Klaviyo (KVYO) investor relations material

Strategic Vision and Product Innovation

• Focus on empowering creators and businesses to scale customer experiences autonomously using AI, with a mission to enable ownership and success for builders and doers globally.

• Expansion from marketing automation into a broader B2C CRM platform, now including service, analytics, helpdesk, and customer hub, with AI agents (Marketing Agent and Customer Agent) at the core.

• High-velocity product development, with over 200 features shipped in 2025, 270 daily deploys, and 50+ ML models in production, leveraging a data-first approach for speed and scale.

• Introduction of new channels (WhatsApp, RCS, social via Gatsby acquisition) and omnichannel campaign builder, supported by 350+ pre-built integrations and a vertically integrated data platform.

• AI-driven personalization and automation enable segment-of-one marketing and autonomous CRM, with the platform acting as the central brain for real-time action and unified analytics.

Business Growth, Market Expansion, and Customer Impact

• Customer base has grown to over 176,000 across 100+ countries as of June 2025, with 30% growth since IPO and strong momentum in mid-market and enterprise segments.

• International revenue has grown 43% per year since IPO, now representing 35% of total revenue, with EMEA revenue nearly doubling and platform supporting 11 languages and 22 countries with SMS.

• Multi-product adoption is driving higher ARPU and retention, with 54% of ARR from customers using multiple products and 30% of mid-market/enterprise customers on more than one product.

• Partner ecosystem of 5,000+ agencies and integrators, including GSIs like Accenture, supports enterprise modernization and co-develops new service offerings.

• Customer testimonials highlight ease of implementation, agility, and the ability to operate with minimal technical resources, enabling rapid scaling and omnichannel strategies.

Financial Performance and Outlook

• Revenue grew 68% from $642M (Q3'23) to $1,078M (Q2'25), with free cash flow up 65% to $155M and operating margins improving by 1 percentage point.

• Non-GAAP gross margins remain strong (76% in Q2'25), with infrastructure investments and new higher-margin products offsetting SMS pressure.

• 88% gross revenue retention and 108% net revenue retention in Q2'25, supported by expansion and cross-sell.

• Three durable growth engines: multi-product platform, international expansion, and mid-market/enterprise momentum, each contributing to balanced growth.

• Three-year outlook targets operating margins expanding from 12% to 15-17% by fiscal 2028, with long-term potential for 20% margins, driven by AI-enabled efficiency and disciplined capital allocation.