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Item 1. Business

2026-02-10 compared with 2025-02-19 · 211 added, 152 removed, 180 unchanged (67% of the section changed)

We founded Klaviyo in 2012 to provide businesses of all sizes with powerful technology that captures, stores, analyzes, and predictively uses their own data to drive measurable, high-value outcomes.

Klaviyo enables businesses to drive revenue growth by making it easy to bring their first-party data together and use it to create and deliver highly personalized consumer experiences across digital channels.

Our modern and intuitive SaaS platform combines our proprietary data and application layers into one vertically-integrated solution with advanced machine learning and artificial intelligence capabilities.

This enables business users of any skill level to harness their data in order to send the right message at the right time across email, short message service (“SMS”), and push notifications, more accurately measure and predict performance, and deploy the specific actions and campaigns that drive the highest impact.

Our reviews add-on allows our customers to collect product reviews within our platform to provide a seamless experience across the customer lifecycle, and our Customer Data Platform (“CDP”) offering gives customers user-friendly ways to track new types of data, transform and cleanse data, run more advanced reporting and predictive analysis to drive revenue growth, and sync data in to and out of Klaviyo at scale.

We focused on marketing automation within retail and eCommerce as our first application use case, and we believe our software is highly extensible across a broad range of functions and verticals.

Today, our customers primarily operate within the retail and eCommerce vertical, and we are also seeing organic growth from customers in other verticals, such as education, events and entertainment, restaurants, and travel, as well as from business-to-business (“B2B”) companies.

By combining easy implementation, rapid time-to-value, and clearly attributable outcomes, we drive substantial ROI for our customers.

As of December 31, 2024, our platform had efficiently scaled to over 167,000 customers.

By vertically integrating our data layer and marketing application, we make it easy for businesses to create and store unified consumer profiles and then use those profiles to derive new insights, rapidly segment their consumers, and ultimately drive revenue generation.

We purpose-built a centralized, scalable, and flexible cloud-native data store for our customers to intelligently aggregate and process first-party consumer profile and event data without friction.

This approach enables our customers to seamlessly generate unified and highly-granular consumer profiles, populated with data from customers’ systems and from over 350 third-party integrations, from eCommerce platforms – such as Shopify, WooCommerce, and Salesforce Commerce Cloud – to loyalty, customer service, and shipping solutions.

We built an application layer on top of our data layer to provide a comprehensive set of tools and features that enable our customers to easily turn consumer preferences into insights and actions.

Klaviyo is a B2C CRM that helps consumer companies create smarter, stronger, and more valuable customer experiences.

We unify the data, intelligence, and actions that define a consumer relationship into an infrastructure built for autonomy and scale.

Over 193,000 businesses, from emerging creators to global enterprises, rely on our Klaviyo Data Platform (“KDP”) as the product to turn real-time consumer data into personalized, revenue-driving experiences across marketing, service and beyond.

Our B2C CRM provides a single source of truth for consumer profiles, allowing businesses to understand their customers and act on that understanding immediately.

Built for the AI era and open by design, Klaviyo populates consumer profiles with data from first-party systems using over 350 third-party integrations.

This unified knowledge about consumer identity, consent, behavior, preferences, and history helps companies grow higher customer lifetime value and build more durable revenue through more impactful consumer experiences.

Our actionable infrastructure creates a flywheel of quality and personalization.

Through our combined database, intelligence and action layers, businesses use Klaviyo to power digital marketing and service experiences across channels including email, text, and WhatsApp messaging.

Then, those interactions create data that strengthens intelligence, making the next interaction smarter and higher ROI, leading to more interactions.

This closed loop increasingly executes autonomously, giving businesses access to the unified consumer context and autonomous systems they need to drive real-time action.

We purpose-built the KDP as a centralized, scalable, and flexible data store that allows our customers to intelligently aggregate and process first-party consumer profile and event data without friction.

Building upon our robust data infrastructure, we developed tools, initially focusing on marketing automation, where we revolutionized email practices.

While our KDP began with a focus on email marketing capabilities, we now incorporate text messaging and WhatsApp channels, Reviews, Marketing Agent, Klaviyo Service, Klaviyo Analytics, and others.

In early 2025, we defined and introduced a new category of customer relationship management solutions built exclusively for business-to-consumer (“B2C”) companies.

We announced Klaviyo B2C CRM, a unified platform that combines marketing, service, analytics, and our data platform into a single system designed to meet the high-volume, fast-paced needs of consumer companies.

Klaviyo B2C CRM enables businesses to manage interactions across channels and touchpoints, supporting more personalized and consistent consumer experiences.

During 2025, we also expanded our offerings beyond marketing to address customer service use cases.

We introduced a suite of capabilities integrated with our platform for service teams, including Customer Agent, Customer Hub, and Helpdesk, which are purpose-built for B2C companies.

These offerings reflect our view that customer experience spans both marketing and service functions and benefits from a shared system of record and action.

In September 2025, we launched Marketing Agent and Customer Agent, which leverage Large Language Models (“LLMs”) and other generative artificial intelligence technologies.

These capabilities are designed to help consumer companies apply AI in practical ways by using real-time consumer data, enabling immediate action, and continuously learning which actions drive improved business outcomes.

Together, these capabilities position Klaviyo to address key gaps in the market for B2C companies seeking a unified, data-driven platform to understand their customers, engage effectively, and support long-term growth.

Klaviyo is able to do this for three reasons:

(1) we capture the real-time consumer context needed to make automated interactions relevant, (2) we have the infrastructure to help businesses take

action immediately, and (3) our systems can learn which actions drive the best outcomes in response to consumer behavior.

Klaviyo makes it easy for businesses to know their customers, activate their data, and grow faster.

Advances in AI are enabling businesses to operate with greater speed, quality, and accessibility across consumer-facing functions.

AI-driven capabilities reduce operational bottlenecks, allowing teams to execute more quickly;

generate marketing and service experiences that perform at or above historical manual benchmarks and improve over time;

and expand access to sophisticated capabilities through natural-language interfaces and emerging digital channels.

