FALSE000183583000018358302023-11-072023-11-07

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
___________________________________

Date of Report (date of earliest event reported): November 7, 2023
KLAVIYO, INC.
(Exact name of registrant as specified in its charter)
___________________________________

Delaware
(State or other jurisdiction of
incorporation or organization)
001-41806
(Commission File Number)
46-0989964
(I.R.S. Employer Identification Number)
125 Summer Street, 6th Floor, Boston, MA
   02110
(Address of Principal Executive Offices)
(Zip Code)
(617) 213-1788
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Series A common stock, par value $0.001 per shareKVYONew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.
Emerging growth company    ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02 - Results of Operations and Financial Condition
On November 7, 2023, Klaviyo, Inc. issued a press release announcing financial results for the third quarter ended September 30, 2023. A copy of the release is furnished with this report as Exhibit 99.1.

The information in this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01 - Financial Statements and Exhibits
(d) The following exhibits are being filed herewith:

Exhibit No.Description
99.1
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 7th day of November, 2023.



KLAVIYO, INC.
By:
/s/ Amanda Whalen
Name:
Amanda Whalen
Title:
Chief Financial Officer


Klaviyo Announces Third Quarter 2023 Financial Results

Third quarter revenue of $175.8 million, representing 48% year-over-year growth
Expanded platform with launch of Klaviyo CDP

BOSTON, November 7, 2023 — Klaviyo (NYSE: KVYO), the company that powers smarter digital relationships, today announced results for its third quarter ended September 30, 2023.

“Our strong third quarter results validate the strength of our purpose – to help businesses leverage their data to power smarter digital relationships with their customers,” said Andrew Bialecki, co-founder and CEO of Klaviyo. “Today, we are proud to report our inaugural quarterly financial results as a public company with revenue of $175.8 million and 10% non-GAAP operating margin. We are excited that companies and organizations like Stanley 1913, the San Francisco Marathon, Ouai, and others have chosen to switch to or expand with Klaviyo over the past quarter to drive their revenue growth and build better customer relationships.”

Recent Business Highlights:

●Ended the quarter with over 135,000 customers who are using Klaviyo to drive their own revenue growth, compared to over 109,000 customers in the third quarter of 2022.
●Increased our penetration up market, ending the quarter with 1,699 customers generating over $50,000 of ARR, compared to 899 in the third quarter of 2022, an increase of 89% year over year.
●Continued to expand our current customer base, with a dollar-based net revenue retention rate (NRR) of 119% as of September 30, 2023, marking our 10th straight quarter with a NRR of at least 115%.
●Announced the launch of the Klaviyo CDP, giving businesses a single source of truth for all customer data, and advanced analytics to help them understand their audiences and business performance.
●Hired former Salesforce executive and Chief Marketing Officer of GoTo, Jamie Domenici, as our Chief Marketing Officer to lead all global strategic marketing initiatives.

Third Quarter 2023 Financial Highlights:

●Revenue: Total revenue of $175.8 million, up from $119.2 million in the third quarter of 2022, representing annual growth of 48%.
●Gross profit: Gross profit of $117.0 million, representing a gross margin of 67%, compared to gross profit of $86.5 million, representing a gross margin of 73%, in the third quarter of 2022.
●Non-GAAP gross profit: Non-GAAP gross profit of $140.3 million, representing a gross margin of 80%, compared to non-GAAP gross profit of $86.6 million, representing a gross margin of 73%, in the third quarter of 2022.
●Operating income (loss): Operating loss of $(302.2) million, representing operating margin of (172)%, compared to an operating loss of $(25.7) million in the third quarter of 2022, representing an operating margin of (22)%.
●Non-GAAP operating income (loss): Non-GAAP operating income of $17.8 million, representing non-GAAP operating margin of 10%, compared to a non-GAAP operating loss of $(16.3) million in the third quarter of 2022, representing non-GAAP operating margin of (14)%.
●Balance sheet and cash flow: Cash, cash equivalents, and restricted cash as of the end of the third quarter was $724.4 million. Cash from operating activities was $23.7 million, representing a margin of 13%. Free cash flow for the third quarter was $21.9 million, representing free cash flow margin of 12%.



