Photo Credit: /Flickr.com
According to a recent report, the global MarTech spend is projected to grow at 13% CAGR to from $131 billion in 2023. Klaviyo (NYSE: ), a relatively newer public company, recently announced its quarterly results that display the same bullishness.
Klaviyo’s Financials
Revenues for the second quarter grew 35% to $222.2 million, ahead of the market’s forecast of $212.27. Net loss was $4.94 million compared with a profit of $10.9M reported a year ago. Non GAAP loss was $0.15 per share, ahead of the market’s estimate of $0.10.Among other key metrics, Klaviyo now boasts of over 151,000 customers, compared to over 130,000 a year ago. It ended the quarter with 2,386 customers generating over $50,000 of Annual Recurring Revenue (ARR), compared to 1,458 customers a year ago. It continues to expand its current customer base, with a net retention rate of 112% as of June this year.Klaviyo expects to end the third quarter with revenues of $225-$227 million and to end the year with revenues of $910-$918 million. The market was looking for revenues of $226 million for the third quarter and $915.4 million for the year.
Klaviyo’s Expanding Offerings
Like others, Klaviyo is also leveraging AI to expand its reach. It recently announced significant enhancements to its AI engine. It released Flows AI, a feature that allows marketers to increase the number of flows they can create for more targeted advertising. It will also leverage AI to release more personalized campaigns. The AI logic will be able to determine the best version of an email or SMS campaign that works for each subscriber based on their likelihood to engage.In an early release of the personalized engine, Klaviyo reported that its customers saw an increase of 26% in average email campaign open rate or SMS click rate. Klaviyo is also using AI to address review sentiment. Since product reviews are a great trove of information for brand feedback, Klaviyo is training AI to analyze the data and identify positive and negative trends, so brands can act faster on these insights.Klaviyo also continues to expand its integrations. It recently expanded its agreements with Toast, BazaarVoice, TikTok, and Pinterest, and now has over 350 third-party integrations. Given the wide reach of TikTok, it announced an integration with TikTok that will allow businesses to sync Klaviyo lists and segments to TikTok Audiences.This new capability will allow brands to . By dynamically syncing Klaviyo segments in real time, TikTok audiences will be up to date on a brand’s offering, thus eliminating the need for manual synchronization.Analysts believe that the US retail social-commerce will grow . Klaviyo believes that by tapping into its TikTok integration, it will help its customers address some of this high impact market.Till last year, Klaviyo was privately held and had raised $454.8 million in primary capital since inception from investors including Summit Partners, Shopify, and Accel. Its last round of private funding was held in 2021 when it was valued at $9.5 billion. iyo listed at $30 at a valuation of $9 billion. The stock is currently trading at $33.48 with a market capitalization of $8.9 billion. It hit a 52-week high of $37.96 soon after listing in September last year. It hit a 52-week low of $21.26 that it had fallen to in May this year.More By This Author:Cloud Stocks: Workday Wants AI To Reimagine End To End Business Processes Cloud Stocks: Salesforce Preps To Enter Veeva’s TerritoryCloud Stocks: Analysis Of Salesforce’s Tenyx Acquisition
Cloud Stocks: Klaviyo Targets Social Commerce
