At which time, you will be given instructions for the question and answer session. Also as a reminder, this conference is being recorded. With that, I would now like to turn the call over to Ryan Flaim, Director of Investor Relations. Ryan, you may begin. Welcome, everyone. We appreciate you joining us.

Joining me today are Klaviyo, Inc. cofounder and co-CEO, Andrew Bialecki, co-CEO Chano Fernandez, and CFO, Amanda Whalen. Andrew, Chano, and Amanda will first share their views on the quarter and then we will open up the line for your questions. 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 and 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, 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 introduction. We are ready to begin.

Thanks, everyone, and welcome. We have entered the era of agents and infrastructure, at least so far as software is concerned, and our first quarter showed what that means for Klaviyo, Inc. Before I cover our results and highlight a few specific observations, I would like to take a few minutes to remind everyone of the opportunity AI presents and how we are taking advantage of it. Our strategy is centered on helping businesses grow by maximizing their most important asset, their relationships with their consumers. The businesses that win are the ones that deliver stunning personalized experiences at scale. That has been the goal of everything we have built at Klaviyo, Inc. for the last decade. The reality is that creating those experiences through deep personalization, engaging media, meeting customers where they want to be met, and optimizing those experiences automatically is still not easy. Our work over the last decade has been building the infrastructure to make that possible, what we call the B2C CRM. As we built it, we felt a growing gap between what our infrastructure is capable of and how businesses are actually using it. This capability overhang means businesses are missing opportunities with their consumers and, in turn, leaving real dollars and greater success on the table. AI agents are allowing us to close that gap and are revealing enormous latent demand for intelligence to design, deliver, and optimize consumer experiences. Our agents are going further, finding new opportunities for the businesses we serve, and contributing back to product direction. They are already among our most advanced users of our data and experience infrastructure, pushing the limits of what is possible and giving feedback for what to build next. We are entering a positive loop where agents use our infrastructure to build stunning consumer experiences that generate data and feedback that improves the infrastructure, which in turn makes agents smarter and more capable. The cycle repeats. Together, agents and the infrastructure we provide are the autonomous B2C CRM. We believe every consumer business will run on it, and every consumer experience will be driven by it. Our agents and infrastructure get better with increased data, scale, and usage. Our infrastructure sees almost 4 billion daily events and signals across 8 billion consumer profiles. Ingesting, storing, and indexing these signals in real time gives every business running on Klaviyo, Inc. a real-time data feed on how consumers and businesses are interacting with each other and, critically, gives businesses and the agents they run context on what will delight consumers. The laws of consumer behavior shift in real time. Our customers and the agents they deploy use our real-time view of consumers as context to deliver stunning, highly performing experiences. Agents make it even easier to infuse this context into experiences for the benefit of consumers and businesses alike. Let us look at our first quarter results to show what this looks like in practice. Revenue increased 28% year over year to $358 million, with strong momentum across enterprise, international, and our B2C CRM platform. Non-GAAP operating margin increased to over 16%, the highest in our history. More than 196 thousand brands are on our platform. We closed the largest number of multi-million dollar ARR deals ever, and our largest customers once again grew their revenue, known as GMV, roughly two times faster than the broader market. Our investments in AI are not limited to the agents and infrastructure we build, but extend to how we operate and deliver Klaviyo, Inc. Annualized revenue per full-time employee in Q1 was over $600 thousand, up more than 25% year over year. As an example, we are committing and shipping code at nearly double the rate per engineer from a year ago. As a result, we shipped more than 75 features in the first quarter, including private preview of our next-generation marketing analytics agent, Composer; increased intelligence and channel capabilities for Customer Agent; and deeper partnerships and product integrations with Google, Anthropic, Shopify, and Canva. I would like to share a bit more on our agent products and how we are seeing customers use them, starting with Composer. Composer is our next-generation agent for marketing and analysis, and is an entirely redesigned agent harness. It builds from the learnings of how customers are using our first-generation Marketing Agent. Marketing Agent’s functionality was more narrowly scoped to content marketing and campaign creation. Composer takes advantage of the advances in underlying LLMs’ abilities to reason and use tools. Composer’s scope is dramatically expanded. It can reason over your data, take actions across consumer experiences, and learn from those experiments. The private preview we introduced in March includes the ability to autonomously query and analyze consumer and marketing data and create marketing campaigns and automations across all services, with support for creating and optimizing Customer Agent coming soon. On top of this, we built Composer to be extensible, so customers and partners can build sub-agents and system connectors it can use, and make them available wherever users work, not just the Klaviyo, Inc. interface. Because this is such a significant step forward, we are being deliberate about quality, both in Composer’s analysis and its creative decision-making. The bar is high. We are committed to meeting it. Similar to how AI coding represented a shift from engineers focusing on how software is created to what software to create, we have seen a similar trend with Composer where users are buying marketing by focusing on what they want to achieve and create, letting Composer do the research and initial creation, then iterating with Composer on the insights and perfecting its outputs. The proof points are very exciting. Take one beauty brand in our preview. Composer audited their marketing, found