Klaviyo (NYSE:KVYO) 2025 Investor Day September 25, 2025 10:00 AM ET Company ParticipantsDerek Wood - Managing DirectorArben Azizi - Lead Digital Marketing TechnologyJohn Gonvo - VP of Strategy and M&AArjun Bhatia - Co Group Head of Technology, Media, and CommunicationsMatt VanVliet - Managing Director of Equity ResearchAdil Wali - Chief Product OfficerAndrew Zilli - Vice President of Investor RelationsRachel Fagan - VP of MarketingAmanda Whalen - CFOEmily McEvilly - Chief Customer OfficerSteve Rowland - Pr ...

Investor Day 2025 September 25, 2025 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 financial outlook, long-term financial targets, and Klaviyo's expectat ...

Financial Data and Key Metrics Changes - Revenue for the second quarter reached $293 million, representing a 32% year-over-year increase [5][29] - Non-GAAP operating margin was 14%, with free cash flow of $59 million [29][33] - Non-GAAP gross margin was 76%, down approximately two points year-over-year due to increased infrastructure costs and SMS product growth [32][33] Business Line Data and Key Metrics Changes - The company ended the quarter with over 176,000 customers, a 17% year-over-year increase [30] - The number of customers with over $50,000 in ARR grew by 38% year-over-year, reaching 3,291 [31] - The marketing analytics product gained nearly 2,000 customers, demonstrating strong early adoption [30][16] Market Data and Key Metrics Changes - International revenue grew over 42% year-over-year, with notable growth in EMEA (47%) and APAC [31][24] - Specific countries like Norway, Germany, and Spain saw new ARR growth exceeding 90% year-over-year [92] Company Strategy and Development Direction - The company is focused on sustainable, efficient long-term growth, expanding internationally and moving upmarket [6][36] - Klaviyo aims to unify marketing, service, and analytics into a single platform, enhancing customer engagement and operational efficiency [8][17] - The introduction of AI-driven products is expected to enhance customer experiences and drive revenue growth [12][17] Management's Comments on Operating Environment and Future Outlook - Management noted that Klaviyo is more critical than ever for customers' growth, with no significant impact from the macroeconomic environment during the quarter [32][36] - The company is optimistic about future growth, raising full-year guidance based on strong first-half performance and customer demand [35][36] Other Important Information - The company announced leadership changes, including the appointment of a new Chief Information Officer and the retirement of the President [27][28] - Klaviyo is expanding its product offerings, including the launch of a help desk and conversational agents, which are currently in beta [12][47] Q&A Session Summary Question: Progress in the mid-market - Management highlighted strong unit economics and customer interest in the mid-market, with a focus on consolidating marketing and service [39][41] Question: Service suite opportunity sizing - Management believes the service suite could be as large as the marketing automation category, with significant interest from both SMBs and enterprises [47][49] Question: Gross margin dynamics - Management discussed the impact of SMS growth and infrastructure investments on gross margin, indicating a positive outlook for new products over time [68][70] Question: International growth and language rollout - International growth was strong, with ongoing language rollouts and improvements in product experience for global customers [92][94] Question: Evolving go-to-market strategy - The expansion of the product portfolio is leading to higher-level discussions with decision-makers beyond just marketing [80][82]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $293 million, representing a 32% year-over-year increase [4][27] - Non-GAAP operating margin was 14%, with free cash flow of $59 million [27][30] - Non-GAAP gross margin was 76%, down approximately two points year-over-year due to increased infrastructure costs and SMS product growth [30][34] Business Line Data and Key Metrics Changes - The company ended Q2 with over 176,000 customers, a 17% year-over-year increase [28] - The number of customers with over $50,000 in ARR grew by 38% year-over-year, reaching 3,291 [29] - The marketing analytics product gained nearly 2,000 customers, demonstrating strong early adoption [13][28] Market Data and Key Metrics Changes - International revenue grew by over 42% year-over-year, with notable growth in EMEA (47%) and APAC [21][29] - New ARR in Norway, Germany, and Spain grew over 90% year-over-year [90] Company Strategy and Development Direction - The company is focused on sustainable, efficient long-term growth, expanding internationally and moving upmarket [5][35] - Klaviyo aims to unify marketing and service through an integrated data platform, addressing market gaps in consumer brand interactions [6][12] - The introduction of AI-driven products is a key part of the strategy, with a focus on enhancing customer experiences and operational efficiencies [14][18] Management's Comments on Operating Environment and Future Outlook - Management noted that Klaviyo is more critical than ever for driving customer growth, with no significant impact from the macroeconomic environment in Q2 [30] - The company is optimistic about future growth, raising full-year guidance based on strong first-half performance and customer demand [34][35] Other Important Information - The company announced leadership changes, including the appointment of a new Chief Information Officer and the retirement of the President [24][25] - Klaviyo is recognized as a leader in AI-enabled marketing platforms, highlighting its competitive positioning in the market [15] Q&A Session Summary Question: Progress in the mid-market - Management highlighted strong customer interest in Klaviyo's integrated data platform and the trend towards autonomous CRM solutions [39][40] Question: Service suite opportunity sizing - Management believes the service suite market is comparable in size to marketing automation and is seeing interest across all customer segments [45][46] Question: Revenue capture from cross-selling - Management indicated that the service products could lead to significant revenue expansion, with a focus on delivering better customer engagement [53][54] Question: International growth and language rollout - Management confirmed ongoing language rollouts and highlighted strong growth in specific international markets [90][91] Question: Evolving go-to-market strategy - Management noted that the expanded product portfolio is opening new conversations with senior decision-makers across organizations [78][80]