Sacra estimates Klaviyo hit $937M in annual recurring revenue (ARR) in 2024, growing approximately 34% year-over-year.

Klaviyo has raised its full-year 2025 revenue guidance multiple times throughout the year, most recently to $1.215B–$1.219B in November 2025, representing approximately 30% YoY growth.

The company demonstrates strong customer retention and expansion metrics. As of September 30, 2025, Klaviyo serves 183,000+ customers, up from 167,000+ at the end of 2024. More significantly, the company now has 3,563 customers generating over $50K in ARR, up 36% YoY, indicating successful upmarket expansion. Net revenue retention stands at 109% as of Q3 2025.

Klaviyo achieved non-GAAP operating income of $112.5M in 2024 (12% operating margin) and generated $166.0M in operating cash flow with $148.7M in free cash flow. Profitability has expanded in 2025, with Q3 2025 non-GAAP operating income of $45.0M representing a 14% operating margin.

Klaviyo's revenue model is built on a tiered pricing structure based on email and SMS contact volume. The platform starts with a freemium tier for up to 250 contacts, then scales through various pricing tiers ranging from $45 monthly for up to 500 contacts to enterprise-level custom pricing for large-scale deployments.

SMS continues to grow as a revenue driver, with 18.2% of customers having SMS attached as of December 31, 2024, up from 16.0% the prior year. The company averages approximately $5,400 in annual revenue per paying customer, significantly higher than traditional email marketing platforms, reflecting their advanced feature set and integrated marketing automation capabilities.

International expansion is accelerating, with combined EMEA and APAC revenue growing 43% YoY in Q3 2025. The company opened a Dublin office in 2024 and expanded its partnership with WooCommerce to broaden its reach beyond its core Shopify customer base.

Klaviyo has a market cap of $10.72B as of December 2024. Based on estimated 2024 revenue of $903M, Klaviyo trades at a forward multiple of 11.9x revenue.

Klaviyo launched in 2012 as a vertically integrated analytics and events tracking product with a CRM and marketing automation, with rich user profiles automatically populated via a Javascript snippet ("klaviyo.js") embedded on the site.

Amid the rise of D2C and subscription-based commerce, Klaviyo played a key role in the ecosystem providing new merchants with distribution and a way to layer MRR into their business—Klaviyo was a major early Shopify app store partner as the platform grew nearly 10x between 2012 and 2015—from $23M to $205M in revenue.

In 2025, Klaviyo repositioned its platform as a "B2C CRM," expanding beyond its original email and SMS marketing roots to encompass a broader customer relationship management suite for consumer-facing businesses. The platform now provides email marketing, SMS marketing, WhatsApp and RCS messaging (launched in beta in June 2025), in-app push notifications, and a customer data platform (CDP) to ecommerce businesses, allowing them to effectively engage with their customers across multiple channels and drive sales.

The company launched several major product capabilities in 2025:

Marketing Analytics and Customer Hub (announced Q1 2025) provide unified visibility into campaign performance and customer interactions across channels.

Klaviyo Service (public beta Q2 2025, general availability Q3 2025) extends the platform into customer support and service workflows, allowing brands to handle customer inquiries within the same system that manages marketing campaigns.

Marketing Agent (announced Q3 2025) represents Klaviyo's push into AI-powered autonomous marketing, automating campaign creation and optimization decisions.

The underlying Klaviyo Data Platform now processes over 2 billion daily events across 7 billion+ customer profiles, providing the data foundation for these expanded capabilities. In August 2025, Klaviyo acquired Gatsby, a social automation platform that captures social signals like DMs, tags, mentions, and follows, enabling brands to convert social media interactions directly into email and SMS subscribers and enrich customer profiles with social engagement data.

These services are designed to be easy to use and integrate with a wide range of ecommerce platforms and other software tools, reducing the technical barriers for businesses that want to leverage sophisticated marketing techniques.

Klaviyo operates under a SaaS subscription model, providing a cloud-based platform for businesses to manage their email marketing, SMS marketing, in-app notifications, and more recently, customer data via a customer data platform (“CDP”).

Klaviyo's services are specifically targeted at e-commerce businesses, helping them collect and analyze customer data, automate targeted email and SMS campaigns, and manage customer communication at scale. The platform integrates with a range of e-commerce platforms, such as Shopify, Magento, and WooCommerce, among others.