As these developments converge, consumer expectations are evolving toward more personalized, responsive, and continuous interactions.

Klaviyo’s platform is designed to support this shift by enabling companies to deploy consumer-facing agents informed by first-party data, deliver individualized experiences across owned channels, and improve team efficiency through increased automation of marketing and service workflows.

These capabilities rely on a unified consumer profile and the ability to act on data in real time, which Klaviyo provides through its integrated platform architecture.

Our strategy is to build the autonomous future for B2C companies.

We will build that future by delivering an integrated platform that enables marketing, service, and analytics to operate with increasing autonomy on the KDP.

We believe this approach supports market expansion, deeper multi-offering adoption, increased usage through automation, and a durable, subscription-based revenue model which is primarily priced based on fixed consumer profile tiers which aligns with consumer outcomes.

While we started in the eCommerce vertical, we have expanded and found organic growth in other verticals, such as education, events and entertainment, restaurants, and travel, as well as from business-to-business (“B2B”) companies.

Our open and flexible platform allows for companies of any size to build consumer experiences, and as of December 31, 2025, we had efficiently scaled to over 193,000 customers.

See the section titled “Key Performance Metrics – Customers” for additional information on how we define customers.

We generate revenue through the sale of subscriptions to our customers for the use of our platform.

Our subscription plans are tiered based on the number of active consumer profiles stored on our platform and the number of emails and SMS messages sent.

Our subscription plans are tiered based on the number of active consumer profiles stored on our platform and the number of emails, text messages and WhatsApp messages sent as well as customer tickets and conversations through Klaviyo Service.

We do not price based on seats.

We currently permit our customers to send unlimited push notifications, which are included as part of our email subscription plan.

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The vast majority of our subscription plans today are monthly.

Our land-and-expand strategy aligns our own success with that of our customers.

As our customers’ businesses grow, they utilize more active consumer profiles and send more emails and SMS messages, which naturally increases their usage of our platform.

Our revenue also expands when our customers add additional channels, such as SMS, and additional use cases, such as reviews and our CDP offering, or when their other brands, business units, and geographies start using our platform.

Our land-and-expand strategy aligns our success with that of our customers.

As our customers grow, they use more active consumer profiles and send more messages like emails, text messages, and WhatsApp messages, which naturally increases their usage of our platform.

Our revenue also expands when our customers add additional marketing channels, such as text messaging, mobile push and WhatsApp, and additional use cases, such as Customer Agent, Marketing Agent, Marketing Analytics, and Advanced KDP, or when their other companies, business units, and geographies start using our platform.

Our go-to-market strategy is primarily product-led, and we attract the majority of our new customers through inbound channels, such as word-of-mouth, agency partnerships, and platform integrations.

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When we first launched our platform, we intentionally focused on serving entrepreneurs and small and medium-sized businesses (“SMBs”).

As our customers have scaled and become mid-market companies and larger enterprises themselves, their success with Klaviyo has attracted more interest from similarly sized businesses that are looking to drive better engagement with their consumers.

As our customers have scaled and become mid-market companies and larger enterprises themselves,

their success with Klaviyo has attracted more interest from similarly sized businesses that are looking to drive better engagement with their consumers.

As such, we have continued to build out a sales team to focus on mid-market and enterprise customers.

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Our net losses for 2024 and 2025 were $(46.1) million and $(31.8) million, respectively, representing a year-over-year decrease of (31.2)%.

This decrease in net loss year-over-year was mainly driven by an increase in revenue and a $203.4 million decrease in stock-based compensation expense, the majority of which was related to the vesting of outstanding equity awards upon our initial public offering (“IPO”) in September 2023.

This decrease in net loss year-over-year was mainly driven by an increase in revenue.

We grew our gross profit 28.7% year-over-year, from $716.2 million in 2024 to $921.5 million in 2025, representing gross profit margins of 76.4% and 74.7%, respectively.

We built Klaviyo because businesses need powerful technology to capture, store, analyze, and predictively use data to drive measurable, high-value outcomes.

Our vertically-integrated, highly-scalable, and flexible platform unifies the data and application layers with our messaging infrastructure into one modern tech stack.

• Data Layer.

Our highly-scalable platform is optimized for large volumes of data, delivers sub-second-level accessibility, and provides extremely high levels of personalization and attribution.

Our Actionable Infrastructure

We built Klaviyo to provide businesses of all sizes powerful technology that captures, stores, analyzes, and predictively uses data to drive measurable, high-value outcomes.

Our actionable infrastructure collects and organizes consumer profile and event data into a single system of record.

It uses that data to support predictive insights and personalized actions, with interactions generating additional data that can improve future outcomes.

Klaviyo brings three powerful components together:

Data Platform.

Our customers grow by finding consumers, keeping them, and selling them more over time.

Doing that well requires knowing who a consumer is, what they bought, what they looked at, what they abandoned, and when they did it.

Our data platform combines profile data, such as identity and preferences, with event data such as browsing, purchasing, returns, and support interactions.

By keeping both types of information current in one system, businesses can group customers into audiences that update automatically and respond immediately when a customer takes an action.

Our platform is optimized for large volumes of data, delivers sub-second-level accessibility, and provides extremely high levels of personalization and attribution.

We built our data store from the ground up to be agile, unbound by specific schema or data structures.

Our data store synchronizes unaggregated, historical profile data with real-time event data in a single system-of-record.

Profile data enables our customers to generate unified consumer profiles with extremely granular segmentation, grouping consumer profiles into precise audiences that update in real-time as consumers interact with our customers.

Event data allows customers to send behavior-triggered messages that keep consumers engaged with the right message at the right time.

This industry-agnostic, data-first approach represents a new foundational capability in our market and can be applied to new verticals in the future that require the combination of fast performance with real time, predictive intelligence.

• Application Layer.

We built an application layer on top of our data layer, which provides a comprehensive set of tools and features that enable our customers to easily turn consumer learnings into insights and actions to drive revenue growth without the need to hire sophisticated and expensive in-house engineers.

