Customer Growth and Market Expansion - As of June 30, 2024, Klaviyo had over 151,000 customers, with a significant increase in customers generating over $50,000 of ARR, rising to 2,386 from 1,458 a year prior, representing a 64% year-over-year growth[80] - International sales accounted for 31.9% of total revenue for the six months ended June 30, 2024, indicating strong growth in global markets[73] - The company has expanded its operations internationally, opening offices in London and Sydney, and offering SMS capabilities in over 10 countries as of June 30, 2024[73] - The company anticipates continued revenue growth driven by increased customer usage and expansion into new industry verticals beyond retail and eCommerce[77] Financial Performance - Revenue for the three months ended June 30, 2024 increased by $57.6 million or 35.0%, reaching $222.2 million compared to $164.6 million for the same period in 2023[101] - Revenue for the six months ended June 30, 2024 increased by $111.5 million or 34.8%, totaling $432.2 million compared to $320.7 million for the same period in 2023[102] - Gross profit for the three months ended June 30, 2024 increased by $44.8 million or 35.3%, reaching $171.9 million compared to $127.1 million for the same period in 2023[105] - Gross profit for the six months ended June 30, 2024 increased by $90.4 million or 36.6%, to $337.0 million compared to $246.6 million for the same period in 2023[106] Cost and Expenses - Cost of revenue for the three months ended June 30, 2024 increased by $12.8 million or 34.1%, amounting to $50.3 million compared to $37.5 million for the same period in 2023[103] - Cost of revenue for the six months ended June 30, 2024 increased by $21.2 million or 28.6%, totaling $95.2 million compared to $74.1 million for the same period in 2023[103] - Selling and marketing expenses for the three months ended June 30, 2024 were $94.5 million, up from $63.4 million in the same period in 2023[96] - Selling and marketing expenses for the six months ended June 30, 2024 increased by $62.4 million or 50.3%, to $186.4 million compared to $124.0 million for the same period in 2023[108] - Research and development expenses for the three months ended June 30, 2024 were $55.7 million, compared to $33.1 million for the same period in 2023[96] - Research and development costs for the six months ended June 30, 2024 increased by $43.7 million or 64.2%, to $111.8 million compared to $68.1 million for the same period in 2023[111] - General and administrative expenses for the three months ended June 30, 2024 were $35.8 million, an increase from $23.7 million in the same period in 2023[96] - General and administrative expenses for the six months ended June 30, 2024 increased by $28.3 million or 60.6%, to $75.0 million compared to $46.7 million for the same period in 2023[113] Cash and Liquidity - As of June 30, 2024, the company had cash, cash equivalents, and restricted cash totaling $794.6 million, with $322.8 million in money market funds[119] - Total working capital increased to $740.8 million as of June 30, 2024, up from $672.9 million as of December 31, 2023, representing a growth of approximately 10.1%[121] - Net cash provided by operating activities for the six months ended June 30, 2024, was $67.1 million, compared to $57.0 million for the same period in 2023, reflecting an increase of 17.5%[123][126] - Cash and restricted cash at the end of the period reached $794.6 million, up from $439.8 million at the end of June 30, 2023, indicating a year-over-year increase of approximately 80.5%[122] - The company expects continued growth in cash balances as business operations expand, with a diversified cash management strategy to mitigate risks[129] - The company had no debt as of June 30, 2024, eliminating potential market risk for interest expense[136] Market Strategy and Innovations - Klaviyo's platform combines data and application layers with advanced machine learning and AI capabilities, enhancing customer engagement across email, SMS, and push notifications[68] - The company focuses on a land-and-expand strategy, where customer growth leads to increased usage of the platform, driving revenue expansion[68] - Klaviyo has invested in product innovation, recently launching Klaviyo AI to enhance customer engagement and campaign management[74] - Klaviyo's SMS offering, launched in 2021, has seen increased adoption, with expectations of higher communication costs impacting gross margins, particularly in the fourth quarter[76] Other Financial Metrics - Interest income for the six months ended June 30, 2024 increased by $11.2 million or 135.2%, to $19.5 million compared to $8.3 million for the same period in 2023[117] - Non-cancellable lease obligations as of June 30, 2024, totaled $49.3 million, with $13.3 million due within the next 12 months[130] - Non-cancellable obligations with marketing vendors and service providers amounted to $279.2 million as of June 30, 2024[132] - The company maintains a full valuation allowance on its U.S. federal and state net deferred tax assets, indicating uncertainty in realizing these assets[93] - The company has not experienced significant inflationary pressures, but continues to monitor and manage costs to mitigate potential impacts[137] Seasonal Trends - Seasonality impacts demand, particularly in the fourth quarter, as customers increase marketing campaigns during the holiday shopping season[84]

Klaviyo, Inc. (NYSE:KVYO) Q1 2024 Earnings Conference Call May 8, 2024 4:30 PM ET Company Participants Jack Grant - Senior Director of Investor Relations and Strategic Finance Andrew Bialecki - Co-Founder and Chief Executive Officer Amanda Whalen - Chief Financial Officer Conference Call Participants Arjun Bhatia - William Blair Robert Oliver - Baird Katie Keyser - Morgan Stanley Callie Valenti - Goldman Sachs Brent Bracelin - Piper Sandler Raimo Lenschow - Barclays Scott Berg - Needham Terry Tillman - Tru ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number 001-41806 Klaviyo, Inc. (Exact name of registrant as specified in its charter) Delaware 46-0989964 (State or other juris ...

