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Date

Wednesday, November 5, 2025 at 4:30 p.m. ET

Call participants

Chief Executive Officer — Andrew Zilli

Chief Financial Officer — Amanda Whalen

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Takeaways

Revenue – $311 million in revenue for fiscal Q3 2025 (period ended Sept. 30, 2025), reflecting 32% year-over-year growth driven by multiproduct adoption and international expansion.

International revenue – Revenue outside the Americas grew 43% year over year, marking the sixth consecutive quarter of accelerating international revenue growth, with EMEA up 48% year over year; EMEA and APAC now contribute more than 35% of total revenue.

Customer count – Surpassed 183,000 customers as of fiscal Q3 2025, up 17% year over year, adding 7,000 new customers in the quarter and over 6,000 enterprise/mid-market global brands across 100+ countries.

Enterprise/mid-market momentum – $50,000-plus ARR customer cohort net adds reached a quarterly record, rising 36% year over year to 3,563 accounts, with 272 net new customers in the segment this quarter.

Net revenue retention (NRR) – NRR accelerated to 109%, powered by multiproduct expansion and increased SMS cross-sell.

Klaviyo service product line – Reached general availability six weeks ago and achieved the fastest adoption of any Klaviyo product, with early uptake outpacing the SMS launch at the comparable stage.

AI and AgenTeq AI – Over 50 proprietary AI models are now in production, with AgenTeq AI driving improvements across product personalization, campaign performance, and operational efficiency.

Product velocity – 270 product updates shipped daily, enabled by AI, increasing innovation rate and responsiveness to customer needs.

Non-GAAP gross margin – 76%, consistent with Q2, balancing infrastructure scaling benefits and higher text messaging volumes.

Non-GAAP operating margin – 14.5% non-GAAP operating margin, with non-GAAP operating income of $45 million, noting non-GAAP operating margin improvement year over year and above prior guidance.

Free cash flow – $47 million for the quarter, representing a 15% free cash flow margin.

Rule of 40 – Achieved nearly 47% Rule of 40 performance (non-GAAP) for fiscal Q3 2025, placing Klaviyo among fewer than 10 public software companies growing more than 30% at a $1 billion+ run rate while meeting this metric.

Guidance (Q4) – Revenue expected at $331 million to $335 million (23%-24% year-over-year growth) for Q4 2025, with non-GAAP operating income of $43.5 million to $46.5 million for Q4 2025 and non-GAAP operating margins projected at 13%-14%.

Full-year 2025 guidance – Revenue raised by $18 million to $1.215 billion-$1.219 billion (30% growth) for full year 2025, with non-GAAP operating income of $161.8 million-$164.8 million (13%-14% margin) for the full year.

2026 preliminary outlook – Revenue growth targeted at 21%-22% for 2026, with expectations to improve non-GAAP operating margin by at least one percentage point over 2025 levels for 2026.

Multiproduct strategy – Over half of ARR now from customers using multiple products, increasing retention and platform stickiness.

Profile-based pricing model – Continued focus on outcome-based pricing, charging per profile, message, and resolution to align customer spend with delivered value.

Internationalization investments – Four new languages added and WhatsApp launched for global customers, alongside text messaging expansion to 22 countries and data center growth plans.

Summary

Klaviyo (KVYO +3.77%) reported rapid revenue growth and non-GAAP margin improvement, fueled by expanding multiproduct adoption and high-velocity innovation enabled by AI and AgenTeq AI. The company highlighted record customer additions in both enterprise/mid-market and overall accounts as well as accelerating international revenue contribution, underscoring strategic diversification and execution. Management raised 2025 revenue and profit guidance, issued an initial 2026 growth outlook, and showcased strong product uptake for newly launched Klaviyo Service and AI-powered tools. Investment in international expansion was further reinforced by the launch of new languages, messaging coverage, and global partnerships, positioning Klaviyo for sustained multi-segment growth.

Chief Financial Officer Amanda Whalen said, “There are fewer than 10 public software companies who are growing more than 30% over $1 billion in revenue run rate and achieving the rule of 40.”

Management noted, “Our new Klaviyo service products are off to a fast start, increasing penetration faster than SMS did at the same point in its launch, following their general availability release.”

The customer hub product has contributed measurable incremental revenue for users, including more than $200,000 with over 40,000 self-serve interactions for ThirdLove so far this year.

Klaviyo plans to pilot pricing for Marketing Agent over the next couple of months, with initial monetization of customer agent already under way and prospects for material incremental revenue as adoption scales.

Management expressed confidence that Klaviyo Service could “rival and exceed” marketing product revenue long-term, given adoption rates and expanding use cases.

Product development is being accelerated, with over 50 proprietary AI models deployed and daily product updates exceeding 270 per day.

