Klaviyo(KVYO)2024-11-06 21:10Revenue and Growth - Q3 2024 revenue reached $235.1 million, representing a 34% year-over-year growth[1][7] - Raised full-year 2024 revenue guidance to a range of $923.0 million to $925.0 million, representing 32% to 33% year-over-year growth[13] - Revenue for the three months ended September 30, 2024, was $235,094 thousand, compared to $175,807 thousand in the same period in 2023[30] - Revenue for the nine months ended September 30, 2024, was $667,300 thousand, compared to $496,481 thousand in the same period in 2023[31] Profitability and Margins - Gross profit for Q3 2024 was $180.7 million with a gross margin of 77%, up from 67% in Q3 2023[7] - Non-GAAP operating income for Q3 2024 was $33.7 million, with a non-GAAP operating margin of 14%, compared to 10% in Q3 2023[9] - Non-GAAP gross margin is calculated as non-GAAP gross profit divided by total revenue, and non-GAAP operating margin is calculated as non-GAAP operating income divided by total revenue[24] - Non-GAAP gross profit for the nine months ended 2024 rose to $525,367 from $388,158 in 2023, reflecting improved profitability[39] - Non-GAAP operating income for the nine months ended 2024 reached $97,376, up from $61,901 in 2023, showing better operational efficiency[40] - Non-GAAP net income for the nine months ended 2024 was $127,631, compared to $74,255 in 2023, indicating stronger overall financial performance[41] - Non-GAAP gross margin for the nine months ended 2024 improved to 78.7% from 78.2% in 2023, indicating better cost control[39] - Non-GAAP operating margin for the nine months ended 2024 increased to 14.6% from 12.5% in 2023, showing enhanced operational efficiency[40] - Non-GAAP net income per share (diluted) for the nine months ended 2024 was $0.43, up from $0.27 in 2023, reflecting higher earnings per share[41] Cash Flow and Liquidity - Free cash flow for Q3 2024 was $34.2 million, representing a free cash flow margin of 15%[12] - Net cash provided by operating activities for the three months ended September 30, 2024, was $38,784 thousand, compared to $23,700 thousand in the same period in 2023[32] - Cash, cash equivalents, and restricted cash increased from $794,629 thousand at the beginning of the period to $827,898 thousand at the end of September 2024[32] - Net cash provided by operating activities increased to $105,866 in 2024 from $80,727 in 2023, indicating stronger cash flow generation[33] - Free cash flow for the three months ended 2024 was $34,246, up from $21,870 in 2023, demonstrating improved cash management[38] - Cash provided by operating activities grew to $105,866 in the nine months ended September 30, 2024, up from $80,727 in the same period in 2023[43] - Free Cash Flow increased to $94,268 in the nine months ended September 30, 2024, compared to $75,292 in the same period in 2023[43] - Operating Cash Flow Margin slightly decreased to 15.9% in the nine months ended September 30, 2024, from 16.3% in the same period in 2023[43] - Free Cash Flow Margin decreased to 14.1% in the nine months ended September 30, 2024, from 15.2% in the same period in 2023[43] Customer Metrics - Total customers grew to over 157,000 as of September 30, 2024, up from over 135,000 in the same period last year[4] - Customers generating over $50,000 in ARR increased by 54% year-over-year to 2,619 as of September 30, 2024[4] - Dollar-Based Net Revenue Retention Rate (NRR) was 110% as of September 30, 2024[4] International Expansion and Localization - Expanded SMS offerings to 18 countries, including Norway, Denmark, Sweden, Finland, Italy, and Portugal[3] - Launched Klaviyo in five new languages, bringing total supported languages to seven[2] Expenses and Compensation - Stock-based compensation expense is a significant recurring expense and an important part of employee compensation, impacting non-GAAP financial measures[25] - Stock-based compensation expense for the nine months ended 2024 was $100,690, down from $302,317 in 2023, reflecting reduced equity-based costs[33] - Non-GAAP Selling and Marketing expenses decreased to $214,880 in the nine months ended September 30, 2024, compared to $151,715 in the same period in 2023[42] - Non-GAAP Research and Development expenses increased to $127,279 in the nine months ended September 30, 2024, from $98,925 in the same period in 2023[42] - Non-GAAP General and Administrative expenses rose to $85,832 in the nine months ended September 30, 2024, compared to $75,617 in the same period in 2023[42] - Total Non-GAAP Operating Expenses increased to $427,991 in the nine months ended September 30, 2024, from $326,257 in the same period in 2023[42] Net Loss and Financial Position - Net loss for the three months ended September 30, 2024, was $(1,345) thousand, compared to $(297,104) thousand in the same period in 2023[30] - Net loss for the nine months ended September 30, 2024, was $(19,169) thousand, compared to $(281,938) thousand in the same period in 2023[31] - Net loss for the nine months ended 2024 improved to $(19,169) from $(281,938) in 2023, showing significant reduction in losses[33] - Klaviyo's total assets increased from $1,089,050 thousand in December 2023 to $1,193,199 thousand in September 2024[29]