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 APIs. For real-time access to our entire catalog, please visit for a consultation.

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. 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. 534 billion, representing 24% year-over-year growth. 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. 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. 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, breadth, and usability.

As recently as last week, credit consumption grew 30% week over week. Usage is broad, from entrepreneurs to enterprise, including 27% of our mid—market and enterprise customers being Composer users and exhibiting strong repeat usage. To share two examples, a fashion brand used Composer to design and send two marketing campaigns about shoes that were back in stock. They used Composer to select the audiences and consumers those would go to, asked Composer to calculate the best time to send those campaigns, had Composer run in a loop to review, audit, and optimize their campaigns, ran a test send, and then scheduled both campaigns—all from our agentic interface.

S. retailer used Composer to audit the performance and logic of marketing flows and made adjustments that increased performance by tens of thousands of dollars, all in a matter of hours. This is real agent ROI. I want to comment here on some of the reasons Composer is gaining traction.

First, we built the ability to understand the structure of data—the ontology and semantics—into Composer to improve our agents' reasoning abilities. Second, Composer understands the style of a brand, what we call their taste, because it has the direct context of marketing and business decisions they've made in the past. Third, Composer is available where and how users want to work, and fourth, it has access to aggregated knowledge we've curated about what makes marketing and consumer experiences convert. Focusing on these areas, we believe there is a long runway in front of us to improve agent performance and grow usage.

As an example, in just the past few weeks post—launch we improved the percentage of generated campaigns users ended up using as part of their marketing to 46%, up from 35% just a few weeks ago as a result of improvements to taste alignment and validation. We have a long list of these types of gains in front of us. Finally, Customer Agent, which gives every business an always—on agent for their customers covering both support and sales conversations, has seen adoption grow 40% quarter over quarter and weekly resolution volumes grow nearly 80% since early June.

Boston Proper launched their Customer Agent and within two weeks had generated 3x ROI in incremental revenue by being embedded on their website, while also resolving autonomously more than half of their support tickets. Earlier this year we built out an AI agent which we've embedded into Composer to help brands automate the setup and ongoing optimization of their Customer Agent. We believe customer agents are going to be ubiquitous, but many businesses aren't versed in how to configure or improve an agent and how to measure its performance and quality.

For businesses of all sizes, from entrepreneurs and SMBs to enterprises, we're leading in building agents to train the agents that understand your business and can automatically configure, experiment, and optimize agents you deploy to customers that not only handle support cases but also delight customers and drive revenue and growth. All of this has resulted in our customers generating nearly $50 billion in Klaviyo Attributed Value, KAV, in the first six months of the year. And we've done this while building agents for ourselves, allowing us to increase ARR per Klaviyo by 28% year over year.

We're finding ways to increase our capacity, and with that our ambition is increasing as well. The opportunity to give every business an agent to help them grow their business and delight customers is clear, and as we announced earlier today, I'm excited to build on our results so far with the acquisition of the agency team. I've known the founder of Agency, Elias Torres, for over a decade, and he's been on the forefront of AI agents for customer experiences and is a technologist and a builder I deeply respect. He'll be joining Klaviyo as our Chief Product Officer, and together we'll build on the momentum of Composer, Customer Agent, and the entire B2C CRM.

Before I hand it over to Chano, I'm excited to welcome Erica Smith as our next CFO. I'd also like to say a big thank you to Amanda for her leadership over the last four plus years, growing and scaling Klaviyo, championing our customers, and furthering our mission of empowering businesses and creators to own their destiny. And with that, over to you, Chano. Chano Fernandez, Co-CEO Thanks, Andrew.

I'm about two quarters into this role and the go-to-market changes we've made are showing up in the numbers. We strengthened sales leadership and brought more rigor to our process, and in Q2 we saw gains in sales efficiency both in the Americas and globally. B2C CRM is a $160 billion-plus market opportunity, and we're capturing more of it every quarter. Moving upmarket, expanding internationally, cross-selling, and pushing beyond retail represent a great long-term growth opportunity for us as use cases open up an entirely new layer.

