Klaviyo Inc
(MEX:KVYO)
MXN
335
(0%)
Market Cap: 81.44 Bil
Enterprise Value: 69.07 Bil
PE Ratio: 836.50
PB Ratio: 5.00
GF Score: 26/100 
Q2 2026 Klaviyo Inc Earnings Call Transcript
Aug 05, 2026 / 08:30PM GMT
Release Date Price:
MXN335
(+9.91%)
Key Points
Positve
- Klaviyo Inc (KVYO) delivered strong Q2 2026 results with revenue of $370.6 million, up 26% year-over-year, and raised its full-year revenue guidance by $12 million at the midpoint.
- The company's enterprise momentum is accelerating, evidenced by its largest-ever deal (an 8-figure multiproduct contract) and a 36% year-over-year growth in customers with $50,000+ ARR, which now represents approximately 40% of total ARR.
- Adoption of its AI-powered Composer agent is off to a strong start, with over 95,000 users in the first month, nearly a quarter of whom are recurring weekly users, and credit consumption growing 30% week-over-week.
- International expansion is a key growth driver, with revenue outside the Americas up 35% year-over-year and EMEA revenue up 41%, supported by new offices, an upcoming EU data center, and a strong large-deal pipeline.
- The company is seeing strong cross-sell momentum, with nearly 20% of ARR coming from customers using 3 or more products, and these multiproduct customers retain more than 6 points better on gross retention than single-product customers.
- Klaviyo Inc (KVYO) is investing in its future with the acquisition of Agency, bringing on founder Elias Torres as Chief Product Officer to accelerate its agentic roadmap, and is also strengthening its leadership team with a new CFO.
- The company's customer agent product is gaining traction, with adoption up 40% quarter-over-quarter and weekly resolution volumes growing nearly 80% since early June, demonstrating strong ROI for customers.
- Klaviyo Inc (KVYO) continues to generate strong cash flow, ending the quarter with $833 million in cash and repurchasing $240 million in shares, reflecting confidence in its long-term value.
- The company's data infrastructure is a key competitive advantage, now storing over 9 billion consumer profiles and capable of powering up to 100 million personalized messages in under 20 minutes, which is crucial for enterprise clients.
- Klaviyo Inc (KVYO) is seeing strong growth in its data and analytics products, which are growing ARR more than 100% year-over-year, as customers find demonstrable ROI from using AI to improve marketing performance.
Negative
- Klaviyo Inc (KVYO)'s net revenue retention (NRR) was 109% in Q2, which was negatively impacted by the lapping of last year's profile enforcement, a headwind that is expected to continue through Q1 of next year.
- Non-GAAP gross margin declined 3 points year-over-year to 73.4%, driven by strong growth in lower-margin text messaging and higher carrier fees, which the company chose to absorb in the quarter.
- The company revised its full-year 2026 non-GAAP operating income guidance down by $10 million at the midpoint, partly due to $10-12 million in costs associated with the Agency acquisition and continued investment in product innovation.
- The company's Q3 2026 revenue growth guidance of approximately 21.5-22.5% represents a deceleration from the 26% growth seen in Q2, indicating a potential slowdown in the near term.
- Klaviyo Inc (KVYO) expects non-GAAP gross margin to decline further in Q3 and see a greater-than-normal seasonal step down in Q4, as text messaging growth continues to outpace the overall company growth.
- The company's operating margin is expected to be pressured in the near term, with Q3 guidance implying a non-GAAP operating margin of only 10.5-11%, down from 13.7% in Q2, due to strategic investments.
- The transition to passing through higher carrier fees to customers for text messaging will be neutral to 2026 revenue and gross margin, but it may create friction with customers as they see price increases.
- While the company is making progress in enterprise, the go-to-market motion is still a journey, moving from a transactional to a more consultative approach, which takes time and may lead to uneven results.
- The company's heavy investment in AI and product innovation, while promising, has not yet translated into significant revenue contributions from new products like Composer and Customer Agent, which are still in early adoption phases.
- Klaviyo Inc (KVYO) faces the risk of disruption in the SMB market from general-purpose AI models, and while it sees advantages, it must continuously educate customers on the value of its domain-specific AI solutions.
Operator
Hello, and welcome to the Klaviyo, Q2 2026 Earnings Call. (Operator Instructions) 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
Klaviyo Inc - Investor Relations
Welcome, everybody. We appreciate you joining us. Joining me today are Clay via Co-Founder and Co-CEO, Andrew Bilecki, co-CEO, Chano Fernandez; and CFO, Amanda Whalen. Andrew Chano and Amanda -- we'll 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.clavio.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, our earnings release, supplemental materials, which can be found on our Investor
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