"We executed well in the first quarter to set up a strong start to 2024." said Amanda Whalen, CFO of Klaviyo. "We delivered $210 million in revenue in the first quarter, driving growth of 35% year-over-year, while growing our operating cash flow 68% and our free cash flow 65% year-over-year in the first quarter. We're continuing to invest behind our strategic initiatives to drive efficient and durable growth." ● Launched Klaviyo portfolio to solve complex needs for global and multi-account customers. ● Anno ...

Financial Performance - Revenue for the year ended December 31, 2023, was $698.1 million, representing a growth rate of 47.7% compared to $472.7 million in 2022[105] - The company incurred net losses of $308.2 million, $49.2 million, and $79.4 million for the years ended December 31, 2023, 2022, and 2021, respectively[135] - The company expects to continue increasing operating expenses in the future, which may affect profitability[135] - A significant portion of revenue is derived from small businesses, which may be adversely affected by economic downturns[135] - The company anticipates a deceleration in revenue growth due to factors such as business maturation and the anniversary of a price increase implemented in September 2022[105] Customer Growth and Retention - The number of customers increased from approximately 61,000 on December 31, 2022, to approximately 76,000 on December 31, 2023[109] - Approximately 77.7% of annual recurring revenue (ARR) was derived from customers using Shopify's platform as of December 31, 2023[121] - The company relies on attracting new customers and retaining existing ones to sustain demand for its products[132] - The company anticipates that moving up-market will result in longer sales cycles with enterprise customers[138] Employee and Organizational Growth - Employee headcount grew from 1,544 as of December 31, 2022, to 1,815 as of December 31, 2023[109] - The complexity of the organizational structure has increased, necessitating improvements in operational, financial, and management controls[110] - The company may experience difficulties in hiring and retaining skilled personnel, impacting operations[144] - The company’s ability to attract and retain skilled employees is influenced by the perceived value of stock awards[145] International Operations - The company plans to continue expanding its international operations, having opened offices in the UK and Australia in recent years[109] - The company derived 36.5% of its revenue from international customers in 2023, up from 35.0% in 2022 and 32.1% in 2021[147] - The company plans to open additional international offices to expand its customer base and access technical talent[148] - The company faces significant risks in international operations, including political, economic, and regulatory challenges[149] Competition and Market Position - The company faces competition from established firms like Adobe and Salesforce, which may have greater resources[115] - The company’s brand recognition is crucial for expanding its customer base and sales, especially in a competitive market[146] - The company may experience quarterly fluctuations in results due to various factors, making future performance difficult to predict[153] Technology and Infrastructure - The company plans to invest in technology infrastructure, platform development, and international expansion[136] - The company may face challenges in adapting to technological changes and evolving customer preferences, impacting competitiveness[142] - The company relies on a third-party cloud infrastructure provider, and any disruption could adversely affect its business and financial condition[159] Legal and Regulatory Risks - The company is subject to various legal obligations related to privacy and data security, which could result in significant liabilities if not complied with[202] - The company faces risks from potential litigation that could divert management resources and incur substantial costs[192] - The company is exposed to anti-corruption laws, and non-compliance could lead to severe penalties and reputational damage[196] - The company must maintain compliance with industry standards and certifications, such as ISO 27001, to retain customer confidence and avoid adverse effects on revenue[241] Security and Data Protection - The company experienced a security incident in July 2022 where an unauthorized third party accessed internal systems, compromising employee credentials and customer information, including names, email addresses, and phone numbers[229] - Security incidents could result in legal claims and regulatory investigations, impacting the company's reputation and demand for its products[231] - Unauthorized disclosure of customer data could lead to severe reputational damage and significant liabilities for the company[228] Financial and Market Risks - The company is exposed to market risks primarily from fluctuations in interest rates and inflation, which may affect its financial position and future earnings[443] - The company may require additional capital to support business growth, which might not be available on acceptable terms[189] - The company has funded