5 Interesting Learnings from Klaviyo at 0,000,000 in ARR

5 Interesting Learnings from Klaviyo at $800,000,000 in ARR

5 Interesting Learnings from Klaviyo at 0,000,000 in ARR

So we’ve covered Klaviyo several times at SaaStr, and we’re super excited CEO Andrew Bialecki is coming to 2024 SaaStr Annual Sep 10-12 in SF Bay to share his learnings!!  (We also have a great deep dive we did a little ways back with Andrew below).

Klaviyo is not only a rocketship, but it’s the only SaaS IPO since Dec 2021.  The only one.  1.  That’s.  One SaaS IPO in 2.25+ years.

And to IPO in that loooong stretch of … no IPOs … it really had to be a good one.  Which it is.  At $800m it has the full package.  39% (!) annual revenue growth, 16% free cash margins, and 117%.  It doesn’t get too much better, folks.

5 Interesting Learnings:

#1.  NRR Holding Up at 117%.

At IPO, NRR was 119%.  Today, it’s still 117%, even as other marketing leaders like HubSpot have seen big drops in NRR in today’s macro environment.  This is pretty impressive, especially with many smaller customers.  A big party is likely that e-commerce growth overall remains strong.  The small NRR drop Klaviyo attributed to lapping a price increase, not macro impacts.

#2.  Revenue Growth Remains Top, Top Tier at 39% on Way to $1B ARR.  But Down a Bit From Crazy Growth Pre-IPO.

Fewer at Klaviyo’s scale have its revenue growth of 39%.  It’s incredible.  Combine new customer growth of +20% (see below) and 117% NRR, that just about adds up to total growth of 39%.  But growth has come down a bit from insane to merely incredible levels.

#3.  New Customer Count Up +20%, $50k+ Customers Up 80%

I’ve come to believe that this is the single most important metric in SaaS — your net new customer growth.  If that’s strong, you can fix anything else.  And Klaviyo’s is super impressive.  Even as it comes up on $1B in ARR, it’s growing new customers overall +20%, and its bigger customers +80%.  HubSpot is doing the same at $3B in ARR.  It’s super impressive.

#4.  Very Efficient. with 16% Free Cash Flow Margins

Klaviyo was efficient most of its history, outside of an investment period pre-IPO, so this is less of a change than it is for others. But still helpful to see it this way.  Klaviyo is an efficient cash enginer.

#5.  ACV Up 16% to $5,600

Klaviyo’s roots are SMB but as you can see above, its $50k+ mid-market customers are the fastest growing segment.  As part of that drive upmarket, the blended ACV has gone up materially, +16% to $5,600.

And another interesting learning:

#6.  95% of Revenue Still in eCommerce

Klaviyo is slowly expanding from its eCommerce base, but its dominant position in the Shopify ecosystem remains its core.

And a great deep dive with Founder CEO Andrew Bialecki here:

 

 

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