Group 1 - KDDI is holding its earnings release conference for the second quarter of the fiscal year ending March 2026, with the event being moderated by a representative from the Public Relations Department [1] - The earnings release will be distributed through multiple channels, including YouTube, and related documents have been uploaded to KDDI's website [1] - The conference features key executives, including President and CEO Hiromichi Matsuda, CFO Nanae Saishoji, CSO and CDO Tomohiko Katsuki, and Executive Director Kenji Aketa [2]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 reached $311 million, reflecting a 32% year-over-year growth, driven by strong demand from new customers and multi-product expansion from existing customers [4][21] - Non-GAAP operating margin for the quarter was 14.5%, with non-GAAP operating income of $45 million, indicating disciplined execution and strong top-line performance [29][30] - Net Revenue Retention (NRR) accelerated to 109%, showcasing effective customer engagement and expansion [21][23] Business Line Data and Key Metrics Changes - The Klaviyo Service product line, launched six weeks prior, is experiencing rapid adoption, outpacing previous SMS product adoption at the same stage [21][24] - The company added 7,000 new customers in Q3, bringing the total to over 183,000, a 17% increase year-over-year [22] - The $50,000-plus Annual Recurring Revenue (ARR) customer cohort saw record net additions, with 272 new customers added in the quarter, a 36% year-over-year increase [26][21] Market Data and Key Metrics Changes - International revenue grew by 43% year-over-year, with EMEA up 48%, marking the sixth consecutive quarter of accelerating international growth [25][26] - EMEA and APAC now account for over 35% of total revenue, reflecting the success of the international strategy [26] - The company expanded its platform to include four new languages and increased text messaging coverage to 22 countries [25] Company Strategy and Development Direction - Klaviyo's strategy focuses on multi-product expansion, international growth, and mid-market and enterprise momentum, all fueled by AI [21][22] - The integration of agentic AI into products aims to enhance customer engagement and streamline marketing processes [5][17] - The company is positioning itself as the definitive CRM for B2C businesses, emphasizing the importance of a unified platform for customer engagement [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, expecting at least 21%-22% revenue growth in 2026, driven by strong demand for AI-powered products [31][52] - The company anticipates continued acceleration in international markets and mid-market segments, supported by recent product launches and enhancements [54][51] - Management highlighted the importance of AI in driving better customer experiences and operational efficiencies [32][52] Other Important Information - The company generated $47 million in free cash flow for a 15% free cash flow margin, indicating strong financial health [29] - Klaviyo is investing in expanding its partner ecosystem to include more AI-first developers and builders [20] - The company is focused on reducing friction in consumer interactions through new protocols and AI integrations [18][19] Q&A Session Summary Question: How is Klaviyo adapting to the legacy MarTech market fatigue? - Management noted an acceleration in replatforming discussions, particularly in mid-market and enterprise segments, driven by the integration of data infrastructure with marketing and service applications [33][34] Question: How does Klaviyo view its relationship with large platforms like OpenAI? - The company sees opportunities in commerce through AI applications, enhancing consumer discovery and engagement, and plans to integrate these capabilities into its Customer Agent product [39][40] Question: What is driving the rapid adoption of the Klaviyo Service products? - Management indicated that the Customer Hub and Customer Agent products are finding greenfield opportunities, enhancing personalization and generating incremental revenue for businesses [45][46] Question: What gives management confidence in the 2026 growth guidance? - The strong performance of existing growth engines, the rapid adoption of new products, and the ongoing demand for multi-product solutions provide a solid foundation for future growth [50][52] Question: Can the acceleration in international growth continue? - Management expressed optimism about sustaining high growth rates in international markets, supported by product expansions and enhanced go-to-market strategies [54][56]

11.05.2025 Lifetime Data Retention Streaming Architecture High-Performance Indexing 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 fourth ...

