00:00Coming off a quarter that we should point out where you did post, I think, what, 26 percent revenue growth,
00:04your guidance for the full year, 24 percent.
00:07But, of course, you know, I guess in any other time that would be healthy.
00:10But a lot of people look at the sequential drawdown from 30 percent, 40 percent and higher that you had
00:15in the previous quarters and years.
00:17Give me some reassurance here, Andrew, as to exactly what the growth story is going forward.
00:22Yeah, well, thanks for having me.
00:24Look, we had a very solid quarter at Klaviyo.
00:26We're very excited.
00:27We were at almost $1.5 billion run rate.
00:30Like you said, 26 percent growth.
00:32And, you know, we had a lot of great customers this past quarter.
00:36Warner Music Group, the 49ers, we now power more than 205,000 businesses around the world.
00:42And the story for us is we have built the CRM for consumer.
00:46We've talked about building the autonomous B2C CRM.
00:49And I think what we're most excited about is the durable growth we have with small businesses and now increasingly
00:54larger enterprises.
00:56And especially the promise of what's to come with a lot of the agents that we brought online.
01:00We launched our Composer agent that helps you do marketing, understand your customers, automate a lot of the growth that
01:06businesses want.
01:08And we think, you know, the best is yet to come.
01:10Well, talk about that.
01:10I mean, when you started, I mean, you had a focus much more on small businesses.
01:15You've signed some big deals, which a couple of you just named right there.
01:18I assume that is a testament partly to what you have achieved.
01:22But I was listening to some of the comments by your CFO and was talking about AI vision, your partnerships
01:28with Anthropic and OpenAI.
01:29How does that sort of fold into the growth in your ability to sign these larger deals?
01:35Yeah, well, one thing we're seeing from larger enterprises, and this is both within retail and beyond, is they're very
01:41focused on how they can engage their consumers better.
01:44And I'll give you two examples of things that they're investing in that are both related to AI.
01:48The first is every enterprise wants an intelligence, an agent that understands their customers and can help them make better
01:56decisions when it comes to marketing and other consumer experiences.
01:59You know, with our Composer agent, we now have large enterprises that are using that to audit and review the
02:05marketing they're doing, find optimizations, draft those out, help them make decisions on, say, like, what's the best time to
02:11send a particular campaign or automation.
02:13And they're building that into their workflows.
02:15And with Composer, that's going to become, you know, table stakes as a feature and a product that enterprises need.
02:22And then also, enterprises are getting used to it.
02:24I mean, their consumers are demanding agentic experiences.
02:27Folks are using, you know, agents to research, travel, book flights, to shop.
02:32And, you know, our belief is that every business is going to need an agent that represents them, that's available
02:37on their website, you know, over email, through text messaging, voice, an agent that's proactive.
02:44And with our customer agent product, that's what we're building.
02:46Well, I am curious.
02:47I'm curious about the pricing on the customer agent.
02:49The idea that customers only pay when the situation is actually resolved, like, basically, the conversation is somehow resolved.
02:57This is outcome-based pricing.
02:59You must have a lot of confidence in your ability to provide those outcomes to take that sort of tact.
03:05Why?
03:06Yeah, that's right.
03:07Well, one thing that, you know, what's unique about Klaviyo is we've, you know, because we started out as, you
03:12know, as a data platform, as a database company, we already house all of the business's data, all of their
03:18context, if you will.
03:19So, you know, when a customer writes in, not only do we know things about, like, the policies of that
03:23business, when they're willing to discount, when they're not, you know, things like handling returns.
03:28But we also know about the individual consumer and their preferences.
03:32And so, Klaviyo, you know, since our founding, we really focused on what customer impact we're driving.
03:37That's why we measure attributed revenue.
03:39You know, we're very excited.
03:40We passed, you know, we're almost $50 billion in the first half of this year.
03:44So, our customer agent, our customers are buying it for two reasons.
03:46One is because when we resolve a customer issue, you know, that's an outcome that we drive and we share
03:52in that value.
03:53But also, our customer agent, you know, when you hook it up to your website or, say, to text messages
03:57or emails you send, you know, it can be proactive in recommending products.
04:01And that drives incremental sales.
04:03And businesses love that, too.
04:04So, we see very typically, you know, you get an ROI of, you know, 10 to 30x when you're using
04:09our customer agent, not just because of time saved on support, but also because you're literally getting customers more excited
04:14and they're buying more.
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