Klaviyo Q2 Earnings Call Highlights

Klaviyo’s Q2 revenue rose 26% year over year to $370.6 million, prompting the company to raise its full-year 2026 revenue outlook to $1.526 billion–$1.534 billion. However, it reduced its operating-income forecast because of Agency acquisition costs and continued product investment. Klaviyo’s Composer AI agent surpassed 95,000 users in its first month, while Customer Agent adoption rose 40% quarter over quarter. The planned Agency acquisition is intended to speed development of these AI offerings. Customers generating at least $50,000 in annual recurring revenue grew 36%, and international revenue rose 35%, but gross margin fell to 73.4% as text-messaging usage, carrier fees and infrastructure investments increased costs.

Klaviyo NYSE: KVYO reported second-quarter revenue of $370.6 million, up 26% from a year earlier, as the customer relationship management software provider cited growth in enterprise sales, international markets, text messaging and multi-product adoption. Co-founder and Co-CEO Andrew Bialecki said the company had reached nearly $1.5 billion in annualized revenue run rate and now serves more than 205,000 brands. Klaviyo also signed its largest contract to date during the quarter: an eight-figure, two-year agreement covering multiple products with a fast-growing e-commerce brand and TikTok Shop seller.

The company raised its full-year revenue outlook following its second-quarter outperformance. Klaviyo now expects 2026 revenue of $1.526 billion to $1.534 billion, representing 24% year-over-year growth. However, it lowered its full-year non-GAAP operating income forecast to $212 million to $218 million, citing costs related to its acquisition of Agency and continued product investment.

Klaviyo emphasized its efforts to build what management calls an “autonomous B2C CRM,” combining customer data, marketing infrastructure and AI agents. Its data platform now stores more than 9 billion consumer profiles and processes more than a quarter-trillion data points each quarter, according to Bialecki. In June, the company launched Composer, an AI agent designed to help users analyze customer data, create marketing campaigns and automations, and optimize those efforts. Bialecki said Composer surpassed 95,000 users during its first month of availability, with nearly one-quarter becoming recurring weekly users. Credit consumption increased 30% week over week as recently as the week before the call. Management said 27% of Klaviyo’s mid-market and enterprise customers are using Composer. The percentage of AI-generated campaigns that users incorporated into their marketing increased to 46%, from 35% a few weeks earlier, according to Bialecki.

The company also pointed to growth in its Customer Agent product, which handles support and sales conversations. Adoption increased 40% quarter over quarter, while weekly resolution volumes rose nearly 80% since early June. Bialecki said Boston Proper generated a reported three-times return on investment in incremental revenue within two weeks of launching Customer Agent, while the agent autonomously resolved more than half of the retailer’s support tickets. Klaviyo plans to expand its AI product capabilities through the acquisition of Agency. Agency founder Elias Torres will join Klaviyo as chief product officer. Bialecki said the acquisition is intended to help the company develop its agent offerings faster, including Composer and Customer Agent.