Klaviyo, Inc.

What they do

Klaviyo sells subscriptions to a vertically integrated platform that unifies first-party consumer data, intelligence, and actions. Customers use it to store unified consumer profiles and run personalized marketing and service experiences across email, text messaging, and WhatsApp. The platform connects to over 350 third-party integrations and is priced by active consumer profiles, messages sent, and service tickets or conversations executed.

Revenue drivers

• Marketing subscriptions — Revenue comes primarily from monthly subscription plans tiered by active consumer profiles and email, text, and WhatsApp message volumes. This remains the core of the business, with most plans sold monthly.
• Multi-product adoption — 20% of ARR comes from customers using three or more products, spanning Klaviyo Service, Klaviyo Analytics, Reviews, and Advanced KDP, which increases spend per customer.
• Large customers — Customers generating over $50,000 of ARR reached 4,477, up 36% year over year, reflecting the company's move up-market into mid-market and enterprise accounts.
• International — Revenue outside the Americas grew 35% year over year in Q2 2026, faster than the overall business, as Klaviyo expands internationally.

Recent performance

Q2 2026 revenue was $370.6 million, up 26% year over year, with GAAP gross margin of 73%. GAAP operating loss was $15.0 million, while non-GAAP operating income was $50.9 million, a 14% non-GAAP operating margin. Net loss per share was $0.03, and cash from operating activities was $93.9 million with free cash flow of $82.9 million. Net revenue retention was 109%, up one percentage point year over year.

Strategy

Klaviyo is positioning itself as an autonomous B2C CRM, combining marketing, service, analytics, and its data platform. It launched Marketing Agent and Customer Agent in September 2025, announced the Composer agent public beta in June 2026, and enhanced Customer Agent with Conversational Agent Builder, Custom Skills, Simulations, and API access. It agreed to acquire the team and technology of Agency, an AI-native customer success company, with Agency co-founder and CEO Elias Torres to become Chief Product Officer after closing. The company is also expanding its AI ecosystem through an Anthropic Claude integration, a native Figma integration, and partnerships as a Shopify Sidekick and Stripe Projects partner.

Risks

• Decelerating growth — Revenue growth was 31.6% in 2025 and 34.3% in 2024, but Q2 2026 growth was 26%, and management states it expects the growth rate to decelerate over time.
• Monthly subscription mix — The vast majority of subscription plans are monthly, which limits revenue visibility and makes results sensitive to customer churn or downturns in customer spending.
• Retail and eCommerce concentration — Customers primarily operate in retail and eCommerce, exposing Klaviyo to weakness in consumer spending and to platform dependence on partners such as Shopify.
• AI execution and integration risk — The autonomous B2C CRM strategy depends on newly launched agents and the pending Agency acquisition, both of which require successful product adoption and integration.

Outlook

Management raised FY26 revenue guidance to $1.526 billion to $1.534 billion, implying 24% year-over-year growth, with Q3 FY26 revenue guided to $377 million to $381 million. FY26 non-GAAP operating income is guided to $212 million to $218 million, a 14% non-GAAP operating margin. The company has not reconciled non-GAAP operating income guidance to GAAP because certain excluded items cannot be reasonably predicted.