Klaviyo Q2 2024 Earnings for Marketers

Klaviyo released their Q2 2024 earnings and key metrics are trending upwards. 

Here’s what marketers need to know.

AI

AI is a big part of Klaviyo’s long-term strategy. They are a data company, which means they can leverage AI more effectively.

Today, the main use case has been to make it easier for users to create emails.

In the future, AI could be used to optimize email delivery. 

Customer Growth

Klaviyo is a growth stage company. At this stage they need to continue growing their customer base. Here’s how they’re doing it:

Product expansion. In the last quarter, Klaviyo expanded SMS to 5 more countries bringing the total of SMS enabled countries to 12. Reading between the lines, it could mean deprioritizing existing products in favor of creating products that can acquire new customers. For example, the main non-AI product update Klaviyo mentioned was bulk subscriber suppression.

International expansion. Klaviyo has traditionally focused on the US market. However, 32% of the revenue now comes from EMEA & APAC. Hence why in Q2 they launched French internationalization. Expect them to run the same playbook in other countries.

Market expansion. Klaviyo has been moving up the funnel from SMBs to enterprise clients. SMBs, especially entrepreneurs, are still growing from inbound marketing like word of mouth. In fact, entrepreneurs were specifically called out as a driver of growth in Q2. Klaviyo is investing more resources on large customers like Herschel and Samsonite.