Customer Growth and Engagement - As of September 30, 2025, Klaviyo had over 183,000 customers, with a year-over-year growth of 36% in customers generating over $50,000 of ARR, increasing from 2,619 to 3,563 customers[118] - Klaviyo's land-and-expand strategy aligns revenue growth with customer success, as increased usage of the platform leads to higher subscription tiers and additional service adoption[105] - Klaviyo's KAV (Klaviyo Attributed Value) serves as a measure of the revenue generated for customers through its platform, illustrating the value provided to clients[121] Revenue Performance - Revenue for the three months ended September 30, 2025 increased by $75.8 million or 32.2%, reaching $310.9 million compared to $235.1 million for the same period in 2024[144] - Revenue for the nine months ended September 30, 2025 increased by $216.5 million or 32.4%, totaling $883.8 million compared to $667.3 million for the same period in 2024[145] - Sales to existing customers accounted for approximately 44% of the revenue increase for the three months ended September 30, 2025, while new customers contributed approximately 56%[144] - Sales to existing customers accounted for approximately 42% of the revenue increase for the nine months ended September 30, 2025, with new customers contributing approximately 58%[145] International Expansion - International sales accounted for 34.6% of total revenue for the nine months ended September 30, 2025, indicating significant growth in global markets[110] - The company has expanded its operations internationally, with new offices in Singapore and France in 2025, further enhancing its market presence[110] Product Development and Innovation - Klaviyo's platform has expanded its product offerings, including the introduction of Klaviyo B2C CRM and AI-powered solutions, enhancing customer engagement capabilities[101] - Klaviyo's investment in innovation has led to the development of advanced features in its platform, including AI capabilities for data segmentation and campaign orchestration[111] - The company aims to penetrate new industry verticals, such as education and travel, indicating a strategy for diversification beyond retail and eCommerce[114] Financial Performance and Expenses - The cost of revenue for the three months ended September 30, 2025 was $76.1 million, representing 24.5% of revenue, compared to 23.1% for the same period in 2024[143] - Gross profit for the three months ended September 30, 2025 was $234.7 million, which is 75.5% of revenue, down from 76.9% in the same period of 2024[143] - Selling and marketing expenses for the three months ended September 30, 2025 were $127.7 million, accounting for 41.1% of revenue, compared to 42.5% in the same period of 2024[143] - Research and development expenses for the three months ended September 30, 2025 were $72.7 million, representing 23.4% of revenue, slightly down from 23.7% in the same period of 2024[143] - General and administrative expenses for the three months ended September 30, 2025 were $45.3 million, which is 14.6% of revenue, down from 16.3% in the same period of 2024[143] Cash Flow and Liquidity - As of September 30, 2025, the company's principal sources of liquidity included cash, cash equivalents, and restricted cash totaling $981.0 million[164] - As of September 30, 2025, the company's total working capital increased to $882.5 million from $779.9 million as of December 31, 2024, representing a growth of approximately 13.2%[167] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $124.8 million, an increase from $105.9 million for the same period in 2024, reflecting a growth of approximately 17.8%[171][173] - Cash, cash equivalents, and restricted cash at the end of the period increased to $981.0 million as of September 30, 2025, up from $827.9 million at the end of September 30, 2024, marking an increase of approximately 18.5%[171] - The company expects continued growth in cash balances as business operations expand, indicating a positive outlook for liquidity management[178] Investment Activities - Net cash used in investing activities for the nine months ended September 30, 2025, was $24.8 million, compared to $11.6 million for the same period in 2024, indicating a significant increase in investment activities[174][176] Debt and Obligations - The company had no debt as of September 30, 2025, which eliminates potential market risk for interest expense[184] - Noncancellable lease obligations as of September 30, 2025, totaled $142.3 million, with $25.3 million payable within the next 12 months[179] Currency and Risk Management - The company has not entered into any hedging arrangements for foreign currency risk, although it may consider doing so in the future[187]

