Klaviyo Inc at Goldman Sachs Communacopia & Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Gabriel Borges - Goldman Sachs & Co. LLC - Analyst : With all that said, AB, here about a year now since the anniversary of the IPO. You've done, what, probably hundreds of investor meetings in the last 365 days. What do you think the biggest disconnect is between the way investors perceive the company and what's actually going on in the inside?

Question: Gabriel Borges - Goldman Sachs & Co. LLC - Analyst : I want to spend time on both of those points, and maybe we'll start with the database piece that you mentioned. During the IPO, there was a slide that had your architecture. And there were about five to seven different flavors of database on the back end, which is so unique given, I think, most application software companies, they're locked into one flavor of database, and they make trade-offs on the back of that. So how are you able to keep the back-end architecture so flexible? And how do you think about what the right mix is of database technology on the back end?

Question: Gabriel Borges - Goldman Sachs & Co. LLC - Analyst : And it leads a little bit to a question, how you think about the TAM, because if I think about the horsepower that you have on the back end, the main value that it releases when you target SMBs is ease of use. As you come up market, I wonder if there is more of an appreciation for the sophistication of what you're doing on the back end? And do you see the use case in the middle market? And as you come up market evolve commensurate with that?

Question: Gabriel Borges - Goldman Sachs & Co. LLC - Analyst : So how do you think then about monetizing some of those use cases? You talked about a customer using your database technology for logistics. At what point do you say, okay, we can actually build that application in house and monetize it across the customer base?

Question: Gabriel Borges - Goldman Sachs & Co. LLC - Analyst : I want to ask one more strategy question, and then I'll turn it over to Callie and some of the near term model dynamics. The second part of your answer to perception versus reality was customer engagement beyond just marketing. And you've already alluded to some of the examples in the last five minutes. But talk to us about what this means for where Klaviyo fits in the ecosystem longer-term if we change the denominator to be customer engagement instead of just marketing?

Question: Gabriel Borges - Goldman Sachs & Co. LLC - Analyst : I want to connect two of the themes we've been talking about, which is the product and expanding the product into new cohorts of the market and the unit economics of you will expanding over time. And maybe we can focus on the mid-market because Amanda, I have heard you talk about the pipeline in the mid-market and how excited the company is. So we've had a number of SaaS companies historically that have been successful in SMB and they go to expand upmarket and ends up taking a lot longer and costing a lot more than they expect. Talk to us about the early signs of traction that you're seeing in mid-market that make you think that you're on the right track?

Question: Gabriel Borges - Goldman Sachs & Co. LLC - Analyst : You both alluded to demand indicators. So I'll ask the question explicitly. What are some of the demand indicators that are trending more positive for the mid-market or even more broadly?

Question: Gabriel Borges - Goldman Sachs & Co. LLC - Analyst : So one of the things that has been thematic across the last half an hour is just how vibrant the customer engagement space is. That vibrancy tends to come with competition and certainly during the time of the IPO, there were a number of competitors that aspire to be or have the success that you're having. How has the competitive landscape changing? And compare and contrast for us what you see competitively at some of the large and mid-market customers versus low end?

Question: Gabriel Borges - Goldman Sachs & Co. LLC - Analyst : Absolutely. Let us pause for a moment, questions from the audience. Callie, back to you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 11:25PM, KVYO.N - Klaviyo Inc at Goldman Sachs Communacopia & Technology Conference