The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst
: Hi. Good afternoon. Congratulations on the quarter.
Andrew and Amanda, I wanted to ask you a little bit about your progress in the mid-market in particular. Amanda, I remember it was a handful of
quarters ago where you talked about seeing the pipeline be really good and stepping up the level of investment to go after that opportunity. And
now if I look at unit economics and to a tax standpoint, you're seeing really nice improvement on LTV attacks.
So question for the both of you is give us the quality of overlay of what you're seeing in the mid-market in particular and if there's anything else
you can add to quantitatively on what you're seeing with sales productivity and how you're thinking about the scale of investment in the mid-market
in particular, that would be great as well.
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AUGUST 05, 2025 / 8:30PM, KVYO.N - Q2 2025 Klaviyo Inc Earnings Call
Question: Brent Bracelin - Piper Jaffray Inc - Analyst
: AB, talking about the moment you're in right now and I was hoping maybe you could help quantify the opportunity. You have a good base of
50,000 customer cohort mostly using marketing today. What does that cohort look like when they layer in service, when they layer in marketing,
when they layer in the AI-first help desk, when they layer in this AI-first conversational agent? Any sort of sense of what the revenue capture or
kind of cross-sell could look like as you think about the full bundle?
Question: Derrick Wood - Cowen and Company LLC - Analyst
: Congrats on a great quarter. Amanda, you had a nice seasonal rebound in both net new total customers and net new 50,000-plus customers. Just
hoping you could double-click on this.
Are you seeing more seasonality on the new customer side? Or did you see some sequential improvement? Or was there -- the change in pricing
somehow factored? Just what would you chalk up to the sequential numbers being so strong and what that kind of means for seasonality looking
into the second half on the customer side?
Question: Rob Oliver - Robert W. Baird & Co Inc - Analyst
: It's -- on the international strength, really strong numbers with the 42% year-over-year. And I think, Amanda, you called out accelerating growth
in APAC. If you could just remind us, I know you guys have been rolling out languages at a really brisk pace. And where are we in terms of that
language rollout? Are there major geos that still need to be rolled out?
And then AB, I'd just be curious to hear from you. I'm sure mostly SMBs and entrepreneurs early on, but would love to get a sense from you of what
kind of flavor of customer that could be? And if there's an opportunity for, say, multinational companies that now see an opportunity within the
Klaviyo platform to do things multilingual and globally for you to really make a move upmarket via that path?
Question: Brett Huff - Stephens, Inc. - Analyst
: Congrats on the nice results. Early on when we picked you all up, we thought that international was going to be kind of the big Kahuna growth
opportunity here in the near term. How do we define that?
But it seems like now international kind of is accompanied by the AI conversational interaction, the service beta and then continuing upmarket
growth. How do we -- should we think about reshuffling how assiduously you're going after each of those? Or maybe can you rank them and kind
of give us pros and cons and how you're approaching those?
Question: Arjun Bhatia - William Blair Capital Partners - Analyst
: AB, maybe for you. You started off, I think, in your prepared remarks, you mentioned that you guys are seeing some pretty good traction in terms
of incumbent displacements. And obviously, we can -- it seems like we can see that in the net new customers.
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AUGUST 05, 2025 / 8:30PM, KVYO.N - Q2 2025 Klaviyo Inc Earnings Call
And I imagine some of those are also landing in the 50,000-plus cohort. But I'm curious as you look out at the market, where are we in the incumbent
kind of replacement cycle? Where are the legacy players? Like how much opportunity is there still on that front?
And when you look at that opportunity, is that mostly larger enterprises? Or do you still see a lot of room to go and the kind of longer tail of
entrepreneurs and SMBs?
Question: Robert Morelli - Needham & Company LLC - Analyst
: This is Rob Morelli, on for Scott Berg. Congrats on the quarter.
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AUGUST 05, 2025 / 8:30PM, KVYO.N - Q2 2025 Klaviyo Inc Earnings Call
Excited to see the addition of support for new category and WhatsApp. I know it's still like the early days, but can you touch on customer feedback
and interest so far? Is it just doing more a market?
Or is it relatively broad-based? And then additionally, apologies if this was touched on earlier, but any insight you can provide on the potential
impact to gross margins with the increased adoption of these channels?
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