Revenue Growth - Third quarter revenue reached $310.9 million, reflecting a 32% year-over-year growth[1] - Full-year 2025 revenue guidance raised to between $1.215 billion and $1.219 billion, indicating a 30% year-over-year growth[1] - Q4 2025 revenue guidance is projected between $331 million and $335 million, with a year-over-year growth rate of 23% to 24%[6] - For the nine months ended September 30, 2025, revenue was $883,824,000, a 32.4% increase from $667,300,000 in 2024[30] - Klaviyo's revenue for the three months ended September 30, 2025, was $310,880,000, representing a 32.1% increase from $235,094,000 in the same period of 2024[28] Profitability Metrics - Gross profit for Q3 2025 was $234.7 million, with a gross margin of 76%[5] - The gross profit for the same period was $234,737,000, with a gross margin of 75.5%, compared to a gross profit of $180,737,000 and a gross margin of 76.9% in 2024[36] - Non-GAAP operating income for Q3 2025 was $45.0 million, resulting in a non-GAAP operating margin of 14%[5] - For the three months ended September 30, 2025, Klaviyo reported a non-GAAP operating income of $44,979,000, compared to $33,710,000 in the same period of 2024, reflecting a year-over-year increase of 33.5%[38] - Non-GAAP net income for the three months ended September 30, 2025, was $55,389,000, up from $45,643,000 in 2024, representing a growth of 21.5%[40] Customer Growth - Customer base grew to over 183,000 as of September 30, 2025, up from over 157,000 a year prior[4] - The number of customers generating over $50,000 of ARR increased by 36% year-over-year, totaling 3,563 customers[4] Cash Flow and Assets - Cash from operating activities for Q3 2025 was $54.8 million, with free cash flow of $47.1 million[5] - Total current assets increased to $1,110,009,000 as of September 30, 2025, from $979,749,000 as of December 31, 2024[26] - Cash and cash equivalents rose to $980,267,000 as of September 30, 2025, compared to $881,473,000 at the end of 2024[26] - The company reported a net cash provided by operating activities of $54,760,000 for the three months ended September 30, 2025, compared to $38,784,000 in 2024[32] - Free cash flow for the three months ended September 30, 2025, was $47,055,000, compared to $34,246,000 in 2024, marking a year-over-year increase of 37.3%[45] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $245,573,000, an increase from $194,015,000 in 2024, indicating a rise of 26.5%[43] - The non-GAAP total operating expenses for the nine months ended September 30, 2025, were $557,215,000, compared to $427,991,000 in 2024, representing an increase of 30.2%[54] - Stock-based compensation expense for the three months ended September 30, 2025, was $40,437,000, up from $31,557,000 in 2024[32] Net Loss and Improvement - Operating loss for the three months ended September 30, 2025, was $10,836,000, an improvement from a loss of $13,278,000 in 2024[28] - Klaviyo's net loss for the three months ended September 30, 2025, was $426,000, compared to a net loss of $1,345,000 in the same period of 2024[28] - The net loss for the three months ended September 30, 2025, was $426,000, significantly improved from a net loss of $1,345,000 in the same period of 2024[40] Liabilities - Klaviyo's total liabilities increased to $322,986,000 as of September 30, 2025, from $239,321,000 as of December 31, 2024[26] Operating Cash Flow Margin - Operating cash flow margin for the three months ended September 30, 2025, was 17.6%, compared to 16.5% in 2024, showing an improvement of 1.1 percentage points[45] - Non-GAAP operating margin for the three months ended September 30, 2025, was 14.5%, slightly up from 14.3% in 2024[38] Share Information - The number of shares used in non-GAAP per share calculations for the three months ended September 30, 2025, was 300,828,017 (basic), compared to 267,854,769 in 2024, indicating an increase of 12.3%[40]

Core Insights - Klaviyo, Inc. (NYSE:KVYO) is viewed positively by analysts as a growth stock, with expectations for strong performance ahead of its fiscal third-quarter results scheduled for November 5, 2025 [1] Analyst Ratings - Jefferies initiated coverage with a Buy rating and a price target of $32, noting a year-to-date stock price decrease of 38.76% primarily due to AI concerns, but believes the risk is already reflected in the current valuation [2] - Wells Fargo also initiated coverage with a Buy rating and a price target of $40, highlighting the company's unique position to integrate AI and its ability to generate strong margins and free cash flow [3] Financial Guidance - Management raised its full-year revenue guidance to between $1.195 billion and $1.203 billion, indicating a year-over-year growth of 27% to 28% [4] Company Overview - Klaviyo, Inc. provides customer relationship management platforms tailored for Business-to-Consumer brands, focusing on integrating marketing analytics and customer service into a unified solution [4]

