Q1 2024 Klaviyo Inc Earnings Call Transcript
Key Points
- Klaviyo Inc (KVYO) reported a strong revenue growth of 35% year-over-year, reaching $210 million in the first quarter.
- The company achieved a non-GAAP operating margin of 14% and generated $23 million of free cash flow.
- Klaviyo Inc (KVYO) has expanded its customer base significantly, now serving over 146,000 customers, which is a 17% increase year-over-year.
- The company's dollar-based net revenue retention rate (NRR) stands at 114%, indicating strong customer expansion and retention.
- Klaviyo Inc (KVYO) has made significant advancements in AI integration into their products, enhancing customer engagement and marketing effectiveness.
- Despite overall growth, there was a noted softness in new logo additions, particularly among the smallest entrepreneur customers.
- The company anticipates a few points decline in NRR over the coming quarters due to the lapping of a previous price increase and ongoing customer spending trends.
- Klaviyo Inc (KVYO) faces increased costs associated with the SMS channel, which are expected to impact gross margins negatively in the upcoming quarters.
- There is a sequential step down in operating margin expected in Q2 due to timing of investments made in Q1, particularly in engineering and go-to-market efforts.
- The company's Chief Technology Officer, Alan Chavez, has decided to step down at the end of the year, which could lead to transitional challenges in the tech leadership.
Good afternoon, and welcome to Klaviyo's first quarter of fiscal 2024 earnings conference call. (Operator Instructions)
Thank you. With that, I'd like to turn the call over to Jack Grant, Senior Director of Investor Relations and Strategic Finance. Please go ahead.
Thanks, operator. I'm excited to welcome you to Klaviyo's first-quarter 2024 earnings call. We will be discussing the results announced in the press release issued after the market close today. Please refer to our Investor Relations website at investors.klaviyo.com for more information and the supplemental presentation related to today's earnings announcement.
With me on the call today are Andrew Bialecki, Co-Founder and Chief Executive Officer; and Amanda Whalen, Chief Financial Officer.
During today's call, we will make statements regarding our business that may be considered forward-looking under applicable securities laws and the Safe Harbor provisions of the Private Securities
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