automations that had been broken for years, fixed them live, and surfaced half a dozen other opportunities their team had never gotten to across creative, discounting strategy, and personalization. That pattern is repeating across our enterprise users in the preview. Teams are using Composer to audit, source opportunities, and implement in a single session. One of the most recognized apparel brands in the U.S. saw a 40%+ increase in top-performing flow revenue following a single session. Hydro Flask used Composer to find misconfigured targeting that had been preventing a campaign from sending, and Composer fixed it with them live. A prominent personal finance company mapped and prioritized more than 1 thousand flows across 13 business units in a single session, giving their team a clear picture of where to focus first. This is why global brands are telling us that Composer solves the biggest pain point they have and is the best agentic marketing solution they have seen on the market in the past year. Because Composer runs securely inside Klaviyo, Inc.’s data perimeter, it already addresses the data privacy concerns that typically slow enterprise AI adoption. For one enterprise fashion brand, it was the first marketing AI tool to clear their security team’s review because Composer runs inside Klaviyo, Inc.’s trusted environment. Composer is the future of how businesses will use Klaviyo, Inc. to understand their consumers and create stunning experiences for them. We are very excited to open it up to more of our customers and partners in the coming weeks. Turning to Customer Agent, and similar to Composer, we have taken advantage of the improvements in underlying LLM intelligence and tool use to allow businesses to create more tailored, highly performing agents their consumers can interact with. The experience and abilities of Customer Agent built on Klaviyo, Inc. can now be entirely customized with our Custom Skills launch last week. Customer Agent now runs across text, WhatsApp, email, RCS, and web chat, and we are adding voice and multilingual support. Adoption continues to grow month over month, and the experiences Customer Agent delivers are showing real results. Digitally native fashion brand Naked Wardrobe resolved 84% of conversations through Customer Agent and AI and saw a 28% increase in average order value, helping consumers own their style and buy on their time, including many instances of consumers shopping and chatting at 2 AM when customer support would have otherwise been offline. Finally, underneath our agents is our data infrastructure capable of training, serving, and optimizing personalization, machine learning, and AI models. These models do not require direct tuning from users. They learn from usage, and they improve the platform automatically. This unlocks true one-to-one personalization: the right content for every consumer at every interaction, delivered across every channel and agent we operate. These models and the features that leverage them were used by nearly two-thirds of our customers in the first quarter, and usage is driving outcomes. As an example, customers using our personalized send-time models saw a 35% lift in click-through rates—more engaged consumers and higher revenue driven by infrastructure that gets smarter the more it is used. We believe this is the year marketing and analysis agents like Composer and always-on agents like Customer Agent become standard and ubiquitous. We built for that deliberately, meeting customers in the tools they already use—an open garden, not a walled one—and to accelerate that, we have deepened integrations and expanded partnerships across the AI ecosystem. In February, we deepened our integration with Google by launching RCS to all customers, and we opened up beta access to Google Search and Ads products that connect discovery directly to Customer Agent experiences over RCS. A consumer can now see an ad, tap it, and then immediately have an immersive conversation with a brand powered by Customer Agent. Google delivers the reach, Klaviyo, Inc. stores the consumer relationship, and delivers the personalized experience. We have extended access to our infrastructure and agents via expanded MCP connectors and applications with Claude, ChatGPT, and Canva. MCP usage of Klaviyo, Inc. continues to expand rapidly, increasing more than 10% week over week in Q1, and top users of MCP are querying more consumer data and building more marketing campaigns than their peers, with 16% more platform usage relative to those that do not use MCP. Businesses are connecting more data to Klaviyo, Inc., centralizing it, and taking advantage of the increased accessibility. Consumer event volume from the hundreds of apps in our marketplace is up 44% year on year. As an example, AS Beauty, home to Laura Geller and other brands and one of our largest customers, runs a complete omnichannel program on Klaviyo, Inc., including greatly expanding their text messaging program this quarter. Their team queries Klaviyo, Inc. data in Claude, models campaign performance, and makes faster decisions. Their KAV, or Klaviyo, Inc. attributed value, is up 20% over the past two years. A senior leader there recently described Klaviyo, Inc. as an indispensable pillar of their business—an infrastructure that they and their brands rely upon. None of this happens without our customers and partners pushing us, and Klaviyo, Inc. is delivering. We are grateful for both. I would like to finish by providing an update on our leadership team. First, Q1 was Chano’s and my first full quarter together as co-CEOs, and it has been a terrific partnership. We have so much in common, including a relentless drive to deliver, and highly complementary skills. Second, as we announced in a press release earlier today, after almost four years as our CFO, Amanda has made the personal decision to step down from her role at Klaviyo, Inc. in the coming months, spend more time with her family, and then pursue the next phase of her career. I want to take a moment to recognize what Amanda has meant to Klaviyo, Inc. She was instrumental in building the team that took us through the IPO and helped us scale into a multiproduct, global, AI-native business. Amanda will continue to lead our finance organization through August 21, 2026, and will remain in an advisory capacity through November 2026 to support a smooth transition. We initiated a search for our next CFO, who will build on our strong financial foundation and momentum. Beyond what she has helped us build, she has been a terrific strategic partner and a trusted adviser to me and many others across Klaviyo, Inc. We wish her the absolute best, Amanda, on behalf of the entire Klaviyo, Inc. team, thank you.