Core Insights - Klaviyo, Inc. (NYSE:KVYO) is identified as a stock with exponential growth potential heading into 2026, receiving a "Buy" rating from Jefferies with a price target of $32 [1] - The company has launched new AI-driven products, including Marketing Agent and Customer Agent, positioning itself as an AI-first B2C CRM [2] - Klaviyo reported strong Q4 2024 results, exceeding expectations, despite a decline in shares due to high pre-earnings expectations and a broader tech selloff [3] Group 1 - Jefferies initiated coverage of Klaviyo with a "Buy" rating and a price objective of $32, indicating that current valuation reflects more risk than is warranted [1] - The firm believes that the risk/reward profile for Klaviyo is positively skewed despite concerns surrounding AI [1] - Klaviyo's stock experienced a significant sell-off in 2025 due to AI concerns, similar to its peers [1] Group 2 - Klaviyo's Marketing Agent autonomously plans and launches campaigns quickly, while the Customer Agent provides 24/7 personalized support to consumers [2] - The integration of marketing, customer service, and analytics into a full CRM platform enhances Klaviyo's competitive advantage in the B2C space [3] - Management is focused on improving communication and operational delivery, with strong momentum in upmarket adoption and international expansion [3] Group 3 - The launch of the full CRM platform positions Klaviyo as a true platform business for B2C brands, expanding its AI opportunities [3] - Despite acknowledging Klaviyo's potential, Sands Capital suggests that other AI stocks may offer greater upside with less downside risk [3]

Core Insights - The article discusses the impact of recent economic trends on the investment banking sector, highlighting both opportunities and challenges faced by firms in the industry [1] Group 1: Economic Trends - Recent fluctuations in interest rates have led to increased volatility in the financial markets, affecting deal-making activities [1] - The ongoing geopolitical tensions are influencing investor sentiment, resulting in a cautious approach to new investments [1] Group 2: Investment Opportunities - There is a growing interest in sustainable finance, with firms increasingly focusing on ESG (Environmental, Social, and Governance) criteria in their investment strategies [1] - Technology-driven solutions are being adopted to enhance operational efficiency and client engagement, presenting new avenues for growth [1] Group 3: Challenges - Regulatory changes are creating additional compliance burdens for investment banks, impacting their operational costs [1] - Competition from fintech companies is intensifying, forcing traditional banks to innovate and adapt to maintain market share [1]

Company Overview - Klaviyo is a B2C CRM software company founded in 2012, currently valued at over $7 billion, providing a proprietary data platform with AI insights, marketing automation, and analytics [4] - The company offers a range of high-quality, data-driven marketing tools, including email and SMS marketing, content generation automation, and a robust data library [2] Financial Performance - In Q2 2025, Klaviyo reported revenue of $293.1 million, reflecting a 32% year-over-year growth and exceeding expectations by $14.4 million [8] - The non-GAAP EPS for the quarter was 16 cents, beating forecasts by 3 cents per share [8] Stock Performance and Analyst Insights - Klaviyo's stock has declined by 41% this year, facing concerns over potential overvaluation and significant share sales by CEO Andrew Bialecki, including a notable sale of over $7.5 million on September 25 [1] - Wells Fargo analyst Ryan MacWilliams highlights Klaviyo's strong use of AI as a positive factor for future growth, rating the stock as Overweight (Buy) with a price target of $40, indicating a 64% upside potential [9] - The stock currently trades at $24.33, with an average price target of $45.44 suggesting an 87% potential gain [9] Market Position and Strategy - Klaviyo provides personalized services in an industry that leans towards automation, enabling enterprise clients to enhance customer interactions and drive brand growth [3] - The company is well-positioned to leverage AI technology in its offerings, particularly in the e-commerce market, which is seen as ripe for AI utilization [9]

Company Overview - Klaviyo, Inc. (NYSE: KVYO) is a B2C CRM that integrates marketing automation, analytics, and customer service into a unified solution, helping businesses understand their customers and accelerate growth [3]. Upcoming Events - Klaviyo will announce its third quarter 2025 results on November 5, 2025, after the U.S. financial markets close [1]. - A live audio webcast to discuss the results will take place at 4:30 p.m. ET / 1:30 p.m. PT on the same day [1]. - An Investor Day is scheduled for September 25, 2025, during the K:BOS event, starting at approximately 10:00 a.m. ET / 7:00 a.m. PT [5]. Financial Offerings - Klaviyo has priced a secondary offering of 6,500,000 shares of Series A common stock by certain selling stockholders, with an additional 30-day option for the underwriter to purchase up to 975,000 shares [6]. - The company will not receive any proceeds from this sale [6].