“In the third quarter our team continued to drive strong growth, at scale, in an efficient manner.” said Amanda Whalen, CFO of Klaviyo. “We delivered $175.8 million in revenue and $17.8 million in non-GAAP operating income. In the fourth quarter we’ll continue to invest in our key growth initiatives, including our penetration in the mid-market and internationally, with a continued focus on areas with strong unit economics.”


Financial Outlook
$ in millions
FY23-Q4 Guidance
FY23 Guidance
LowHighLowHigh
Revenue
$ 195.0
$ 197.0
$ 691.5
$ 693.5
Year-over-year Growth Rate34%36%46%47%
Non-GAAP Operating Income
$14.0
$17.0
$75.9
$78.9
Non-GAAP Operating Margin7%9%11%11%

Klaviyo has not provided a reconciliation of non-GAAP operating income guidance measures to the most directly comparable GAAP measures because certain items excluded from GAAP cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort. Stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change.


Dilutive Securities
Klaviyo has various dilutive securities. The table below details these securities (shares in millions; rounding differences may occur):

Price as of September 30, 2023Weighted Average Exercise PriceShares
Share price$34.50 
Common stock outstanding as of 9/30/2023258.3 
Warrants outstanding5.5 
RSUs outstanding13.4 
Options outstanding$0.54 31.8 
Total estimated fully diluted shares309.0 
    

We have excluded the impact of the Shopify investment option of 15,743,174 shares at $88.93 per share as it was out of the money as of September 30, 2023. The investment option expires on July 28, 2030.







Conference Call Information

In conjunction with this announcement, Klaviyo will host a conference call for investors at 4:30 p.m. ET (1:30 p.m. PT) today to discuss the results for its third quarter ended September 30, 2023 and its outlook for its fourth quarter and fiscal year ending December 31, 2023. The live webcast and a replay of the webcast will be available at the Investor Relations section of Klaviyo’s website: https://investors.klaviyo.com (live and replay).

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 customers. In some cases at the customer’s request, we allow subscriptions under the same parent organization to be consolidated into a single paid subscription in which case such consolidated paid subscriptions would constitute a single customer. We measure our total number of customers as a point-in-time calculation measured as of the end of a particular period. Customers do not include persons or entities that use our platform on a free trial basis.
Customers Generating Over $50,000 of ARR. We calculate our number of customers generating over $50,000 of ARR as those customers that have an average ARR of greater than $50,000 over the prior twelve months (or the entire duration of the customer’s paying relationship, if it is less than twelve months) as of the date of determination.
Dollar-Based Net Revenue Retention Rate. We calculate our Dollar-Based Net Revenue Retention Rate, or NRR, by first identifying the cohort of customers as of twelve months prior to the date of determination. We then calculate the Annualized Recurring Revenue, or ARR, from this customer cohort as of twelve months prior to the date of determination, or the Prior Period ARR, and the ARR from this customer cohort as of the date of determination, or the Current Period ARR. ARR, for any date of determination, is the annualized value of existing paid subscriptions, which we calculate by taking the amount of revenue that we expect to receive in the next monthly period for our existing paid subscriptions, assuming no changes to such subscriptions in the next month, as of that date of determination, and multiplying that amount by twelve. Current Period ARR includes any expansion, price increases, and customer subscriptions that are deactivated and subsequently reactivated during the applicable twelve-month period and reflects contraction or attrition over the last twelve months from this customer cohort, but excludes any ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time NRR. We then calculate the weighted average point-in-time NRR as of the last day of each month in the current trailing twelve-month period to arrive at the NRR, with the weightings determined by the total ARR at the end of each period.
About Klaviyo

Klaviyo (CLAY-vee-oh) powers smarter digital relationships, making it easy for businesses to capture, store, analyze, and predictively use their own data to drive measurable, high-value outcomes. Klaviyo’s modern and intuitive SaaS platform enables business users of any skill level to harness their first-party data from more than 300 integrations to send the right message at the right time across email, SMS, and push notifications. Innovative businesses like Good American, TaylorMade, Skims, Stanley 1913, and more than 135,000 other paying customers leverage Klaviyo to acquire, engage, and retain customers—and grow on their own terms.





