🚨 Klaviyo's Price Hikes: What's Really Happening? 🚨

There’s been a lot of buzz on LinkedIn and X about Klaviyo’s latest price increase. But let’s dig deeper—what’s the real motive behind this?

As a public company, Klaviyo answers to Wall Street. They went public at $34/share and are now at $40. 

However, challenges in the SMB market—which accounts for 60% of their revenue—caused their stock to tumble in November. Despite 34% YoY revenue growth in Q3 2024, they've been unprofitable for four consecutive quarters.

Here’s the timeline:

Aug 2022: First price hike
Sept 2023: IPO
2024: Agency services launch to boost revenue
Jan 2025: Second price hike

The focus is shifting—and fast.
While Klaviyo serves over 157,000 customers, their earnings calls reveal their priority:
✅ 1,958 high-value clients generating over $50,000 in ARR, an 80% YoY growth in this segment.
✅ Prioritizing enterprise accounts while squeezing their SMB base, which contributes 60% of their total revenue.
✅ Growing SMS adoption, now reaching 16% of their customer base (up from 13.7% last year).

For SMBs and agency partners, this shift means higher costs, less flexibility, and more price hikes on the horizon. Klaviyo’s strategy is clear: extract more revenue from their largest market segment while focusing on enterprise growth.

At TargetBay, we take a different approach. We believe in supporting businesses of all sizes—providing scalable, affordable, and customer-focused solutions that won’t break the bank.

Tired of being squeezed? Let’s chat. 💬
How do you feel about Klaviyo’s price strategy?
#ecommerce #emailmarketing #Klaviyo #TargetBay #SMSmarketing