Thank you.

And with that, thanks, Andrew. I want to echo your words on Amanda and the impact she has had across Klaviyo, Inc. We have confidence in the team and transition plan, and we are grateful Amanda will continue to provide leadership and support in the months ahead. Turning to the quarter, the core business is strong, and the opportunity in front of us is large. Enterprise, international, and platform consolidation each have real momentum right now. AI accelerates all three. Let me walk you through what we are seeing and how we are executing. Starting with enterprise, net new customers in the $50 thousand+ ARR cohort were notably higher than Q1 2025. We closed one of our largest deals ever—an expansion bringing a single customer's contract to over $6 million ARR. The problem I hear consistently in enterprise is fragmentation. Customer data, marketing execution, and service are spread across too many systems. Fragmentation costs revenue, where the resonance is consolidation onto one data model and one execution layer, with AI that operates with full customer context across the entire lifecycle. That is what Klaviyo, Inc. does. The wins in Q1 reflect that. Alis and Bolivia are migrating to Klaviyo, Inc. to unify online behavior, purchase history, and store-associated interactions in one system. Weber Grills replaced a legacy platform with Klaviyo, Inc. globally across the U.S., APAC, and EMEA. Expansion activity was also strong as customers standardized more of their workflows on our platform. Take Patagonia, a long-time email customer that came to us with two things on their mind: improving the customer experience and migrating off of a fragmented text messaging setup creating redundant messaging across channels. We showed them a clear technical plan and a credible commercial case. But the reason they chose Klaviyo, Inc. was anchored in where we are going together—RCS omnichannel journeys that support both commerce and advocacy. Patagonia is not a brand that wants to send more messages. They want to send the right ones. Finally, we were proud that this quarter, the Forrester Wave named Klaviyo, Inc. a Strong Performer, and recognized us with the highest customer satisfaction score among all vendors evaluated. We have enterprise credibility validated by a name enterprises trust, alongside proof the pipeline is converting. International revenue outside the Americas grew 39% year over year in Q1, and five of our top 10 largest new customers are from EMEA. What we are seeing in EMEA is not just growth. It is the same platform priorities driving our largest U.S. enterprise deals: unification, real-time data, and AI across channels. Allsense is a great example. The flagship UK fashion retailer replaced legacy technology in a multiyear deal, with both the global digital director and chief technology and transformation officers as champions of the move. The rationale was speed to execution, the ability to unlock WhatsApp as a new audience channel, and the future opportunity to consolidate email and other channels on a single platform. They shared that this move reflects their desire to move toward a more agile way of working that will significantly reduce the hours spent on day-to-day CRM activities. We also worked with a hobby and a fast-growing Nordic charm retailer selling across multiple international markets, winning a competitive deal that came down to speed, flexibility, and the strength of our native integrations with platforms like Shopify. We continue to deepen the product capabilities our international customers want. Local-aware catalogs are a good example. Shopify merchants with country-specific catalogs can now run fully synchronized multi-market data automatically across every region they operate in. For many global brands, that is a requirement. Now Klaviyo, Inc. delivers it. That same pattern—complex, multi-market operations consolidating onto Klaviyo, Inc.—is showing up in categories well beyond ecommerce goods. Legends Global is a flagship win in ticketing and live events. They are bringing their global portfolio of more than 260 venues and attractions onto Klaviyo, Inc., integrating ticketing and venue systems, syncing data through our warehouse capabilities, and giving the U.S. and UK teams a single platform to activate and execute across every market they operate in. Our partner ecosystem is deepening that reach further. In hospitality, the Thanx integration brings restaurants’ loyalty into a single workflow, and with our Integration Objects feature, now GA, operators on cloud-based Guesty and Mews can trigger a pre-stay reminder the moment a reservation is made. We are building the go-to-market foundation to match the opportunity. Consistency in how we sell, how we deploy, and how we support customers at scale—the data is clear. When customers unify on Klaviyo, Inc. across email, text, analytics, and service, outcomes compound. Our cross-sell motion is executing against that. One thing worth calling out on text messaging because it speaks directly to how we approach the market: carrier fees have risen meaningfully across the industry over the past 12 months, and most platforms passed those costs through immediately. We chose to absorb them, a decision that reflects our commitment to customers first. This also gave us a real pricing advantage this quarter, and we leaned into it. But our competitive position is more durable than price. Text in Klaviyo, Inc. runs on the same unified profile as email, WhatsApp, and every other channel, and that is what drives long-term share gains. Going forward, we will be thoughtful and intentional about any future cost pass-throughs while continuing to negotiate the most competitive text message rates. In closing, Q1 showed a business with strong fundamentals, growing enterprise relevance, and international momentum that is structural. We are investing where the opportunity is biggest, improving the execution foundation to capture it, and staying focused on delivering outcomes for customers. The road ahead is significant, and we are ready for it. With that, I will turn it over to Amanda.

