Total Revenue

+33% (from $210M to $279.8M in Q1 2025)

Revenue growth was driven by both expanded usage of the platform by existing customers and robust acquisition of new customers, leading to a 33% increase from Q1 2024 to Q1 2025, demonstrating the effective execution of a product-led strategy across multiple geographies. " "

Gross Profit

+28.6% (from $165.1M to $212.1M in Q1 2025)

The gross profit improvement reflects the higher revenue base, although the increase (28.6%) lagged the revenue growth (33%), suggesting that while economies of scale were achieved, cost pressures still persist slightly in the cost structure. " "

Operating Loss

7.6% wider (from $22.092M to $23.75M)

Despite strong revenue gains, operating expenses rose—likely due to increased investments in sales, marketing, and development—resulting in a 7.6% deterioration in operating performance when comparing Q1 2025 with Q1 2024. " "

Net Loss

9% deeper (from $12.882M to $14.09M)

The net loss deterioration of roughly 9% is primarily due to the widening operating loss, as increased spending to support growth outpaced revenue gains, thereby impacting the bottom line despite strong top-line performance. " "

Non-current Lease Liabilities

+159% (from $32.449M to $84.115M)

A significant increase in lease liabilities is attributed to an amendment of the lease for the corporate headquarters, which expanded the leased area, extended the lease term until March 2033, and modified payment terms, thereby increasing the recognized lease obligations markedly. " "

Cash and Cash Equivalents

Slight increase (from $881.473M to $888.432M)

Liquidity remained stable as cash and cash equivalents saw only a modest rise, reflecting a balanced effect of positive operating cash flow and limited financing activities, ensuring a robust cash position despite ongoing strategic investments and lease modifications. " "

Revenue

Q2 2025

$265 million to $269 million "

$276 million to $280 million "

raised

Non-GAAP Operating Income

Q2 2025

$25.5 million to $28.5 million "

$28.5 million to $31.5 million "

raised

Gross Margin

Q2 2025

Slightly below the 2024 gross margin of 77% "

no current guidance

no current guidance

Free Cash Flow

Q2 2025

Negative due to the payment of the employee bonus program and seasonal payroll-related items "

no current guidance

no current guidance

Revenue

FY 2025

$1.156 billion to $1.164 billion "

$1.171 billion to $1.179 billion "

raised

Non-GAAP Operating Income

FY 2025

$130 million to $136 million "

$133 million to $139 million "

raised

International Expansion and Localization

Consistently highlighted in Q2, Q3 and Q4 2024 with multiple language launches, expanded SMS coverage (e.g. 7 languages and 19 countries), new local sales teams, strong regional revenue growth and strategic partnerships. " " " " " " " " "

Q1 2025 emphasized even stronger international performance – international revenue now represents 34% of total business, with Europe and EMEA demonstrating robust growth (e.g., 47% YoY in EMEA, multiple >100% YoY growth markets), and continued investments in localized websites and teams. " " " "

Continued and accelerated focus. The topic remains a core pillar with increased momentum, demonstrating confidence in replicating U.S. success internationally, and a consistently positive sentiment.

Customer Retention, Growth, and Churn Dynamics

In Q2–Q4 2024, Klaviyo consistently reported strong gross retention and healthy customer growth. There were occasional mentions of slight churn upticks due to pricing changes and softness in the SMB segment, while noting record additions in higher ARR cohorts and stable NRR (e.g., 112%, 110%). " " " " " " "

Q1 2025 reports mission-critical customer retention and robust customer growth with 169,000 customers, significant increases in high-value accounts (e.g. 40% YoY growth in >$50K ARR customers) and stable NRR at 108%, underscoring the essential nature of the platform even amid macro uncertainties. " " " "

Stable and positive. Retention and growth remain strong with further expansion into high-value segments while pricing changes appear to have minimal negative impact, reinforcing an overall resilient customer base.

New Product Innovation and Multi-Product Platform Expansion

Q2–Q4 2024 discussions focused on incremental feature releases and product extensions—from AI-enabled features, bulk profile suppression, reputation repair tools, SMS, Reviews, CDP enhancements to early cross-sell opportunities—all aimed at building a unified, data-powered platform. " " " " " " "

Q1 2025 accelerated the pace with major new launches such as Customer Hub in beta, Marketing Analytics with strong ROI examples, custom objects, automated SMS conversations, and expanded AI integrations. The narrative underscores a broader multi-product vision encompassing marketing, service, and analytics. " " " " " "

Accelerated innovation. There is a clear intensification in product innovation and expansion with an integrated multi-product strategy that goes beyond traditional marketing, indicating an increasingly positive outlook for future revenue drivers.