We started with our marketing application, enabling our customers to create and manage targeted marketing campaigns and flows, track customer behavior, and analyze campaign performance to grow revenue.

Our advanced data science and predictive analytics capabilities also utilize artificial intelligence and machine learning so businesses can estimate consumer lifetime value, predict a consumer’s next order date, and calculate potential churn risk.

As a result, our application helps companies deliver contextually-relevant and personalized experiences throughout the entire consumer journey and across digital channels, such as email, SMS, and push notifications, through our messaging infrastructure.

We focused on marketing automation for business-to-consumer (“B2C”) companies within retail and eCommerce as our first application, and we believe our software is highly extensible across a broad range of functions for B2C and B2B businesses alike.

Because we vertically integrated our data layer, application layer, and messaging infrastructure into one technology stack, our platform provides customers the complete set of technologies needed to design and deliver highly personalized consumer experiences across multiple digital channels.

This industry-agnostic approach supports marketing, service, and analytics use cases and can be applied to new verticals in the future.

Intelligence Layer.

Our intelligence layer applies statistical and machine learning techniques to generate predictions and recommendations based on customer profile and event data to help our customers prioritize audiences, personalize experiences, and evaluate performance in increasingly autonomous ways.

It has built insight from billions of messages and trillions of events, allowing businesses to apply real-time context to historical behavioral patterns, create impactful customer experiences, and drive measurable results.

As these results create more data to build the intelligence layer, the flywheel compounds.

Action Layer.

Knowledge only matters if it turns into action.

On top of our data and intelligence layers sits a comprehensive set of tools, AI agents, and features that enable our customers to easily turn consumer insights into revenue-driving actions without the need to hire expensive in-house engineers.

Our action layer includes marketing, customer service, analytics, and generative AI capabilities that allow our customers to design and deliver personalized engagement across digital channels.

Our platform also incorporates machine learning techniques to power predictive analytics, enabling businesses to estimate consumer lifetime value, predict next order dates, or assess churn risk.

Together, these capabilities enable businesses to deliver contextually-relevant and personalized experiences throughout the entire consumer journey.

Many companies try to create similar consumer experiences by attempting to stitch together separate products for data storage, analysis, and action.

We built these functions to work together as one system.

Companies use Klaviyo to interact with their customers, those interactions build our database, and as that database grows, so do our intelligence capabilities.

This closed loop is increasingly autonomous, giving businesses a unified, self-reinforcing system that drives intelligent, real-time action.

Key Benefits of Our Platform

We founded Klaviyo in 2012 with a data-first approach to enable our customers to effectively harness their first-party data to deliver impactful consumer experiences.

Klaviyo allows customers to effectively harness their first-party data to deliver valuable consumer experiences.

This approach has enabled us to deliver the following key benefits:

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Our customer data store is designed to consolidate customers’ first-party data at scale, synchronizing and unifying data from over 350 integrations seamlessly into a single system-of-record.

To ensure companies have the right information to engage with consumers effectively, our data store is optimized for very large data sets with the capacity to combine and store the entire consumer history of profile and event data of our customers in real time.

To provide companies with the information needed to engage consumers effectively, our data store is architected to handle large data sets and can combine and store the complete history of consumer profile and event data in real time.

• Vertical integration that enables fast execution.

Our platform combines our centralized data layer with our front-end application layer in one vertically-integrated technology stack.

This offers our customers the ability to store and rapidly analyze consumer data in real-time, then send automated messages with targeting based on these analytics, all within one single platform.

This approach also allows our customers to get up-and-running quickly without having to pre-configure their data and manage complex integrations.

Our platform combines our centralized data layer, our front-end action layer, and our powerful intelligence layer in one vertically-integrated technology stack.

This offers our customers the ability to store and rapidly analyze consumer data in real-time and send automated messages with targeting based on our intelligence, all within one place.

Going forward, our vertically-integrated technology stack also gives us the ability to easily extend our platform into new channels and applications.

• Predictive insights enhanced by machine learning and artificial intelligence to drive revenue growth.

Our advanced predictive analytics capabilities utilize machine learning and artificial intelligence so businesses can estimate consumer lifetime value, predict a consumer’s next order date, and calculate potential churn risk.

Our platform also allows our customers to compare their performance against similar companies in their respective industries and makes recommendations on how to optimize future engagements.

• Closed-loop learning.

Klaviyo incorporates AI and machine learning into this vertically-integrated stack to continuously improve outcomes for our customers.

Our intelligence layer has built insight from billions of messages and trillions of events, allowing businesses to use real-time context to create impactful consumer experiences and more data to drive more intelligence.

This is all increasingly autonomous.

Our customers can then use Klaviyo to harness these AI-powered insights to create content and intelligent automations across marketing and customer service use cases.

For example, with Marketing Agent our customers can choose to accept agent-generated campaigns with little or no editing.

• Easy-to-use functionality purpose-built for business users of any technical skill level.

Our easy-to-use platform gives business users of any technical skill level the ability to easily build consumer segments, personalize content, create new automations, run tests, engage with their consumers, and launch marketing campaigns with differentiated experiences.

Our platform offers simple, one-click drag-and-drop customizable templates for designing messages and generative artificial intelligence tools for creating content and targeting communications, allowing our customers to easily create impactful experiences customized to their unique brands.

Our platform gives business users of any technical skill level the ability to easily build consumer segments, personalize content, create new automations, run tests, engage with their consumers, and launch marketing campaigns with differentiated experiences.

Our platform offers simple, one-click, drag-and-drop customizable templates for designing messages.

It also offers generative AI tools for creating content and targeting communications, allowing our customers to easily create impactful experiences customized to their unique brand.

For advanced functionality, we offer a suite of tools to enable developers to build rapid automations for different use cases and quickly integrate with other systems efficiently, all from a simple and intuitive user interface.

• Coordinated engagement across channels.

We enable our customers to coordinate their multi-channel consumer engagement strategy across digital channels, such as email, SMS, and push notifications, without friction.

Our predictive analytics solutions also provide recommendations on which channel to use to drive higher engagement.