The company stated plans to continue investing in international data centers and ecosystem partners to enhance reach and platform appeal for global customers.

Industry glossary

ARR: Annual Recurring Revenue; contracted, recurring value of active customer subscriptions measured annually.

EMEA: Europe, Middle East, and Africa; regional business reporting and revenue grouping.

APAC: Asia-Pacific; denotes operations and revenue from the Asia-Pacific region.

Net revenue retention (NRR): Percentage of recurring revenue retained from existing customers, including expansion and churn impacts.

Rule of 40: Industry metric indicating the sum of a software company’s revenue growth rate and profitability margin exceeds 40%, signaling a balance of high growth and positive unit economics.

AgenTeq AI: Klaviyo’s proprietary AI platform used for product personalization, campaign automation, and predictive analytics.

Klaviyo Service: A suite of AI-powered customer engagement tools, including customer hub, customer agent, and help desk, recently made generally available.

MCP server (Model Contact Protocol): Klaviyo’s integration protocol enabling seamless operation with AI-powered platforms and agentic workflow applications.

KAV (Klaviyo Attributed Value): Revenue attributed by Klaviyo’s analytics to customer campaigns or interactions driven through the platform.

Full Conference Call Transcript

We had an outstanding third quarter, delivering revenue of $311 million, up 32% year over year. These results demonstrate our ability to build products that create more engaging relationships between consumers and businesses, get those products in the hands of businesses around the world, and build a high-growth software business at scale. We’re now serving more than 183,000 customers over 100 countries, including more than 6,000 enterprise and mid-market global brands. A few highlights from the last quarter: We delivered another quarter of record net adds our $50,000 plus ARR customer cohort. We grew revenue in EMEA and APAC by 43%, and our Klaviyo service product line, which reached general availability six weeks ago, has the fastest adoption rate of any of our products, including text messaging. We’re firing on all cylinders, see a lot of opportunity ahead, especially with the addition of AgenTeq AI to our products. On this note, I’d like to take a few minutes to explain how AI fits in with the products we’re building and how it’s helping our customers grow faster.

The B2C CRM we offer is made up of three vertically integrated components: a highly scalable, fast database, and making that data available in real-time, a set of applications and infrastructure to market, message, and serve consumers across every channel and modality, and an intelligence layer that finds opportunities to market or serve customers better and can automatically create, deliver, and optimize those marketing and service experiences leveraging the consumer data we have for real-time personalization. AI and LLMs have fundamentally changed and leveled up what is possible in real-time personalization. The intelligence layer and made the entire stack more effective at driving results for our customers. And we then share in that accelerating value creation with our customers.

The more valuable we make each relationship between a business and an end consumer, the better for that business, the better for us. AI is improving its intelligence layer in three ways. First, it’s making it faster and easier for our customers to leverage integrated database and applications because AI can do the work businesses don’t have the time or the bandwidth to do. We’ll share a few examples of this in a minute. Second, AI is making the quality of the marketing and service experiences our customers are creating much better.

This is a win-win for both businesses who see greater engagement in revenue and end consumers who get more relevant marketing and service experiences thanks to AI integrated into our stack. Third, as a result of AI, able to make Klaviyo more available to more businesses on more platforms because they can interact with Klaviyo through natural language and new applications like ChatGPT. Let me give some examples of products we’ve delivered and real customer use cases for each of these elements. And many of these are a direct result of products and features we’ve built in the last few months and released at our largest customer and partner event of the year, Klaviyo Boston, back in September.

Let’s start with making it faster and easier to do marketing and service. We’ve reimagined how marketing will happen in the agentic AI era and launched an entirely new workflow for our customers to do marketing. And we’re calling it marketing agent. This agent, which is a team of task-specific agents, can augment or do the work our customers don’t have the time to do. Klaviyo customers have access to an always-on research, strategy, creative, execution, and brand safety team powered by AI agents running in the background that will suggest and build complete marketing campaigns for businesses to then review, edit, and run. We’re progressively rolling out this new technology and experience to our customers.

But we’re already seeing customers adopting our recommended campaigns in executing them. With minimal or no editing on behalf of our users. Now let’s talk about making the quality of experiences better. We’re already seeing the quality of campaigns our agent creates is surpassing what some businesses have time to create on their own. For example, a customer in the health industry using marketing agent saw a 41% better open rate and generated 24% higher average revenue for Klaviyo attributed value per campaign compared to campaigns they created on their own.

These results show the real revenue impact agents can have developing a skill to be at the level of a marketer with over a decade of experience and instant memory of all previous marketing campaigns and results. This is a paradigm shift in how marketing will happen. Where businesses and teams can lean on agents to augment their work and we are leading and excited to accelerate. Hear from our customers and partners while they love our products, they want to do more with them. And with AgenTeq AI, we’re delivering this. AgenTeq AI is also improving where businesses can connect.

