Klaviyo(KVYO) - 2025 Q1 - Quarterly Results

Q1 2025 Performance and Outlook Financial Highlights Klaviyo reported strong Q1 2025 financial results, with significant revenue growth and positive non-GAAP profitability | Financial Metric | Q1 FY25 | YoY Growth | | :--- | :--- | :--- | | Revenue | $279.8M | 33% | | Gross Profit (GAAP) | $212.1M | - | | Gross Margin (GAAP) | 76% | - | | Operating Loss (GAAP) | $(23.8)M | - | | Operating Income (Non-GAAP) | $32.4M | - | | Net Loss per Share (GAAP) | $(0.05) | - | | Net Income per Share (Non-GAAP, diluted) | $0.14 | - | | Cash from Operating Activities | $14.4M | - | | Free Cash Flow | $6.6M | - | - First quarter revenue grew 33% year-over-year to $279.8 million[1][2] Business & Customer Metrics Klaviyo demonstrated strong customer growth, increasing total customers and large customer count, with NRR at 108% - Total customer base grew to over 169,000 as of March 31, 2025, up from over 146,000 a year prior[5] - The number of customers generating over $50,000 of ARR increased by 40% year-over-year to 3,030[5] - Net Revenue Retention Rate (NRR) was 108% as of March 31, 2025, indicating strong expansion within the existing customer base[5] - Announced the Klaviyo B2C CRM, launching new Marketing Analytics and Customer Hub products[5] FY2025 Financial Outlook Klaviyo raised its full-year 2025 revenue guidance, projecting 25-26% annual growth and strong non-GAAP operating income | Guidance ($ in millions) | Q2 FY25 (Low) | Q2 FY25 (High) | FY25 (Low) | FY25 (High) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $276.0 | $280.0 | $1,171.0 | $1,179.0 | | YoY Growth Rate | 24% | 26% | 25% | 26% | | Non-GAAP Operating Income | $28.5 | $31.5 | $133.0 | $139.0 | - Raised full-year 2025 revenue guidance to a range of $1.171 billion to $1.179 billion[1] Consolidated Financial Statements (Unaudited) Condensed Consolidated Balance Sheet As of March 31, 2025, Klaviyo's total assets increased to $1.35 billion, with strong cash and growing stockholders' equity | Balance Sheet (In Thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $1,347,311 | $1,273,308 | | Cash and cash equivalents | $888,432 | $881,473 | | Total Liabilities | $283,379 | $239,321 | | Total Stockholders' Equity | $1,063,932 | $1,033,987 | Condensed Consolidated Statement of Operations Q1 2025 revenue grew 33% YoY to $279.8 million, but increased operating expenses led to a GAAP operating loss and net loss | Statement of Operations (In Thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $279,827 | $209,993 | | Gross Profit | $212,127 | $165,055 | | Total Operating Expenses | $235,877 | $187,147 | | Operating Loss | $(23,750) | $(22,092) | | Net Loss | $(14,089) | $(12,882) | | Net Loss Per Share | $(0.05) | $(0.05) | Condensed Consolidated Statement of Cash Flows In Q1 2025, operating cash flow was $14.4 million, resulting in free cash flow of $6.6 million after capital expenditures | Cash Flows (In Thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $14,362 | $26,182 | | Net cash used in investing activities | $(7,741) | $(3,225) | | Net cash used in financing activities | $(37) | $(5,737) | | Free Cash Flow | $6,621 | $22,957 | Reconciliation of GAAP to Non-GAAP Financial Measures Overview of Non-GAAP Adjustments Klaviyo uses non-GAAP measures to provide a clearer view of core operational performance, excluding non-cash and non-recurring expenses - Non-GAAP measures exclude expenses such as stock-based compensation and related employer payroll taxes, and amortization of prepaid marketing expenses[22] - Management believes these non-GAAP measures are useful for understanding long-term core business performance and for comparison with peer companies[23][24] Operating Income Reconciliation Klaviyo reconciled GAAP operating loss to non-GAAP operating income, primarily adjusting for stock-based compensation and other non-cash items | Reconciliation (In Thousands) | Q1 2025 | | :--- | :--- | | Operating loss (GAAP) | $(23,750) | | Stock-based compensation | $38,327 | | Employer payroll tax on employee stock transactions | $4,610 | | Amortization of prepaid marketing | $13,224 | | Non-GAAP operating income | $32,411 | Net Income Reconciliation A GAAP net loss was converted to a non-GAAP net income of $42.1 million, resulting in a non-GAAP diluted EPS of $0.14 | Reconciliation (In Thousands) | Q1 2025 | | :--- | :--- | | Net loss (GAAP) | $(14,089) | | Stock-based compensation | $38,327 | | Employer payroll tax on employee stock transactions | $4,610 | | Amortization of prepaid marketing | $13,224 | | Non-GAAP net income | $42,072 | | Non-GAAP net income per share, diluted | $0.14 | Free Cash Flow Reconciliation Free cash flow for Q1 2025 was $6.6 million, derived from operating cash flow after capital expenditures and capitalized software | Reconciliation (In Thousands) | Q1 2025 | | :--- | :--- | | Cash provided by operating activities | $14,362 | | Acquisition of property and equipment | $(2,685) | | Capitalization of software development costs | $(5,056) | | Free cash flow | $6,621 | Additional Information Key Business Metrics & Definitions Klaviyo defines key business metrics including customer count, large customer ARR, and Dollar-Based Net Revenue Retention Rate - Customer: A distinct paid subscription to the platform. Free trial users are not included[11] - Customers Generating Over $50,000 of ARR: Customers with an average ARR greater than $50,000 over the prior twelve months, indicating success in moving upmarket[12] - Dollar-Based Net Revenue Retention Rate (NRR): Measures revenue growth from the existing customer cohort over a twelve-month period, including expansion and contraction, but excluding new customers[13][14] Share Capital Structure As of March 31, 2025, Klaviyo had 275.6 million common shares outstanding, with total estimated fully diluted shares at 323.5 million | Security Type | Shares (in millions) | | :--- | :--- | | Common stock outstanding | 275.6 | | Warrants outstanding | 3.4 | | RSUs outstanding | 20.0 | | Options outstanding | 24.2 | | Total estimated fully diluted shares | 323.5 | - The Shopify investment option to purchase 15.7 million shares at $88.93/share was out of the money and excluded from the fully diluted share count[9]