Financial Data and Key Metrics Changes - Klaviyo achieved a revenue growth of 32% year-over-year, reaching $1.2 billion for the fiscal year 2025, with a non-GAAP operating margin of 14% [5][26] - In Q4, revenue was $350 million, reflecting a 30% year-over-year increase, leading to an annualized revenue run rate of $1.4 billion [27] - Non-GAAP operating income for Q4 was $51 million, representing a 15% non-GAAP operating margin, which is a 900 basis point expansion year-over-year [31] - Free cash flow surged 61% year-over-year to $87 million, highlighting the high quality of earnings [32] Business Line Data and Key Metrics Changes - The largest customers, contributing over $50,000 of ARR, grew by 37% year-over-year [26] - The new service category is the fastest-growing product launch in Klaviyo's history, contributing to a net revenue retention (NRR) of 110%, an increase of over 200 basis points year-over-year [27][29] - Over 60% of ARR now comes from multi-product customers, with more than 15% of ARR from customers adopting at least three products [29] Market Data and Key Metrics Changes - International revenue growth accelerated to 42%, with revenue outside the Americas representing more than one-third of the business by the end of Q4 [26][24] - Q4 saw strong momentum in mobile, with over 29% of SMB Plus customers utilizing text and WhatsApp [28] Company Strategy and Development Direction - Klaviyo is focused on delivering autonomous customer experiences through its B2C CRM, leveraging AI to enhance customer engagement and operational efficiency [5][18] - The company aims to consolidate customer engagement tools into a single platform to improve decision-making and personalization, addressing the fragmentation in customer relationship management [20][22] - Klaviyo is expanding its enterprise pipeline and has seen a doubling of customers generating at least $1 million of ARR, indicating strong demand in the enterprise segment [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, projecting revenue between $1.501 billion and $1.509 billion for 2026, representing a year-on-year growth of 21.5%-22.5% [33] - The outlook for 2026 is considered de-risked, assuming minimal revenue contribution from new AI and service products, which are viewed as upside potential [33][34] - Management emphasized the importance of AI in driving customer engagement and operational efficiency, positioning Klaviyo as a revenue-yield engine [36] Other Important Information - Klaviyo processed 0.5 trillion customer interactions across 8 billion consumer profiles, translating into 3.7 billion daily signals that inform customer engagement strategies [11] - The company has launched agents for marketing and customer service, with over half of the campaigns created by the Marketing Agent now generated by AI [14][15] Q&A Session Summary Question: What was the impact from the portfolio enforcement change in the quarter? - Management indicated that the portfolio enforcement change had a smaller impact on NRR compared to the growing usage of the platform across email and SMS products and the cross-sell of newer products [41][42] Question: How did SMS perform in the quarter versus expectations? - SMS performance was strong, with a transition from SMS to RCS allowing for better customer experiences, and the integration of WhatsApp also showed positive trends [44][45] Question: Can you provide visibility into adoption and engagement trends by cohorts? - Adoption of the customer agent is seen across all customer segments, with a strong interest in the agent's capabilities, although there are challenges in training and quality assurance [49][52] Question: What is the limiting factor to an LLM or AI-native company replicating Klaviyo's context? - Klaviyo's extensive dataset and real-time data infrastructure provide a significant competitive advantage that is difficult to replicate [57][60] Question: How does the Co-CEO's enterprise experience fit into Klaviyo's strategy? - The Co-CEO's experience in scaling enterprise businesses is expected to enhance operational strengths and improve alignment across product, engineering, and go-to-market strategies [63] Question: What do you see in the Accenture partnership? - The partnership with Accenture is focused on providing services around marketing and service reinvention, leveraging Klaviyo's capabilities to address customer fragmentation [66][71]

