Financial Data and Key Metrics Changes - Klaviyo reported Q1 revenue of $280 million, representing a 33% year-over-year growth [6][23] - Non-GAAP operating margin for Q1 was 11.6%, with income of $32 million [23][29] - Customer count increased to over 169,000, up 16% year-over-year [24] - Net Revenue Retention (NRR) for Q1 was 108%, consistent with the previous quarter [26] Business Line Data and Key Metrics Changes - SMS penetration within SMB and mid-market customers increased, with strong adoption of the marketing analytics application [27] - The company signed new or expansion deals with various companies, including Quip and Burt's Bees Baby [11][12] - The introduction of new features, such as automated conversations for SMS and custom objects, aimed at enhancing customer engagement [10][11] Market Data and Key Metrics Changes - EMEA revenue grew 47% year-over-year, while total EMEA and APAC revenue grew 42% year-over-year [27] - Notable strength in France, Germany, and Spain, each delivering over 100% year-on-year growth in new business [17] Company Strategy and Development Direction - Klaviyo aims to redefine consumer engagement as the only CRM built for B2C businesses, focusing on a vertically integrated data-first approach [7][9] - The company is investing in international growth and expanding its product offerings, including AI integration and new marketing channels [22][27] - Klaviyo's strategy includes consolidating multiple point solutions into a unified platform to enhance customer relationships [12][21] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are feeling tentative but optimistic, with many diversifying their supply chains and preparing for the holiday season [20][21] - The company remains focused on delivering innovations and maintaining a strong position in the market despite macroeconomic uncertainties [30][32] - Guidance for Q2 expects revenue between $276 million and $280 million, representing year-over-year growth of 24% to 26% [32][34] Other Important Information - Non-GAAP gross margin for Q1 was 77%, down approximately three points year-over-year due to increased infrastructure costs [28] - Free cash flow generated during the quarter was $6.6 million, better than expected [30] Q&A Session Summary Question: Customer behavior comparison in uncertain times - Management noted that customers are focusing on existing relationships and seeing high ROI from Klaviyo's products, indicating resilience in their customer base [36][39] Question: Exposure to China and tariff countries - Management indicated that many customers are diversifying their supply chains away from China and are optimistic about market opportunities [45][46] Question: Contribution expectations from new products - Management has not baked significant revenue expectations from new products into guidance but sees strong potential for future growth [47][52] Question: Relative sizing of customer cohorts - Management highlighted the diversity in customer behavior, with a focus on retention and growth, while being mindful of macroeconomic risks [56][60] Question: International traction and customer personas - Management reported strong growth in Europe, with a similar customer persona to the US, and noted investments in local sales teams [95][98]

Financial Data and Key Metrics Changes - Klaviyo reported Q1 2025 revenue of $280 million, representing a 33% year-over-year growth [5][21] - Non-GAAP operating margin for Q1 was 11.6%, with income of $32 million [21][27] - Free cash flow generated during the quarter was $6.6 million, better than expected due to higher collections [28] Business Line Data and Key Metrics Changes - The company ended Q1 with over 169,000 customers, up 16% year-over-year [22] - The number of customers with over $50,000 in ARR increased by 40% year-over-year, totaling 3,030 [22] - More than 1,000 customers are now paying over $100,000 in ARR [22] Market Data and Key Metrics Changes - EMEA revenue grew 47% year-over-year, while total EMEA and APAC revenue grew 42% year-over-year [25] - Notable strength was observed in France, Germany, and Spain, each delivering over 100% year-on-year growth in new business [15] Company Strategy and Development Direction - Klaviyo aims to redefine consumer engagement with its B2C CRM platform, integrating marketing automation, customer service, and analytics [6][20] - The company is focused on expanding internationally and enhancing its product offerings, including AI integration and new marketing channels [20][31] - Klaviyo's strategy includes