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KVYO (Klaviyo) Degree of Operating Leverage : -2.23 (As of Mar. 2025)


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What is Klaviyo Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Klaviyo's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -2.23. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Klaviyo's Degree of Operating Leverage or its related term are showing as below:

KVYO's Degree of Operating Leverage is ranked better than
77.12% of 2666 companies
in the Software industry
Industry Median: 0.785 vs KVYO: -2.23

Klaviyo Degree of Operating Leverage Historical Data

The historical data trend for Klaviyo's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Klaviyo Degree of Operating Leverage Chart

Klaviyo Annual Data
Trend Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- -0.49 10.50 -2.17

Klaviyo Quarterly Data
Dec21 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.27 42.11 -2.01 -2.17 -2.23

Competitive Comparison of Klaviyo's Degree of Operating Leverage

For the Software - Infrastructure subindustry, Klaviyo's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Klaviyo's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Klaviyo's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Klaviyo's Degree of Operating Leverage falls into.


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Klaviyo Degree of Operating Leverage Calculation

Klaviyo's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -85.735 (Mar. 2025) / -353.593 (Mar. 2024) - 1 )/( 1007.298 (Mar. 2025) / 752.004 (Mar. 2024) - 1 )
=-0.7575/0.3395
=-2.23***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Klaviyo  (NYSE:KVYO) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Klaviyo Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Klaviyo's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Klaviyo Business Description

Industry
Traded in Other Exchanges
N/A
Address
125 Summer Street, 6th Floor, Boston, MA, USA, 02110
Klaviyo Inc is a technology company that provides a software-as-a-service (SaaS) platform to enable its customers to send the right messages at the right time across email, short message service, and push notifications, more accurately measure and predict performance, and deploy specific actions and campaigns. The platform combines proprietary data and application layers into one solution with machine learning and artificial intelligence capabilities. It is focused on marketing automation within eCommerce as its first application use case. It generates revenue through the sale of subscriptions to its customers for the use of its platform. Geographically, the company generates the majority of its revenue from the Americas, followed by EMEA and APAC.
Executives
Summit Partners Growth Equity Fund Ix-a, L.p. 10 percent owner 222 BERKELEY STREET 18TH FLOOR, BOSTON MA 02116
Landon Edmond officer: Chief Legal Officer KLAVIYO, INC., 125 SUMMER STREET, 6TH FLOOR, BOSTON MA 02110
Stephen Eric Rowland officer: President 1601 TRAPELO ROAD, SUITE 116, WALTHAM MA 02451
Amanda Whalen officer: Chief Financial Officer KLAVIYO, INC., 125 SUMMER STREET, 6TH FLOOR, BOSTON MA 02110
Andrew Bialecki director, 10 percent owner, officer: Chief Executive Officer KLAVIYO, INC., 125 SUMMER STREET, 6TH FLOOR, BOSTON MA 02110
Jeff Fagnan 10 percent owner 56 WAREHAM STREET, FLOOR 3, BOSTON MA 02118
Allen Chaves officer: Chief Technology Officer KLAVIYO, INC., 125 SUMMER STREET, 6TH FLOOR, BOSTON MA 02110
Jennifer Ceran director C/O QUOTIENT TECHNOLOGY INC., 400 LOGUE AVE, MOUNTAIN VIEW CA 94043
Ledger Susan St. director C/O OKTA, INC., 100 FIRST STREET, SUITE 600, SAN FRANCISCO CA 94105
Tony Weisman director C/O DUNKIN' BRANDS, INC., 130 ROYALL STREET, CANTON MA 02021
Astral Capital Abeh, Llc 10 percent owner 36 DENNY ROAD, CHESTNUT HILL MA 02467
Accomplice Fund I, L.p. 10 percent owner 56 WAREHAM STREET, FLOOR 3, BOSTON MA 02118
Shopify Inc. 10 percent owner 151 O'CONNOR STREET, GROUND FLOOR, OTTAWA A6 K2P 2L8
Shopify Strategic Holdings 3 Llc 10 percent owner 151 O'CONNOR STREET, GROUND FLOOR, OTTAWA A6 K2P 2L8
Accel Leaders Fund Ii Investors (2019) L.l.c. 10 percent owner 500 UNIVERSITY AVENUE, PALO ALTO CA 94301