Our multi-channel capability results in fewer integrations to maintain and reduces the number of tools that our customers need to learn, while ensuring the right communication is used for the right channel, ultimately increasing speed and efficiency while reducing costs.

• A flexible platform as preferences evolve.

With over 350 integrations, Klaviyo was built from the beginning to be open, flexible, and adaptable to shifting consumer preferences, customer expectations, and new technologies.

However these change over time, Klaviyo keeps our customers in control of their own data.

As a single solution, Klaviyo enables customers to coordinate their consumer engagement strategy across digital channels, such as email, text, and WhatsApp messaging, as well as customer service touchpoints like live chats, without friction.

Our omnichannel capabilities reduce the number of tools and integrations our customers need, increasing speed and efficiency while also reducing costs.

Our vertical integration also allows us to easily expand into new channels, enabling our platform to evolve with consumer preferences.

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Due to our pre-configured data model and automatic integrations, our platform offers rapid and efficient implementation.

Meanwhile, due to

our advanced technological architecture and vertical integration, we can ascribe the amount of revenue that our customers generate with specific engagements through our platform, quickly and easily quantifying their success.

Meanwhile, due to our advanced technological architecture and vertical integration, we can quantify the amount of revenue that our customers generate with specific engagements through our platform, quickly and easily measuring their success.

AI-powered automation further accelerates time to value by reducing manual setup and ongoing operational effort.

As consumer interactions on Klaviyo generate attributable value, that continues to reinforce adoption.

Our Growth Strategies

We intend to leverage our differentiated approach to capitalize on our large market opportunity and leading market position to fuel future growth with the following key growth strategies:

• Attract new customers.

We have rapidly expanded our customer base to over 167,000 as of December 31, 2024 due primarily to our product-led growth strategy.

We expect to continue to acquire new customers through inbound channels, such as word-of-mouth, expanding platform integrations and agency partnerships, and growing our sales team that focuses on larger accounts.

As the customers on our platform continue to grow, this creates a powerful network effect for our brand when existing Klaviyo users change employment and advocate for the adoption of our platform at their new employer.

• Expand sales within our existing customer base.

We believe our product-led growth strategy enables us to efficiently expand penetration within our existing customer base.

We are maniacally focused on making our platform intuitive and exceptionally easy-to-deploy, driving our customers to expand their usage of our platform in a self-serve manner.

We focus on expansion in three primary ways.

First, as our customers increase their usage of our platform through the number of active consumer profiles they have and email and SMS messages they send, they move to higher subscription tiers.

Second, adding more communication channels and use cases, such as SMS and reviews, further expands the sales we generate from existing customers.

Our CDP offering gives our customers user-friendly ways to transform and cleanse data, run more advanced reporting and predictive analysis to drive revenue growth, and sync data into and out of Klaviyo at scale.

Finally, we expect to continue to see growth from selling our platform to our customers’ other brands, business units, and geographies.

• Grow our mid-market and enterprise presence.

While we started with SMB customers, we have also driven significant growth with mid-market companies and have an emerging presence with large enterprises.

As customers drive growth and value by using our platform, their success with Klaviyo has attracted more interest from other mid-market companies and enterprises that are looking to drive better engagement with their consumers, bringing our business and sales motion up-market.

• Expand internationally.

We believe we have significant expansion opportunities in international markets.

We initially started by serving customers in North America and, in 2019, we opened our London, England office to serve the European region, followed by our Sydney, Australia office in 2022 to target the Asia Pacific region, and we expanded our presence in the European region by adding operations in Dublin, Ireland in 2024.

We currently offer our platform and service in English, French, German, Portuguese, Korean, Spanish and Italian, and we believe we have significant international opportunities ahead, especially as we add new languages.

We also currently only bill in U.S.

Dollars, and we believe that adding additional currencies to our platform will help us better serve the international market.

• Invest in our platform.

We have a history of innovation and will continue to develop and invest in our platform to provide more value to our customers over time.

We launched with our data platform and email offering, and have since added additional communication channels, such as SMS and push notifications, and additional use cases, such as reviews and our CDP offering.

In 2024, we also launched Klaviyo AI, a suite of features that provide customers with AI-powered tools to streamline data segmentation, create and orchestrate campaigns, and drive better engagement.

Near term, we will continue to expand our marketing automation platform and extend to product areas outside of marketing.

Given the broad applicability of our platform, we believe that long-term we

can continue to launch new channels and capabilities to attract new customers as well as cross-sell to our existing customers.

• Expand into new verticals and use cases.

We chose eCommerce as our initial focus area because we found that there was a massive need for our technology solution in that market.

We believe that our technology platform has broad applicability across a range of industry verticals and use cases.

We have already seen organic adoption of our platform in verticals such as education, events and entertainment, restaurants, and travel, as well as from B2B companies.

Our vertically-integrated, highly-scalable and flexible platform unifies the data and application layers with our messaging infrastructure into one modern tech stack, providing all the features and automation tools necessary to drive personalized consumer engagement:

Messaging Infrastructure

The core capability of our platform is to enable businesses to send personalized emails to their consumers.

This includes a range of drag-and-drop email templates, allowing customers to easily edit and customize pre-built templates;

email campaigns and automations, including Smart Send Time features, generative AI for email content and subject line creation, and A/B testing tools;

and advanced consumer list segmentation, all of which are tools to help create high-performing email engagements.

Our SMS marketing capability enables customers to send targeted text messages to their consumers and strengthen relationships through our conversational SMS feature, which allows businesses to send personalized responses to consumers in real-time.

We also offer built-in contact cards to ensure that texts from our customers do not appear as random numbers.

Our consent management and compliance tools save time and money for our customers and enable them to focus on delivering a highly personalized consumer experience.

Our AI-powered SMS assistant uses generative AI to create message content and generate suggested responses for incoming text messages.

As we build the future for B2C companies, our growth strategy is to expand the types of consumer experiences our platform can deliver, increase the number of those experiences, and then deliver them with increasing quality and autonomy.

As businesses rely more heavily on data-driven and AI-enabled systems to interact with consumers, we also believe our platform is positioned to support increased usage, broader adoption, and durable growth.

