Klaviyo Q3 2025 Earnings Accelerates Into the Holidays

In a world where SaaS was expected to be made irrelevant by AI, Klaviyo is saying not so fast. AI may be the most powerful growth engine SaaS has ever known.

Some interesting tidbits in different areas.

Product:

* Service product introduced, and adoption strong in first 6 weeks, faster than SMS out of the gate.

* now deploying product updates 270 times a day

* More than half of our ARR comes from multiproduct customers -- a strong indicator and one of the key questions from last year.

Growth:

* Revenue grew 32% year-over-year to $311 million

* NRR accelerated to 109%

* added 7,000 new customers, bringing us to more than 183,000 customers, up 17% year-over-year.

* Revenue outside the Americas grew 43% year-over-year (EMEA up 48%)

* EMEA and APAC now represent more than 35% of total revenue

* Now 3,563 customers with over $50,000 in ARR. Up 36% year-over-year.

Strategy:

* AI has really improved the intelligence layer of the platform - how?

-- can do work businesses don't have time for

-- quality of experiences for marketing and service is better

-- can also interact with klaviyo using natural language, either natively, or via MCP through an external agent/LLM

AI/agentic:

* over 50 AI models in production that are predicting customer behavior, surfacing insights and marketing analytics and helping personalize experiences across marketing and service.

* introduced marketing agent which is like adding a solid marketing intern to your team, working on leveling them up

* Klaviyo MCP is already being used by agencies to streamline workflows and help clients faster, analyze, recommend, improve and deploy campaigns

* maintaining direct relationships with customers even more important in agent era, klaviyo enables this

Wrapping up -- Klaviyo has not had a perfect stock market ride so far, but their pace of innovation has really been on a tear in the last 6 months. Introducing several new major product lines as well as updated agentic experiences within all their existing lines. Just late last year we were only speaking about "will people adopt SMS". Now we are talking about Service and Support, as well as the new agents doing work for users.

There are two questions that remain about Klaviyo's trajectory:

Is Klaviyo capturing -too- much value from customers? Shopify is able to maintain its growth because it has historically been focused on being a value platform. Klaviyo is known for a fairly high monetization curve that while might be good for them, is it the best for all businesses? (i.e. non seat-based pricing). This could hurt them long term up-market but I do understand many of those deals will likely be negotiated.

Second, in the past I've seen Klaviyo's dependency on Shopify is 77.5% (source: SeekingAlpha - is it right?). This will need to come down significantly over time to maximize the potential of the business. In the meantime, still nice work if you can get it.