Financial Data and Key Metrics Changes - Klaviyo reported a revenue growth of 32% year-over-year, reaching $1.2 billion for 2025, with a non-GAAP operating margin of 14% [5][28] - In Q4, revenue was $350 million, up 30% year-over-year, contributing to an annualized revenue run rate of $1.4 billion [28] - Non-GAAP operating income for Q4 was $51 million, representing a 15% non-GAAP operating margin, reflecting a 900-basis-point expansion year-over-year [32] - Free cash flow surged 61% year-over-year to $87 million, highlighting the high quality of earnings [33] Business Line Data and Key Metrics Changes - The largest customers, contributing over $50,000 of ARR, grew by over 37% year-over-year [28] - The new service category is the fastest-growing product launch in Klaviyo's history, contributing to a net revenue retention (NRR) of 110%, an increase of over 200 basis points year-over-year [28] - 60% of ARR now comes from multi-product customers, with over 15% of ARR from customers adopting at least three products [30] Market Data and Key Metrics Changes - International revenue growth accelerated to 42%, with revenue outside the Americas representing more than one-third of the business by the end of Q4 [28][25] - Q4 saw strong performance in Italy, Spain, and Portugal, alongside traction with global brands like Bayer and KIKO Milano [31] Company Strategy and Development Direction - Klaviyo is focused on delivering autonomous customer experiences powered by AI, positioning itself as a leader in the B2C CRM space [5][19] - The company aims to consolidate customer engagement tools into a single platform to enhance personalization and decision-making [22] - Klaviyo is expanding its enterprise pipeline and has partnered with Accenture to drive integrated customer outcomes for large brands [24][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential, citing strong momentum in customer engagement and the shift towards autonomous experiences [26][34] - The 2026 revenue guidance is projected between $1.501 billion and $1.509 billion, representing 21.5%-22.5% year-on-year growth, with expectations for continued operating margin expansion [34][35] - Management emphasized the importance of AI in enhancing customer engagement and driving revenue growth [37] Other Important Information - Klaviyo processed half a trillion customer interactions across 8 billion consumer profiles, translating into 3.7 billion daily signals [11] - The company is seeing increased adoption of its Customer Agent, which is designed to handle real-time customer interactions and improve service outcomes [15][50] Q&A Session Summary Question: What was the impact from the portfolio enforcement change in the quarter? - The portfolio enforcement change had a smaller impact on NRR compared to the growing usage of the platform across email and SMS products and the cross-sell of newer products [42] Question: How did SMS perform in the quarter versus expectations? - SMS performed very strongly, with a transition from SMS to RCS allowing for better experiences and increased engagement [44] Question: Can you provide visibility into adoption and engagement trends by cohorts? - Adoption of the Customer Agent is seen across all customer segments, with significant interest from SMBs to enterprise customers [50] Question: What is the limiting factor to an LLM or AI-native company replicating Klaviyo's context? - Klaviyo's extensive dataset and real-time infrastructure provide a significant competitive advantage that is difficult to replicate [56][58] Question: How does the skill set of the new co-CEO fit into Klaviyo's strategy? - The new co-CEO brings experience in scaling enterprise technology businesses, which aligns with Klaviyo's focus on expanding its enterprise customer base [61] Question: What do you see in the Accenture partnership? - Accenture views Klaviyo as a strong partner for providing AI-driven solutions to address fragmentation in customer engagement [69]

Financial Data and Key Metrics Changes - Klaviyo achieved a revenue growth of 32% year-over-year, reaching $1.2 billion for 2025, with a non-GAAP operating margin of 14% [4][25] - In Q4, revenue was $350 million, up 30% year-over-year, leading to an annualized revenue run rate of $1.4 billion [25][26] - Non-GAAP operating income for Q4 was $51 million, representing a 15% non-GAAP operating margin, reflecting a 900 basis point expansion year-over-year [30] Business Line Data and Key Metrics Changes - The largest customers, contributing over $50,000 of ARR, grew by 37% year-over-year [25][29] - The new service category is the fastest-growing product launch in Klaviyo's history, contributing to a net revenue retention (NRR) of 110%, an increase of over 200 basis points year-over-year [25][30] - Over 60% of ARR now comes from multi-product customers, with more than 15% of ARR from customers adopting at least three products [28] Market Data and Key Metrics Changes - International revenue growth accelerated to 42%, with revenue outside the Americas representing more than one-third of the business by the end of Q4 [25][23] - Q4 saw strong momentum in mobile, with over 