• Expand addressable markets and increase market share.

We believe enterprise and international adoption represent significant growth opportunities as consumer companies seek a unified system to manage consumer experiences across marketing and service.

As organizations consolidate tools and standardize on platforms that can operate at scale, we continue to see momentum among larger customers and in international markets, supported by investments in go-to-market capabilities, global infrastructure, and localization.

• Drive multi-offering adoption and deeper platform usage.

We believe multi-offering adoption is a durable growth lever as customers consolidate marketing, service, and analytics on a shared data foundation.

Customers that use multiple Klaviyo offerings are able to coordinate engagement more effectively across the consumer lifecycle, including marketing and service touchpoints, improving outcomes and increasing the value derived from the platform.

As customers expand usage across additional offerings, channels, brands, and geographies, their reliance on our platform grows.

• Expand usage and monetization through AI and automation.

We believe AI-powered agents and automation increase both the volume and value of interactions that customers run through our platform.

As customers deploy agents to execute campaigns, respond to inquiries, and personalize engagement in real time, we expect increased platform usage driven by higher interaction frequency, broader use cases, and more autonomous execution.

• Maintain a durable model aligned with customer outcomes.

Our business model scales as customers grow and engage more consumers.

As customers increase interaction volume, adopt additional offerings, and rely more heavily on automation and AI-driven workflows, our revenue naturally expands alongside customer success, reinforcing long-term durability.

Overall, this amalgamation of growth strategies is designed to align with customer outcomes.

Klaviyo’s economics scale as customers grow and engage more consumers, reinforcing long-term value.

Our Capabilities

By combining unified consumer profiles with automation and execution, Klaviyo makes it easy to turn consumer data into revenue-driving experiences with measurable impact across marketing, service, and beyond.

Our vertically-integrated, highly-scalable and flexible platform unifies the data and action layers with our messaging infrastructure into one modern tech stack, providing all the capabilities and automation tools necessary to drive personalized consumer engagement:

Marketing Agent:

Marketing Agent is an AI-driven, autonomous marketing assistant built into the Klaviyo B2C CRM platform.

It is designed to automate and accelerate marketing strategy, content creation, and campaign execution for

consumer companies, enabling teams to operate with greater efficiency and creativity.

With Marketing Agent, customers can autonomously generate complete, on-brand marketing campaigns, flows and signup forms in minutes.

Customer Agent:

Customer Agent is an AI-powered assistant that provides 24/7 support and selling across digital channels.

It answers questions, resolves issues, and helps shoppers discover products and complete purchases.

Powered by Klaviyo data, Customer Agent delivers personalized, real-time conversations at scale, helping businesses improve consumer experiences, increase conversions, and reduce inquiries handled by human teams.

Klaviyo enables businesses to send personalized email communications to their customers, leveraging a unified consumer profile and real-time behavioral data.

Our email marketing solution includes a range of customizable drag-and-drop templates, automated campaign and workflow capabilities, Smart Send Time optimization to improve engagement, generative AI tools for content and subject line creation, and A/B testing to support performance optimization.

Advanced segmentation and personalization features allow customers to target audiences based on behavior, preferences, and predictive insights, helping drive more relevant and effective engagements.

Text and WhatsApp messaging:

Klaviyo’s platform includes robust mobile messaging capabilities that enable companies to engage consumers via text messaging, Rich Communication Services (“RCS”), and WhatsApp, all powered by our real-time consumer data and unified profile infrastructure.

Text messaging allows businesses to deliver targeted, automated text campaigns—including promotions, alerts, and reminders—with broad reach and integration into omnichannel flows.

RCS enables rich, interactive, branded messages with high-resolution media and engagement features, while automatically falling back to text messaging where RCS is unsupported, enhancing engagement without sacrificing delivery.

WhatsApp further extends messaging to one of the world’s most widely used mobile platforms, enabling personalized, real-time conversational and campaign-driven interactions that complement email and text messaging communications and support global consumer engagement strategies.

Mobile app marketing:

Our push notification channel allows customers to send personalized push notifications on iOS and Android devices to engage consumers with timely and relevant mobile app notifications to build omnichannel experiences.

Our multi-channel approach allows our customers to communicate with their consumers in the manner that best serves their diverse business needs.

With Klaviyo’s acquisition of Gatsby in 2025, we enable companies to convert social media engagement into measurable growth.

Klaviyo Social brings social interaction data—such as Instagram comments, direct messages, and tags—into the Company’s unified consumer profiles, enabling more personalization across channels.

Klaviyo Social allows companies to grow owned contact lists directly from social platforms by capturing consented email and text messaging subscribers generated through social campaigns, and to use real-time audience synchronization to improve advertising efficiency across major platforms.

Our Reviews add-on allows our customers to collect product reviews alongside consumer data and messaging in Klaviyo, delivering a more seamless experience across the customer lifecycle.

Our AI tools also suggest review headlines for consumers based on their review content, and generate personalized review replies for our customers with the click of a button.

Our omnichannel approach allows our customers to communicate with their consumers in the manner that best serves their diverse business needs.

By creating a single, holistic view of the consumer, we can help customers understand and communicate with their consumers across all channels.

For example, some customers may choose to engage with consumers asynchronously through email with highly-segmented, personalized, and cost-effective messages.

However, in some cases, such as notification of a flash sale, customers may choose to drive revenue through concise, action-oriented interactions delivered in real-time through SMS or push.

Because our platform was purpose-built to help customers understand their consumers, our customers can leverage consumer profiles, event data, and AI-powered predictive analytics to deliver highly personalized messages across relevant communication channels, rather than through disparate and disjointed channels.

Other Applications

Our reviews add-on allows our customers to collect product reviews alongside their existing consumer data and messaging in Klaviyo, delivering a more seamless experience across the customer lifecycle.

Our AI tools suggest

review headlines for consumers based on their review content, and generate personalized review replies for our customers with the click of a button.

Customer Data Platform:

Our CDP offering allows our customers to manage and deploy their data in Klaviyo more effectively.