Our investments in building messaging and deliverability infrastructure and applications that support rich experiences across channels and modalities are paying off. Our customer hub and customer agent products, which are both part of our Klaviyo service product line, which we made generally available last month, now allow businesses to use AI to chat and message with their consumers across the web, email, text messaging, and WhatsApp. And we plan to add more channels next year. This expansion of services is resulting in more consumer engagement and incremental sales for the businesses we serve.

For example, by surfacing favorited products and tailored recommendations with customer hub, ThirdLove has driven more than $200,000 in incremental revenue so far this year and enabled over 40,000 self-serve interactions that offloaded work from their support team. Incredible results for ThirdLove. And finally, as a result of AI, able to make Klaviyo more available to more businesses on more platforms. The launch of our Model Contact Protocol or MCP server allows companies to seamlessly integrate Klaviyo into AI clients and applications. We launched this a few months ago, built on top of our comprehensive and integrated data marketing and service API infrastructure.

And we are seeing a lot of engagement from customers who are using it on major AI platforms like ChatGPT and Cloud. This is transforming how our customers and partners use Klaviyo. For example, one of our agency partners built a reporting workflow using the Klaviyo MCP server to dramatically reduce the time their account managers needed to prepare for client updates. Instead of spending hours pulling data manually, they now have an AI application using our MCP server that reviews last month’s performance, summarizes results, and finds campaigns that over or underperformed historical trends, diagnoses the probable causes, and suggests next best actions.

This saves them hours of manual work for each client relationship and allows them to spend more time leveling up their conversations with clients. Another partner’s creative team is using our MCP server to review past campaigns and identify creative assets that are high performing and can be reused. They’re then creating new campaigns with those assets and mapping specific creative to different consumer segments. It’s allowing them to do better marketing with their clients and produce better results. We’re uniquely able to capitalize on these opportunities for a few reasons. First, vertical integration matters. And our bet on an architecture that allows for low latency coupling is paying off.

The tight integration of our database and marketing service and analytics applications allows for rich personalization by using profile data as context in real-time. An engagement and behavioral data from each application is automatically available to other applications. For example, product recommendations derived from marketing campaign engagement, service conversations, and browsing behaviors are richer by using all available inputs and instantly available across all of our products. On top of that, our ability to measure and calculate attribution natively creates a closed-loop system AI can train on the outcomes of marketing campaign and service experiences to improve its performance.

And lastly, we have an incredible ecosystem of thousands of agencies, developers, and system integrators who are building agents around our products and agents that extend functionality and improve customer results. Like the example we mentioned a minute ago. Klaviyo Boston, the anchor event of our worldwide tour for customers and partners, put this on full display with over 1,400 attendees sharing how they’re using our products, what they’re building on top of them. As a result of all of the above, AI is providing tremendous tailwinds to our mission of bringing businesses and consumers closer together and huge opportunities for our growth.

We’re rapidly moving towards a world where every business will have access to the technology, that can present their products and services in the best possible way. Personalized to the individual consumer, available wherever consumers are. And doing this autonomously through AI with human oversight and intervention where the business wants it. Not because it’s required. This is our vision for the B2C CRM and why we believe defining and delivering the customer experience will be autonomous. And we couldn’t be more excited. I’d like to conclude by commenting on a few recent AI developments and why we see them as clear tailwinds for Klaviyo.

Businesses win when the friction between a consumer finding them and buying from them is reduced. That’s why we’re very excited about AgenTeq commerce and various protocols that are being developed. Such as the AgenTeq Commerce protocol, or ACP from OpenAI, and the agent payments protocol, a p two, from Google. It drives additional sales in the short run, and another consumer relationship business can build upon in the long run. One of our core metrics is the number of digital relationships that exist between businesses and consumers. And so any new channels that accelerate discovery bodes very positively for Klaviyo.

Also, as brands prepare for the rise of GPT commerce, they need solutions for maintaining direct connection with their customers. Klaviyo protects that connection by unifying first-party data in Klaviyo data platform, which allows brands to maintain visibility and turn engagement on agentic services into meaningful, measurable customer experiences across all channels. We also believe agent e-commerce through natural language interfaces will become more common and we’re excited to integrate those protocols into our messaging infrastructure and marketing and customer agent products. We’re offering consumers an alternative to browsing a website or a store, and instead chatting or talking to an AI agent from a brand that can handle queries, transactions on its own across multiple channels.

We’re also excited to see more infrastructure built to create agents and agentic workflows where customers can use Klaviyo outside of our own user experience. While we’ll provide customers with agents and algorithms within Klaviyo that are excellent at various aspects of marketing, service, analysis. We’re also building Klaviyo as an open platform so other developers and companies can build agents that integrate into ours. We’re successful when our customers are successful. And we’re excited to expand our already large partner ecosystem to include more AI-first developers and builders. To our customers and partners, thank you for the trust and support. We’re very excited about what we’ll build together.

