Klaviyo, Inc. Series A · NYSE:KVYO

Klaviyo, Inc. Series A — Klaviyo — Q4 2024 Earnings Presentation

39 slides from Klaviyo, Inc. Series A's earnings presentation, Feb 19, 2025

  1. Slide 1: Q4 2024 / FY 2024 Investor Presentation

    Q4 2024 / FY 2024 Investor Presentation 02.20.2025

  2. Slide 2: Forward-Looking Statements and Disclaimer

    Forward-Looking Statements and Disclaimer This presentation includes certain “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Other than statements of historical facts, all statements contained in this

  3. Slide 3: Statement Regarding Use of Non-GAAP Financial Measures

    Statement Regarding Use of Non-GAAP Financial Measures In addition to financial measures prepared in accordance with generally accepted accounting principles in the United States (GAAP), this presentation and accompanying oral commentary contain non-GAAP financial measures, including non-GAAP gross

  4. Slide 4: The Only CRM Built for B2C

    THE ONLY CRM BUILT FOR B2C Powered by its built-in Klaviyo Data Platform and AI insights, Klaviyo combines marketing automation, analytics and customer service into one unified solution, making it easy for businesses of all sizes to build meaningful relationships, drive smarter decisions and grow fa

  5. Slide 5: Positioned to win & deliver durable growth at scale

    Positioned to win & deliver durable growth at scale One-of-a-kind Large & Momentum Proven & integrated platform growing market executing efficient with data advantage opportunity growth vectors business model Redefining B2C tech Aligned with secular Clear and proven plan to Track record of durable s

  6. Slide 6: Klaviyo by the numbers

    Klaviyo by the numbers1 $937M Revenue 108% Dollar-Based Net Revenue 33% EMEA & APAC Revenue 16% Free Cash Flow Margin3 Retention Rate2,4 34% YoY Revenue Growth 167,000+ Total Customers 2,4 2,850 Customers Generating Over 12% Non-GAAP $50K ARR2,4 Operating Margin3 46% YoY Growth 1 All metrics for fisc

  7. Slide 7: Klaviyo is positioned to redefine the next era of B2C engagement

    Klaviyo is positioned to redefine the next era of B2C engagement Channel first Channel affinity marketing marketing Standalone Built in CDP CDP Siloed Omnichannel marketing interactions (pre and post) Human-led AI-guided decision making decision making 2025 © Klaviyo 7

  8. Slide 8: Built to scale

    B2C CRM 2025 Global Klaviyo’s evolution 7 languages; SMS in 19 countries Redefining growth for B2C businesses CDP 2024 2023 We started with a simple idea: that 01/12/25 Sarah L. businesses should own their customer “Skin looks & feels flawless!” data and use it to create better, more personalized ex

  9. Slide 9: Klaviyo: The only CRM built for B2C

    Klaviyo: The only CRM built for B2C 1:1 personalization at scale, All-in-one platform for B2C Data-first, built-in without complexity marketing & service teams 2025 © Klaviyo 9

  10. Slide 10: Why Klaviyo

    Why Klaviyo Powering personalization & automation at scale Benefits to Klaviyo Customers Data-first, built in ● Real-time profile Rapid implementation Unified customer, purchase, and behavioral data into one view Automate 1:1 personalized, omni-channel ● No limits, no silos experiences with faster t

  11. Slide 11: Our data-first approach is a competitive advantage

    Our data-first approach is a competitive advantage Vertically integrated tech stack ● Unified data layer and application layer ● Built to scale across applications and verticals Comprehensive tools & features ● Reporting & analytics: Advanced analytics, benchmarking and reporting ● AI and ML-powered

  12. Slide 12: Klaviyo Service

    Klaviyo Service Bring marketing and service together to grow revenue and loyalty Customer Hub AI Agent Unified Inbox Manage orders, discover new 24/7 automated self-service, with Complete customer context for products, and ask for support easy escalations to live agents faster, personalized service

  13. Slide 13: AI remains central to our product roadmap

    AI remains central to our product roadmap Enabling customers to work faster, unleash creativity, and dream up new possibilities Leverage strategic insights Weave together data to deeply understand customers and spark an idea Ex. Predictive analytics, Review sentiment AI Create targeted communication

  14. Slide 14: We continue to expand our global presence

    We continue to expand our global presence 7 languages supported 19 countries available for SMS on the Klaviyo platform English, French, German, Portuguese, across North America, EMEA, and APAC Korean, Spanish, Italian 4 Countries with Operations 2025 © Klaviyo 14 (USA, UK, Australia, Ireland)

  15. Slide 15: Trusted by a large, growing, and diverse customer base

    Trusted by a large, growing, and diverse customer base 167,000+ Total Customers1 2,850 Customers > $50K ARR1 Diverse Ranging from entrepreneurs, SMBs and mid-market+ 1 As of December 31, 2024. See Appendix for definitions of Customers and Customers Generating Over $50,000 of ARR. 2025 © Klaviyo 15

  16. Slide 16: We help customers drive revenue

    We help customers drive revenue Getting the right discount to the right customer. Modernizing & consolidating B2C & B2B tech stack. Leveraging segmented testing to drive revenue. To increase customer lifetime value, Ruffwear wanted to Luxury British fashion icon Paul Smith modernized its Legal Sea F

  17. Slide 17: Customer testimonial: Klaviyo Customer Hub

    Customer expectations are at an all-time high, and managing loyalty, referrals, rewards, and subscriptions can be a challenge. We wanted to simplify the experience for our loyal customers, and Klaviyo Customer Hub made that possible. It’s now a central part of our customer retention strategy.” VP of