Thanks, Chano and AB. Q1 was proof not just of what Klaviyo, Inc. can do, but of how our business model works when each part reinforces the others. The growth engines we have been building—multi-product adoption, enterprise momentum, and international expansion—reinforced each other this quarter. AI accelerated all of them. The results showed up exactly where we expected to see them: in revenue, in margin, in customer retention, and in the expanding value customers are generating from our platform. Revenue grew 28% year over year to $358 million, ahead of our expectations. We delivered our strongest non-GAAP operating margin and our first quarter of positive GAAP operating margin since going public. NRR was 110%, up two points year over year, meaning our customers are not just staying, they are growing with us. Customers are also earning more from every message, with KAV—or the revenue that customers generate from Klaviyo, Inc.—per message up approximately 8% year over year. That is how our model is designed to work—tangible evidence of how we are building more valuable customer relationships that help our customers, and in turn our business, grow. Turning to our growth engines. First, multi-product adoption grew as more brands sought out the strategic advantage of consolidating onto a single platform. Service remains on the steepest adoption curve in our company’s history. All of this matters for future growth because multiproduct customers retain better and generate more value per profile over time. Second, enterprise momentum continued in Q1, with our $50 thousand+ ARR customers growing 38% year over year, to 4 thousand 175 customers. This is reflective of a broader structural shift as leading brands modernize and consolidate their tech stacks. These are complex multichannel relationships choosing Klaviyo, Inc. as their long-term platform because we unify data, intelligence, and action in one place. Third, international was again a highlight, with revenue outside of the Americas up 39% year over year. Notably, revenue for EMEA outside of the UK was up 51%, marking the sixth consecutive quarter of growth above 50% in that region. Let us now turn to AI. Across each of our growth engines, AI is increasing both velocity and yield—helping customers do more, faster, and with better results. Automated flows generate 10 times more revenue per message than campaigns, and that acceleration is important because it flows directly into our model. As customers generate more value, we grow as well. Agents also represent a net new revenue opportunity. Customer Agent is already contributing, and we expect that to grow as we expand channels and capabilities. Composer is early, but the value signals so far are strong. Higher intelligence drives higher value, and higher value drives revenue. Turning to the P&L. Non-GAAP operating income was $59 million in Q1, representing a 16% non-GAAP operating margin. That is nearly 500 basis points of expansion year over year and our strongest margin since going public. GAAP profitability was driven by improved non-GAAP operating margin as well as a two percentage point reduction in stock-based compensation year over year. Non-GAAP gross margin was 76%. This reflects our continued success with text messaging cross-sell, offset in part by infrastructure efficiencies. Non-GAAP operating expenses were 59% of revenue, down 560 basis points year on year. Sales and marketing, in particular, saw meaningful leverage. This reflects two things: first, operational efficiencies enabled by AI that we are building into the business; and second, the absence of the B2C CRM marketing investment that we made in Q1 last year. Free cash flow was $19 million, a 5% margin. This reflects normal seasonality and the timing of annual bonus payments, consistent with what we saw in Q1 last year. Our trailing twelve-month free cash flow margin was 16%, spotlighting the strong cash generation potential of the business. In March, our Board authorized a $500 million share repurchase program. This authorization reflects our Board’s and management’s confidence in the durability of our strategy, the scale of the opportunity ahead, and our conviction that Klaviyo, Inc. reflects an attractive long-term investment. As a component of that program, we immediately entered a $100 million accelerated share repurchase, which was completed in April. We continue to execute on the remaining authorization. Our model is efficient enough that we can invest aggressively in growing the platform—in AI and agents, in international, in enterprise—and simultaneously return capital to shareholders. Turning to guidance. We are confident in the trajectory and setup for the remainder of the year. We outperformed Q1 expectations by approximately $10 million. Based on that performance and the broad momentum we are seeing, we are raising our full-year 2026 revenue guidance by $13 million at the midpoint. This reflects our conviction in what is ahead. We now project revenue between $1.514 billion and $1.522 billion, representing 23% year-on-year growth. We are also raising our full-year 2026 non-GAAP operating income guidance to a range of $222 million to $228 million, a non-GAAP operating margin of approximately 14.5% to 15%. The model continues to support reinvestment and growth while delivering expanded profitability. This guidance assumes that we continue to absorb the majority of carrier fee increases. As Chano described, thus far, we have made the strategic decision to absorb these fees rather than passing them directly to customers. Over the course of the year, we will continue to be intentional in our approach, striking a balance that is strong and smart for both our business and our customers. For Q2, we expect revenue of $359 million to $363 million, representing growth of approximately 23% to 24%, and non-GAAP operating income of $47.5 million to $50.5 million, or a non-GAAP operating margin of 13% to 14%. As you are building your models for the balance of the year, I would like to call out a few items. With regards to revenue, we expect our sequential step-up in revenue from Q3 to Q4 to be similar to last year. We also expect higher operating margins in our fourth quarter this year compared to Q2 and Q3, driven by timing of investments as well as compounding effects of AI efficiencies. As we said last quarter, with scale, we have improved our forecasting visibility, which means we are guiding with greater precision. Our guidance philosophy remains consistent. Our goal is to share the best visibility we have and numbers that we are confident in delivering. Our guidance reflects both that increased precision and our confidence in the business. Before we open the line to questions, I want to say a few words about the transition that we announced today. Klaviyo, Inc. has never been stronger than where we are today. There is significant opportunity ahead for us, strong momentum across the business, and a clear path to continue growing rapidly while expanding profitability. We also have an exceptional team in place, and I have always believed the right moment to take the next step is when the work is in great hands. AB and Chano, thank you for your partnership. Importantly, I am not going anywhere just yet. I will remain CFO through August 2026 before transitioning into an advisory role through November 2026. It has been a privilege to be a part of Klaviyo, Inc., and I will be cheering this team on every step of the way. In closing, here is what we hope you will take away from Q1. We beat and raised. We expanded operating margin to the strongest level since our IPO. We returned $100 million to shareholders while continuing to invest in the platform. The businesses we serve grew, and their engagement with Klaviyo, Inc. is deepening. This is exactly what our model is built to do, and AI is making all of it faster. We are confident in our trajectory. The platform is getting stronger, and the results are following. With that, we will open the line up for questions.

