Klaviyo Q4 Revenue Jumps 30% to $350M; Free Cash Flow Up 61%
Klaviyo reported Q4 revenue of $350 million, up 30% year-over-year, with non-GAAP operating income of $51 million and a 73% gross margin. Free cash flow rose 61% to $87 million, pushing the cash balance above $1 billion for the first time.
1. Fourth-Quarter Financial Performance
Klaviyo's fourth-quarter revenue reached $350 million, representing a 30% year-over-year increase. Non-GAAP operating income was $51 million, with a 15% operating margin, while gross margin stood at 73% and operating expenses fell to their lowest post-IPO level at 58% of revenue.
2. Cash Flow and Balance Sheet Strength
Free cash flow surged 61% year-over-year to $87 million, driving the full-year non-GAAP operating income to $169 million with a 14% margin. Free cash flow margin hit 16%, and Klaviyo's cash balance topped $1 billion for the first time, underscoring its liquidity.
3. Customer and Product Expansion
The company now serves over 193,000 customers across more than 100 countries, with 60% of annual recurring revenue coming from multiproduct customers and over 15% from customers using at least three products. This highlights strong cross-sell dynamics and potential expansion within the existing customer base.
4. Analyst Reaction and Valuation Outlook
Jefferies reduced its price target on Klaviyo from $35 to $29 while retaining a Buy rating, citing the solid fourth-quarter results but expressing unresolved long-term questions about the company's AI strategy and growth prospects.