consolidating multiple point solutions into a unified data-powered platform to enhance customer relationships [11][12] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are feeling tentative but optimistic, with many diversifying supply chains and preparing for market share growth [19][28] - The company is closely monitoring macroeconomic factors but has not seen a material impact on its business thus far [28][29] - For Q2, Klaviyo expects revenue between $276 million and $280 million, representing year-over-year growth of 24% to 26% [30][31] Other Important Information - Klaviyo's non-GAAP gross margin for Q1 was 77%, down approximately three points year-over-year due to increased infrastructure costs [26] - The company has launched several new features, including automated conversations for SMS and custom objects for data structuring [10][12] Q&A Session Summary Question: Comparison of customer behavior in uncertain times - Management noted that during uncertain economic times, customers tend to focus on existing relationships, recognizing the high ROI from Klaviyo's platform [34][36] Question: Exposure to China and tariff countries - Management indicated that many customers have diversified their supply chains away from China and are optimistic about acquiring more inventory [44][45] Question: Contribution expectations from new products - Management has not baked significant revenue expectations from new products into 2025 guidance, preferring to ensure product-market fit before scaling [46][49] Question: International traction and customer personas - International customers are similar to U.S. customers, primarily starting with SMBs, and Klaviyo is investing in local sales teams to accelerate growth [92][93] Question: Meta and TikTok integrations - Klaviyo is investing in building out integrations with social platforms like Meta and TikTok to enhance marketing capabilities [98][101]

Financial Performance - Klaviyo's Q1 2025 revenue reached $280 million, representing a 33% year-over-year growth[19] - The company's dollar-based net revenue retention rate was 108%[19] - 34% of total revenue came from EMEA & APAC regions[19] - The trailing twelve months (TTM) free cash flow margin was 13%[19] - Non-GAAP operating margin was 12%[19] Customer Growth - Klaviyo has over 169,000 total customers[19] - The number of customers generating over $50,000 in ARR grew by 40% year-over-year, reaching 3,030[19] Future Outlook - Klaviyo projects Q2 2025 revenue between $276 million and $280 million, with a year-over-year growth of 24%-26%[87] - The company anticipates full-year 2025 revenue between $1.171 billion and $1.179 billion, reflecting a 25%-26% year-over-year growth[87] - Klaviyo expects a Q2 2025 non-GAAP operating income of $28.5 million to $31.5 million, with a non-GAAP operating margin of 10%-11%[87] - The projected non-GAAP operating income for the full year 2025 is $133 million to $139 million, with a non-GAAP operating margin of 11%-12%[87] Market Opportunity - Klaviyo estimates a global total addressable market (TAM) of $68 billion[56] - The U S TAM is estimated at $34 billion, with retail and e-commerce representing a $16 billion serviceable addressable market (SAM)[57]

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Klaviyo reported significant revenue growth in Q1 2025, alongside a net loss, increased total assets, and a decrease in operating cash flow [Condensed Consolidated Balance Sheets (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) The balance sheet shows total assets increased to $1.347 billion, total liabilities rose to $283.4 million, and stockholders' equity grew to $1.064 billion as of March 31, 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $888,432 | $881,473 | | Total current assets | $1,007,239 | $979,749 | | Total assets | $1,347,311 | $1,273,308 | | **Liabilities & Equity** | | | | Total current liabilities | $192,824 | $199,893 | | Total liabilities | $283,379 | $239,321 | | Total stockholders' equity | $1,063,932 | $1,033,987 | [Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss%20(Unaudited)) For Q1 2025, revenue grew 33.3% to $279.8 million, gross profit increased, but operating loss widened to $23.8 million, resulting in a net loss of $14.1 million Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Revenue | $279,827 | $209,993 | | Gross Profit | $212,127 | $165,055 | | Operating Loss | $(23,750) | $(22,092) | | Net Loss | $(14,089) | $(12,882) | | Net loss per share, basic and diluted | $(0.05) | $(0.05) | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Net