And to Klavios around the world, thank you for your hard work and dedication to supporting our customers. We’re still only 1% done on our mission to empower creators to own their destiny. We’re excited to build, invest, and lead and bring this AI-powered future to businesses of all sizes around the world. And with that, I’ll turn it over to Amanda.

Amanda Whalen: Thanks, Andrew. Q3 was another outstanding quarter for Klaviyo. Demand is strong across every growth engine. AI is amplifying our impact and we are driving innovation for our customers as the definitive CRM for B2C businesses. Revenue grew 32% year over year to $311 million reflecting robust demand from new customers and continued multi-product expansion from our existing ones. International revenue growth accelerated for the sixth straight quarter. We had record net adds into our $50,000 plus customer cohort. NRR accelerated to 109% and adoption of our new service product is already outpacing what we saw from SMS at this same stage, just six weeks after launch. The results are clear.

Our growth engines are delivering and AI is a force multiplier. We are investing for high growth while maintaining strong unit economics. Non-GAAP operating margin this quarter was 14.5%, meaning our Rule of 40 performance was nearly 47%. Our highest in four quarters. There are fewer than 10 public software companies who are growing more than 30% over $1 billion in revenue run rate and achieving the rule of 40. We’re proud to be among that top-performing group. At our investor day, we outlined three engines driving Klaviyo’s long-term growth. Multiproduct expansion, international acceleration, and mid-market and enterprise momentum.

All fueled by AI, which creates tailwinds for our business and positions Klaviyo to be the platform of choice for brands everywhere. In Q3, each of these engines delivered meaningful progress which underscores the power of our model. Starting with our multiproduct platform. The foundation of our growth is our large and growing customer base. In the third quarter, we added 7,000 new customers. Bringing us to more than 183,000 customers up 17% year over year. Companies are choosing Klaviyo as their B2C CRM because we help them grow their businesses.

By unifying their customer data marketing, service, and analytics applications and now by bringing 109% in the third quarter, driven by email expansion, strong text messaging cross-sell, and momentum from newer products, including market marketing analytics. At Klaviyo Boston in September, we accelerated innovation across the platform. In addition to the marketing and customer agents Andrew talked about, we enhanced Klaviyo marketing with new omnichannel capabilities and new channels including WhatsApp. We also released to general availability our new product line, Klaviyo Service, with customer hub, customer agent, and help desk. Our product philosophy is accelerating.

Thanks in part to internal AI efforts, and we’re now deploying product updates 270 times a day and have over 50 AI models in production. That are predicting customer behavior, surfacing insights and marketing analytics, and helping personalize experiences across Klaviyo and Klaviyo Service. Our new Klaviyo service products are off to a fast start. Increasing penetration faster than SMS did at the same point in its launch. Adoption is strong across all sizes of customers. From entrepreneurs all the way up to the mid-market and enterprise. In fact, last week, one of our customers, a large fashion business, signed a 7-figure renewal with us that included adding customer agent and customer hub across six of their portfolio brands.

We view Klaviyo service as a long-term revenue with the potential to rival and exceed our marketing products as it scales. These launches further expand our multi-product platform making Klaviyo even more powerful for our customers. We consistently hear from customers about the importance of having one unified platform for engagement. And that’s driving continued growth across the entire platform including text messaging, WhatsApp, and marketing analytics as well. Because our pricing model scales with the value we deliver, not with seats, our success grows directly alongside our customers. We price on a per profile, message, and resolution basis. Which lines up perfectly with the outcome-oriented business models AI is enabling.

Today, more than half of our ARR comes from multiproduct customers, which is clear proof that customers want to have everything running off of one platform. This deepens our relationships with customers, improves retention, and drives long-term growth. Turning now to international. Growth continues to accelerate. Revenue outside The Americas grew 43% year over year. Our sixth consecutive quarter of faster international growth. With EMEA up 48% and gaining momentum from Q2. In Q3, we added four new languages to the platform, expanded text messaging coverage to 22 countries, and introduced WhatsApp, which was a highly anticipated channel for our global customers. EMEA and APAC now represent more than 35% of total revenue, reflecting the strength of our international strategy.

Our focused investments abroad are doing exactly what we intended, They’re driving strong growth, and expanding Klaviyo’s global opportunity. Momentum in the mid-market and enterprise continues to build, We now serve 3,563 with over $50,000 in ARR. That’s up 36% year over year including a record 272 net adds this quarter. This was driven by a record number of new lands directly into the cohort. We’re proud to welcome and expand with iconic mid-market and enterprise brands such as Bissell, Roan, Books, and Proper Hotels. Brands that trust Klaviyo to deepen customer relationships and drive growth. Another global brand that exemplifies the power of what we’re building Meshi, an Australian founded women’s fashion brand now selling in over 190 countries.

