Klaviyo Inc Q1 2025 Earnings Call Transcript

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

Question: Raimo Lenschow - Barclays Capital Inc - Analyst : Perfect. Congrats from me. A simple question, you addressed it on the call already a little bit. Like if you think about uncertain times, AB and Amanda, what have you seen before like we've just had like 2022, 2023, where it was a little bit more uncertain. Can you compare kind of what you saw there and customer behavior at the moment that you're seeing there? Congrats from me again.

Question: Jackson Ader - KeyBanc Capital Markets - Analyst : First one is, can you just give us a sense for maybe your overall exposure or end customers' exposure to either China or other tariff countries in terms of the goods that they sell on their platform that run through Klaviyo?

Question: Jackson Ader - KeyBanc Capital Markets - Analyst : Okay. Great. That's helpful. And then a quick follow-up. If we think about all the new products that have been launched, whether it's CRM or Customer Hub or certain, what kind of growth or expectation for contribution from those new products are baked into 2025 at this point?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Amanda, just on Jackson's earlier question, is there a way to think about the relative sizing of those two cohorts that you mentioned, the cautiously optimistic diversifying cohort versus the intensive cohort. And as you looked at the second half of the year, you mentioned taking into account macroeconomic risk. Maybe just a little bit on your forecasting approach there. When we calculate the math, it feels like the second half revenue guide is about the same as it was before. So just a little bit on how you thought about that.

Question: Parker Lane - Stifel Financial Corp - Analyst : Amanda, maybe just to stay on the same theme of the prudent guidance in light of the uncertainty out there. When you look at things like SMS attach, international traction, messaging volume, are there any particular areas you feel like would be most sensitive or have been accounted for, for greater sensitivity in light of what we're seeing out there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2025 / 8:30PM, KVYO.N - Q1 2025 Klaviyo Inc Earnings Call

Question: Brent Bracelin - Piper Sandler & Co - Analyst : I wanted to go back to the new service and analytics products. AB, what's the sweet spot relative to size of customer that is responding most favorably to the new products? And then Amanda, could you maybe frame the potential ARPU uplift as you see some early customers consolidate the tech stacks? Is it a 10%, maybe 20%, more than 20% uplift to ARPU? Just love to hear those two things. Any color there would be helpful.

Question: Arjun Bhatia - William Blair & Company LLC - Analyst : Perfect. And maybe I'll stick to the same theme. In terms of the new solutions, obviously, a pretty exciting kind of add-on to the core platform here. But when you're thinking about the service solution, maybe, I'm curious, for customers, does it necessitate the replacement of some sort of an incumbent solution? Maybe I'm thinking of like a Zendesk that might be in there? Or given where you're positioned, can it sit alongside for now? Like how are you thinking about those dynamics? And then similarly, on the go-to-market side, should we expect this to be a little bit more of a higher touch go-to-market motion? Or can you sell these solutions through the

Question: Terrell Tillman - Truist Securities Inc - Analyst : So, congrats on the international traction. It's a single question, but multiparter. What are you seeing in terms of the international traction in terms of when you're signing new customers, are they kind of similar personas as how your business has been in the US, and/or are they buying kind of multiple products at one time? And the second part of this is, where are you in, actually, kind of field sales reps or kind of outbound investments versus harvesting those investments?

Question: Robert Oliver - Robert W Baird & Co - Analyst : I appreciate it. I had two. AB, for you. I was wondering if you could give us or frame for us a little bit where we are with the Meta and TikTok integrations on the platform. They both seem like potentially meaningful opportunities, particularly as you continue to fill out the product portfolio at the low to mid-range. And then, Amanda, just a follow-up for you. You had mentioned how you saw better-than-expected retention off of the price increases in the wake of the price increases, clearly very encouraging. I was wondering if you could just comment relative to kind of why you thought that was? And what sort of confidence that gives you guys relative to appetite, not just for additional price increases down the road, but receptivity of additional products from Klaviyo and additional value from Klaviyo?

Question: Elizabeth Porter - Morgan Stanley & Co LLC - Analyst : The commentary on existing customers and Klaviyo being the last thing that they're willing to cut is really encouraging. And I was hoping you just could provide additional color on what you're seeing on more of the new customer top-of-funnel demand side. So could you just talk to what you saw from the gross ads? Is WooCommerce starting to become a bigger contributor to customer acquisition? And just lastly, how top of funnel has trended kind of thus far into Q2? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2025 / 8:30PM, KVYO.N - Q1 2025 Klaviyo Inc Earnings Call

Question: David Hynes - Canaccord Genuity Group Inc - Analyst : On the nice quarter. AB, I was hoping you could talk a little bit about how you're thinking about sequencing or prioritizing investment dollars these days. I feel like from the time of the IPO, you've been very explicit. It's kind of new customer acquisition or new logo adds first, then upmarket, then international. Now, the surface area has greatly expanded with all the new product introductions. Just talk about kind of prioritization of investments these days and where you're focused. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2025 / 8:30PM, KVYO.N - Q1 2025 Klaviyo Inc Earnings Call

Question: Brett Huff - Stephens Inc - Analyst : Congrats on a nice quarter. Digging in a little bit on international, which we've been excited about. How did international perform relative to your