At this time, if you would like to ask a question, please click on the Raise Hand. We ask that you limit yourself to one question. When it is your turn, you will receive a message on your screen from the host allowing you to talk, and then you will hear your name called. Please accept, unmute your audio, and ask your question. We will wait one moment for the queue to form. Our first question is from Samad Samana from Jefferies. Please unmute your line and ask your question.

Hi. Good evening, and thanks for taking my question. So I am going to pack a two-parter into this. First, on the product side, just as I think about Composer adoption, what are you seeing on customers that typically lead new product adoption, and how do you expect that product to accelerate the AI adoption flywheel? And just in case you mute me, Amanda, great to work with you and I continue to look forward to working with you until the transition. Second, on guiding with more precision—does that mean that the Q2 guide should be closer to the pin? We had a slightly smaller beat in Q1. Was that already a philosophy that started when you guided for Q1? Help us get better context there. Thank you so much.

Awesome. Thanks for the question. I will do the Composer one and pass over to Amanda on guidance. We launched this private preview in March, and we are very excited about the results we have seen so far. For context, our Composer agent is really a combination of a bunch of sub-agents that do various tasks. You can think about two big groupings. One, it will actually do marketing creation—it can create marketing campaigns, automations, templates, and creative content. Two, it will do analysis—it will look at your customers, who they are, help you with cohorting, understand behaviors, as well as look back over previous marketing campaign performance and help you figure out what to do next. We have introduced this to a wide range of customers. Some are power users; some are entrepreneurs just starting out, so we can get a feel for their usage patterns. Universally, the feedback has been very positive. We talk about this as our next-generation agent building off of the success of our Marketing Agent last fall, and we have dramatically expanded its scope. You can think of this as version two—or n+1—of our agent. We are getting very good at building marketing creative and content that is on-brand. This is both a function of improvements in the underlying LLMs as well as technology we have built at Klaviyo, Inc. to harness those agents and keep them in the direction that brands want them. We have an unfair advantage because we can teach our agent to pattern match off of past campaigns, which makes it better at maintaining the brand and feel you want. On the analytics side, we have seen incredible results. We have customers running daily or weekly reviews of their marketing and how their customers are behaving. So far we have only given them the ability to run that ad hoc, where they log in and execute those queries. In the near future, it is not hard to see customers scheduling these to run and alert them of issues. Couple that with the creation part of our agents, and they will be able to automatically take action. In some cases, we expect our agent will automatically decide to run new campaigns or make modifications for optimizations. The path to value is very clear because as we run incremental campaigns and make improvements, we can measure the results. Customers see it and feel it. Pricing, packaging, and monetization are also very clear, and we are using this private preview to work through that. We have never been more excited about the intelligence and agent capabilities we can build on top of the infrastructure that is Klaviyo, Inc.’s marketing and data platform. Amanda, I will turn it to you for guidance.