cash provided by operating activities decreased to $14.4 million in Q1 2025, while cash used in investing activities increased, resulting in a net increase in cash of $6.6 million Cash Flow Summary (in thousands) | Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $14,362 | $26,182 | | Net cash used in investing activities | $(7,741) | $(3,225) | | Net cash used in financing activities | $(37) | $(5,737) | | **Net increase in cash** | **$6,584** | **$17,220** | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20Condensed%20Financial%20Statements%20(Unaudited)) The notes detail revenue recognition from tiered subscriptions, highlight Shopify collaboration fees of $7.9 million, and report remaining performance obligations of $173.1 million and stock-based compensation of $39.4 million for Q1 2025 - Revenue is generated through tiered subscription plans based on **consumer profiles and message volume**[29](index=29&type=chunk) - Fees paid to Shopify under a revenue sharing agreement totaled **$7.9 million in Q1 2025**, recognized as selling and marketing expense[39](index=39&type=chunk) - Remaining performance obligations totaled **$173.1 million** as of March 31, 2025, with **$163.7 million** expected within twelve months[47](index=47&type=chunk) - Total stock-based compensation expense was **$39.4 million** for Q1 2025[85](index=85&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a 33.3% revenue increase in Q1 2025 driven by new and existing customers, alongside a 40% rise in high-ARR customers, despite a decline in NRR and continued net losses due to increased operating expenses - As of March 31, 2025, Klaviyo served over **169,000 businesses globally**[97](index=97&type=chunk)[100](index=100&type=chunk) Key Performance Metrics (as of March 31) | Metric | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Customers > $50k ARR | 3,030 | 2,157 | +40% | | NRR | 108% | 114% | -6 p.p. | - Revenue for Q1 2025 increased by **$69.8 million (33.3%) YoY**, with **60% from new customers** and **40% from existing customer expansion**[142](index=142&type=chunk) - Cost of revenue grew **50.7% YoY**, outpacing revenue growth, driven by increased cloud infrastructure and outbound communication costs[143](index=143&type=chunk) - Selling and marketing expenses rose **34.5% YoY to $123.5 million**, primarily due to personnel, advertising, and partnership costs[145](index=145&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk on its $889.2 million cash holdings and foreign currency risk from international operating expenses, though sales are USD-denominated and no hedging derivatives are used - The company is exposed to interest rate risk on its **$889.2 million cash, cash equivalents, and restricted cash balance** as of March 31, 2025, with no debt[176](index=176&type=chunk) - Foreign currency risk arises from operating expenses denominated in local currencies (e.g., UK, Australia, Ireland), while all sales are in **U.S. dollars**[179](index=179&type=chunk) - A hypothetical **10% change in the U.S. dollar's value** is not expected to materially impact operating results[179](index=179&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during Q1 2025 - Management concluded that disclosure controls and procedures were **effective as of March 31, 2025**[181](index=181&type=chunk) - No material changes occurred in internal control over financial reporting during Q1 2025[182](index=182&type=chunk) [PART II. OTHER INFORMATION](index=37&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings expected to adversely affect its financial condition or operations - Klaviyo is not currently a party to any **material legal proceedings**[186](index=186&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) Key risks include sustaining revenue growth, managing expansion, intense competition, significant dependency on Shopify, compliance with data privacy laws, cybersecurity, reliance on key personnel, and concentrated voting power - The company's rapid historical revenue growth, including **33.3% for Q1 2025**, may not be sustainable and could decelerate[188](index=188&type=chunk) - A significant dependency exists on Shopify integration, with approximately **77.7% of ARR** as of December 31, 2024, from customers also using Shopify[204](index=204&type=chunk) - The company has a history of net losses, including **$14.1 million in Q1 2025**, and increasing operating expenses may hinder future profitability[217](index=217&type=chunk) - The business is subject to stringent and evolving