29% of SMB Plus customers utilizing text and WhatsApp [26] Company Strategy and Development Direction - Klaviyo is focused on delivering autonomous customer experiences powered by AI, positioning itself as a leader in the B2C CRM space [4][17] - The company aims to consolidate customer engagement tools into a single platform to enhance personalization and decision-making [19][22] - Klaviyo is expanding its enterprise pipeline and has formed a partnership with Accenture to drive integrated customer outcomes [22][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, projecting revenue between $1.501 billion and $1.509 billion for 2026, representing 21.5%-22.5% year-on-year growth [32] - The outlook for 2026 is considered de-risked, assuming minimal revenue contribution from new AI and service products, which are viewed as embedded upside [32][53] - Management highlighted the importance of AI in enhancing customer engagement and driving revenue growth [34][76] Other Important Information - Klaviyo processed 0.5 trillion customer interactions across 8 billion consumer profiles in the past year, translating into 3.7 billion daily signals [10] - The company has surpassed $1 billion in cash on hand for the first time, indicating strong financial health [31] Q&A Session Summary Question: What was the impact from the portfolio enforcement change in the quarter? - The portfolio enforcement change had a smaller impact on NRR compared to the growing usage of the platform across email and SMS products and the cross-sell of newer products [40] Question: How did SMS perform in the quarter versus expectations? - SMS performed strongly, with a transition from SMS to RCS allowing for better experiences, and the integration of Customer Agent into text messaging and WhatsApp driving increased usage [42][44] Question: Can you provide visibility into adoption and engagement trends by cohorts? - Adoption of the Customer Agent is seen across all customer segments, with a strong interest in training and quality of responses being the main concerns for businesses [48][50] Question: What is the limiting factor to an LLM or an AI-native company replicating Klaviyo's context? - Klaviyo's extensive dataset and real-time data infrastructure provide a significant competitive advantage that is difficult to replicate [56][58] Question: How does the Accenture partnership fit into Klaviyo's model? - The partnership with Accenture focuses on marketing and service reinvention, leveraging Klaviyo's capabilities to address fragmentation in customer experiences [68][70]

02.10.2026 Forward-Looking Statements and Disclaimer This presentation includes certain "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Other than statements of historical facts, all statements contained in this presentation and accompanying oral commentary, including, but not limited to, statements about Klaviyo's outlook for the first quarter and the full fiscal year ending December 31, 2026, and Klaviyo's e ...

Financial Performance - Revenue for the year ended December 31, 2025, was $1,234.0 million, representing a growth rate of 31.6% compared to 2024[113]. - The company incurred net losses of $31.8 million, $46.1 million, and $308.2 million for the years ended December 31, 2025, 2024, and 2023, respectively[143]. - The company anticipates a deceleration in revenue growth due to market maturation and other factors[113]. - The company anticipates increasing operating expenses in the future, which may affect profitability if revenue does not continue to increase[143]. - The company has invested significant resources in improving internal controls over financial reporting to comply with regulatory requirements[185]. Customer Growth and Engagement - The number of customers using the platform increased from approximately 92,000 as of December 31, 2024, to approximately 108,000 as of December 31, 2025[115]. - As of December 31, 2025, approximately 77.9% of annual recurring revenue (ARR) was derived from customers using Shopify's platform[130]. - Customer satisfaction with the integration and implementation of the company's platform is critical; dissatisfaction could lead to increased costs and harm to reputation[161]. - The company generates a significant portion of its revenue from small businesses, which are more vulnerable to economic downturns[137]. Competition and Market Position - The company faces competition from established players like Adobe and Salesforce, which may impact its market position[121]. - The company expects longer sales cycles with enterprise customers compared to small and mid-size businesses, which may impact revenue predictability[146]. - The company faces challenges in adapting to technological changes and evolving customer preferences, which could