  18. Slide 18: Multiple growth vectors in play

    Multiple growth vectors in play - long runway of near- and long-term opportunities Launch Enable developer- led apps new Expand use cases into new Continue to verticals Broad platform Grow in the innovate in applicability mid-market & marketing Customer Open enterprise Integrations Expand Reviews (M

  19. Slide 19: $68B Large & growing market

    Global TAM ~1% penetrated $68B Large & growing market opportunity - U.S. TAM Across verticals ~3% penetrated $34B significant white space SAM Retail & eCommerce ~6% penetrated $16B 1 For the fiscal year ended December 31, 2024 $937M 2025 © Klaviyo 19 TAM source data: Statista, Analysys Mason, Klaviy

  20. Slide 20: Our partner ecosystem enriches customer offerings

    Our partner ecosystem enriches customer offerings and accelerates our customer acquisition engine Stickier customer relationships ● Scalable flywheel enables efficient customer acquisition and partner growth Enhance Co-market ● Depth of integrations and broader product Technology eCommerce Strategic

  21. Slide 21: Financials

    Financials 2025 © Klaviyo 21

  22. Slide 22: Q4 2024 financial highlights

    Q4 2024 financial highlights1 Operating at Scale $270M Quarterly revenue Strong Revenue Growth 34% Year-over-year growth rate Healthy Expansion With Our Customers 108% Dollar-Based Net Revenue Retention Rate2 Momentum in the Mid Market 46% Year-over-year growth in Customers > $50K ARR3 Generating St

  23. Slide 23: Revenue growth at scale

    Revenue growth at scale YoY Growth 48% 34% 39% 35% 35% 34% 34% 2025 © Klaviyo 23

  24. Slide 24: Strong customer growth

    Strong customer growth1 2 2 +17% +46% 1 All figures are as of December 31, 2024 or 2023, as indicated. 2025 © Klaviyo 24 2 See Appendix for definitions of Customers and Customers Generating Over $50,000 of ARR.

  25. Slide 25: Continuing to diversify internationally

    Continuing to diversify internationally Key highlights ● 41% YoY international revenue growth ● Notable strength in EMEA, particularly in France, Germany, and the Nordics ● 7 languages supported on the Klaviyo platform ● Klaviyo SMS available in 19 countries ● Added customers across the globe includ

  26. Slide 26: Measured investments against our market opportunities

    Measured investments against our market opportunities Key drivers ▪ Employee bonus plan implemented in 2024 drove additional costs in each line item ▪ G&A leverage due to the release of international tax related reserves and the lapping of IPO costs ▪ R&D held flat as we continue to invest in new pr

  27. Slide 27: Continued growth of non-GAAP operating margin

    Continued growth of non-GAAP operating margin Non-GAAP 11% 12% Operating Margin See Appendix for Non-GAAP reconciliation. 2025 © Klaviyo 27

  28. Slide 28: Consistent free cash flow generation

    Consistent free cash flow generation TTM Free Cash Flow Margin 16% 16% 14% 15% 16% 2025 © Klaviyo 28 See Appendix for Non-GAAP reconciliation.

  29. Slide 29: Guidance

    Guidance ($ in millions) Q1 FY25 FY25 Revenue $265 - $269 $1,156 - $1,164 YoY Growth 26% - 28% 23% - 24% Non-GAAP Operating Income $25.5 - $28.5 $130 - $136 Non-GAAP Operating Margin 10%-11% 11%-12% 2025 © Klaviyo 29 Guidance issued as of February 19, 2025

  30. Slide 30: Appendix

    Appendix 2025 © Klaviyo 30

  31. Slide 31: Summary Non-GAAP P&L (Quarterly)

    Summary Non-GAAP P&L (Quarterly) ($ in millions) FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 Revenue $201.6 $210.0 $222.2 $235.1 $270.2 Cost of Revenue $41.9 $42.4 $47.5 $52.1 $69.6 Gross Profit $159.8 $167.6 $174.7 $183.0 $200.6 Gross margin % 79.2% 79.8% 78.6% 77.8% 74.2% Selling and marketing $77.3 $

  32. Slide 32: Summary Non-GAAP P&L (Yearly)

    Summary Non-GAAP P&L (Yearly) ($ in Millions) FY 2024 FY 2023 Revenue $937.5 $698.1 Cost of Revenue $211.5 $150.2 Gross Profit $725.9 $547.9 Gross margin % 77.4% 78.5% Selling and marketing $307.9 $229.0 Research and development $184.2 $136.7 General and administrative $121.4 $104.1 Total operating e

  33. Slide 33: GAAP to Non-GAAP reconciliation of Operating Income

    GAAP to Non-GAAP reconciliation of Operating Income 2025 © Klaviyo 33

  34. Slide 34: GAAP to Non-GAAP reconciliation of Gross Profit

    GAAP to Non-GAAP reconciliation of Gross Profit 2025 © Klaviyo 34

  35. Slide 35: GAAP to Non-GAAP reconciliation of Operating Expenses

    GAAP to Non-GAAP reconciliation of Operating Expenses 2025 © Klaviyo 35

  36. Slide 36: GAAP to Non-GAAP reconciliation of Operating Expenses

    GAAP to Non-GAAP reconciliation of Operating Expenses 2025 © Klaviyo 36

  37. Slide 37: Reconciliation of Operating Cash Flow to Free Cash Flow

    Reconciliation of Operating Cash Flow to Free Cash Flow 2025 © Klaviyo 37

  38. Slide 38: Select defined terms

    Select defined terms Customers: We define a customer as a distinct paid subscription to our platform. A single organization could have multiple discrete contracting divisions or subsidiaries or brands each with paid subscriptions to our platform, which would, in general, constitute multiple distinct

  39. Slide 39: klaviyo

    klaviyo™

Klaviyo — Q4 2024 Earnings Presentation on 6ix