data privacy laws like **GDPR and CCPA**, with non-compliance risking significant fines and business harm[283](index=283&type=chunk)[298](index=298&type=chunk)[300](index=300&type=chunk) - The dual-class stock structure concentrates **64.6% of voting power** with insiders as of March 31, 2025, limiting Series A stockholders' influence[349](index=349&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=77&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Shopify exercised warrants for 344,382 Series B common shares on February 21, 2025, in an unregistered sale, with no material change in IPO proceeds use - On February 21, 2025, Shopify exercised warrants for **344,382 Series B common shares** at **$0.01 per share**, exempt from registration[376](index=376&type=chunk) - No material change occurred in the use of proceeds from the company's IPO[377](index=377&type=chunk) [Other Information](index=79&type=section&id=Item%205.%20Other%20Information) Director Ping Li adopted a Rule 10b5-1 trading plan on March 14, 2025, for the sale of 15,573 shares, with no other similar arrangements by directors or officers during the quarter - Director Ping Li adopted a Rule 10b5-1 trading plan on March 14, 2025, for the sale of **15,573 shares**[381](index=381&type=chunk) [Exhibits](index=80&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the 10-Q report, including required certifications from principal officers and interactive data files - The filing includes required certifications from the **Principal Executive Officer and Principal Financial Officer** pursuant to SEC rules and the Sarbanes-Oxley Act[383](index=383&type=chunk)

[Q1 2025 Performance and Outlook](index=1&type=section&id=Klaviyo%20Announces%20First%20Quarter%202025%20Financial%20Results) [Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights%3A) Klaviyo reported strong Q1 2025 financial results, with significant revenue growth and positive non-GAAP profitability | Financial Metric | Q1 FY25 | YoY Growth | | :--- | :--- | :--- | | Revenue | $279.8M | 33% | | Gross Profit (GAAP) | $212.1M | - | | Gross Margin (GAAP) | 76% | - | | Operating Loss (GAAP) | $(23.8)M | - | | Operating Income (Non-GAAP) | $32.4M | - | | Net Loss per Share (GAAP) | $(0.05) | - | | Net Income per Share (Non-GAAP, diluted) | $0.14 | - | | Cash from Operating Activities | $14.4M | - | | Free Cash Flow | $6.6M | - | - First quarter revenue grew **33% year-over-year to $279.8 million**[1](index=1&type=chunk)[2](index=2&type=chunk) [Business & Customer Metrics](index=1&type=section&id=Recent%20Business%20Highlights%3A) Klaviyo demonstrated strong customer growth, increasing total customers and large customer count, with NRR at 108% - Total customer base grew to **over 169,000** as of March 31, 2025, up from over 146,000 a year prior[5](index=5&type=chunk) - The number of customers generating over $50,000 of ARR increased by **40% year-over-year to 3,030**[5](index=5&type=chunk) - Net Revenue Retention Rate (NRR) was **108%** as of March 31, 2025, indicating strong expansion within the existing customer base[5](index=5&type=chunk) - Announced the Klaviyo B2C CRM, launching new Marketing Analytics and Customer Hub products[5](index=5&type=chunk) [FY2025 Financial Outlook](index=2&type=section&id=Financial%20Outlook) Klaviyo raised its full-year 2025 revenue guidance, projecting 25-26% annual growth and strong non-GAAP operating income | Guidance ($ in millions) | Q2 FY25 (Low) | Q2 FY25 (High) | FY25 (Low) | FY25 (High) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $276.0 | $280.0 | $1,171.0 | $1,179.0 | | YoY Growth Rate | 24% | 26% | 25% | 26% | | Non-GAAP Operating Income | $28.5 | $31.5 | $133.0 | $139.0 | - Raised full-year 2025 revenue guidance to a range of **$1.171 billion to $1.179 billion**[1](index=1&type=chunk) [Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheet](index=8&type=section&id=Klaviyo%2C%20Inc.%20Condensed%20Consolidated%20Balance%20Sheet%20%28Unaudited%29) As of March 31, 2025, Klaviyo's total assets increased to $1.35 billion, with strong cash and growing stockholders' equity | Balance Sheet (In Thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$1,347,311** | **$1,273,308** | | Cash and cash equivalents | $888,432 | $881,473 | | **Total Liabilities** | **$283,379** | **$239,321** | | **Total Stockholders' Equity** | **$1,063,932** | **$1,033,987** | [Condensed Consolidated Statement of Operations](index=9&type=section&id=Klaviyo%2C%20Inc.