operations primarily through equity financings and cash generated from subscription sales, with uncertainty about future cash generation[189] Stock and Ownership Structure - The company’s Series A common stock has experienced volatility since its IPO in September 2023, influenced by various external factors including market conditions and company performance[264] - The dual series structure of the company's common stock concentrates voting control among certain stockholders, limiting the influence of other shareholders on corporate matters[270] - The company may issue additional capital stock in the future, which could dilute existing stockholders' ownership interests[281] Future Outlook and Challenges - The company anticipates increased operational and development expenses related to the evolving legal and regulatory framework surrounding AI technology[261] - The COVID-19 pandemic has negatively impacted operations, with ongoing effects such as supply shortages and economic instability[198] - The company recognizes the potential long-term impacts of climate change on its operations, including increased frequency of extreme weather events that could disrupt business activities[302]

Revenue Growth - Fourth quarter revenue of $201.6 million, representing 39% year-over-year growth[1] - Increased revenue by 48% in 2023, generating $119.4 million in cash from operating activities and $110.0 million in free cash flow[4] - Total revenue of $698.1 million in fiscal year 2023, representing annual growth of 48%[8] - Revenue for Q4 2023 increased to $201.6 million, up from $145.2 million in Q4 2022, representing a 38.8% year-over-year growth[31] - Full-year revenue for 2023 reached $698.1 million, a 47.7% increase compared to $472.7 million in 2022[33] - FY24-Q1 revenue guidance of $201.0 million to $203.0 million, representing year-over-year growth of 29% to 30%[10] - FY24 revenue guidance of $889.0 million to $897.0 million, representing year-over-year growth of 27% to 28%[10] Customer Metrics - Helped customers generate well over $50 billion in Klaviyo Attributed Value during all of 2023[2] - Over 143,000 customers using Klaviyo as of fiscal year end 2023, compared to over 119,000 customers at the end of fiscal year 2022[5] - 1,958 customers generating over $50,000 of ARR, an increase of 80% year over year[5] Profitability and Margins - Non-GAAP gross profit of $159.8 million, representing a non-GAAP gross margin of 79% in Q4 2023[6] - Non-GAAP operating income of $78.1 million, representing non-GAAP operating margin of 11% in fiscal year 2023[8] - Gross profit for Q4 2023 was $156.6 million, with a gross margin of 77.7%, compared to $107.9 million and a 74.3% margin in Q4 2022[31] - Gross profit for the year ended December 31, 2023, was $520.2 million, with a gross margin of 74.5%, compared to $344.7 million and 72.9% in 2022[49] - Non-GAAP gross profit for the year ended December 31, 2023, was $547.9 million, with a non-GAAP gross margin of 78.5%, compared to $344.9 million and 72.9% in 2022[49] - Non-GAAP operating income for the year ended December 31, 2023, was $78.1 million, compared to a non-GAAP operating loss of $26.2 million in 2022[51] - Non-GAAP net income for the year ended December 31, 2023, was $100.5 million, compared to a net loss of $308.2 million on a GAAP basis[53] Operating Performance - Operating loss for Q4 2023 was $36.3 million, compared to $4.1 million in Q4 2022, driven by increased operating expenses[31] - Operating loss for the year ended December 31, 2023, was $330.6 million, compared to an operating loss of $55.0 million in 2022[51] - Total operating expenses for the year ended December 31, 2023, were $850.8 million, compared to $399.8 million in 2022[55] Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2023, stood at $738.6 million, up from $385.8 million at the end of 2022[29] - Net cash provided by operating activities for the year ended December 31, 2023, was $119.4 million, compared to net cash used in operating activities of $23.6 million in 2022[37] - Free cash flow for Q4 2023 was $38.6 million, compared to $20.9 million in Q4 2022[35] - Free cash flow for the year ended December 31, 2023, was $110.0 million, compared to negative free cash flow of $41.8 million in 2022[57] Net Loss and Expenses - Net loss for Q4 2023 was $26.3 million, compared to a net loss of $755,000 in Q4 2022[31] - Net loss for the year ended December 31, 2023, was $308.2 million, compared to a net loss of $49.2 million in 2022[37] - Research and development expenses for Q4 2023 increased to $52.6 million, up from $28.7 million in Q4 2022, reflecting investment in innovation[31] - Stock-based compensation expense for Q4 2023 was $38.5 million, significantly higher than $557,000 in Q4 2022[35] - Stock-based compensation expense for the year ended December 31, 2023, was $340.8 million, compared to $6.8 million in 2022[37] Total Assets - Total assets as of December 31, 2023, were $1.09 billion, compared to $629.1 million at the end of 2022[29]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number 001-41806 KLAVIYO, INC. (Exact name of registrant as specified in its charter) Delaware 46-0989964 (State or other j ...