Klaviyo Inc Q3 2025 Earnings Call Transcript

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

Question: Derrick Wood - Cowen and Company LLC - Analyst : Great, thanks. Thanks for taking my questions. AB, this is for you. I guess at your conference, Accenture talked about fatigue in the legacy martech market and there's a lot of desire to change out legacy tech and leverage new AI tech. You talked about seeing a robust re-platforming cycle over the next two to three years. I know your new products in AI and CRM are still early. But now that you do have these agents in market, are your conversations or pipelines evolving more around re-platforming and AI adoption? And I mean, do you see 2026 as a step function in these type of engagements, or how do you view this cycle playing out?

Question: Matt VanVliet - Cantor Fitzgerald - Analyst : Hey, good afternoon. Thanks for taking the question. Wonder if you could help us think about the attachment of service already and the fact that it's tracking so far ahead of even some of your best products in history. Are these customers that are replacing something on kind of the legacy marketing stack, were they doing things sort of haphazardly and this brings it all together? And then maybe more importantly, how is a new product like Service helping the conversation of multi-product expansion, knowing that you can bring it all on a single platform and have that single source of truth?

Question: Siti Panigrahi - Mizuho Securities USA - Analyst : That's great. Congrats on a great quarter. And AB, thanks for all that commentary on AI. That's helpful. Amanda, I want to ask you about your '26 guidance of that 21% to 22% growth. So you have a lot of products announcement there and also there are pricing model changes as well. But what gives you that confidence for next year growth? What is embedded into that guidance?

Question: Tyler Radke - Citi - Analyst : Yeah, thank you very much for taking the question. A lot of great discussions around AI and Service hub. I wanted to double click on international, pretty impressive six consecutive quarters of accelerating growth. Do you think that acceleration could continue going forward? And could you just help us understand like what we're going to -- what we should expect in terms of future unlocks in that? I know you talked about adding new languages to the platform, expanding text message capability, but sort of what inning of sort of those product unlocks are we and any view on sort of the durability of that acceleration? Thank you.

Question: Rob Oliver - Robert W. Baird & Co Inc - Analyst : Great, thank you for taking my question. Good afternoon. I think at the Analyst Day, you guys called out, I think it was over 600 legacy replacements in the last couple of years. And there's been a few questions of Derrick and one other that have tried to touch on, I think, this opportunity, which is I think so exciting for many of us, which is that this combination of service -- marketing and commerce has actually been tried before and there's buying there. And so maybe you can talk about as we look into the next year and the next couple of years, the pipeline you have building right now, some of the customer examples you called out, the fashion brands, seven-figure renewal, how should we think about that opportunity increasing over that kind of 600 number over the last couple of years? Thank you.

Question: Scott Berg - Needham & Company LLC - Analyst : Hi, everyone. Really nice quarter here. I guess, one question for me is we've been to a lot of sales marketing conferences in the last month or two and we've seen a ton of customer interest in the space. But budgets tend to be just a little bit light right now. And the commentary suggests that there should be a lot of expansion of budgets on some of this newer AI functionality as we get into the new calendar year. Does that track with what you all are seeing today? Or are you seeing customers more emphatically kind of spend on some of this functionality here even in the third or fourth quarters? Thank 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. NOVEMBER 05, 2025 / 9:30PM, KVYO.N - Q3 2025 Klaviyo Inc Earnings Call

Question: Arjun Bhatia - William Blair Capital Partners - Analyst : Perfect, thank you. I just got a couple of quick ones. First, Amanda, I think you mentioned you're going to start running sort of pricing pilots for marketing agent coming up here. Can you just maybe touch a little bit on what that might look like and what you're starting to experiment with? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 05, 2025 / 9:30PM, KVYO.N - Q3 2025 Klaviyo Inc Earnings Call And then second, we're heading into Q4, important holiday season, as you pointed out. Just would love to get your sense on how you think that's shaping up relative to last year. Thank you.

Question: Connor Passarella - Truist Securities - Analyst : Great, good evening. This is Connor Passarella on for Terry. Thank you for taking the question. I just wanted to follow up on the previous commentary on the holiday season and specifically how that relates to service product adoption. Just for the three service products, there's introductory promotional pricing through December 31. Is there typically interest from the customer base to committing to these new -- or to new products during the holiday period of Q4, or do you kind of often have customers that just want to focus on executing into the end of the year? Thank 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. NOVEMBER 05, 2025 / 9:30PM, KVYO.N - Q3 2025 Klaviyo Inc Earnings Call