Our CDP is built on the same infrastructure as Klaviyo’s marketing application and provides user-friendly tools to unify, enrich, and transform data, run more advanced reporting and predictive analysis, and sync data into and out of Klaviyo at scale.

Our CDP is built for businesses of all sizes and gives customers access to powerful predictive analysis functionality.

Product Features

However, in some cases, such as notification of a flash sale, customers may choose to drive revenue through concise, action-oriented interactions delivered in real-time through text messaging, WhatsApp messaging, or push.

Because our platform was purpose-built to help customers understand their consumers, our customers can leverage consumer profiles, event data, and

AI-powered predictive analytics to deliver highly personalized messages across relevant communication channels, rather than through disparate and disjointed channels.

Customer Hub and Helpdesk, along with Customer Agent described above, together form Klaviyo’s Service suite, designed to connect consumer-facing service experiences with Marketing on a single platform powered by data and AI.

By unifying Service and Marketing workflows, these offerings enable businesses to engage consumers more consistently across the customer lifecycle, using real-time data and intelligence to inform more personalized, seamless interactions.

Customer Hub:

Customer Hub is a consumer-facing portal that brings shopping, service, and personalization together in one place.

Shoppers can track orders, discover products, redeem rewards, manage subscriptions, and get support using real-time, on-site personalization powered by Klaviyo data.

Customer Hub helps businesses increase revenue, strengthen loyalty, and deliver more tailored consumer experiences.

Helpdesk is an AI-powered workspace for managing consumer conversations across channels.

Teams use Helpdesk to route inquiries, manage issues, and respond with full consumer context from Klaviyo data.

By connecting service interactions with marketing, Helpdesk helps businesses operate more efficiently and deliver more connected consumer experiences.

Data and Analytics

The KDP is embedded within Klaviyo’s B2C CRM and available to all Klaviyo customers.

The KDP unifies real-time and historical consumer data for marketing, customer service, and analytics—and it’s built into Klaviyo B2C CRM.

It provides user-friendly tools to unify, enrich, transform data, run more advanced reporting and predictive analysis, and sync data into and out of Klaviyo at scale.

Our KDP is built for businesses of all sizes and gives customers a unified, real-time view of consumers across their entire lifecycles.

Advanced KDP:

Building on top of the features included to all customers through the KDP, the Advanced Klaviyo Data Platform provides an enhanced set of data capabilities for more advanced users.

Additional features include data export to third-party destinations, no-code data transformations, customizable CLV predictive analytics, catalog insights to drive cross-sell, and more advanced segmentation like RFM (recency, frequency, monetary value) analysis.

Marketing Analytics:

Our Marketing Analytics offering provides companies real-time, AI-powered insight into consumer purchase behavior so they can take action faster.

Our predictive analytics features use AI and machine learning to drive valuable consumer insights related to consumer lifetime value, churn risk, and behavior forecasting, enabling businesses to make data-driven decisions that help them maximize revenue potential.

Customers can benchmark their performance metrics against industry peers to identify optimization opportunities.

These analytics capabilities integrate directly with our unified platform, enabling customers to immediately convert insights into targeted marketing campaigns and automated workflows that drive measurable revenue growth.

Integrations:

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Segmentation:

Our advanced audience segmentation allows businesses to create consumer segmentation based on all the consumer data they have available in Klaviyo, including purchase history, engagement levels, and Klaviyo-powered predicted customer lifetime value.

predicted customer lifetime value.

The segmentation feature enables our customers to better target consumers with personalized engagement, and our AI tools allow our customers to quickly create segments using natural language inputs.

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With Klaviyo, customers can drive more revenue by building data-powered omnichannel campaigns that engage their consumers across every touchpoint.

We offer pre-built templates for customers to choose from, and our platform has built-in generative artificial intelligence capabilities to allow users to auto-generate email and SMS content and build automations using natural language inputs.

We offer pre-built templates for customers to choose from, and our platform has built-in generative AI capabilities to allow users to auto-generate email, text messaging, and WhatsApp messaging content and build automations using natural language inputs.

Our platform also enables businesses to build flows, which are a sequence of automated actions, including messages, that are triggered when a consumer performs a specific action — such as joining a list, being added to a segment, making a purchase, or abandoning their cart.

We also offer customers the ability to use our Flows AI functionality to use natural language to build and manage their flows.

We also offer customers the ability to use AI-assisted natural language inputs to build and manage their flows with minimal human input needed.

Our built-in attribution allows customers to quantify and understand the revenue impact of campaigns and flows.

Analytics and Benchmarks:

Our predictive analytics features use artificial intelligence and machine learning to drive valuable consumer insights related to consumer lifetime value, churn risk, and behavior forecasting.

Our predictive analytics features use AI and machine learning to drive valuable consumer insights related to consumer lifetime value, churn risk, and behavior forecasting.

Our benchmark feature aggregates anonymized performance data across our customer engagement strategies and allows businesses to compare their performance to that of their industry peers.

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Our Technology

The Klaviyo platform was engineered from the ground up to be cloud-native, consisting of a set of reusable primitives — for example, the data store, segmentation engine, campaigns and flows, and messaging infrastructure — that provide tight vertical integration but are independent and extensible.

Our entire data platform was designed to power many applications, with marketing as the first one.

The Klaviyo infrastructure was engineered to be cloud-native, consisting of a set of reusable primitives that enable tight vertical integration while remaining independent and extensible.

From the beginning, it was designed to power many applications—starting with marketing—as well as intelligence use cases, beginning with machine learning and more recently generative AI.

Our data layer is the core of the Klaviyo platform and the foundation on which we built all our functionality.

We built a composite data store that aggregates effectively unlimited amounts of data in a way suitable for transactional, analytical,

and machine learning workloads.

The extensible architecture of our data store runs an ingestion pipeline responsible for deduping, data augmentation, and identity resolution.

This pipeline spawns multiple projections in real-time as billions of facts and actions are ingested, enabling us to store the processed data in multiple formats.

The extensibility of the projection mechanism allows us to easily add more use cases as needed.