Upmarket/Enterprise Customer Expansion

Throughout Q2–Q4 2024, Klaviyo underlined record growth in $50K+ ARR customers and a clear focus on attracting larger and enterprise customers, supported by teams and strategic partnerships. Metrics showed 54% YoY increases in high-value segments and growing average ARR per enterprise customer. " " " " " " " "

Q1 2025 highlights continued and even stronger upmarket expansion with 3,030 customers above $50K ARR (40% YoY increase), over 1,000 customers exceeding $100K, and notable enterprise wins (e.g. Hershey, Falcon, Coriana), reaffirming their competitive stance versus legacy systems. " " "

Consistent and reinforcing growth. The company’s focus on upmarket and enterprise expansion remains robust, with improved metrics and new large enterprise wins, reflecting a bullish sentiment for future high-margin revenue.

Macroeconomic Uncertainty and SMB Sensitivity

Q2–Q4 2024 calls consistently acknowledged a macroeconomic headwind with mixed signals in the SMB segment – some softness due to cautious spending, but also stabilization and stronger entrepreneur performance, with explicit mentions of longer sales cycles and careful software spend. " " " " " "

Q1 2025 continues to note macroeconomic uncertainty yet stresses the platform’s essential ROI for businesses. SMBs, while impacted by global uncertainty, benefit from strong international growth (e.g. in France, Germany, Spain) and maintain demand given the high ROI of Klaviyo’s services. " " " "

Consistent awareness with resilience. While macro uncertainty is an ongoing factor, the emphasis on ROI and diversified international SMB growth suggests an adaptive strategy and a cautiously optimistic tone about future performance.

SMS Channel Adoption and Moderated Growth

In Q2–Q4 2024, Klaviyo reported growing SMS adoption with international expansions (e.g., into Spain, Austria, Switzerland, and 19 countries by Q4), moderate increase in message volumes, high usage among top customers, and the introduction of features like Smart Opt-In to drive adoption. " " " " "

In Q1 2025, SMS continues to feature strongly with further increases in adoption among SMB and mid-market customers, the launch of automated SMS conversations to personalize outreach, and clear reaffirmation of strong ROI despite a higher cost basis – supporting sustained moderate growth. " " "

Steady and positive. SMS adoption remains a core channel with ongoing product enhancements that drive active customer engagement and support international expansion; the moderated messaging pace underscores a focus on ROI without over-saturation.

Pricing Strategy and Enforcement Risks

In Q4 2024, Klaviyo introduced new pricing features such as auto downgrade and flexible sending options, enforced pricing based on active profiles with capped increases, while Q2 and Q3 had little explicit mention. " "

Q1 2025 reiterated pricing updates deployed in February that had an immaterial negative revenue impact and maintained strong retention, with no new enforcement risks identified, suggesting stabilized pricing measures. "

Refined and low-risk. The topic has gained more structured discussion in Q4 and Q1, with current communications affirming minimal risk from pricing adjustments and reinforcing customer loyalty.

Execution Risks in Product Launches and International Expansion

Q3 and Q4 2024 discussed implicit execution challenges—coordination in rolling out 200+ features, managing localized teams, and ensuring product quality in SMS and data platform expansions, though without labeling them explicitly as “execution risks”. " " " "

Q1 2025 did not explicitly address execution risks even as it unveiled several new product launches and showcased strong international expansion, indicating growing confidence in execution capabilities. " " "

Reduced emphasis. While prior calls hinted at inherent challenges, the current period shows less focus on execution risks, which could suggest improved operational confidence or successful past execution reducing the need to highlight potential issues.

Tariff and Regulatory Impacts on Customers

Q4 2024 included brief mentions with the CFO monitoring tariffs, though expecting no direct impact; Q2 and Q3 had no coverage of this topic. "

Q1 2025 addressed the topic more directly by noting that while tariffs are a concern, many customers are already diversifying supply chains away from China, and Klaviyo’s role remains critical in a dynamic regulatory environment. "

Emerging focus. The topic appears with increased prominence in Q1 2025, reflecting heightened external uncertainties and positioning customers to proactively mitigate regulatory risks.

Operating Margin Pressures Due to Increased Investments

In Q2–Q4 2024, Klaviyo consistently discussed margin pressures driven by increased sales & marketing spend, infrastructure investments (e.g. rising SMS costs), seasonal factors and bonus accruals, with non-GAAP operating margins guided between mid-teens and low single digits by quarter. " " " " "

Q1 2025 detailed operating margin pressures with non-GAAP operating margin at 11.6% and gross margins at 77% (down 3 points YoY) due to higher infrastructure costs supporting product enhancements and international expansion, alongside increased marketing spend. " "

Consistent caution. Operating margin pressures remain a persistent challenge due to strategic investment in growth areas; although revenue growth helps partially offset these costs, the pressures are expected to continue as the company scales.