NYSE$KVYO

Klaviyo Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Klaviyo's Q3 2023 financial performance was marked by strong revenue growth and expansion of its platform with the launch of Klaviyo CDP.

Klaviyo reported a strong third quarter with revenue of $175.8 million, representing a 48% year-over-year growth. The company ended the quarter with over 135,000 customers and a net revenue retention rate of 119%.

  • Revenue reached $175.8 million, a 48% increase year-over-year.
  • Ended the quarter with over 135,000 customers, compared to over 109,000 customers in the third quarter of 2022.
  • Customers generating over $50,000 of ARR increased by 89% year-over-year, reaching 1,699.
  • Net Revenue Retention Rate (NRR) was 119% as of September 30, 2023, marking the 10th straight quarter with a NRR of at least 115%.

Headline financials

Total Revenue

$176M

Previous: $328M-46.3%
EPS (adj)

-$1.24

Previous: -$0.21-490.5%
Total Customers

135.0K

Previous: 109.0K+23.9%
Customers > $50K ARR

1.7K

Previous: 899+89.0%
Net Revenue Retention Rate

119.0%

No prior period
Capital Expenditures

-$823K

Previous: $14.4M-105.7%
Free Cash Flow

-$298M

Previous: -$58.9M-406.2%
Net Income

-$297M

Previous: -$23.9M-1144.5%
Operating Income

-$302M

Previous: -$25.7M-1077.6%
Gross Profit

$117M

Previous: $86.5M+35.2%
Cash & Equivalents

$723M

Previous: $368M+96.3%
Total Assets

$1.07B

No prior period
R&D Expense

$141M

No prior period
Stock-Based Comp

$300M

Previous: $6.25M+4703.4%

Revenue & EPS history

Klaviyo · Revenue · Quarterly

$176M

Q3 2023-46.3%vs Q3 2022
Beat estimate in 10 of 10 quarters(100%)
ActualEstimate

Forward guidance

For the fourth quarter of fiscal year 2023, Klaviyo expects revenue between $195.0 million and $197.0 million, representing a year-over-year growth rate of 34% to 36%, and non-GAAP operating income between $14.0 million and $17.0 million, with a non-GAAP operating margin of 7% to 9%. For the full fiscal year 2023, the company anticipates revenue between $691.5 million and $693.5 million, a year-over-year growth rate of 46% to 47%, and non-GAAP operating income between $75.9 million and $78.9 million, resulting in a non-GAAP operating margin of 11%.

Tailwinds

  • Revenue is expected to be between $195.0 million and $197.0 million.
  • Year-over-year revenue growth rate is projected to be between 34% and 36%.
  • Non-GAAP operating income is anticipated to be between $14.0 million and $17.0 million.
  • Non-GAAP operating margin is expected to be between 7% and 9%.
  • Full year revenue is projected to be between $691.5 million and $693.5 million.

Headwinds

  • Stock-based compensation-related charges are difficult to predict.
  • Employer payroll tax-related items on employee stock transactions are difficult to predict.
  • Future fair market value of common stock is difficult to predict.
  • Future hiring and retention needs are difficult to predict.
  • Reconciliation of non-GAAP operating income guidance measures to the most directly comparable GAAP measures cannot be reasonably calculated or predicted at this time.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 14 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+1.3%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-2.2%

Avg return

30 days after

43%

6 / 14 earnings

Positive

+38.8%

Q2 2023

Best reaction

-29.2%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-29.2%-33.5%-33.2%
Q4 2025-3.7%-11.9%-9.5%
Q3 2025+6.8%+9.7%+9.7%
Q1 2025+6.6%+13.5%+7.8%
Q4 2024-5.8%-13.8%-29.8%
Q3 2024-13.4%-10.5%+1.4%
Q2 2024+38.8%+42.8%+33.6%
Q2 2023+38.8%+42.8%+33.6%
Q1 2023+3.0%+2.7%-3.8%
Q1 2024+3.0%+2.7%-3.8%
Q4 2021-0.1%-10.2%-8.4%
Q4 2023-2.7%-2.8%-10.9%
Q3 2023-12.3%-19.4%-8.5%
Q3 2022-12.3%-19.4%-8.5%
Q4 2022
Q2 2022
Q1 2022

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