Contact

Investor Relations
Jack Grant
ir@klaviyo.com

Press
Lacey Berrien
press@klaviyo.com

Forward Looking Statements

This press release 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 press release, including, but not limited to, statements about Klaviyo’s outlook for the fourth quarter of fiscal year 2023 ending December 31, 2023 and the full fiscal year ending December 31, 2023, and Klaviyo’s expectations regarding possible or assumed business strategies, potential growth and innovation opportunities, new products, potential market opportunities, and other similar matters, are forward-looking statements. Words such as “aim,” “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “future,” “going to,” “guidance,” “intend,” “keep,” “may,” “opportunity,” “outlook,” “plan,” “potential,” “predict,” “project,” “shall,” “should,” “strategy,” “target,” “will,” “would,” or words of similar meaning or similar references to future periods may identify these forward-looking statements, although not all forward-looking statements contain these identifying words.
Forward-looking statements reflect management’s beliefs, expectations and assumptions about future events as of the date hereof, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. These risks include, among others, the following: our ability to achieve future growth and sustain our growth rate; our ability to successfully execute our business and growth strategy, such as the success of our investment in our key growth initiatives and our ability to recognize effective areas for growth; our ability to successfully integrate with third-party platforms; our relationships with third parties, such as our marketing agency and technology partners; unfavorable conditions in our industry; our ability to attract new customers, including mid-market and enterprise customers, retain revenue from existing customers and increase sales from both new and existing customers; success of our marketing and sales strategies; costs and expenses associated with being a public company; as well as other risks and uncertainties set forth under the caption “Risk Factors” and elsewhere in our Quarterly Report on Form 10-Q for the third quarter ended September 30, 2023 to be filed with the Securities and Exchange Commission (the “SEC”) and other filings and reports we make with the SEC from time to time, which may be obtained on our Investor Relations website at https://investors.klaviyo.com and on the SEC website at www.sec.gov. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor(s) may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. In light of the risks, uncertainties, assumptions, and other factors, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Therefore, you should not rely on any of the forward-looking statements. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Other than as required by law, we assume no obligation to update any forward-looking statements contained in this press release in the event of new information, future developments or otherwise.



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 press release and the accompanying tables contain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP operating income (loss), non-GAAP operating margin, free cash flow, and free cash flow margin. The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Please see the accompanying tables for reconciliations of these non-GAAP financial measures to their nearest GAAP equivalents.

Our non-GAAP gross profit and non-GAAP operating income (loss) exclude significant expenses and income that are required by GAAP to be recorded in our consolidated financial statements, including, but not limited to, (i) amortization of prepaid marketing expenses, (ii) stock-based compensation and related employer payroll taxes, and (iii) restructuring expenses. Our non-GAAP operating margin is calculated as non-GAAP operating income (loss) divided by total revenue. Free cash flow is defined as cash and cash equivalents provided by or used in operating activities less purchases of property and equipment and capitalization of software development costs. Free cash flow margin is a non-GAAP financial measure that is calculated as free cash flow divided by total revenue.

We believe that all these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to decision making by our management, who use these measures as important tools for financial and operational decision-making and for evaluating Klaviyo’s own operating results over different periods of time.
Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures versus their nearest GAAP equivalents. Other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Further, stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in Klaviyo’s business and an important part of the compensation provided to attract and retain its employees to create long-term incentive alignment with stockholders.



Klaviyo, Inc.
Consolidated Balance Sheet (Unaudited)
(In Thousands)
As of
September 30, 2023December 31, 2022
Assets
Current assets:
Cash and cash equivalents$723,415 $385,820 
Restricted cash386 409 
Accounts receivable, net of allowance for doubtful accounts17,380 10,723 
Deferred contract acquisition costs, current14,161 11,215 
Prepaid expenses and other current assets26,010 19,336 
Total current assets781,352 427,503 
Property and equipment, net42,730 45,837 
Right-of-use assets, net39,506 45,695 
Deferred contract acquisition costs, non-current20,687 15,983 
Restricted cash, non-current648 687 
Prepaid marketing expense178,968 84,415 
Other non-current assets7,533 8,959 
Total assets$1,071,424 $629,079 
Liabilities, redeemable common stock, and stockholders' equity (deficit)
Current liabilities:
Accounts payable$9,738 $8,890 
Accrued expenses62,602 36,126 
Lease liabilities, current14,449 14,864 
Deferred revenue32,866 25,109 
Total current liabilities119,655 84,989 
Lease liabilities, non-current40,016 47,544 
Other non-current liabilities6,409 876 
Total liabilities166,080 133,409 
Redeemable Common Stock
Redeemable common stock— 1,531,853 
Stockholders' equity (deficit)
Preferred stock— — 
Common stock - Series A33 — 
Common stock - Series B226 171 
Additional paid-in capital1,677,833 1,249,065 
Accumulated deficit(772,748)(2,285,419)
Total stockholders' equity (deficit)905,344 (1,036,183)
Total liabilities, redeemable common stock, and stockholders' equity (deficit)$1,071,424 $629,079 