Thanks, Samad, and I am looking forward to staying in touch with you as well. On the question on guidance, we are closer to the pin this quarter by design. As we committed to you last quarter, we spoke about guiding with greater and greater accuracy that comes with the benefits of greater precision and greater visibility that we see from scale. The tighter beat reflects that improved ability to forecast the business. If you take a step back and look at Q1, it was incredibly strong. We saw 28% revenue growth, we saw our highest operating margin since the time of the IPO, we had our first quarter of GAAP profitability, and we saw real strength in core metrics like NRR of 110% and greater-than-$50 thousand customers up 38%. Overall, it was an incredibly strong Q1 that gives us confidence looking forward and gave us confidence to raise the outlook for the rest of the year by $13 million, which is even greater than the beat that we had for Q1. It reflects both our increased precision and the confidence and momentum we have in the business.

Thank you. Our next question is from DJ Hynes from Canaccord Genuity. Please unmute your line and ask your question.

Hey, thank you, guys. AB, I would love to hear how your agency partners are embracing the innovation that Klaviyo, Inc. is delivering. On the one hand, you are giving them incredibly powerful tools to do their jobs better. On the other hand, if the autonomous vision takes shape, you are kind of putting them out of work. How do you balance that dynamic, and what are you hearing from those folks?

Yeah. I mentioned in our opening remarks this capability overhang—basically, what you can do with Klaviyo, Inc. and the infrastructure that we built is actually a lot more than our customers and businesses are taking advantage of. Our agencies have always helped close that gap. Now, with our agents—Composer, which optimizes how you understand your customers and marketing, and Customer Agent, which is more consumer-facing—agencies are accelerating the adoption of both. With Composer, it makes it easier to take advantage of everything you can do with Klaviyo, Inc., with the data and the marketing and messaging primitives that we give you. Agencies are able to take on more clients as a result because they get more leverage from Composer. I have had many conversations where folks said they are changing their ratios of the kinds of projects they can take on because of Klaviyo, Inc.’s ease of use and the agentic capabilities we are offering. I have also talked to dozens of agencies that are establishing new practices around our Customer Agent. Our Customer Agent is a whole new surface—the digital representative for your business. It can do customer support, help with sales conversations, marketing conversations—it can run the gamut. Because it is connected back to our data platform, it has a real-time view of who that end consumer is. It can do much better than more generic AI agents at matching up to what a consumer is looking for. You see that show up in product recommendation stats. Driving adoption takes know-how. Setting up agents is not something a lot of customers have expertise around. We are building product to help, including agents that will train up agents. But many businesses have nuance in how they want experiences to work. Agencies are helping bridge that gap and drive adoption. We have done a bunch of work to help them set up their own practices so they can set up Customer Agents for our customers and help drive adoption. Our agency network is in great shape, and they are excited to help usher both of our agents to our almost 200 thousand customers.

200 thousand customers—yep. Hey, DJ, this is Chano speaking. Hope you are well. Just to give you an example, I talked to one of our agency partners that is building a custom order-editing skill connected via an API that is handling the full post-purchase experience without a human in the loop. That has created significant automation and increased productivity for them. We are all very excited.

Thank you. Our next question is from Rob Oliver from Baird. Please unmute your line and ask your question.

Thank you. Can you guys hear me okay?

We have got you.

Great, thanks. First of all, Amanda, wish you all the best—it has been a pleasure working with you. My question is for Chano. Coming into this year, there was a lot of excitement around the enterprise opportunity—moving upmarket and legacy replacements. You guys called out at least one really large win in the quarter. I would love to hear some color from you on what you are seeing within that installed base. How are sales cycles? How is the legacy replacement trend relative to where it was when we all gathered last fall in Boston? Any update on partner contribution would also be helpful. Thank you very much.

Thank you so much, Rob, for your question. First, the data. We doubled the number of customers over $1 million ARR last year, and again in Q1 2026. Amanda commented on the number of customers over $50 thousand growing 38% year on year. We talked today about an expansion to more than $6 million ARR, and we talked about other customers like Patagonia that have been long-term email customers now adding text because they see fragmentation and the value of a unified platform bringing customer experiences together. That all presents a terrific opportunity for us. Even with this growth raise, the beginning of the year is very exciting because we are playing more into the enterprise. That will play more toward larger quarters, especially at the end of the year, with Q4 being much bigger. The team is doing a very good job focusing on discipline—how we are building the pipeline and how we are doing qualification on deals—getting much more meaningful in terms of enterprise cadences. If you ask how I feel about the opportunity versus back in the autumn, I am even more excited because I can see it tangibly. We are still in the early innings and have a lot of work ahead, but the opportunity is massive. This can be a significant reacceleration engine for Klaviyo, Inc. It will not pan out in one quarter or two, but the growth levels we are seeing should have significant impact down the road—and that is not too far away. Creating those customer cases and experiences brings much more confidence that we are a player. In terms of partners, as you know, we announced Accenture and are working with them closely, of course with other partners as well, with a clear target list, activities, and progress. I expect we will see some of those wins during the next few months. On some of the wins we have already announced, there has been support from partners, whether they influenced the deal or sourced the deal. Either way, it is good for us. I am very excited about enterprise being a game changer for this company. Of course, we want to keep the healthy business that is our bread and butter—the entrepreneur, SMB, and lower segments. They are doing very well if you look at the increase in net new logos and the dynamics in that segment.