Meschke has embraced Klaviyo as its system of action, recently adding marketing analytics to power their omnichannel marketing. With Klaviyo, they’re personalizing every touch point. From product recommendations and campaigns to customer journeys and interactions all powered by their own first-party data. Meschke also relies on Klaviyo as a central source of truth. As they scaled their US presence, the team used Klaviyo to guide where to invest in infrastructure, shipping, and local distribution. Transforming customer data into operational decisions. It’s a great example of what Klaviyo’s B2C CRM is built to do. Help brands grow faster and turn every interaction into long-term loyalty at global scale.

Turning to the P&L, non-GAAP gross margin was steady at 76% in line with Q2 as benefits from scaling infrastructure balanced out the continued growth of text. Importantly, non-GAAP gross profit growth accelerated, underscoring how we drive operating leverage as we scale. Non-GAAP operating expenses also saw broad-based leverage this quarter, improving 170 basis points year over year as a percentage of revenue. Reflecting the power in our operating model and our ability to deliver strong growth while investing to capture an even larger AI-driven opportunity. Non-GAAP operating income for the quarter was $45 million with a 14.5% margin, up slightly year over year. This performance exceeded our guidance driven by strong top-line outperformance and disciplined execution.

We generated $47 million in free cash flow for a 15% free cash flow margin which was also up year over year. Turning now to guidance. We are entering the peak holiday season from a position of strength supported by robust customer demand. For the fourth quarter, we are increasing our revenue expectations to $331 million to $335 million representing 23% to 24% year over year growth. We expect fourth quarter non-GAAP operating income of $43.5 million to $46.5 million representing a non-GAAP operating margin of 13% to 14%. As a reminder, implemented profile enforcement earlier this year, which reduces seasonality in our Q3 and Q1 revenue. Making quarter on quarter growth steadier over the course of the year.

We do expect our fourth quarter non-GAAP gross margin to experience typical seasonal impact from increased text messaging volumes. Based on our strong third quarter and our momentum heading into Q4, we are raising revenue guidance for the full year by $18 million at the midpoint. To $1.215 billion to $1.219 billion for year over year growth of 30%. We expect non-GAAP operating income of $161.8 million to $164.8 million representing a non-GAAP operating margin of 13% to 14%. This will be another year of delivering results above the rule of 40. Rule of 40 is an important metric for us because it represents our commitment to strong growth with good unit economics.

We will continue to invest to be the definitive CRM for B2C businesses, and we strive to deliver Rule of 40 as we do so. Looking ahead to 2026, we’re confident in our growth trajectory and in the results we are seeing from our AI-powered growth engines. Based on that progress, we expect to deliver at least 21% to 22% revenue growth next year. Our core marketing products continue to deliver a strong foundation for growth. We expect to drive further adoption and expansion particularly in mid-market, enterprise, and international. And we’re seeing meaningful early traction from our new AI-powered products. Our 2026 outlook currently assumes limited near-term revenue from these launches.

That said, given the pace of adoption, the upside ahead of us is significant, and creates clear long-term runway as these products scale. From a profitability standpoint, we expect to increase our 2026 non-GAAP operating margin by at least one percentage point from our updated 2025 guidance. To close, Q3 demonstrated Klaviyo’s strength. High growth, strong unit economics, and continued progress across our three growth engines. Multi-product expansion, international growth, and mid-market and enterprise momentum. AI is accelerating our business. It is unlocking new possibilities for customers to use Klaviyo to connect with their consumers in smarter, more personalized ways. It amplifies our growth and it strengthens our foundation for sustained leadership. We believe this is just the beginning.

With our unique combination of first-party data, relentless product velocity, and AgenTeq AI as a force multiplier, Klaviyo is positioned to be the definitive winner in the next era of consumer engagement. With that, we’ll open up the call for questions.

Operator: Thank you. Our first question comes from Derrick Wood from TD Cowen.

Derrick Wood: Great. Thanks. Thanks for taking my questions. AB, this is for you. I guess, at your conference, Accenture talked about fatigue in the legacy Martech market and there’s a lot of desire to change out legacy tech and leverage new AI tech. You talked about seeing a robust replatforming cycle over the next two to three years. I know your new products in AI and CRM are still early. But now that you do have these agents in market, are your conversations or pipe evolving more around replatforming and AI adoption? And I mean, do you see 2026 as a step function? And these type of engagements? Or how do you view this cycle playing out?