%20Condensed%20Consolidated%20GAAP%20Statement%20of%20Operations%20%28Unaudited%29) Q1 2025 revenue grew 33% YoY to $279.8 million, but increased operating expenses led to a GAAP operating loss and net loss | Statement of Operations (In Thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $279,827 | $209,993 | | Gross Profit | $212,127 | $165,055 | | Total Operating Expenses | $235,877 | $187,147 | | Operating Loss | $(23,750) | $(22,092) | | Net Loss | $(14,089) | $(12,882) | | Net Loss Per Share | $(0.05) | $(0.05) | [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Klaviyo%2C%20Inc.%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows%20%28Unaudited%29) In Q1 2025, operating cash flow was $14.4 million, resulting in free cash flow of $6.6 million after capital expenditures | Cash Flows (In Thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $14,362 | $26,182 | | Net cash used in investing activities | $(7,741) | $(3,225) | | Net cash used in financing activities | $(37) | $(5,737) | | **Free Cash Flow** | **$6,621** | **$22,957** | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=5&type=section&id=Statement%20Regarding%20Use%20of%20Non-GAAP%20Financial%20Measures) [Overview of Non-GAAP Adjustments](index=5&type=section&id=Overview%20of%20Non-GAAP%20Adjustments) Klaviyo uses non-GAAP measures to provide a clearer view of core operational performance, excluding non-cash and non-recurring expenses - Non-GAAP measures exclude expenses such as stock-based compensation and related employer payroll taxes, and amortization of prepaid marketing expenses[22](index=22&type=chunk) - Management believes these non-GAAP measures are useful for understanding long-term core business performance and for comparison with peer companies[23](index=23&type=chunk)[24](index=24&type=chunk) [Operating Income Reconciliation](index=11&type=section&id=Klaviyo%2C%20Inc.%20Reconciliation%20of%20Operating%20Loss%20to%20Non-GAAP%20Operating%20Income%20%28Unaudited%29) Klaviyo reconciled GAAP operating loss to non-GAAP operating income, primarily adjusting for stock-based compensation and other non-cash items | Reconciliation (In Thousands) | Q1 2025 | | :--- | :--- | | **Operating loss (GAAP)** | **$(23,750)** | | Stock-based compensation | $38,327 | | Employer payroll tax on employee stock transactions | $4,610 | | Amortization of prepaid marketing | $13,224 | | **Non-GAAP operating income** | **$32,411** | [Net Income Reconciliation](index=12&type=section&id=Klaviyo%2C%20Inc.%20Reconciliation%20of%20Net%20Loss%20to%20Non-GAAP%20Net%20Income%20%28Unaudited%29) A GAAP net loss was converted to a non-GAAP net income of $42.1 million, resulting in a non-GAAP diluted EPS of $0.14 | Reconciliation (In Thousands) | Q1 2025 | | :--- | :--- | | **Net loss (GAAP)** | **$(14,089)** | | Stock-based compensation | $38,327 | | Employer payroll tax on employee stock transactions | $4,610 | | Amortization of prepaid marketing | $13,224 | | **Non-GAAP net income** | **$42,072** | | Non-GAAP net income per share, diluted | $0.14 | [Free Cash Flow Reconciliation](index=13&type=section&id=Klaviyo%2C%20Inc.%20Reconciliation%20of%20Operating%20Cash%20Flow%20to%20Free%20Cash%20Flow%20%28Unaudited%29) Free cash flow for Q1 2025 was $6.6 million, derived from operating cash flow after capital expenditures and capitalized software | Reconciliation (In Thousands) | Q1 2025 | | :--- | :--- | | **Cash provided by operating activities** | **$14,362** | | Acquisition of property and equipment | $(2,685) | | Capitalization of software development costs | $(5,056) | | **Free cash flow** | **$6,621** | [Additional Information](index=3&type=section&id=Additional%20Information) [Key Business Metrics & Definitions](index=3&type=section&id=Select%20Defined%20Terms) Klaviyo defines key business metrics including customer count, large customer ARR, and Dollar-Based Net Revenue Retention Rate - **Customer:** A distinct paid subscription to the platform. Free trial users are not included[11](index=11&type=chunk) - **Customers Generating Over $50,000 of ARR:** Customers with an average ARR greater than $50,000 over the prior twelve months, indicating success in moving upmarket[12](index=12&type=chunk) - **Dollar-Based Net Revenue Retention Rate (NRR):** Measures revenue growth from the existing customer cohort over a twelve-month period, including expansion and contraction, but excluding new customers[13](index=13&type=chunk)[14](index=14&type=chunk) [Share Capital Structure](index=2&type=section&id=Dilutive%20Securities) As of March 31, 2025, Klaviyo had 275.6 million common shares outstanding, with total estimated fully diluted shares at 323.5 million | Security Type | Shares (in millions) | | :--- | :--- | | Common stock outstanding | 275.6 | | Warrants outstanding | 3.4 | | RSUs outstanding | 20.0 | | Options outstanding | 24.2 | | **Total estimated fully diluted shares** | **323.5** | - The Shopify investment option to purchase **15.7 million shares at $88.93/share** was out of the money and excluded from the fully diluted share count[9](index=9&type=chunk)