impact competitiveness[151]. - The company may face challenges in maintaining its culture and core values as it grows, which could impact innovation and employee retention[175]. International Operations - The company has expanded its international operations, opening offices in Singapore and France in 2025, and previously in the UK and Australia[115]. - The company derived 39.9%, 37.6%, and 36.5% of its revenue from international customers for the years ended December 31, 2025, 2024, and 2023, respectively[157][158]. - International operations expose the company to regulatory, economic, and political risks, which could adversely affect its business[159][160]. - The company must adapt its platform for specific international markets, which involves significant costs and challenges[159]. Technology and Innovation - The company plans to continue expanding its product offerings, including new features and messaging channels such as AI capabilities[115]. - The company aims to enhance its platform's machine learning and AI capabilities to meet customer needs, but faces challenges in integration and competition[152]. - The integration of AI technology into the company's products may introduce risks related to data accuracy and security, potentially damaging its reputation and competitive position[265]. - The company anticipates increased operational and development expenses due to evolving AI regulations, which may impact revenue generation capabilities[267]. Legal and Compliance Risks - The company is subject to various legal obligations related to privacy and data security, which could harm its business if not complied with[208][209]. - The company has implemented an anti-corruption compliance program but faces risks related to compliance with anti-corruption laws, which could adversely affect its reputation and operations[203][204][205]. - The company is subject to stringent and evolving privacy and data protection laws, which may increase compliance costs and legal risks[223]. - The company may face significant costs and resource diversion due to potential litigation and legal proceedings arising from ordinary business activities[199][200]. Workforce and Human Resources - The company has experienced significant growth in employee headcount, reaching 2,368 as of December 31, 2025[115]. - The company faces intense competition for skilled personnel, particularly in software engineering, AI, and machine learning, which may hinder its ability to attract and retain talent[154]. - The company implemented a reduction-in-force affecting approximately 8% of its global workforce in March 2023[176]. - Workforce reductions may lead to unanticipated consequences, such as decreased employee morale and productivity, affecting overall operations[177]. Financial and Capital Structure - The company has a concentrated ownership structure, with executive officers and directors holding 65.1% of voting power, which may limit shareholder influence[274]. - The company does not intend to pay dividends on Series A common stock in the foreseeable future, relying instead on stock price appreciation for returns to investors[285]. - The company expects to issue additional capital stock in the future, which may dilute existing stockholders and negatively impact the per share value of Series A common stock[283]. - The company may require additional capital to support growth, which might not be available on acceptable terms, potentially harming future growth opportunities[196][197]. Cybersecurity and Data Protection - The company has incurred significant expenses to prevent cybersecurity incidents, including deploying additional personnel and protection technologies[212]. - Cybersecurity incidents could lead to loss of customer confidence, reputational damage, and significant liabilities, including legal actions and regulatory fines[218]. - The company has experienced cyberattacks, including a significant incident in July 2022 where unauthorized access to internal systems occurred[214]. - The company may face increased compliance obligations due to the existence of comprehensive privacy laws across different states, complicating its operations[225]. Economic and Market Conditions - The demand for the company's products is influenced by economic conditions, particularly in the retail and eCommerce sectors, which may lead to reduced usage of its platform[136]. - The company does not have any debt, eliminating potential market risk related to interest expenses[425]. - The company has not experienced a material effect from inflation on its business or financial condition, but continues to monitor inflation impacts[426]. - The company recognizes inherent climate-related risks that may disrupt business operations, although currently assessed as low risk[301].

