Revenue

Q3 2025

no prior guidance

$297 million to $301 million, representing 26% to 28% "

no prior guidance

Non-GAAP Operating Income

Q3 2025

no prior guidance

$32.5 million to $35.5 million "

no prior guidance

Non-GAAP Operating Margin

Q3 2025

no prior guidance

11% to 12% "

no prior guidance

Revenue

FY 2025

$1.171 billion to $1.179 billion, representing 25% to 26% "

$1,195 million to $1,203 million, representing 27% to 28% "

raised

Non-GAAP Operating Income

FY 2025

$133 million to $139 million "

$144 million to $150 million "

raised

Non-GAAP Operating Margin

FY 2025

11% to 12% "

12% "

raised

International Expansion and Localization

Emphasized in Q1 2025 with over 40% YoY growth in Europe, introduction of local language websites and expanded SMS channels. " " Q4 2024 call highlighted full‐year 42% international revenue growth, expansion to 7 languages and regional partnerships such as WooCommerce. " " Q3 2024 focused on 41% YoY international revenue growth, new language additions and SMS coverage expansion to 18 countries. " "

Q2 2025 reported 42% YoY international revenue growth with notable strength in EMEA (47% YoY), further investments in localization (launch of websites in German, Spanish, Italian), product enhancements like WhatsApp support, and expansion in regional offices and partner networks. " "

Continued focus on international markets with an expanding set of localization features and product enhancements, reinforcing a consistent and growing global strategy.

Customer Retention, Growth, and Segmentation

Q1 2025 highlighted 16% YoY customer growth with strong retention and improvements post-pricing updates. " " Q4 2024 emphasized consistent gross retention, significant net new customer additions across cohorts, and expanded segmentation for entrepreneurs, mid-market, and enterprise clients. " " Q3 2024 focused on strong gross retention with 16% YoY customer growth, diverse segmentation, and robust data-driven cross-selling. " "

Q2 2025 reported 17% YoY customer growth reaching 176,000 customers, record growth in the >$50K ARR segment (38% YoY increase), and detailed segmentation across entrepreneur, SMB, and enterprise markets with strong international growth. " "

The message remains stable with consistent strong retention and growth; recent reports show incremental improvements such as record high ARR cohort growth and maintained segmentation efficacy.

Product Innovation and Multi-Product Platform Expansion

In Q1 2025, new AI-driven features (automated campaign follow-up, custom objects, Customer Hub) were introduced. " " " " Q4 2024 detailed over 200 new feature launches including AI integrations, creative tools and channel optimizations, while Q3 2024 emphasized a bifurcated CDP approach and SMS expansion with multichannel integration. " " " " "

Q2 2025 showcased significant enhancements including native RCS and WhatsApp support, an omnichannel campaign builder, AI-powered channel affinity, and continued efforts to unify marketing, service, and analytics into a multiproduct CRM platform. " " " " "

The focus on product innovation remains strong, with an accelerated drive toward a unified, multi-product platform expanded further by advanced AI and multichannel features, deepening its integrated offerings.

AI-First Integrated CRM and Autonomous Adoption

Q1 2025 highlighted an AI-first integrated CRM with multichannel automation and strong ROI in the Customer Hub and marketing analytics, driving autonomous adoption. " " " Q4 2024 mentioned AI integration across the stack but without explicit emphasis on autonomous adoption, and Q3 2024 did not address these topics. "

Q2 2025 emphasized an AI-first integrated CRM vision with AI-native features enabling autonomous workflows, including automated campaign follow-ups and conversational AI agents, positioning it as central to improving customer engagement and operational efficiency. " " " "

There is a notable ramp-up in emphasis; while AI and CRM integration were present before, Q2 2025 deepens the focus with clear initiatives for autonomous adoption and comprehensive AI-driven customer service, marking an increased strategic thrust.

