.2 million, reflecting a 34% year-over-year growth[1] - Full year revenue totaled $937.5 million, also representing a 34% year-over-year growth[1] - EMEA and APAC revenue growth combined for the fourth quarter was 42% year-over-year[5] - For Q1 FY25, revenue guidance is set between $265 million and $269 million, with a year-over-year growth rate of 26% to 28%[7] Customer Metrics - The number of customers increased to over 167,000 by the end of fiscal year 2024, up from over 143,000 in fiscal year 2023[5] - Customers generating over $50,000 of ARR grew by 46% year-over-year, reaching 2,850[5] - The Dollar-Based Net Revenue Retention Rate (NRR) was 108% as of December 31, 2024[5] Financial Performance - The company generated $166 million in cash from operating activities and $149 million in free cash flow for the full year[4] - The company ended the year with a gross margin of 76% and a non-GAAP operating margin of 12%[6] - Klaviyo reported Q4 2024 revenue of $270,164,000, a 34% increase from $201,618,000 in Q4 2023[30] - The company's net loss for Q4 2024 was $26,973,000, compared to a net loss of $26,295,000 in Q4 2023[30] - Operating loss for the year ended December 31, 2024, was $84,078,000, significantly improved from a loss of $330,622,000 in 2023[32] - Operating loss for Q4 2024 was $34.654 million, an improvement from a loss of $36.330 million in Q4 2023[40] - Non-GAAP net income for Q4 2024 was $22.827 million, down from $26.234 million in Q4 2023, with diluted non-GAAP net income per share at $0.07 compared to $0.09[42] - The company reported a net loss of $46.142 million for the year ended December 31, 2024, significantly improved from a loss of $308.233 million in 2023[52] Cash Flow and Expenses - Free cash flow for Q4 2024 was $54.461 million, significantly higher than $34.721 million in Q4 2023, with a free cash flow margin of 20.2% compared to 17.2%[46] - Cash provided by operating activities for the year ended December 31, 2024, was $165.955 million, compared to $119.371 million in 2023[56] - Total operating expenses for Q4 2024 increased to $233.080 million from $192.935 million in Q4 2023, with non-GAAP total operating expenses at $185.426 million, up from $143.569 million[44] - Total selling and marketing expenses for the year ended December 31, 2024, were $404.209 million, slightly up from $394.369 million in 2023, with non-GAAP selling and marketing expenses at $307.854 million[54] - Research and development expenses for the year ended December 31, 2024, were $238.459 million, down from $262.177 million in 2023, with non-GAAP R&D expenses at $184.200 million[54] Assets and Liabilities - Total assets increased to $1,273,308,000 as of December 31, 2024, up from $1,089,050,000 a year earlier[28] - Klaviyo's cash and cash equivalents rose to $881,473,000 at the end of Q4 2024, compared to $738,562,000 at the end of Q4 2023[28] - Klaviyo's total liabilities increased to $239,321,000 as of December 31, 2024, compared to $174,273,000 a year earlier[28] Stock-Based Compensation - Stock-based compensation expense for the year 2024 was $135,212,000, down from $340,799,000 in 2023[36] Gross Profit - The gross profit for Q4 2024 was $198,426,000, with a gross margin of 73.4%, down from 77.7% in Q4 2023[38] - Non-GAAP gross profit for Q4 2024 was $200,572,000, reflecting a non-GAAP gross margin of 74.2%[38] - Gross profit for the year ended December 31, 2024, was $716.159 million, up from $520.211 million in 2023, resulting in a gross margin of 76.4% compared to 74.5%[48] - Non-GAAP operating income for the year ended December 31, 2024, was $112.522 million, a substantial increase from $78.100 million in 2023, with a non-GAAP operating margin of 12.0%[50] Reconciliation and Long-Term Performance - The company provided a reconciliation showing the full dilutive impact of all outstanding equity instruments to better understand long-term performance[26]

Klaviyo, Inc. (KVYO) shares ended the last trading session 5.3% higher at $45.62. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3.5% gain over the past four weeks.Klaviyo is benefiting from its expanding customer base, and increased demand for its integrated data and marketing platform across multiple industries.This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which r ...

Klaviyo (NYSE: KVYO ) has a strong competitive position and has built a moat around small and medium e-commerce businesses. Its relative and absolute valuation looks attractive. Looking at the opportunities and risks, it has strong opportunities for product expansion, market growth andI'm a long only investor using a combination of dual momentum with stock picking to achieve targeted returns of 12% per year. When I'm picking a stock I'm always trying to check if it beats the QQQ in the long run. By doing du ...

