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 ...

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]

Financial Data and Key Metrics Changes - Klaviyo has over 176,000 customers globally, with significant growth in the mid-market and enterprise segments [7][8] - The company processes over 1.4 billion emails daily and 3.4 billion events, indicating a robust operational scale [38] Business Line Data and Key Metrics Changes - The majority of Klaviyo's revenue currently comes from marketing automation, with plans to expand into other CRM applications [12] - The company has launched new products, including the Marketing Agent and Customer Agent, aimed at enhancing customer engagement and service [26][32] Market Data and Key Metrics Changes - Klaviyo is expanding its presence in international markets, with a focus on adapting messaging to different regulations and languages [50] - The company has seen a significant increase in demand from larger brands, indicating a shift towards enterprise solutions [50] Company Strategy and Development Direction - Klaviyo's strategy revolves around empowering creators and businesses to operate independently while leveraging AI for enhanced customer experiences [5][6] - The company aims to build a comprehensive data platform that integrates various customer touchpoints, enhancing personalization and service delivery [10][19] Management's Comments on Operating Environment and Future Outlook - Management believes that the future of software will be more autonomous, reducing the need for manual configuration and allowing businesses to focus on strategy [22][24] - The company is optimistic about the role of AI as an accelerant for growth and efficiency in customer interactions [13][15] Other Important Information - Klaviyo has invested 18% of its revenue in R&D, deploying over 270 updates daily, showcasing a commitment to innovation [37] - The company has achieved significant ROI for its customers, with some reporting up to 67x returns since adopting Klaviyo [51] Q&A Session Summary Question: What is Klaviyo's approach to AI integration in its products? - Klaviyo is focused on building autonomous systems that reduce manual input and enhance user experience, allowing businesses to leverage AI for marketing and customer service [23][24] Question: How does Klaviyo plan to expand its market presence? - The company is targeting mid-market and enterprise customers while continuing to support SMBs, emphasizing a multi-product platform approach [54] Question: What are the key innovations Klaviyo is introducing? - Klaviyo is launching the Marketing Agent and Customer Agent, which will automate marketing tasks and enhance customer service interactions [26][32]

Q2 2025 Investor Presentation Lifetime Data Retention Streaming Architecture High-Performance Indexing 08.05.2025 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 Kla ...

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]