Our next question is from Raimo Lenschow from Barclays. Please unmute your line and ask your question.

Thank you, and all the best from me as well, Amanda. The question I have—people asked me about the carrier fee that you mentioned. I think some of your competitors are altering that. Can you talk a little bit about the impact it would have on potential revenue and profitability? Thank you.

Sure, thanks so much, Raimo. These are carrier fees. When you are in the text messaging business, there are carrier fees from the big telco carriers that generally, for many of our competitors, are a pass-through. Our primary operating principle is to operate with our customers with consistency, transparency, and trust, helping to make their business more predictable. Thus far, we have taken the strategic choice not to pass through those carrier fees. They vary by carrier, and it has been building over the last year or so, with some announcements even as recently as last week. We wanted to provide predictability for our customers. It certainly helps on price, and Chano and the team are leaning in on how we show customers that value. But the reason we win is not price; it is primarily because of the value we create and the benefits from consolidation. As these grow, we will keep making thoughtful choices over time. I will not say we will continue to absorb them forever, but we are going to be strong, choiceful, and intentional about how, when, and in what manner we do that. That intention is built into the outlook for the back half of the year, both the increasing penetration of the text messaging business as well as this choice we are making on carrier fees.

Thank you. Our next question is from Terry Tillman from Truist Securities. Please unmute your line and ask your question. Terry, if you can hear us, please unmute your line and ask your question. Okay, great. If Terry, you want to hop back in the queue, we can move on to the next question and we will pull you up again. Thank you. Our next question is from BTIG. Please unmute your line and ask your question.

Hey, awesome, thank you so much. One of the value propositions of Composer is around the velocity of campaigns. How should we think about Composer from a standalone SKU perspective versus Composer allowing customers to accelerate their email and messaging volumes? And then, does that play into your decision to not pass through the SMS carrier fees? Thank you.

Great, thanks. When we think about Composer, ultimately what we are providing is intelligence, delivered in the form factor of tokens. Customers are using it to review who their customers are, the effectiveness of their marketing, and then figure out what to do next. Those sessions—those reviews—are incredibly valuable. They are generating thousands, even hundreds of thousands of dollars in incremental revenue and sales. The pricing people get is similar to if you were to hire someone or value your own time, except we provide that intelligence via tokens much more efficiently. We can go much deeper because our agents have access to internal benchmarks and best practices that are not publicly available. That intelligence is an entirely new revenue stream. Think about the activities people are doing in and around Klaviyo, Inc.—storing information, logging in to understand cohorts and behavioral trends, creating marketing, and reviewing that marketing. Composer monetizes that intelligence layer. In terms of impact on overall platform usage, yes, we are seeing incremental use. As we have opened up the underlying Klaviyo, Inc. infrastructure to third-party agents or LLM clients like ChatGPT, Claude, and Gemini via MCP, users who have integrated MCP and are best users are doing 16% more marketing—more campaigns and more automations—and querying into their data more frequently. That is the easy version of the trend because it still requires people to prompt on their own. With our agent, you will be able to set it in synchronous mode—chatting with it—or asynchronous/recurring mode—“run every day.” We think that will drive even more usage. There is a lot of latent opportunity to do better marketing and deliver better customer experiences, and Composer is the conduit to do that. People see the value and are willing to pay for it. It will have a halo effect in two dimensions. One, it will increase messaging volume because messaging will be better—creative, content, personalization. Two, Klaviyo, Inc. indexes on the number of relationships a business has. We help businesses grow more of those relationships and improve quality. When marketers are strapped for time, there are cohorts that do not get the right experience. Agents do not have that problem. They can tirelessly optimize for every single consumer. We expect the number of consumer relationships will grow and churn will go down because quality goes up.

For the second half of your question on carrier fees, it is very separate from Composer. As we discussed, carrier fees are about the choice and balance we are making between customer predictability and trust and maintaining our overall margins. If you look at our Q1 gross margins, you can see that compared to last year, we absorbed the carrier fees, saw significant growth in our text messaging business, and were able to hold our gross margins relatively steady. That shows our ability to deliver on both priorities at once. Our priorities for the back half of the year are to grow our gross profit dollars—continuing to grow revenue and gross profit dollars—while expanding our operating margin. We committed to increasing operating margins by at least a point this year, and we raised both operating income dollars and operating margin in our guidance in reflection of that strength.

