Klaviyo 2025 Q1 Earnings Net Loss Widens Despite Revenue Growth

Klaviyo (KVYO) reported its fiscal 2025 Q1 earnings on May 06th, 2025. Klaviyo's first-quarter results showed significant revenue growth of 33% year-over-year, exceeding expectations. Despite this achievement, the company experienced a wider net loss, which was below market expectations. In response to these results, Klaviyo has raised its full-year 2025 revenue guidance, forecasting growth between 25% and 26%. This adjustment reflects Klaviyo's confidence in its strategic initiatives aimed at enhancing customer engagement and expanding its market presence. The upcoming quarter guidance also suggests sustained growth, positioning the company to capitalize on evolving market opportunities and deliver value to its stakeholders.

Revenue
The total revenue of Klaviyo increased by 33.3% to $279.83 million in 2025 Q1, up from $209.99 million in 2024 Q1.

Earnings/Net Income
Klaviyo maintained stable EPS at $-0.05 in 2025 Q1 compared to 2024 Q1. Meanwhile, the company's net loss widened to $-14.09 million in 2025 Q1, representing a 9.4% increase from the $-12.88 million loss recorded in 2024 Q1. The EPS performance indicates ongoing challenges for Klaviyo despite revenue growth.

Price Action
The stock price of Klaviyo has edged up 2.70% during the latest trading day, has climbed 5.86% during the most recent full trading week, and has jumped 13.34% month-to-date.

Post Earnings Price Action Review
Over the past five years, the strategy of buying Klaviyo (KVYO) shares after a revenue increase quarter-over-quarter and holding for 30 days resulted in a -10.99% return, significantly underperforming the benchmark with a Sharpe Ratio of -0.43 and a maximum drawdown of -25.85%. The strategy's CAGR was -7.11%, indicating a decline in value, and had a volatility of 16.41%, suggesting significant risk and fluctuations in the portfolio. Despite positive revenue momentum, the overall strategy has faced substantial challenges, reflecting a volatile market environment and the inherent risks associated with short-term trading strategies. Investors should consider these factors when evaluating Klaviyo's stock performance post-earnings announcements, as historical trends indicate potential drawbacks in relying solely on revenue growth for investment decisions.

CEO Commentary
Andrew Bialecki - Co-Founder and CEO: Klaviyo delivered a strong start to 2025 with Q1 revenue of $280 million, representing 33% year-over-year growth. We are executing well on our strategy to deliver sustainable, efficient long-term growth, particularly in the mid-market and internationally. Our vertically-integrated data-first approach, combined with advanced AI-driven analytics, positions Klaviyo uniquely in redefining consumer engagement. We are seeing strong traction with our new offerings, and customers are excited about our ability to drive personalized consumer experiences. While customers are feeling tentative, they remain optimistic about leveraging existing relationships and consolidating their tech stacks to enhance efficiency and ROI.

Guidance
For Q2, Klaviyo expects revenue between $276 million and $280 million, reflecting year-over-year growth of 24% to 26%. For the full year 2025, revenue guidance has been raised to $1.171 billion to $1.179 billion, indicating year-over-year growth of 25% to 26%. Non-GAAP operating income is anticipated to be between $133 million and $139 million, representing an operating margin of 11% to 12%.

Additional News
In recent developments, Klaviyo has announced the opening of a new office in Dublin, Ireland, marking its third international location alongside London and Sydney. This expansion aims to support continued international growth, with plans to create over 100 jobs to meet the rising demand for Klaviyo's solutions in the EMEA region. The Dublin office will initially focus on building a leadership team for sales and business development. Additionally, Klaviyo's partnership with WooCommerce has positioned the company as the preferred marketing automation vendor, enhancing marketing solutions for over 15,000 brands using the integration. Lastly, Klaviyo is set to participate in the Morgan Stanley Technology, Media & Telecom Conference, with CEO Andrew Bialecki engaging in discussions regarding the company's strategic initiatives and industry outlook.