Klaviyo's primary source of revenue is subscription fees for its platform. The pricing scales with the number of contacts a business has, which makes it suitable for businesses of all sizes - from small startups to large corporations. The more contacts a business has, the more they pay to use Klaviyo's services.

Klaviyo offers a free tier for businesses with up to 250 contacts, which allows businesses to send up to 500 emails. Beyond that, businesses must subscribe to one of Klaviyo's paid plans.

Klaviyo competes directly with email and customer engagement platforms like Braze, Iterable and HubSpot as well as more standalone email marketing tools like Mailchimp and ConvertKit. By repositioning as a "B2C CRM" in 2025 and expanding into customer service workflows with Klaviyo Service, the company is broadening its competitive footprint beyond pure marketing automation into the territory occupied by customer engagement platforms like Zendesk and Intercom.

Klaviyo has recently launched its own CDP to counter companies like Twilio Segment and mParticle, which became a central router for customer data in the 2010s.

The rise of universal CDPs like Segment threatened Klaviyo's position as it decreased switching costs and intensified competition between Klaviyo and tools like Iterable, Braze, Intercom, Customer.io and incumbents like HubSpot and Mailchimp.

By introducing its own CDP, Klaviyo aims to provide its customers an end-to-end experience and keep all the customer data within its ecosystem, enhancing retention and expansion opportunities. The platform now processes over 2 billion daily events across 7 billion+ customer profiles, providing scale comparable to standalone CDP providers.

As SMS emerged as the new inbox of choice for marketers—showing marketers a 45% response rate to their messages vs. the typical 6% for email—companies like Attentive ($200M ARR in 2022) and Postscript ($39M ARR in 2022) built big businesses helping merchants manage the new flood of texts and write automated, contextual responses to customer queries.

To fight back, Klaviyo launched its own SMS messaging tool in 2019. Today, SMS represents about 10% of Klaviyo's revenue and growing, with 18.2% of customers having SMS attached as of December 2024, up from 16.0% the prior year.

In June 2025, Klaviyo expanded its messaging capabilities to include WhatsApp and RCS (Rich Communication Services), putting it in direct competition with Meta's WhatsApp Business API and messaging-focused platforms like Twilio and MessageBird. This positions Klaviyo to capture the shift toward conversational commerce and international markets where WhatsApp dominates customer communication.

In August 2025, Klaviyo acquired Gatsby, a social automation platform, expanding its competitive reach into social media conversion and engagement. This acquisition enables brands to capture email and SMS subscribers directly from social interactions (DMs, tags, mentions, follows) and enrich customer profiles with social engagement data, competing with social commerce tools and putting Klaviyo in a position to intercept customer relationships before they even reach a brand's website or ecommerce platform.

The big upside case for Klaviyo lies in being Shopify’s (NYSE: SHOP, $5.6B) preferred email provider in a world where ecommerce—at $1T+ in sales—still represents just 15% of the total commerce market in the United States.

Ecommerce was growing before COVID, but the pandemic rapidly accelerated the adoption of online shopping as a normal part of everyday life.

Ecommerce sales went from about $570B in 2019 to $815B in 2020 as consumers went to online shopping for convenience and safety reasons—creating a surge in demand for ecommerce marketing tools like Klaviyo that could let merchants find and engage with their customers.

Shopify, on the other hand, hit $5.6B in total revenue in 2022 with over 2 million merchants, revenue growing 21% from the year before. Despite a slowdown in growth in 2022 due to the overall slowdown in the economy and especially among SMBs, Shopify is still growing and represents just about 0.5% of the total ecommerce market.

By integrating with Shopify as their recommended email partner but staying 3rd-party, Klaviyo can be indexed both on the continued growth of Shopify’s model as well as on the growth of ecommerce more generally.

Shopify dependence: Klaviyo’s growth is substantially tied to Shopify's expansion. Most of their 100,000+ customers are Shopify merchants. While their partnership with Shopify has been a significant growth driver, it also exposes Klaviyo to the risk of slowdowns in Shopify's growth or changes in Shopify's policies.

As of 2023 and ahead of their IPO, Klaviyo has been tailoring its outbound sales to bringing on larger retailers working on their own ecommerce stacks, rather than smaller Shopify retailers struggling with a slowdown in SMB ecommerce post-COVID.