I would not take the decision to not pass through carrier fees as why we are winning. It is an intentional decision to be customer-first and provide pricing stability now. We will be intentional about if and when we decide to pass through in the future. We are winning because of the value of our offering and the unified data platform we provide. We will evaluate pricing down the road. The aim is not to compete on price. The decision was important to provide stability to our customers and is reflected in the highest customer satisfaction as highlighted in the Forrester Wave. Happy customers renew and buy more from you.

Thank you. Our next question is from Sitikantha Panigrahi from Mizuho. Please unmute your line and ask your question.

Great. Can you hear me? Okay, great. Amanda, it is a pleasure working with you—wish you good luck. I want to dig into the NRR at 110%, up two points year over year but flat sequentially. In prior calls, you talked about key drivers like core email, SMS, and then cross-sell and profile enforcement. Has the profile enforcement benefit already lapsed, so what keeps NRR at this or above this level? What are the next drivers that will push NRR higher in the back half of this year?

Thank you, Siti. It is a great question. The largest driver of NRR is customer behavior and the way customers are leaning into Klaviyo, Inc.—to automate more, send more, and increasingly use flows, which generate 10 times more revenue per message compared to a static campaign. As customers see that value, they lean in and use Klaviyo, Inc. more. If you break down NRR, the first and largest driver is expansion of customers’ usage of our existing products. The second driver is cross-sell. We have increasing and strong momentum there as well. Customers see the value of consolidating onto a single platform, which not only simplifies operations but makes for a better customer journey and drives better relationships. There is a little impact in NRR from lapping the price and profile enforcement from last year. Over the course of this year, you will see some impact from that lapping, but you will also see positive contribution from improvements in expansion and cross-sell.

Thank you. Our next question is from Goldman Sachs. Please unmute your line and ask your question.

Thank you for taking my question. I understand the lighter beat was by design, but I think the sequential growth in the first quarter was still a bit lighter versus prior first quarters. Given Klaviyo, Inc. has outsized exposure to retail and ecommerce, is this potentially a result of the business becoming more seasonal over time as it scales, or is there a better way to think about that? Thank you.

I think it is maybe a little bit inverse to that. Because we have gone to profile enforcement, we still do see seasonality—Q4 is our customers’ biggest time of the year, and we are there for them—but with profile enforcement, we see a little bit less seasonality than in the past. The remaining seasonality primarily comes from our text messaging business and some expansion in email. In Q1, we saw strength across many parts of the business. International grew 39% year on year. Enterprise momentum is increasing, and those enterprise relationships tend to be steadier multiyear contracts. A great example is AllSaints, which signed a three-year contract. Those are going to be less variable across the year. All of these areas of strength contributed to a great Q1 and a strong outlook for the year.

Thank you. Our final question is from Scott Berg from Needham and Company. Please unmute your line and ask your question.

Hi, everyone. Thanks for taking my question. Nice quarter here. I want to ask about the state of marketing budgets overall from what you are seeing with customers, through an interesting lens since you sell to a lot of different-sized customers. Your results suggest the marketing space seems to be on fire right now, at least from a demand perspective, especially relative to the rest of enterprise software that is growing 40% to 50% slower than Klaviyo, Inc. Why? What in the environment is driving the spend, or what are you seeing that has customers saying, "I have got to do this now, and in a big way"?

Thanks, Scott. I can give you three trends we are seeing. First, unlike most enterprise software, we are focused on revenue generation. If you can help grow top line and profits, there is insatiable appetite to spend more, and we see that constantly. Second, consolidation—within marketing and also across marketing, data and analytics products, and now service (Customer Hub on the website). People want to merge those budgets. It is not just about total cost of ownership; it is because combining the data we have with marketing channels yields better performance, and that makes a big difference. Those trends are evergreen and durable and big contributors to our growth. Third, there is a lot of demand for intelligence applied to this combined B2C CRM infrastructure we offer. People know there are ideas they cannot see or projects they cannot execute on, and they want to use intelligence to execute efficiently, create profitability, and increase revenues.

I would only add personalization and the breadth of understanding that we provide via customer profiles—communicating at the right time, with the right channel, with the right message—is really powerful in our platform. Customers are leveraging that and seeing results through Klaviyo, Inc. attributed revenue. Our customers’ GMV grew more than double the rest of the market. Another trend is productivity—the opportunity to do much more with less headcount. Creating targeted campaigns and, at the same time, having Customer Agents that can communicate and put a great face to their business is a terrific capability they are leveraging. The increased revenue impact and ROI they are seeing, plus this technology shift where Klaviyo, Inc. is at the center, is what is driving it.

Excellent. Thanks for taking my question.

This concludes today’s call. Thank you for joining us. You may now disconnect.