Klaviyo, Inc.
Consolidated GAAP Statement of Operations (Unaudited)
(In Thousands, Except Share and Per Share Data)
Three Months Ended September 30,
20232022
Revenue$175,807 $119,168 
Cost of revenue58,825 32,619 
Gross profit116,982 86,549 
Operating expenses:
Selling and marketing167,877 61,482 
Research and development141,455 30,090 
General and administrative109,853 20,640 
Total operating expenses419,185 112,212 
Operating loss(302,203)(25,663)
Other (expense) income(265)529 
Interest income6,183 1,537 
Total other income expense5,918 2,066 
Loss before income taxes(296,285)(23,597)
Provision for income taxes819 276 
Net loss$(297,104)$(23,873)
Net loss per share
Basic and Diluted$(1.24)$(0.10)
Weighted average shares outstanding
Basic and Diluted240,125,168 231,973,229 














Klaviyo, Inc.
Consolidated GAAP Statement of Operations (Unaudited)
(In Thousands, Except Share and Per Share Data)
Nine Months Ended September 30,
20232022
Revenue$496,481 $327,513 
Cost of revenue132,875 90,694 
Gross profit363,606 236,819 
Operating expenses:
Selling and marketing291,845 153,401 
Research and development209,542 75,365 
General and administrative156,511 59,012 
Total operating expenses657,898 287,778 
Operating loss(294,292)(50,959)
Other (expense) income(344)703 
Interest income14,484 1,963 
Total other income14,140 2,666 
Loss before income taxes(280,152)(48,293)
Provision for income taxes1,786 145 
Net loss$(281,938)$(48,438)
Net loss per share
Basic and Diluted$(1.19)$(0.21)
Weighted average shares outstanding
Basic and Diluted237,411,574 228,271,900 














Klaviyo, Inc.
Consolidated Statement of Cash Flows (Unaudited)
(In Thousands)
Three Months Ended September 30,
20232022
Operating activities
Net loss$(297,104)$(23,873)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense3,357 2,104 
Non-cash operating lease costs3,088 2,629 
Amortization of deferred contract acquisition costs4,117 2,769 
Amortization of prepaid marketing expense13,224 8,816 
Bad debt expense415 275 
Stock-based compensation expense299,975 522 
Other89 9 
Changes in operating assets and liabilities:
Accounts receivable(4,629)(1,310)
Deferred contract acquisition costs(6,992)(4,913)
Prepaid expenses, prepaid taxes, and other assets(1,557)(1,378)
Accounts payable1,297 (3,239)
Accrued expenses3,079 (1,537)
Deferred revenue3,706 3,144 
Operating lease liabilities(3,846)(1,352)
Other non-current liabilities5,481 10 
Net cash provided by (used in) operating activities23,700 (17,324)
Investing activities
Acquisition of property and equipment(54)(4,427)
Capitalization of software development costs(1,776)(585)
Net cash used in investing activities(1,830)(5,012)
Financing activities
Proceeds from exercise of common stock awards1,616 95 
Cash paid for finance leases(5)(6)
Proceeds from exercise of warrants45 40 
Proceeds from issuance of common stock, net of issuance costs— 99,558 
Recognition of deferred offering costs2,954 — 
Proceeds from issuance of common stock in initial public offering, net of issuance costs321,029 — 
Employee taxes paid related to net share settlement of stock-based awards(62,863)— 
    Net cash provided by financing activities262,776 99,687 
Net increase in cash, cash equivalents, and restricted cash284,646 77,351 
Cash, cash equivalents, and restricted cash, beginning of period439,803 291,123 
Cash, cash equivalents, and restricted cash, end of period$724,449 $368,474 