Andrew Zilli: Yeah. Sure. Thanks for the question. So, in the mid-market and enterprise segments, we’re obviously seeing some really good numbers. You know, we added the most, 50k plus customers this past quarter. So, yes, I do see there’s a real acceleration there. For two reasons, the first is a traditional reason. Which is what we’re doing by combining the underlying data infrastructure with then the marketing service analysis, you know, application stack and infrastructure. Handling things like deliverability on the messaging side, creative design, then on the service side, providing that real-time infrastructure, you have conversations with consumers wherever they are.

I think what’s happening on top of that is then, when you layer in agents and really here we mean, you know, agents and agentic workflows. Finding a lot of larger enterprises say, look. There’s opportunities I can’t get to. I can’t do this data analysis. There’s, you know, creative and design that I wish could get checked by agents so we can do more of it. Can you help me find more opportunities in execute against those? Then obviously, the customer service side, I think a lot of you look at customer services, not just a, you know, hey. When customers have issues, how do I help them?

But also how can I proactively give them guidance and look at that as a growth engine? So there’s this traditional reason of, like, look. My software doesn’t really talk to each other very well. And now you layer on what LLMs give us in terms of a better logic engine, a better smarter way to use the tech that we built. Think this is the future of how CRM is gonna work. For consumer companies.

It’s going to be, you know, agentic at its core, which means that instead of, you know, the operators of that software having to decide, make every decision, drive the software all on its own, it’s gonna be, you know, done in part by agents. And I think in some of the work they can’t get to or don’t wanna do is gonna get handed off. The fact that Klaviyo provides this, like, closed loop where, hey. It’s not just that we store the data. Hey. It’s not just that we help you find the ideas and execute them.

That way, we can then tell you what’s working so you can use machine learning and AI to, you know, to improve, to optimize over time. That’s where this is all going. When I have those conversations, you know, with our enterprise customers today, and then folks that we’re talking to that are in our pipeline. They’re very excited about, you know, this future. And I think we’re in the, you know, driver’s seat to go deliver for them. Our next question today comes from Sumod Samana from Jefferies.

Sumod Samana: Hi, good evening and thanks for taking my questions. So I wanted to stick on the AI team. And I know that you guys, had talked about Shopify relationship, I was wondering you could dig deeper into how the large platforms like OpenAI, working more closely with Shopify and giving them access to maybe you know, millions of consumers and how to ultimately benefit Klaviyo as you think about how those could potentially become empower the merchants that you’re helping and become more profiles, especially given how embedded you are in Shopify ecosystem? How are you thinking about that in particular?

Andrew Zilli: Yeah. For sure. So let’s talk, let me on a little bit on the AI ecosystem. You know, Klaviyo since we started, has been very partner oriented. We’ve looked at the ecosystem and how do we plug in, how do we work together to build a better experience for the businesses that we serve, ultimately drive better outcomes for them. So let me talk about a couple of things. First, let’s talk about as it relates to commerce and acquiring, and building more consumer relationships. Obviously, that’s a big part of our business model is we want more businesses connected to more consumers. We think that’s an asset that’s very important to the businesses we serve.

And obviously, that’s one of our, you know, core monetization axis. So we look at things like the ability to do commerce through, you know, products like ChatGPT is great. It’s a way for more consumers to find more businesses. It’s a more streamlined experience. Ultimately, like we said in the prepared remarks, it results in this like medium and long term you know, growth over for them because they now have another connection to another consumer. In fact, we’re so excited about the idea of, like, commerce through conversations through chat. Something we’re also working to embed inside of our customer agent. You know, we look at the future.

We think that every business is gonna have its own customer agent. Its own, you know, digital, the best, you know, the best most knowledgeable person out of your products, who has all the answers in real time 24 by seven. We wanna build, that technology. And, obviously, once we answer a question, like, for instance, product recognition we built in, we wanna let consumers then buy directly from that experience. I think in the future, you’ll see these agents, you know, rather than browse a website, you could just chat with an agent provided by a business and then it could help you, you know, consummate that transaction.

And the last thing I’ll say is, know, when we think about the platforms that are out there, both in terms of end users, like each of us using, chat interfaces we look at that as another way to interact with Klaviyo. We’re very excited about that. Fact, we’ve already seen and we talked a little about in some of the remarks upfront, our customers, partners using you know, some of these AI clients to interact with Play Doh. It might be in a to date, it’s been largely to do data analysis. But in the very near future, we think that’s gonna be to actually designing marketing campaigns and getting going on that.

And, you know, one of the things I talked to a lot of our customers about, they feel rate limited mostly by their time and, you know, how quickly they can scaffold and build. And do marketing and service and analysis inside of Klaviyo. We think these, you know, these new chatter base are a great way to speed up that loop, allow them to use more of Klaviyo. We benefit when businesses have more connections and also when they’re doing more marketing, delivering more experiences to customers. That’s why we’re gonna we’re gonna build those. And finally, I think it’s early, but a lot of the platform are now building out these agent builder, type experiences.

