Klaviyo Inc at Goldman Sachs Communacopia & Technology Conference Transcript

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

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : <_ALACRA_META_ABSTRACT>So I know that you've always had a really specific vision of what you think Klaviyo can look like longer term. And it feels like this year, we've really started to unlock the next levels of that vision beyond all the success you've already had on the marketing side. So paint off the picture a little bit. How do you think Klaviyo is evolving? Or in what ways do you think Klaviyo is evolving? And how does that fit into where you think the company can be 2, 5, 10 years from now?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : So let's start on this idea of the era of SaaS. I think since 2022, arguably, we started to see consolidation in the front office stack, where there's a lot of buying in 2021. So my question for you is, why do you think now is the time where you see an incremental shift in the landscape? And from a competition standpoint, this is a question that we've been debating all conference for the last several months now. There's incremental competition from the AI natives, potentially incremental competition from the frontier models. So a lot in there. Why now? And what about the extra competition?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Yes, fantastic. All right. I want to talk a little bit about CRM, meaning Klaviyo's expansion from marketing to sales. And historically, we've seen a little bit of a nuance here between B2C and B2B. So talk to us a little bit about where you feel you're strong today from a sales feature and functionality

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Yes, fantastic. Yes. And then we spoke a little bit about this at the beginning, but we've talked a lot about Klaviyo's infrastructure over the years, and you talk about the speed and also having the completeness as well. How do you do that? And how is that kind of different than how you see others in the space try and solve that problem?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : And then as you embed more AI in your platform and you think about the potential for maybe commoditization in some of the AI functionality and your ability to charge for AI eventually, how do you see that playing out over time?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : And then on the consumer side of things, I think how consumers interact with technology could look different, very different potentially 5 to 10 years from now. So how do you think about investing in your product stack to prepare for that when there's probably -- it feels like a lot of unknowns right now. 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 09, 2025 / 10:45PM, KVYO.N - Klaviyo Inc at Goldman Sachs Communacopia & Technology Conference

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Your comment on the data warehousing companies is really interesting. Maybe just contextualize for us. We know that Salesforce is Data Cloud. We know that Snowflake talks about marketing as an end-use application. We know there's a CDP layer in there somewhere. Where do you think the value accrues? And you're talking a little bit about there's some displacement opportunity there, it sounds like with your multi-infrastructure end...

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Yes. Yes, makes sense. Okay. I want to ask you about the R&D headline from a couple of weeks ago. Tell us a little bit about what your framework was for doing the reduction in force and then how you're reinvesting those resources?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Yes. Fascinating. So the other thing that we wanted to spend a little bit of time on is we've talked about the different product modules. But at the same time, you're also going from being primarily mid-market focused to going further up market. And there are plenty of companies in the SaaS world that have really struggled with that. So tell us a little bit more about what you think the limiting factor to the type of customer or the size of customer that you can [indiscernible]. And how do you continue that kind of one-size-fits most approach while also layering some of the best-in-breed functionality that you need to go up market?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Yes. Yes. So I remember at the time of the IPO, you had this beautiful chart that had essentially a back-end infrastructure. And it was a bunch of different flavors of database technology. And the whole point on one of the points was you can swap in new technologies as they come down the