Core Insights - Email newsletters are recognized as reliable and cost-effective marketing tools, with Klaviyo named the top email newsletter software for 2025 by Expert Consumers [1][6] Industry Trends - Businesses are increasingly relying on owned marketing channels like email due to rising paid advertising costs and unpredictable social media algorithms, with email being a top ROI-generating channel for nearly 79% of businesses [2] - Email newsletters have evolved into personalized, data-driven engagement tools, essential for brand awareness, customer retention, and direct sales [4] Company Highlights - Klaviyo is a unified B2C CRM software that integrates email marketing, customer analytics, and automation, providing sophisticated tools for businesses to enhance their email marketing strategies [3][12] - The platform offers over 160 professionally designed email templates and AI-powered writing assistance to optimize newsletters for higher engagement [9][10] - Klaviyo's automated workflows allow for triggered email sequences, ensuring timely and relevant messaging based on customer behavior [11][13] Strategic Importance - The recognition of Klaviyo reflects the demand for smarter, personalized email marketing solutions, moving beyond traditional bulk messaging to a more strategic, data-driven approach [12][14] - Klaviyo empowers brands to leverage real-time customer insights for refined outreach strategies, enhancing engagement and customer loyalty [13][14]

Core Insights - Email marketing remains a highly effective channel for B2C brands, with a growing emphasis on personalized and data-driven strategies [1][3][10] - Klaviyo has been recognized as the best email marketing tool for 2025 due to its AI-driven automation, customer segmentation, and integration capabilities [1][3][12] Group 1: Klaviyo's Features and Capabilities - Klaviyo integrates marketing automation, analytics, and customer service into a unified platform designed specifically for B2C brands [2][5] - The platform offers over 60 built-in automation flows, enabling brands to manage various email campaigns such as welcome emails and cart abandonment reminders [6] - Customizable email templates support mobile optimization and branding consistency, allowing businesses to adapt campaigns for different customer segments [7] Group 2: Importance of Data and Personalization - Modern email marketing relies on automation, predictive analytics, and audience segmentation to effectively engage customers, moving away from generic email blasts [3][11] - Klaviyo's integration of real-time data and AI helps brands predict customer behavior and make data-backed marketing decisions [9][10] - The focus on first-party data and owned channels like email and SMS allows brands to maintain control over customer interactions, enhancing customer retention and long-term engagement [10][11] Group 3: Industry Trends - The recognition of Klaviyo reflects a broader industry shift towards smarter, data-centric marketing solutions that prioritize relevant messaging at scale [12] - Email is highlighted as a high-ROI channel, particularly when combined with AI-driven segmentation and automation, distinguishing it from social media and paid advertising [10][11]

Core Insights - Klaviyo has been recognized as the best text messaging service for businesses in 2025 by Consumer365, emphasizing its data-driven approach and the importance of SMS marketing in multichannel strategies [1][13] Company Overview - Klaviyo is a B2C-focused CRM platform that integrates SMS, email, and AI-powered insights to enhance customer engagement [2] - The platform allows businesses to adopt a holistic approach to customer engagement, selecting the most effective communication channel based on real-time customer behavior [3] SMS Marketing Significance - SMS remains a reliable communication channel, with 74% of consumers subscribing to SMS from multiple brands and 72% preferring weekly text updates [4] - 65% of consumers have made unplanned purchases due to SMS messages, highlighting the channel's influence on buying decisions [4] Engagement and