Revenue Growth - Fourth quarter revenue reached $350.2 million, reflecting a 30% year-over-year growth[1] - Full year revenue totaled $1.2 billion, representing a 32% year-over-year growth[1] - Fiscal year 2026 revenue guidance is projected between $1.501 billion and $1.509 billion, indicating a year-over-year growth rate of 21.5% to 22.5%[7] - Klaviyo's revenue for the year ended December 31, 2025, was $1,234,019, representing a 31.7% increase from $937,464 in 2024[32] Customer Metrics - The number of customers increased to over 193,000 by the end of fiscal year 2025, up from over 167,000 in fiscal year 2024[5] - Customers generating over $1 million of ARR doubled year over year, while those generating over $50,000 of ARR grew by 37% to 3,912[5] - Net Revenue Retention Rate (NRR) stood at 110% as of December 31, 2025, an increase of two percentage points year over year[5] International Expansion - International revenue grew by 42% year-over-year in fiscal year 2025, supported by new regional hubs in Dublin and Singapore[5] Profitability and Income - Non-GAAP operating income for fiscal year 2025 was $169.2 million, with a non-GAAP operating margin of 14%[6] - Klaviyo reported a net loss of $31,768 for the year ended December 31, 2025, compared to a net loss of $46,142 in 2024, showing an improvement in profitability[32] - The non-GAAP net income for the year ended December 31, 2025, was $205,232,000, compared to $150,458,000 in 2024, indicating improved financial performance[52] - The diluted non-GAAP net income per share for the year ended December 31, 2025, was $0.67, up from $0.50 in 2024, showcasing enhanced shareholder value[52] Cash Flow and Assets - Strong cash flow was reported with $218 million from operating activities and free cash flow of $200.4 million for fiscal year 2025[6] - The company had cash and cash equivalents of $1,064,875 as of December 31, 2025, an increase from $881,473 in 2024[28] - The company achieved a free cash flow of $87,448,000 for the three months ended December 31, 2025, up from $54,461,000 in 2024, indicating strong cash generation capabilities[46] Operating Expenses - Operating expenses increased to $989,254 in 2025 from $800,237 in 2024, with significant contributions from selling and marketing expenses of $506,241[32] - Total operating expenses for the three months ended December 31, 2025, were $254,597,000, compared to $233,080,000 in 2024, showing an increase in investment in operations[44] - Klaviyo's total operating expenses for the year ended December 31, 2025, were $989,254,000, an increase from $800,237,000 in 2024, reflecting ongoing investments in growth[54] Gross Profit and Margin - The gross profit for the same period was $921,496, up from $716,159, indicating a gross margin of 74.7%[32] - Non-GAAP gross profit for Q4 2025 was $254,923, compared to $200,572 in Q4 2024, with a non-GAAP gross margin of 72.8%[38] - Klaviyo's gross profit for the year ended December 31, 2025, was $921,496,000, up from $716,159,000 in 2024, demonstrating growth in profitability[48] Deferred Revenue - Deferred revenue increased to $103,245 in Q4 2025 from $64,497 in Q4 2024, indicating growth in customer commitments[30] Operational Efficiency - Non-GAAP operating income for the same period was $50,958,000, compared to $15,146,000 in 2024, reflecting a substantial increase in operational efficiency[40] - Operating cash flow margin for the year ended December 31, 2025, was 17.7%, consistent with the previous year, reflecting stable operational efficiency[56] - The company reported a non-GAAP operating margin of 13.7% for the year ended December 31, 2025, compared to 12.0% in 2024, indicating improved profitability[50] Product Development - The launch of Klaviyo App in ChatGPT expanded integrations into major AI platforms, enhancing customer engagement capabilities[5]

Company Overview - Klaviyo, Inc. (NYSE:KVYO) is an AI-driven marketing automation and customer data platform primarily serving e-commerce businesses, founded in 2012 and headquartered in Boston [4] Financial Performance - In the third quarter of fiscal 2025, Klaviyo reported a revenue increase of 32% year-over-year, reaching $311 million, driven by strong new customer additions and multiproduct adoption among existing clients [3] Market Position and Trends - The company is integrating agentic AI into its platform, which has led to improved engagement metrics such as higher open rates and increased attributed revenue value for customers [3] - Despite facing near-term valuation pressures across the software sector, Klaviyo's expanding feature set positions it to remain relevant as brands focus on first-party data and personalized outreach [4] Analyst Insights - Piper Sandler recently lowered its price target for Klaviyo from $45 to $30 while maintaining an Overweight rating, reflecting broader sector-level concerns rather than a change in Klaviyo's business performance [1]