The overarching architectural decision to use independent reusable primitives across the data layer, application layer, and messaging infrastructure was key to providing the level of scalability, reliability, and performance that our platform offers.

We built a composite data store that aggregates effectively unlimited amounts of data in a way suitable for transactional, analytical, and machine learning workloads.

Event data allows customers to send behavior-triggered messages that keep consumers engaged with the right message at the right time.

This industry-agnostic, data-first approach supports marketing, customer service, and analytics use cases and can be applied to any vertical that requires the combination of fast performance with real-time, predictive intelligence.

The architecture of our data store runs an ingestion pipeline responsible for deduping, data augmentation, and identity resolution.

This pipeline spawns an extensible projection mechanism in real-time as billions of facts and actions are ingested, enabling us to store the processed data in multiple formats and easily add new use cases.

This data layer feeds applications and agents that enable businesses to deploy predictive modeling and personalized engagement across the entire consumer journey without specialized engineering teams.

These applications and agents are natively integrated with our data store and leverage sophisticated machine learning, giving businesses predictive insights like estimated customer lifetime value, next order dates, or churn risk.

We have expanded our action layer to include Klaviyo Service, our AI-powered customer service offering, which enables businesses to manage and automate customer support interactions using the same unified consumer data that powers marketing and analytics.

Finally, our intelligence layer connects the insights contained in our database to the actions powered by our applications.

Here, consumer interactions enrich the data store, improve the intelligence layer outcomes, and use those

outcomes to drive more interactions.

Our intelligence layer has built insight from billions of messages and trillions of events, allowing businesses to apply real-time context to historical behavioral patterns.

The overarching architectural decision to use independent reusable primitives across the data, action, and intelligence layers was key to providing the level of scalability, reliability, and performance that our infrastructure offers.

The overall result is a system that grows more effective overtime, moving beyond simple automation tasks toward a fully autonomous system that empowers businesses to act on their data with unprecedented scale and speed.

Efficient Computation and Storage :

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In order to enable our customers to create dynamic, personalized experiences for their end users, we efficiently ingested and stored billions of events every day on average during 2025.

We use this data to power personalization and send billions of messages each month across multiple channels, including email, SMS, and push notifications.

We use this data to power personalization and send billions of messages each month across multiple channels, including email, text messaging, WhatsApp messaging, and push notifications.

Optimized for Large Data Sets :

Our data store is optimized for very large data sets with the capacity to combine and store our customers’ entire consumer history of profile and event data in real time without expiration of the ingested data.

Our data store is optimized for large data sets with the capacity to combine and store our customers’ entire consumer history of profile and event data in real time without expiration of the ingested data.

Architectural techniques such as data partitioning and indexing across natural query seams allow our platform to scale with our customers.

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This allows us fast access to range and point queries, complex segmentation, and aggregations, such as the amount spent by a consumer over the last 30 days.

We have intentionally separated our application layer from our data stores through the implementation of rich front-ends including HTML, JavaScript, and CSS that use techniques like backend-for-frontend APIs and leverage content delivery networks to reduce latency in accessing data.

Research and Development

Our research and development organization is responsible for leading continuous innovation of our platform and channels, through the design, development, testing and delivery of features, and new technologies.

It is also responsible for reliably operating and scaling our platform including the underlying cloud infrastructure.

Our research and development team is organized in pillars aligned with our vertically-integrated stack.

We additionally have small teams focused on new ventures that are oriented towards long-term growth initiatives.

Each pillar is organized as small teams with high levels of ownership of the technology they develop/deploy and a mindset of continuous delivery for our customers.

We believe this setup allows for rapid innovation of our platform.

Research and development employees are primarily in Boston, Massachusetts.

We intend to continue to invest in our research and development capabilities to expand our platform capabilities and offerings.

Our Ecosystem

We have intentionally separated our action layer from our data stores through the implementation of rich front-ends including HTML, JavaScript, and CSS that use techniques like backend-for-frontend APIs and leverage content delivery networks to reduce latency in accessing data.

Our Partner Ecosystem

Our partner ecosystem enriches our customer offerings and helps us reach a broader audience than we would be able to reach on our own.

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Through our partnerships and data integrations with commerce platforms, we are able to aggregate and analyze our customers’ first-party consumer data in real-time to drive more and better insights for our customers.

Our platform completes the technology stack for direct-to-consumer businesses, combining their commerce engines with our powerful solution to drive revenue growth through data-driven, highly personalized experiences.

In July 2022, we completed a series of transactions to memorialize our strategic partnership with Shopify, which established Klaviyo as the recommended email solution for all Shopify Plus merchants.

We also partner with most other major commerce platforms, including BigCommerce, Centra, Magento, Nuvemshop, PrestaShop, Magento (Adobe), Salesforce Commerce Cloud, Square, Wix, and WooCommerce.

We also partner with most other major commerce platforms, including WooCommerce, Magento (Adobe), BigCommerce, Salesforce Commerce Cloud, PrestaShop, and Shopware.

We have additionally integrated with Amazon Buy with Prime.

Our platform integrations create value for customers across a variety of verticals beyond retail and eCommerce.

For example, we integrate with Olo and Toast in the restaurant industry, Mindbody in the fitness and wellness industry, and Eventbrite in the events industry.

For example, we integrate with Olo and Toast in the restaurant industry, Mindbody in the fitness and wellness industry, and Eventbrite, Cloudbeds, and Mews in the events industry.

In January 2026, we also launched the Klaviyo application with OpenAI, allowing our customers to access their Klaviyo data right inside ChatGPT.

Other Technology Partnerships

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These agencies help our customers run effective campaigns using Klaviyo, and provide strategic guidance to help our customers achieve their goals utilizing our platform.

Many of these partners develop in-house Klaviyo expertise, build

Klaviyo-dedicated service offerings, and go-to-market as Klaviyo partners.

Many of these partners develop in-house Klaviyo expertise, build Klaviyo-dedicated service offerings, and go-to-market as Klaviyo partners.

We mirror the investment these partners have made in Klaviyo by offering them a partner program (including incentives and requirements), partner-specific tools, and dedicated training and support.