Klaviyo, Inc.
Consolidated Statement of Cash Flows (Unaudited)
(In Thousands)
Nine Months Ended September 30,
20232022
Operating activities
Net loss$(281,938)$(48,438)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense9,823 6,216 
Non-cash operating lease costs9,649 8,218 
Amortization of deferred contract acquisition costs11,380 7,473 
Amortization of prepaid marketing expense39,672 8,816 
Bad debt expense368 533 
Stock-based compensation expense302,317 6,245 
Other108 28 
Changes in operating assets and liabilities:
Accounts receivable(7,025)(4,912)
Deferred contract acquisition costs(19,030)(14,244)
Prepaid expenses, prepaid taxes, and other assets(5,479)(6,452)
Accounts payable389 (18,693)
Accrued expenses18,668 10,158 
Deferred revenue7,757 6,325 
Operating lease liabilities(11,482)(5,769)
Other non-current liabilities5,550 30 
Net cash provided by (used in) operating activities80,727 (44,466)
Investing activities
Acquisition of property and equipment(823)(14,392)
Capitalization of software development costs(4,612)(1,526)
Net cash used in investing activities(5,435)(15,918)
Financing activities
Proceeds from exercise of common stock options4,034 1,363 
Cash paid for finance leases(16)(16)
Proceeds from exercise of warrants57 40 
Proceeds from issuance of common stock, net of issuance costs— 99,558 
Proceeds from issuance of common stock in initial public offering, net of issuance costs321,029 — 
Employee taxes paid related to net share settlement of stock-based awards(62,863)— 
Net cash provided by financing activities262,241 100,945 
Net increase in cash, cash equivalents, and restricted cash337,533 40,561 
Cash, cash equivalents, and restricted cash, beginning of period386,916 327,913 
Cash, cash equivalents, and restricted cash, end of period$724,449 $368,474 



Klaviyo, Inc.
Reconciliation of Operating Income to Non-GAAP Operating Income (Unaudited)
(In Thousands)
Three Months Ended September 30,
20232022
Operating loss$(302,203)$(25,663)
Stock-based compensation299,975 522 
Employer payroll tax on employee stock transactions6,838 — 
Amortization of prepaid marketing13,224 8,816 
Non-GAAP operating income (loss)$17,834 $(16,325)
Operating margin(171.9)%(21.5)%
Non-GAAP operating margin10.1 %(13.7)%





Klaviyo, Inc.
Reconciliation of Gross Profit to Non-GAAP Gross Profit (Unaudited)
(In Thousands)
Three Months Ended September 30,
20232022
Gross profit$116,982 $86,549 
Stock-based compensation21,902 25 
Employer payroll tax on employee stock transactions1,451 — 
Non-GAAP gross profit$140,335 $86,574 
Gross margin66.5 %72.6 %
Non-GAAP gross margin79.8 %72.6 %


















Klaviyo, Inc.
Reconciliation of Expenses to Non-GAAP Expenses (Unaudited)
(In Thousands)


Three Months Ended September 30,
20232022
Selling and marketing$167,877 $61,482 
Stock-based compensation(95,962)(96)
Employer payroll tax on employee stock transactions(2,515)— 
Amortization of prepaid marketing
(13,224)(8,816)
Non-GAAP Selling and marketing
$56,176 $52,570 
Research and development$141,455 $30,090 
Stock-based compensation(104,829)(298)
Employer payroll tax on employee stock transactions(1,675)— 
Non-GAAP Research and development
$34,951 $29,792 
General and administrative$109,853 $20,640 
Stock-based compensation(77,282)(103)
Employer payroll tax on employee stock transactions(1,197)— 
Non-GAAP General and administrative
$31,374 $20,537 
Total operating expenses$419,185 $112,212 
Stock-based compensation(278,073)(497)
Employer payroll tax on employee stock transactions(5,387)— 
Amortization of prepaid marketing(13,224)(8,816)
Non-GAAP Total operating expenses$122,501 $102,899 