Group 1 - Piper Sandler downgraded ratings for three enterprise software stocks: Adobe, Freshworks, and Vertex, from "Overweight" to "Neutral" and significantly reduced their target prices to $330, $12, and $20 respectively [1] - The rationale for the bearish outlook includes concerns that AI-driven efficiency will suppress or reduce employee growth, negatively impacting software companies that charge per seat [1] - The report anticipates that 2026 will mark the fifth consecutive year of slowing growth in the software industry, leading to valuation downgrades for companies on their coverage list [1] Group 2 - Target prices were also lowered for several other companies including Amplitude, Asana, BlackLine, Braze, Figma, HubSpot, Salesforce, Oracle, Klaviyo, monday.com, ServiceTitan, and ZoomInfo [2] - Despite the overall pessimism in the software sector, Piper Sandler remains optimistic about Microsoft and ServiceTitan, naming them as top picks for 2026 [2] - The analysis suggests that Microsoft is potentially the best pure play in the current AI application space, with positive sentiment emerging from CIO surveys regarding Azure and Copilot activities [2]

Core Insights - Maestra reported a significant expansion in its US customer base, growing 144% year-over-year in 2025, primarily driven by sectors such as apparel, sports, furniture, and home goods [1] - The company increased its workforce by 61% year-over-year to enhance innovation, customer support, and accelerate project launches [1] Customer Results - Maestra introduced new product features in 2025, including a native loyalty app for Shopify, checkout and post-checkout widgets, and improved integrations [2] - The company launched AI tools and added support for RCS and WhatsApp, along with enhancements like a URL shortener and improved user experience for SMS/email campaigns [3] Compliance and Community Engagement - In 2025, Maestra achieved SOC 2 Type II certification and added HIPAA compliance, enhancing its enterprise readiness [3] - The company actively participated in the DTC ecosystem through various conferences and trade shows, including Shoptalk and eTail [4] In-House Events - Maestra successfully hosted its first online event, DTC Coffee Hour, featuring discussions with industry leaders [5] Company Overview - Maestra is an all-in-one ecommerce personalization platform that helps direct-to-consumer brands increase conversions by over 15% through site, product, and price personalization [6] - The platform is utilized by notable brands such as Quiksilver, JBL, and L'Oréal, setting a new standard in DTC marketing technology [7] Customer Success Stories - Urban Armor Gear reduced marketing costs by 64% by consolidating its marketing stack with Maestra [7] - Sena achieved 2.2 times revenue growth after switching to Maestra [7] - Selkirk improved Meta Ads return on ad spend by 2.6 times using Maestra's dynamic product cards [7] - JOLYN experienced a 17% total revenue growth through marketing transformation with Maestra [7] - Enlightened Equipment reported a 52.5% increase in total revenue after replacing Klaviyo with Maestra [7] - Coolibar unlocked 33.6% more campaign effectiveness after switching to Maestra [7]

Group 1 - Klaviyo, Inc. (NYSE: KVYO) has launched a new application for OpenAI's ChatGPT aimed at enhancing marketing teams' workflow efficiency by focusing on reporting tasks [1][2] - The app is expected to evolve with additional features that may include capabilities for reviewing, creating, or preparing marketing campaigns directly within the application [1] - The company operates a software-as-a-service platform that provides a cloud-native solution for data storage, messaging infrastructure, campaigns, flows, and segmentation [4] Group 2 - Truist Financial analyst Terry Tillman has reiterated a Buy rating for Klaviyo with a price target of $45, indicating a potential upside of 101.3% from current levels, which aligns with the median Wall Street analyst estimate of 94.52% based on 24 analysts [3]