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Since its IPO, Klaviyo hasn’t had a bad quarter, and this one kept that streak. Revenue grew 32% YoY to $293M, non-GAAP operating margin came in at 14%, and free cash flow at $59M. Customer count rose 17% YoY to 176K, and international revenue jumped 42% YoY. The company is pushing well beyond email and SMS toward its vision of a full AI-first, multi-product B2C CRM: marketing, service, and analytics on the same data platform.
The Good
New customers, expansions, international, and upmarket were all sources of growth. The >$50K growth came from all angles: new customers, expansions, international, and upmarket. The >$50K ARR cohort grew 38% YoY with a record quarter for net adds.
International business is accelerating. EMEA revenue was up 47% YoY, and APAC growth picked up for the second straight quarter. WhatsApp and multilingual campaign support went live, along with localized sites in German, Spanish, and Italian. WhatsApp’s launch matters internationally because it is the default messaging channel in many markets for both SMBs and consumers.
The company still invests in products like a startup. This quarter brought native RCS and WhatsApp support, an omnichannel campaign builder, Channel Affinity AI, and multi-touch attribution. RCS is being positioned as “SMS 2.0.” It is a richer, interactive text channel that could replace SMS in many markets. Customers across SMB and enterprise are showing interest in both channels.
The platform pitch—a vertically integrated, AI-driven CRM built for B2C—is resonating with brands like Winston Flowers, Princess Polly, and Loop Earplugs, which are consolidating fragmented stacks onto Klaviyo.
Analytics is gaining traction. Marketing Analytics, launched earlier this year, already has ~2,000 customers. One example: Tibi posted a 100x ROI by pairing analytics with SMS.
The Interesting
Klaviyo is going after service like it’s a second marketing TAM. Helpdesk and Conversational Agent are being sold as AI personal assistants meant to drive engagement and LTV.
The “autonomous CRM” vision is very in vogue. Every consumer has a personal AI concierge across web, chat, voice, push, email, and messaging. The company sees it as inevitable across SMB, mid-market, and enterprise and wants to be the vendor standardizing it.
Upmarket execution is improving. Enterprise deals are coming from both product breadth and ripping out legacy systems. The expanded pitch is getting Klaviyo into conversations with CIOs and chief digital officers, not just CMOs.
The Unknown
Klaviyo’s service products are a shot across the bow at CRM providers from Zendesk to Intercom to Zoho. Klaviyo is confident in its market size and fit, but monetization is still in the future tense. CRMs are like databases. Once you are in, it is almost impossible to displace the incumbent unless the customer is at the crossroads of an upgrade, loyalty is fading, and they want a rebuild.
As I’ve said before, the more Klaviyo moves upmarket, the more SMS pricing will weigh on margins. This is already happening. I don’t expect a material GM hit, but it’s worth watching how much margin pressure shows up when they go after the cost‑conscious enterprise. Everyone loves Slack, but few enterprises want to pay for it.
And how quickly we’ve forgotten about the SMB. A year ago, Klaviyo, along with Braze and Shopify, was lamenting the unpredictability of SMB demand. All three have since found growth upmarket, and good for them. But from the Q&A, it feels like SMB has slipped off everyone’s radar. It is my favorite segment: ruthless in its tolerance for product imperfections, a ruthlessness born from a survival instinct where margins are checked every week. No margins, no food. If nothing else, SMB is a window into Main Street, and I wonder how it’s doing.
Finally
Some ships come back from a mission looking like a beat-up orbital reentry vehicle that’s survived by sheer will. And then there’s a SpaceX rocket: It punches through the same forces, travels the same distance, but lands upright, ready to go again, almost like it never left. Klaviyo’s quarter felt like the latter. The work was heavy, from launching new products to expanding internationally, but it touched down looking composed and in control. That’s the mark of a company built for reuse, built for the long journey.