Effectiveness - Text messages are read within three minutes of receipt, making SMS effective for urgent communications like limited-time offers and appointment reminders [5] - Klaviyo's multichannel orchestration capabilities allow brands to balance SMS with email and push notifications, preventing over-messaging and enhancing customer engagement [7][8] Business Impact - Businesses using Klaviyo for both SMS and email have experienced a 19% increase in gross merchandise value (GMV) growth rate, demonstrating the effectiveness of a multichannel strategy [8] - Klaviyo provides businesses with control, insights, and performance tracking, centralizing customer data from various marketing channels [9] Future of SMS Marketing - SMS marketing is becoming a significant revenue driver for B2C brands, with average revenue per recipient (RPR) for SMS campaigns slightly higher than that of email [11] - The strategic use of SMS, focusing on delivering high-value content without overwhelming subscribers, is crucial for successful marketing [12]

Core Insights - Klaviyo has been recognized as one of the top email marketing platforms of the year by Software Experts, highlighting its AI-powered automation and real-time customer data integration as key strengths [1][2][13] - The platform is designed to enhance customer engagement and maximize revenue for businesses through advanced marketing capabilities [1][3] Company Overview - Klaviyo is a B2C CRM that helps consumer brands unify marketing, analytics, and customer interactions through AI-driven automation and real-time data insights [15] - Founded in 2012, Klaviyo has evolved from a customer database to a comprehensive platform used by over 167,000 brands worldwide [15] Key Features - **Real-Time Data and Segmentation**: Klaviyo processes customer data in real time, enabling businesses to create targeted audience segments for effective marketing [4] - **Automation Flows**: The platform offers pre-built automation workflows for various customer interactions, reducing manual effort and maintaining continuous communication [5][6] - **Multi-Channel Marketing Integration**: Klaviyo integrates with SMS, push notifications, and e-commerce platforms, ensuring a synchronized marketing approach [6] - **AI-Powered Content and Personalization**: The platform utilizes AI for hyper-precise personalization, tailoring emails based on customer behavior [7] - **User-Friendly Template Editor**: Klaviyo features an intuitive drag-and-drop editor for easy email creation [8] - **Data-Driven Reporting**: The platform provides insights to measure campaign effectiveness and track revenue impact [8] Revenue Impact and Business Growth - Businesses using Klaviyo's automated email campaigns report higher revenue per recipient compared to manual efforts, showcasing the platform's effectiveness in driving measurable results [9][10] Pricing Model - Klaviyo's pricing is based on active profiles, starting at $60 per month, with a free tier available for up to 500 emails per month, making it accessible for various business sizes [10] Industry Recognition - Software Experts' ranking of Klaviyo is based on innovation, usability, performance, scalability, and ROI impact, solidifying its position as a top choice for businesses looking to scale marketing operations [13][14]

Company Overview - Klaviyo, Inc. (KVYO) shares increased by 10.3% to $28.94 in the last trading session, following a period of 22.1% loss over the past four weeks, indicating a significant recovery in stock performance [1] - The company is experiencing growth due to an expanding clientele [1] Earnings Expectations - Klaviyo is projected to report quarterly earnings of $0.12 per share, reflecting a year-over-year decline of 7.7% [2] - Revenue expectations stand at $267.13 million, which is a 27.2% increase compared to the same quarter last year [2] Stock Performance Insights - The consensus EPS estimate for Klaviyo has remained unchanged over the last 30 days, suggesting stability in earnings expectations [3] - The stock's price movement is typically influenced by trends in earnings estimate revisions, indicating that future performance should be monitored closely [3] Industry Context - Klaviyo operates within the Zacks Internet - Software industry, where another company, Arteris, Inc. (AIP), also showed a stock increase of 6.8% to $6.61, despite a 19.9% decline over the past month [3] - Arteris has an unchanged EPS estimate of -$0.11 for its upcoming report, which represents a 26.7% improvement from the previous year [4]