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We also provide developers with data sample generation tools, allowing them to run and test their code against real, anonymized datasets which we generate for them as sample sets, so that they do not have to identify, obtain and ingest relevant data sets for their work.

Additionally, in 2025, we launched the Klaviyo Model Context Protocol (MCP) server, which seamlessly integrates with Klaviyo’s APIs, enabling both customers and AI-native developers to use AI clients to interact with Klaviyo data and skills.

Our Customers

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Our acquisition teams respond to inbound and partnership-referred leads while also supplementing this demand by going outbound directly to businesses to introduce Klaviyo.

go-to-market motion targets decision makers participating in the marketing-spend cycle, including the chief marketing officer, chief customer officer, and other key functional marketing heads.

Our go-to-market motion targets decision makers participating in the marketing-spend cycle, including the chief marketing officer, chief customer officer, and other key functional marketing heads.

Our outbound sales motion and sales process for all customers is differentiated by the amount of tangible advice and recommendations we are able to provide.

Using all available channels, including social, video, email, phone, and SMS, we are able to deliver actionable insights to prospective customers that help them drive revenue growth.

Customer Experience and Customer Success

Using all available channels, including social, video, email, phone, text messages, and WhatsApp messages, we are able to deliver actionable insights to prospective customers that help them drive revenue growth.

Customer Experience

As a customer-first organization, our customers are at the heart of everything we do.

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As a partner that creates value, we earn our customers’ trust, and that trust helps drive net retention through renewals and expansion.

We engage with our customers from large to small through dedicated programs, such as Customer Success at Scale, Voice of the Customer, and with dedicated Customer Success Managers for our largest customers.

With this ongoing feedback, we can continue to make impactful improvements to our platform and to the customer success and support experiences we offer.

Our Customer Success and Support teams provide a wide range of services that help meet our customers’ needs, including the following:

Our Customer Experience teams provide a wide range of services that help meet our customers’ needs, including the following:

• Starting from the beginning of their journey, our onboarding teams work quickly to get customers set up with the right configuration and features to meet their business goals.

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• Our Customer and Partner Education Services team offers a range of services, from providing free ungated content via social channels, learning tutorials, and live virtual hands-on training sessions, to helping customers set up segmentation, flows, and campaigns.

• Our global support team provides 24/7 email and live chat support to ensure customers’ critical questions and issues are addressed quickly.

• We offer proactive deliverability monitoring to ensure our customers’ messaging consistently reaches their consumers, as well as strategic audits to guide our customers to optimize the platform usage through shifting priorities and external environment changes.

• We offer dedicated developer education and technical documentation as well as a developer-specific community to support and grow our developer ecosystem.

Our Customer Success and Support teams are the face of Klaviyo.

In every interaction, we have the opportunity to educate and inspire our customers and partners.

All of our customers, from a single entrepreneur to a Fortune 500 executive, rely on Klaviyo to drive their business.

We take this responsibility seriously, and offer global support to all customers regardless of size.

Because we are always striving to raise the bar, we have a robust listening framework to engage with our customers from large to small through dedicated programs, such as Customer Success at Scale, Voice of the Customer, and dedicated Customer Success Managers for our largest customers.

With this ongoing feedback, we can continue to make impactful improvements to our platform and to the customer experiences we offer.

The market in which we compete is evolving and highly competitive.

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• Quality of service and customer satisfaction.

The integration and adoption of AI technology, including generative AI and autonomous AI agents, is increasingly central to competitive positioning in our industry.

Our ability to develop and integrate advanced AI functionality affects our competitive standing and market differentiation.

We believe that we compare favorably on each of these factors relative to our competitors.

However, some of our competitors and potential competitors may be larger and have greater brand awareness, longer operating histories, larger marketing budgets and established marketing relationships, access to larger customer bases, and significantly greater resources for product development.

Additionally, because our market is rapidly developing, it is possible that new entrants, particularly those with extensive resources, could introduce new products or services that compete in our market and better address the needs of our customers and potential customers.

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As of December 31, 2025, we had 26 issued and allowed patents and 47 pending patent applications in the United States that cover various aspects of our business in the United States and abroad.

Our issued patents are scheduled to expire

between February 2042 and May 2043.

These patents and patent applications are intended to protect our proprietary inventions relevant to our business.

Our issued patents are scheduled to expire between February 2042 and February 2044.

These patents and patent applications are intended to protect our proprietary

inventions relevant to our business.

We continually review our development efforts to assess the existence and patentability of new intellectual property.

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Human Capital Resources

As of December 31, 2024, we had a total of 2,182 employees located in four countries, with the substantial majority of our employees located in the United States.

As of December 31, 2025, we had a total of 2,368 employees located in six countries, with the substantial majority of our employees located in the United States.

We supplement our workforce with contractors and consultants.

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Our principal executive offices are located at 125 Summer Street, 6th Floor, Boston, MA 02110, and our telephone number is (617) 213-1788.

“Klaviyo” is our registered trademark in the United States, the European Union, the United Kingdom, Australia, and other jurisdictions.

“Klaviyo” is our registered trademark in the United States, the European Union (the “EU”), the United Kingdom, Australia, and other jurisdictions.

The Klaviyo design logo and our other registered or common law trademarks, service marks or trade names appearing in this Annual Report on Form 10-K are the property of Klaviyo, Inc.

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The address of the site is www.sec.gov.

We use our https://investors.klaviyo.com and www.klaviyo.com websites, as well as our blog posts, press releases, public conference calls, webcasts, our X (formerly known as Twitter) feed, our Instagram page, our Facebook page, and our LinkedIn page, as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.

We use our https://investors.klaviyo.com and www.klaviyo.com websites, as well as our blog posts, press releases, public conference calls, webcasts, X (formerly known as Twitter) feed, Instagram page, Facebook page, and LinkedIn page, as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.

The contents of our websites are not intended to be incorporated by reference into this Annual Report on Form 10-K or in any other report or document we file with the SEC, and any references to our websites are intended to be inactive textual references only.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business