We look at that. That’s great. That’s another way we imagine, you know, there’s gonna be workflows in the very near term. Folks are building Klaviyo campaigns, optimizing them, through some of these workflows and agents that they’re building both inside of Klaviyo, but also outside of Klaviyo. And, again, that’s great. We think if businesses are able to do more marketing, build more customer experiences, understand who their customers are better, wherever they do that, that’s valuable to them and that’s valuable to us. The next question is Matt Van Vliet from Cantor Fitzgerald.

Matt Van Vliet: Hey, good afternoon. Thanks for taking the question. Wonder if you could help us think about the attachment of service already and the fact that it’s tracking so far ahead of even some of your best products in history. You know, are these customers that are replacing something on of the legacy marketing stack? Were they doing things sort of haphazardly and this brings it all together? And then maybe more importantly, how is the new product like service helping the conversation of multiproduct expansion knowing that you can bring it all on a single platform and have that single source of truth.

Andrew Zilli: Yeah. I’ve been really impressed by what our project engineering teams have done for all three of our case service, Klaviyo service products in that product line. So let’s talk through a little bit about each of them. And, you know, just so everybody knows, you know, we put the, you know, general availability. We released the general availability, you know, just over a month ago. So we’re watching the tracking, you know, literally week over week. Like I said, the trajectory is awesome. In terms of what they’re replacing or augmenting, let me take it product by product. So for our customer hub and customer agent products, those we’re finding a lot more greenfield.

Our customer hub products now take a lot of the personalization that you do with Playvio and messaging on various messaging channels. Now brings it directly into a business’s website or even, you know, in the future maybe even their mobile application. It gives consumers a way when they go visit a website that they entire web experience is now personalized to them. It’s generating incremental revenue as we talked about. And so it’s actually a fairly easy conversation with customers who say, look. We can take the same goodness that you’ve seen from us in messaging. You can now branch your website. It’s accretive to your growth. Why wouldn’t you do that?

A lot of these businesses, they just there were there was no product there before. Integrated into customer hub, is our customer agents. So if a consumer has a question and they wanna chat, both to get help, but also critically to get advice. We’re seeing some really amazing conversations inside of our dataset consumers are coming and having long conversations about what products would be best, best fit for them and offering them recommendations. So really, service is no longer this sort of like, hey. If you have an issue, talk to me. Now more even presales. And that’s again that’s a bit different. People weren’t thinking that way before.

We’re finding a lot of businesses wanting to add that in because, again, it becomes a revenue engine. It helps offload some of the support volume, but it’s also a revenue engine for the business. And then the third product is we’ve also built, a, you know, customer service a help desk product. Also has AI natively integrated. So we have some great features in there, things where if a conversation happens, you know, with our AI agent, maybe, you know, does some, you know, tool calls to pull in product recommendations and associate information.

That all gets passed back to know, whoever that support rep is that then decides that handles the conversation if it makes its way to a human. That’s a really great integration. Speeding up response times and resolution rates. That is a more traditional like, for some small businesses, it might be the first time, but that’s more we’re replacing, some of the customer service software that’s out there that might just only have traditionally solved that, like, hey. We help your support team manage the, support workload. So I guess it’s very excited about the trajectory in the first forty days. You know, we’re obviously talking a lot about the impact of artificial intelligence.

I think one thing we want people to take away is we’re expanding you know, where we can use and leverage AI to not just marketing, but also include what happens on your website and what happens in customer service. It’s part of our, you know, building out the entire consumer CRM. That’s part of our strategy there.

Siti Panigrahi: That’s great. Congrats on a great quarter. And, Ab, thanks for all that commentary on AI. That’s helpful. Amanda, I want to ask you about your ’26 guidance of that 1% to 22% growth. So you have a lot of products announcement there and also there are pricing model changes as well. But what gives you that confidence for next year growth? What is embedded into that guidance?

Amanda Whalen: Yeah. Thanks, Cindy. Great question. And the way that I think about it we are incredibly confident in our growth trajectory. That preliminary ’26 outlook that we gave is a strong baseline for growth next year with clear upside ahead. So we have just launched some very exciting new products in AI and expansion into new products and new service categories. We’re very excited about the traction that we’re seeing. As A. B. Mentioned, service off to an even faster start than SMS was at this stage, but we’re really early in the journey. And so at this point, we’re not factoring significant revenue in there for next year.

So there’s even more upside to that number as those products continue to grow. And then I think the other thing that gives us incredible confidence heading into next year is that our existing growth engines are really delivering. They have strong momentum as we head into the international or into next year. In international, we saw our sixth straight quarter of increasing revenue growth rates outside of The Americas, which shows that we are really growing and increasing that global opportunity that we have to build the business.

