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]