SMS Adoption, Cost Pressures, and Monetization

Q1 2025 reported increased SMS penetration in SMB and mid-market segments with demonstrable ROI despite higher infrastructure costs. " " Q4 2024 highlighted SMS growth from 16% to 18.2% of customers, international SMS expansion to 19 countries, and pricing features to enhance monetization, alongside a reduction in gross margins due to increased costs. " " " " Q3 2024 underscored strong SMS adoption among top customers, international rollout to additional countries, and associated cost pressures affecting gross margins. " " " "

Q2 2025 maintained strong SMS adoption with the introduction of new channels such as RCS and WhatsApp. While SMS remains a key revenue driver, continued cost pressures from infrastructure investments keep non-GAAP gross margins flat at 76%, even as monetization efforts via new product pricing and cross-sell advance. " " "

The theme is stable with consistent SMS growth; however, evolving messaging channels and ongoing cost pressures are being managed by improving infrastructure efficiencies and expanded monetization strategies, indicating steady progress with cost-realization measures.

Pricing Strategy, Revenue Model Uncertainty, and Churn Impact

Q1 2025 detailed pricing updates (effective February 2025) with minimal near-term revenue impact, alongside stable NRR at 108% and cautious guidance in an uncertain macro environment. " " " Q4 2024 discussed new pricing features such as auto downgrade and flexible sending options with capped increases, alongside slight churn upticks and balanced revenue outcomes. " " " Q3 2024 indirectly addressed revenue uncertainty via NRR and macro pressures affecting SMB expansion. " " "

In Q2 2025, these topics were not explicitly addressed. Only indirect references through new product pricing strategies and cautious revenue guidance were mentioned, with no new commentary on churn impact. " "

There is a notable reduction in explicit discussion in Q2 2025, suggesting that pricing and churn issues may be stabilizing after previous updates, thereby shifting focus to other strategic initiatives.

Gross Margin Pressure and Unit Economics

Q1 2025 reported a non-GAAP gross margin of 77%, noting increased infrastructure costs and SMS growth as key factors. " " Q4 2024 showed margins of 74% down due to holiday season pressures and SMS mix, with full-year margins around 77%. " Q3 2024 indicated a 200 basis point decline to 78% margin due to rising SMS costs and seasonal investments, with unit economics supported by strong ROI and retention. " " "

Q2 2025 maintained a 76% non-GAAP margin as infrastructure investments and SMS growth continued. New products like marketing analytics are expected to ultimately improve margins as efficiencies are realized, while strong unit economics are bolstered by growth in the 50k ARR cohort. " "

Gross margin pressure remains a consistent challenge due to the low-margin nature of SMS and necessary infrastructure costs, but overall unit economics are strong and continue to improve through operational efficiencies and expansion in higher ARR customers.

Legacy CRM Replacement of Incumbents

Q4 2024 provided specific examples of legacy CRM replacements (e.g., Clarks, Grunt Style, Everyman Jack) showing how Klaviyo consolidated data and improved campaign execution. " Q1 2025 discussed the Customer Hub and AI-powered conversational solutions that complement or eventually replace incumbent systems, while Q3 2024 did not mention this topic. " "

Q2 2025 reiterated the focus on displacing legacy systems by highlighting use cases where premium brands chose Klaviyo over outdated marketing clouds for greater ease of use and faster time-to-market, emphasizing multichannel capabilities. " " "

The theme continues robustly as a competitive differentiator; Klaviyo remains successful in converting customers from legacy CRM systems by offering modern, agile, and integrated marketing solutions, reinforcing its market leadership.

Macroeconomic and Geopolitical Risks

Q3 2024 discussed SMB softness amid steady macro pressures, noting that customers remain value-focused with moderate impact on expansion. " " " " Q1 2025 mentioned tariffs and consumer sentiment as factors being monitored with no material impact, and Q4 2024 noted monitoring of tariffs and modest SMB softness with cautious optimism. " " "

Q2 2025 did not explicitly address macroeconomic or geopolitical risks, though general comments on an uncertain environment were made without reference to tariffs or SMB softness. " "

There appears to be a decreased emphasis on these risks in Q2 2025 relative to earlier periods, suggesting that while the macro backdrop remains uncertain, it is currently perceived as less immediately disruptive to business operations.