On top of that, let me walk through where growth is coming from and what's next. Enterprise momentum is where these changes are showing up first. Many of the enterprise conversations we are having start with the same problem: a business looking to replace a legacy system because it can no longer keep up. In Q2, our larger customers—those with $50k-plus ARR—grew 36% year over year to 4,477.

This group now represents approximately 40% of total ARR. Our $1 million-plus ARR customers continue to outpace growth of the overall customer base. This quarter we were thrilled to welcome Warner Music Group, one of our most significant new contracts to date. They have over 1,400 artists and millions of fans, and every artist needs to reach their audience in their own voice.

Our platform makes that possible by consolidating everything a business knows about its customers in one place so that every relevant team can act on it in real time. Their Head of E-Commerce and Merchandising recently shared that Klaviyo's tools are second to none and will be integral to supercharge the e-commerce business they are building. We also won, with Klaviyo replacing two legacy vendors in a competitive bid across email, text, and analytics. That's our enterprise motion working as designed.

We're building champions inside the brand, educating executives on the value of consolidation, and clearing procurement and CIO approval. We're also selling deeper into the existing customer base, with a strong expansion led by text messaging. We're also winning downmarket, as can be seen with the strong net adds, which were up 29% year on year. And we're seeing more multi-year commitments and more products being sold across our base, as our 205,000-plus customers increasingly use Klaviyo as a full, complete platform.

Which brings me to our second growth lever: multi-product adoption. In Q2, nearly 20% of ARR came from customers using three or more products. This is important because our multi-product customers retain more than six points better on gross retention than single-product customers. Our largest-ever omnichannel deal closed this quarter—an eight-figure, two-year agreement with one of the fastest-growing brands in e-commerce and a top seller on TikTok Shop.

They're running their entire program on Klaviyo—email, text, and marketing analytics—because of the value of unifying one data-powered platform. We're also extending Klaviyo's relevance beyond traditional e-commerce. This quarter brought our first NFL franchise, the San Francisco 49ers, plus hospitality names like Sweaths. Every business that wants a direct, personalized relationship with its customers is a business we can serve, and that keeps widening the market in front of us.

That brings me to our third growth lever. International revenue outside the Americas was up 35% year on year. With the go-to-market and product investments we've made to internationalize Klaviyo, the runway ahead remains significant. EMEA revenue outside the UK was up 41% year on year, and we move into Q3 with our strongest large-deal pipeline in EMEA yet.

K London drew more than 1,000 attendees, and our Paris and Berlin events were at capacity. We're backing that momentum with a new France office and an EU data center coming in the second half of the year. In EMEA, The Body Shop expanded from the UK into email, WhatsApp, and marketing analytics across Germany, Switzerland, Belgium, Austria, and the Netherlands. And in APAC, we closed one of our largest new-logo deals ever in the region with Country Road Group.

I was in the region and met with their team, so I heard firsthand what choosing Klaviyo meant for them. It was a competitive, multi-stage RFP win that consolidated five brands' fragmenting stack onto one platform, sourced through our first global AWS Marketplace deal. The focus is to get the same big-deal motion and country-by-country expansion moving at the pace EMEA is moving at today. In the Americas, we're focusing resources where we see the biggest opportunities: enterprise, a stronger cross-sell motion, and new verticals.

We're also investing in product specialist roles so teams can go deeper with customers as they adopt more of the platform. Before I close, echoing Andrew's note—Amanda, thank you for everything you built here. We are grateful you're staying on in an advisory role through November, and we're thrilled to welcome Erica Smith as our next CFO on September 1st. She brings deep software experience at the scale we're heading into, and the handoff is going to be seamless.

With that, I'll turn it over to Amanda. Amanda Whalen, Chief Financial Officer Thanks, Chano and Andrew. The growth we're building for the long term is broad-based as we expand across enterprise, international, and multiproduct and make advancements with our agentic solutions. 6 million, up 26% year over year and ahead of our guidance, driven by notable strength in text messaging, WhatsApp, and growth in marketing analytics.

It was a strong quarter for new business, driven by sizable enterprise deals and cross-sell momentum across the base. This is proof that customers of all sizes are increasingly valuing Klaviyo as their B2C CRM platform.