Core Insights - Klaviyo has been recognized as one of the top SMS marketing platforms for 2025, emphasizing its personalized, data-driven messaging solutions that help businesses connect with customers and achieve measurable results [1][2]. Company Overview - Klaviyo is a marketing automation platform that enables businesses to deliver personalized experiences across various channels, including SMS and email [2][15]. - Founded in 2012, Klaviyo has grown to serve over 157,000 companies globally, focusing on integrating data, analytics, and marketing tools [15][16]. SMS Marketing Features - Klaviyo stands out in the SMS marketing landscape due to its robust features and seamless integration with other marketing channels, allowing brands to create cohesive customer experiences [3][6]. - The platform provides advanced analytics and reporting tools, enabling businesses to measure the impact of their SMS campaigns and optimize performance effectively [8][17]. - AI-powered features simplify SMS campaign creation and response management, enhancing customer interactions and campaign outcomes [9][17]. Customer Engagement Strategies - Klaviyo allows businesses to deliver tailored SMS communications by leveraging comprehensive customer journey data, ensuring relevant messaging that enhances the customer experience [5][12]. - The platform integrates SMS with other channels, such as email and push notifications, to improve overall marketing performance and engagement [6][12]. Compliance and Trust - Klaviyo emphasizes compliance in its SMS marketing solutions, incorporating features like age gating to meet regulations in specific industries [11][12]. Market Impact - Research indicates that SMS marketing significantly influences consumer behavior, with 65% of consumers making purchases sooner after receiving promotional texts [12][13].

Core Insights - Klaviyo has been recognized as one of the best marketing automation tools by Consumer365, highlighting its effectiveness in enhancing customer engagement for SMEs [1][10] - The platform offers a comprehensive suite of marketing automation tools, including email, SMS, and push notifications, designed to optimize customer interactions and drive growth [2][3][5] Group 1: Product Features - Klaviyo provides over 60 pre-built automation flows and intuitive templates for email marketing, allowing businesses to create targeted campaigns using real-time customer data [3] - The SMS marketing platform enables brands to maintain consistent messaging across channels, with advanced segmentation tools for tailored communications [4] - Push notification tools are included in all plans, facilitating app engagement and ensuring precise audience targeting [5] Group 2: Market Positioning - Klaviyo addresses the needs of SMEs in a competitive digital marketplace by offering scalable marketing tools that personalize communication across multiple channels [7][10] - The platform's compatibility with over 350 integrations, including Shopify and WooCommerce, allows businesses to centralize data for targeted campaigns [8] - SMEs are increasingly relying on Klaviyo to automate customer interactions and sustain growth, especially with lean marketing teams [9] Group 3: Business Impact - Klaviyo empowers businesses to leverage customer reviews in their marketing strategies, enhancing credibility and trust through effective feedback collection [6] - The platform supports data-driven marketing strategies, enabling businesses to adapt to shifting consumer behaviors and market conditions [10] - With over 151,000 paying users, including notable brands like Mattel and TaylorMade, Klaviyo demonstrates its value in helping businesses acquire, engage, and retain customers [11]

Boston, Jan. 09, 2025 (GLOBE NEWSWIRE) -- Consumer365 names Klaviyo as a top AI marketing software, spotlighting its comprehensive suite of tools that redefine customer engagement and marketing automation.  Top AI Marketing Tool Klaviyo - a unified marketing automation platform that leverages AI and customer data to deliver personalized, multichannel experiences across email, SMS, push notifications, reviews, web forms, and more This article is sponsored by Klaviyo. All opinions expressed are those of C ...

NEW YORK CITY, Nov. 28, 2024 (GLOBE NEWSWIRE) -- Expert Consumers, a leading authority in software reviews and analysis, has published a review of Klaviyo, naming it the best AI marketing software for 2024. The article explores Klaviyo’s AI features and how they benefit businesses in their marketing campaigns. Best AI Marketing Software Klaviyo - a leading AI-driven marketing platform that empowers businesses to optimize customer engagement and drive growth through personalized campaigns, predictive ...

My previous investment thought on Klaviyo (NYSE: KVYO ) (published on 3rd July) was a buy rating because of the strong value proposition that it offers to small and medium businesses (SMB), and because of this, growth should sustain atI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium ...