Klaviyo Q2 2026 Earnings Call: Complete Transcript

Klaviyo (NYSE:KVYO) reported second-quarter financial results on Wednesday. The transcript from the company's second-quarter earnings call has been provided below. This transcript is brought to you by Benzinga APIs. For real-time access to our entire catalog, please visit benzinga.com for a consultation. View the webcast at klaviyo-earnings-q2-2026.open-exchange.net Summary Klaviyo achieved a $1.5 billion annualized revenue run rate, with quarterly revenue growing 26% year over year. The company signed its largest deal ever, an eight-figure contract with a top e-commerce brand. Klaviyo's data infrastructure now stores over 9 billion consumer profiles and processes over a quarter trillion data points quarterly. Don't Miss: Practice Futures Trading With NinjaTrader’s 14-Day Free Sim Trial. Better Futures Start Here. clkmg.com Composer, Klaviyo's AI-driven marketing tool, saw rapid adoption with over 95,000 users and a notable quarter of them becoming regular weekly users. International revenue increased by 35% year on year, with significant growth in EMEA and new regional offices planned. Klaviyo raised its full-year 2026 revenue guidance to $1.526 billion to $1.534 billion, representing 24% year-over-year growth. Non-GAAP gross margin was 73.4%, down due to text messaging growth and higher carrier fees, but new pricing changes are expected to offset these impacts. The company announced the acquisition of the agency team to enhance AI capabilities and welcomed Erica Smith as the new CFO. Enterprise customer growth is strong, with larger customers growing 36% year over year and now representing 40% of total ARR. Full Transcript OPERATOR Hello and welcome to the Klaviyo Q2 2026 earnings call. We ask that you please hold all questions until the completion of the formal remarks, at which time you will be given instructions for the question and answer session. Also, as a reminder, this conference is being recorded. If you have any objections, please disconnect at this time. With that, I would like to turn the call over to Brad Sills, Vice President, Investor Relations. Brad, you may begin. Brad Sills, Vice President, Investor Relations Welcome, everybody. We appreciate you joining us. Joining me today are Klaviyo Co‑Founder and Co‑CEO Andrew Bialecki, Co‑CEO Chano Fernandez, and CFO Amanda Whalen. Andrew, Chano, and Amanda will first share their views in the quarter and then we'll open up the line for your questions. Our earnings press release, investor presentation, SEC filings, and a replay of today's call can be found on our IR website at investors.klaviyo.com. As a reminder, our commentary today will include non‑GAAP measures; reconciliations to the most directly comparable GAAP measures can be found in today's earnings press release or earnings release supplemental materials, which can be found on our investor relations website. Additionally, some of our comments today contain forward‑looking statements that are subject to risks, uncertainties, and assumptions, which could change should any of these risks materialize or should our assumptions prove to be incorrect. Actual company results could differ materially from these forward‑looking statements. A description of these risk factors, uncertainties, and assumptions, and other factors that could affect our financial results are included in our filings with the SEC. We do not undertake any responsibility to update these forward‑looking statements except as required by law. Andrew, that concludes my introductions. We're ready to begin. Andrew Bialecki, CEO Thanks, Brad, and welcome, everyone. Let's start with the headlines. Klaviyo has scaled to nearly $1.5 billion in annualized revenue run rate, growing quarterly revenue 26% year on year. We signed our largest deal ever last quarter, an eight‑figure multi‑product contract with one of the fastest‑growing brands in e‑commerce. More than 205,000 brands now rely on Klaviyo. We offer our customers an autonomous B2C CRM. We vertically integrated the data infrastructure, experience infrastructure, and the AI and agents to decide which experiences to deliver to each consumer to drive better engagement, revenue, and growth. Our customers are proving that the right infrastructure with all of your customer context and the right agents can deliver stunning consumer experiences that stand out and turn visitors into customers and keep them coming back. We're continuing to bet on being the source of truth for a business's consumer context and embedding that real time into agents and end‑consumer experiences. Using the scale and volume of our consumer data points, we have to tune and guide AI models and agents, and building all of this faster and with more tailored guidance to each of our customers through our internal use of LLMs and agents. Every business will have an agent that decides, delivers, and autonomously optimizes the experiences their customers have. That's the promise of an autonomous B2C CRM. I'd like to take a few minutes to share some updates on both the infrastructure and agentic layers of our products. Our data infrastructure now stores more than 9 billion consumer profiles and ingests and indexes more than a quarter of a trillion data points every quarter. We know context is the key for high‑performing agents and experiences. We spent the past few months improving the scalability and burstability of Klaviyo's infrastructure to handle data and messaging workloads that require personalizing and powering up to 100 million marketing messages and experiences in less than 20 minutes. This helps our largest enterprise customers with massive audiences, as well as AI agents that want to ask more questions and do greater personalization. Having clean data and context is important too, and we've taken that a step further by using machine learning and AI to train models to predict consumer behavior, and this powers features like personalized send times, channel preference, audience optimization, and personalized product and content recommendations. Many of these features are included as part of our data and analytics products, which includes marketing analytics, and those products are collectively growing ARR more than 100% year on year. Our customers are finding there is real demonstrable ROI and growth from using AI to improve the marketing and experiences they deliver to consumers. Our marketing platform and infrastructure continue to deliver while our messaging volume continues to scale into the hundreds of billions of messages per quarter. Our compliance and deliverability infrastructure are continuing to improve. Delivery and engagement rates improved year on year, while unsubscribe, spam, and bounce rates decreased. We're also seeing the flexibility and scalability of our marketing platform being leveraged by enterprises and advanced users. Both human and AI multi‑channel campaigns have increased nearly 50% quarter over quarter, and marketing flows have seen a 48% increase in the number of messages and decision point actions added to those automations. Our B2C CRM platform sets the table for agents—ones our customers have built outside of Klaviyo and those we built for our customers. In June we launched our Composer agent to all of our customers, and the response has been very exciting. As a reminder, Composer is our purpose‑built agent harness that's trained to excel at analyzing your customers and past marketing and taking those learnings to create and optimize marketing campaigns and automations. In the first month since launch, Composer already has over 95,000 users and, very encouragingly, nearly a quarter have turned into recurring weekly Composer users. We've given all of our customers 10,000 credits to experiment and use with Composer, and the feedback has been overwhelming. We're shipping updates multiple times a day to improve Composer's performance, bre