Klaviyo, Inc. Q3 FY2025 earnings call

• Delivered revenue of $311 million, up 32% YOY, serving over 183,000 customers in over 100 countries including over 6,000 enterprise and mid-market global brands.
• Record net adds in $50,000-plus ARR customer cohort. International revenue grew 43% in EMEA and APAC. Klaviyo service product line has fastest adoption rate.
• AI integration: AI improves intelligence layer, making marketing and service experiences better. Customer Hub and customer agent products drive incremental revenue. Model Context Protocol allows integration into AI clients. Examples like ThirdLove driving over $200,000 in incremental revenue with Customer Hub.
• Multiprodcut platform: Added 7,000 new customers, NRR rose to 109%, new products like marketing agent and Klaviyo Service launched with fast adoption.

In the third quarter, Klaviyo delivered revenue of $311 million, up 32% year-over-year. International revenue growth accelerated, with EMEA and APAC growing by 43%. The Klaviyo service product line, which became generally available 6 weeks ago, has the fastest adoption rate among products. Revenue contribution: The company serves over 183,000 customers in over 100 countries, with international revenue (EMEA and APAC) representing more than 35% of total revenue.

• Fourth quarter revenue expected to be $331 million to $335 million (23%-24% YOY growth).
• Full-year 2025 revenue revised to $1.215 billion to $1.219 billion (30% YOY growth). Non-GAAP operating income $161.8M to $164.8M.
• 2026 revenue guidance at least 21%-22% growth. Expect to increase 2026 non-GAAP operating margin by at least 1 percentage point from 2025 guidance.

Q: James Wood from TD Cowen asked about replatforming cycle and AI adoption in mid-market and enterprise segments.

A: Andrew Bialecki said there's a real acceleration due to traditional reasons of software not working well together and AI providing better logic engine. Agents and agentic workflows are forcing conversations as enterprises look for more opportunities.

Q: Samad Samana from Jefferies asked about large platforms like OpenAI working with Shopify and benefit to Klaviyo.

A: Andrew Bialecki said Klaviyo is partner-oriented. Commerce through chat is a growth area, agents can help consummate transactions, and AI clients interact with Klaviyo to speed up workflows.

Q: Matthew VanVliet from Cantor Fitzgerald asked about attachment of service and multiproduct expansion.

A: Andrew Bialecki said Customer Hub brings personalization to websites, customer agents help with presales and recommendations, and service is a revenue engine. Multiprodcut expansion is driven by customers wanting a single source of truth.

Q: Siti Panigrahi from Mizuho asked about 2026 growth guidance.

A: Amanda Whalen said confidence comes from growth engines like multiprodcut expansion, international acceleration, and mid-market/enterprise momentum, with AI accelerating all of it.

Q: Tyler Radke from Citi asked about international growth acceleration durability.

A: Andrew Bialecki and Amanda Whalen said it's due to product expansion, go-to-market efforts, local partner networks, and customer experience building.

Q: Robert Oliver from Baird asked about legacy replacements and future opportunity.

A: Andrew Bialecki said momentum is strong with work on SIs and global system integrators expanding reach to large enterprises.

Q: Scott Berg from Needham & Company asked about budget spending on AI functionality.

A: Andrew Bialecki explained Klaviyo's agentic AI products generate ROI by doing work instead of just assisting, leading to more ROI-driven conversations.

Q: Arjun Bhatia from William Blair asked about marketing agent pricing pilots and holiday season outlook.

A: Amanda Whalen said marketing agent pricing pilots are being experimented with, and holiday is important for customers to strengthen relationships with Klaviyo's help.

Q: Connor Passarella on behalf of Terry Tillman from Truist Securities asked about service product adoption during holiday.

A: Andrew Bialecki said Customer Hub and customer agent have good uptake, while help desk adoption may be delayed post-holiday rush