In mid-market this quarter, we had a record high number of, ads the 50 ks customer cohort, which really shows what we talked about at investor day, which is that customers are pulling us up into that mid-market and enterprise space because as we just talked about earlier with a b, wanna replace those legacy tech stacks. And have a more modern AI-driven way for interacting with their consumers. And then in multiproduct, over half of our ARR is coming today from customers who are multiproduct, which shows us that those customers really wanna consolidate their platforms, and they really wanna consolidate their platforms with Klaviyo. So we have a huge opportunity ahead of us there with service.

We think service, you know, could be as big, if not bigger, than our marketing products are today. And then, of course, AI accelerates all of that. AI makes it faster and easier for our customers to use the product. It opens up new surfaces and new places where we can generate demand and interactions with product. And importantly, it drives even better results. You heard some of the examples that, Andrew shared around marketing agent and the uplift that it’s driving in open rates and in KAV or the revenue that our customers drive. So, you know, again, those products are early in market. We’re already monetizing customer agent today.

We’re gonna start pricing pilots from marketing agent in the next few months. And as they continue to grow and expand in adoption and usage, again, we see upside there. So bottom line is that what gives us confidence is that our growth engines are firing on all cylinders. We’re in the early innings of massive AI and multiproduct opportunities that are ahead of us.

Tyler Radke: Yes. Thank you very much for taking the question. A lot of great discussions around AI and service hub. I wanted to double click on international. You know, pretty impressive six consecutive quarters of accelerating growth. Do you think that acceleration could continue going forward? And could you just help us understand, like, what we’re gonna what we should expect in terms of future, unlocks in that. I know you talked about adding, you know, new languages to the platform, expanding text message, capability. But sort of what inning of sort of those product unlocks are we? And any view on sort of the durability of that acceleration? Thank you.

Andrew Zilli: Yes, it’s great. I’ll give you some commentary on some of the things we’re doing, and I’ll let speak to, you know, the numbers. But, you know, 43% year on year growth we’re very proud of that, and, we believe that we can continue to have that grow at very high rates. Over the next several years. And, like, let me give you a little color on why. You know, what we found is we’re still relatively early in working in both Europe, and I’d say Europe is even a little bit further ahead than where we are in Asia. There’s a lot that we’ve done in the last twelve, twenty-four months. To get us ready for that.

We’ve expanded our presence in Europe and in Asia and continue to do so, especially in, like, you know, key markets. From a product side, we’ve done a lot of work. You took and internationalization. Very proud of the work that we’ve done there, both for our products but also then to just make the various channels that we’re in more available. So having SMS now in so many languages obviously helps a lot. We just rolled out, WhatsApp, globally. And that’s obviously very, very important in the European and Asian markets. And we have some more channels now that will be coming online following that are more region specific.

So addresses more of the places that where consumers and businesses meet. And then finally, you know, we’re expanding our presence not just you know, for our customer teams and go to market teams, but also just, you know, our infrastructure. We already have infrastructure all the way around the world. We’re standing up new data centers. And planning those out in both Europe and in Asia. And I think that will also help, especially for, you know, some of our some of our larger comp customers. So that’ll overlap with some our enterprise strategy. So just very excited. We’ve got a great set of customers. We’re also expanding the weight of the partners.

That we have there in key markets. So I think we’ve got a long way to go. We’re nowhere near, you know, saturated.

Amanda Whalen: Yeah. And, you know, in terms of what helps drive that consistent and growth going forward and, you know, our outlook in international is product expansion that AB talked about. And it’s also the that we have on the go to market side around building out all of the surround sound around those product innovations. It’s getting the local partner network set up, both agency partners, and the platform partners as well, great platform partners, not only Shopify, who we have an incredibly strong relationship with, but like PrestaShop in France and Shopware in Germany. And then also continuing to build out the customer including the website, the local customer case studies.

And so all of that contribute to making this a really strong, consistent growth platform for us going forward.

Rob Oliver: Great. Thank you for taking my question. Good afternoon. I think at the Analyst Day, guys called out, I think it was over 100 legacy replacements in the last couple of years. And there’s been a few questions, Garek’s and one other that have tried to touch on I think, this opportunity, which is, I think, so exciting for many of us, which is that this combination of service marketing and commerce has actually been tried before. And there’s buying there. And so maybe you can talk about as we look into the next year and the next couple of years, pipeline you have building right now, some of the customer examples you called out, the brand 7 figure renewal.

How should we think about that opportunity increasing over that kind of 600 number over the last couple of years? Thank you.

Andrew Zilli: Yes, great. We don’t have any numbers to share today, but the momentum is awesome. And, you know, similar to international, I think there’s things we’re doing now that have we’ll finish doing that will now bear even more fruit. So as an example, we’