Klaviyo Reports Q1 2025 Earnings

SaaS
Written By Rick Watson

My summary of earnings is simple: Klaviyo continues to grow quickly - faster than Shopify - and is currently trading efficiency for higher growth rates.

Here are a few takeaways from the call:

* First quarter revenue grew 33% year over year. Even higher than this are growth rates of customers over $50k Annual Recurring Revenue of 40%, and EMEA growth rates of 47%.

* Unfortunately to generate this revenue, Klaviyo had to spend a lot of money. Year over year sales and marketing costs were up 34%, while R&D costs were up 23%. This pushed the company’s net losses 9% worse.

I’ll end on this note, Klaviyo now has over 169,000 customers total, representing a 16% year over year growth. And of those, about 1,000 customers are now paying it over $100k a year in ARR. This is a significant milestone for them, so congrats on the growth!

I’m still bullish on Klaviyo as a product line and expect the company to continue winning business across a variety of eCommerce scenarios.

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
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