Klaviyo, Inc.
Reconciliation of Operating Income to Non-GAAP Operating Income (Unaudited)
(In Thousands)
Nine Months Ended September 30,
20232022
Operating loss$(294,292)$(50,959)
Stock-based compensation302,317 6,245 
Employer payroll tax on employee stock transactions6,838 — 
Amortization of prepaid marketing39,672 8,816 
Restructuring expense7,366 — 
Non-GAAP operating income (loss)$61,901 $(35,898)
Operating margin(59.3)%(15.6)%
Non-GAAP operating margin12.5 %(11.0)%




Klaviyo, Inc.
Reconciliation of Gross profit to Non-GAAP gross profit (Unaudited)
(In Thousands)
Nine Months Ended September 30,
20232022
Gross profit$363,606 $236,819 
Stock-based compensation21,945 105 
Employer payroll tax on employee stock transactions1,451 — 
Restructuring expense1,156 — 
Non-GAAP gross profit$388,158 $236,924 
Gross margin73.2 %72.3 %
Non-GAAP gross margin78.2 %72.3 %
















Klaviyo, Inc.
Reconciliation of Expenses to Non-GAAP Expenses (Unaudited)
(In Thousands)


Nine Months Ended September 30,
20232022
Selling and marketing$291,845 $153,401 
Stock-based compensation(96,141)(909)
Employer payroll tax on employee stock transactions(2,515)— 
Restructuring expense
(1,802)— 
Amortization of prepaid marketing
(39,672)(8,816)
Non-GAAP Selling and marketing
$151,715 $143,676 
Research and development$209,542 $75,365 
Stock-based compensation(105,642)(932)
Employer payroll tax on employee stock transactions(1,675)— 
Restructuring expense
(3,300)— 
Non-GAAP Research and development
$98,925 $74,433 
General and administrative$156,511 $59,012 
Stock-based compensation(78,589)(4,299)
Employer payroll tax on employee stock transactions(1,197)— 
Restructuring expense
(1,108)— 
Non-GAAP General and administrative
$75,617 $54,713 
Total operating expenses$657,898 $287,778 
Stock-based compensation(280,372)(6,140)
Employer payroll tax on employee stock transactions(5,387)— 
Restructuring expense
(6,210)— 
Amortization of prepaid marketing(39,672)(8,816)
Non-GAAP Total operating expenses$326,257 $272,822 











Klaviyo, Inc.
Reconciliation of Operating Cash Flow to Free Cash Flow (Unaudited)
(In Thousands)
Three Months Ended September 30,
20232022
Cash Provided by (used in) operating activities$23,700 $(17,324)
Acquisition of property and equipment(54)(4,427)
Capitalization of software development costs(1,776)(585)
Free cash flow$21,870 $(22,336)
Operating cash flow margin13.5 %(14.5)%
Free cash flow margin12.4 %(18.7)%

Klaviyo, Inc.
Reconciliation of Operating Cash Flow to Free Cash Flow (Unaudited)
(In Thousands)
Nine Months Ended September 30,
20232022
Cash Provided by (used in) operating activities$80,727 $(44,466)
Acquisition of property and equipment(823)(14,392)
Capitalization of software development costs(4,612)(1,526)
Free cash flow$75,292 $(60,384)
Operating cash flow margin16.3 %(13.6)%
Free cash flow margin15.2 %(18.4)%






v3.23.3
Cover
Nov. 07, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 07, 2023
Entity Registrant Name KLAVIYO, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-41806
Entity Tax Identification Number 46-0989964
Entity Address, Address Line One 125 Summer Street
Entity Address, Address Line Two 6th Floor
Entity Address, City or Town Boston
Entity Address, State or Province MA
Entity Address, Postal Zip Code 02110
City Area Code 617
Local Phone Number 213-1788
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Series A common stock, par value $0.001 per share
Trading Symbol KVYO
Security Exchange Name NYSE
Entity Emerging Growth Company true
Entity Ex Transition Period false
Amendment Flag false
Entity Central Index Key 0001835830
Klaviyo (NYSE:KVYO)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more Klaviyo Charts.
Klaviyo (NYSE:KVYO)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more Klaviyo Charts.