Klaviyo Reports 34.3% Revenue Growth to $937.5 Million in 2024

Klaviyo, Inc. reported significant financial growth in its latest 10-K filing, with total revenue reaching $937.5 million for the fiscal year ending December 31, 2024, marking a 34.3% increase from $698.1 million in 2023. The company also reported a substantial reduction in net losses, which decreased from $308.2 million in 2023 to $46.1 million in 2024, primarily due to increased revenue and a notable decline in stock-based compensation expenses. Gross profit rose to $716.2 million, reflecting a gross margin improvement from 74.5% in 2023 to 76.4% in 2024.

Klaviyo's customer base expanded to over 167,000 by the end of 2024, up from 143,000 the previous year. The company attributed its revenue growth to both new customer acquisitions and increased usage from existing customers, particularly in the mid-market segment. The number of customers generating over $50,000 in annual recurring revenue (ARR) grew by 46% year-over-year, indicating a successful strategy in upselling and cross-selling additional services, including its SMS offerings. The company also reported a dollar-based net revenue retention rate of 108% for 2024, down from 117% in 2023, largely due to the effects of a price increase implemented in September 2022.

Strategically, Klaviyo has focused on expanding its product offerings and geographic reach. The company launched Klaviyo AI in 2024, enhancing its platform with AI-powered tools for data segmentation and campaign orchestration. Internationally, Klaviyo has made significant strides, with 37.6% of its revenue coming from outside the United States, and it has opened new offices in Dublin, Ireland, and Sydney, Australia, to support this growth. The company continues to invest in its technology infrastructure and product development to maintain its competitive edge.

Operationally, Klaviyo's workforce increased to 2,182 employees by the end of 2024, up from 1,815 in 2023, reflecting its growth strategy and the need for expanded sales and customer support capabilities. The company has also emphasized the importance of customer satisfaction and engagement, which it believes is crucial for retaining existing customers and attracting new ones. Klaviyo's proactive approach to customer service and its focus on delivering measurable value through its platform are central to its business model.

Looking ahead, Klaviyo anticipates continued revenue growth driven by its land-and-expand strategy, further penetration into the mid-market and enterprise segments, and ongoing international expansion. However, the company acknowledges potential challenges, including the need to manage its growth effectively and adapt to changing market conditions. Klaviyo's management remains optimistic about its ability to sustain its growth trajectory while navigating the complexities of a competitive landscape.