Klaviyo reported third‑quarter revenue of $310.9 million, up 32% from $235.1 million in Q3 2024, and a non‑GAAP earnings per share of $0.18, beating the consensus estimate of $0.14 by $0.04 (a 28.6% beat). The revenue lift was driven by strong demand in the U.S. enterprise segment and a 43% increase in international revenue, particularly in EMEA and APAC, where the company added new mid‑market customers and expanded its AI‑powered marketing tools.
Gross margin held steady at 76%, matching the prior quarter, while non‑GAAP operating income rose to $45.0 million, a 14% operating margin. The margin stability reflects a mix shift toward higher‑margin AI and automation products that offset rising SMS and infrastructure costs. The company’s GAAP operating loss figure of $10.8 million was not corroborated by the fact‑check and has been omitted.
Management raised its full‑year 2025 revenue guidance to $1.215 billion–$1.219 billion from the previous $1.171 billion–$1.179 billion range, and lifted the fourth‑quarter revenue outlook to $331 million–$335 million. The guidance increase signals confidence that the momentum from AI product adoption and international expansion will continue, while the company expects to maintain a non‑GAAP operating margin of 13%–14% for the year, up from the prior 11%–12% estimate.
Segment analysis shows that the enterprise and mid‑market customer base grew by 18% YoY, driven by deeper adoption of Klaviyo’s K:Service and Marketing Agent AI tools. International revenue grew 43% YoY, with EMEA and APAC contributing 25% of total revenue, underscoring the company’s successful global expansion strategy.
CEO Andrew Bialecki said the quarter was “outstanding” and highlighted the “accelerating momentum behind our agentic products.” CFO Amanda Whalen noted that the company is “executing on multiple growth engines” and that the “robust financial performance” is a result of disciplined cost management and strategic investments in high‑return verticals.
Analysts and investors reacted positively to the earnings beat and guidance raise, citing the company’s strong revenue growth, margin resilience amid rising infrastructure costs, and the rapid adoption of AI‑driven products as key drivers of the favorable market reaction.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.