Klaviyo Q1 Earnings Call Highlights

Key Points

• Klaviyo beat Q1 expectations with revenue up 28% year over year to $358 million and raised its full-year 2026 outlook. The company also posted its first quarter of positive GAAP operating margin since going public.
• AI products and enterprise growth were major drivers in the quarter, with management highlighting strong adoption of Composer and Customer Agent, plus momentum in larger customers, international markets and platform consolidation.
• Profitability and capital returns improved, as non-GAAP operating margin reached a record 16% and the board authorized a $500 million share buyback program. Klaviyo also said CFO Amanda Whalen will step down in the coming months as part of a transition.

Klaviyo NYSE: KVYO reported first-quarter revenue growth of 28% year over year and raised its full-year outlook, as executives pointed to momentum in enterprise customers, international markets and artificial intelligence products during the company’s Q1 2026 earnings call.

Co-Founder and Co-CEO Andrew Bialecki said revenue rose to $358 million in the quarter, while non-GAAP operating margin increased to more than 16%, the highest in the company’s history. He said more than 196,000 brands are now on Klaviyo’s platform, and the company closed its largest number of multi-million-dollar annual recurring revenue deals to date.

CFO Amanda Whalen said net revenue retention was 110%, up 2 points from a year earlier. Customers with more than $50,000 in ARR grew 38% year over year to 4,175 customers. She also said the company achieved its first quarter of positive GAAP operating margin since going public.

AI Agents Take Center Stage

Bialecki framed the quarter around what he called “the era of agents and infrastructure,” saying Klaviyo is focused on building an “autonomous B2C CRM” that helps consumer businesses use data and AI to personalize customer experiences.

He said Klaviyo’s infrastructure processes almost 4 billion daily events and signals across 8 billion consumer profiles, giving businesses a real-time view of consumer behavior. Bialecki argued that AI agents help close the gap between what Klaviyo’s platform can do and how customers currently use it.

The company highlighted several AI-related product developments, including the private preview of Composer, Klaviyo’s next-generation marketing analytics agent. Bialecki said Composer can query and analyze consumer and marketing data, create campaigns and automations, and eventually help create and optimize Customer Agent experiences.

Bialecki said early users are using Composer to audit marketing programs, surface opportunities and implement changes in a single session. He cited examples including a beauty brand that used Composer to identify automations that had been broken for years, Hydro Flask using it to fix misconfigured targeting, and a personal finance company using it to map and prioritize more than 1,000 flows across 13 business units.

Klaviyo also discussed Customer Agent, its consumer-facing AI product. Bialecki said Customer Agent now runs across text, WhatsApp, email, RCS and web chat, with voice and multilingual support being added. He said fashion brand Naked Wardrobe resolved 84% of conversations through Customer Agent and AI and saw a 28% increase in average order value.

Enterprise and International Growth

Co-CEO Chano Fernández said enterprise, international and platform consolidation “each have real momentum,” and said AI accelerates those areas. He said net new customers in the $50,000-plus ARR cohort were notably higher than in Q1 2025, and the company closed an expansion that brought one customer’s contract to more than $6 million in ARR.

Fernández said large customers are looking to reduce fragmentation across customer data, marketing execution and service systems. He cited Alice and Olivia, Weber Grills and Patagonia as examples of customers using Klaviyo to consolidate workflows or replace legacy technology. Patagonia, he said, expanded from email into text messaging to reduce redundant messaging across channels.

International revenue outside the Americas grew 39% year over year, and Fernández said five of Klaviyo’s top 10 largest new customers came from EMEA. Whalen added that EMEA revenue outside the U.K. rose 51%, marking the sixth consecutive quarter of growth above 50% in that region.

Fernández cited AllSaints as a U.K. customer that signed a multi-year deal and selected Klaviyo for speed of execution, WhatsApp capabilities and the potential to consolidate email and other channels. He also highlighted Hobbii and Legends Global, saying Klaviyo is seeing complex multi-market operations consolidate onto its platform beyond its e-commerce roots.

Margins, Cash Flow and Buyback

Whalen said non-GAAP operating income was $59 million, representing a 16% non-GAAP operating margin. Non-GAAP gross margin was 76%, and non-GAAP operating expenses were 59% of revenue, down 560 basis points year over year. She said sales and marketing showed meaningful leverage, reflecting AI-enabled efficiencies and the absence of a B2C CRM marketing investment made in the prior-year period.

Free cash flow was $19 million, or a 5% margin, which Whalen said reflected normal seasonality and the timing of annual bonus payments. Trailing 12-month free cash flow margin was 16%.

The company’s board authorized a $500 million share repurchase program in March. Whalen said Klaviyo entered into a $100 million accelerated share repurchase that was completed in April and continues to execute on the remaining authorization.

Guidance Raised

Klaviyo raised its full-year 2026 revenue guidance to a range of $1.514 billion to $1.522 billion, representing about 23% year-over-year growth. Whalen said the midpoint was raised by $13 million after the company outperformed first-quarter expectations by about $10 million.

The company also raised its full-year non-GAAP operating income outlook to $222 million to $228 million, implying a non-GAAP operating margin of approximately 14.5% to 15%.

For the second quarter, Klaviyo expects revenue of $359 million to $363 million, representing growth of about 23% to 24%, and non-GAAP operating income of $47.5 million to $50.5 million.

Whalen said guidance assumes Klaviyo continues to absorb the majority of carrier fee increases in its text messaging business. Fernández said the company chose to absorb those fees as a customer-first decision, while noting Klaviyo will be thoughtful about any future cost pass-throughs.

CFO Transition

Bialecki announced that Whalen will step down as CFO in the coming months to spend more time with her family before pursuing the next phase of her career. She will remain CFO through Aug. 21 and continue in an advisory role through November to support the transition.

Bialecki said Klaviyo has initiated a search for its next CFO and credited Whalen with helping build the team that took the company through its IPO and scaled it into a “multi-product global AI-native business.”

Whalen said Klaviyo has “never been stronger,” citing momentum across the business, an expanding profitability profile and a clear path for continued growth.

About Klaviyo NYSE: KVYO

Klaviyo, Inc is a cloud-based marketing automation platform that enables businesses to leverage customer data for targeted email and SMS campaigns. The company's platform centralizes first-party data from various sources—including e-commerce storefronts, websites, and CRM systems—to help organizations deliver personalized marketing across the customer lifecycle. Klaviyo's core offerings include segmented email marketing, automated messaging workflows, and performance analytics designed to drive customer engagement and revenue growth.

The platform provides a suite of tools for campaign creation and management, including drag-and-drop email and SMS builders, dynamic content rendering, and A/B testing capabilities.

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