Klaviyo, Inc.

Previous wording

We founded Klaviyo in 2012 to provide businesses of all sizes with powerful technology that captures, stores, analyzes, and predictively uses their own data to drive measurable, high-value outcomes. Today, Klaviyo enables over 176,000 businesses around the globe to efficiently drive revenue growth by making it easy to bring their first-party data together and use it to create and deliver highly personalized, omnichannel consumer experiences at scale. Our platform combines our proprietary data and application layers into one vertically-integrated solution with advanced machine learning and artificial intelligence capabilities and over 350 integrations.

Current wording

We founded Klaviyo in 2012 to provide businesses of all sizes with powerful technology that captures, stores, analyzes, and predictively uses their own data to drive measurable, high-value outcomes. Today, Klaviyo enables over 183,000 businesses around the globe to efficiently drive revenue growth by making it easy to bring their first-party data together and use it to create and deliver highly personalized, omnichannel consumer experiences at scale. Our platform combines our proprietary data and application layers into one vertically-integrated solution with advanced machine learning and artificial intelligence (“AI”) capabilities and over 350 integrations.

Previous wording

Our Klaviyo Analytics solution gives brands real-time AI-powered insight into customer and purchase behavior so they can take action faster. Our Advanced KDP offering unlocks advanced features for even more powerful ways to track, transform, and cleanse data and run more advanced reporting and predictive analysis to drive revenue growth for our customers.

Current wording

Klaviyo Service is an AI-powered customer service platform that integrates with marketing and data to help businesses provide seamless customer support via Customer Hub, Customer Agent and Helpdesk. These offerings leverage Klaviyo’s unified platform to deliver an integrated, AI-first customer experience that enhances automation, personalization, and efficiency across channels. Our Klaviyo Analytics solution gives brands real-time AI-powered insight into customer and purchase behavior so they can take action faster. Our Advanced KDP offering unlocks advanced features for even more powerful ways to track, transform, and cleanse data and run more advanced reporting and predictive analysis to drive revenue growth for our customers.

Previous wording

Klaviyo began as a database designed for speed, flexibility, and unlimited data storage. Building upon our robust data infrastructure, we developed smart applications, initially focusing on marketing automation where we revolutionized email practices. Our innovation shifted the industry paradigm away from batch and blast practices with a fast, data-rich marketing tool. Over time, we enhanced our Klaviyo Marketing suite to incorporate SMS, Reviews, AI-powered tools, and additional functionalities. Our Klaviyo Data Platform (“KDP”) offering gives customers user-friendly ways to track new types of data to drive revenue growth and sync data in to and out of Klaviyo at scale. In February 2025, we announced Klaviyo B2C CRM, establishing Klaviyo as a unified CRM built for B2C brands and positioning Klaviyo to address a critical gap in the market: providing consumer brands with a system designed for their unique, high-volume, fast-paced needs. This is a natural evolution of our journey – from a leading marketing automation platform to a comprehensive consumer engagement solution. Powered by the KDP and AI insights, Klaviyo now combines Klaviyo Marketing, Klaviyo Service, and Klaviyo Analytics into one unified solution, making it easy for businesses to know their customers, activate their data, and grow faster.

Current wording

In February 2025, we announced Klaviyo B2C CRM, establishing Klaviyo as a unified CRM built for B2C brands and positioning Klaviyo to address a critical gap in the market: providing consumer brands with a system designed for their unique, high-volume, fast-paced needs across marketing, service and analytics. In September 2025, we launched Marketing Agent and Customer Agent, establishing Klaviyo as the AI-first B2C CRM. This is a natural evolution of our journey – from a leading marketing automation platform to a comprehensive consumer engagement solution. Powered by the KDP and Klaviyo AI, Klaviyo now combines Klaviyo Marketing, Klaviyo Service, and Klaviyo Analytics into one unified, AI-powered solution, making it easy for businesses to know their customers, activate their data, and grow faster.

Previous wording

Today, our customers primarily operate within the retail and eCommerce vertical. Due to the flexibility and adaptability of our technology, we also see organic growth from customers in other verticals, such as education, events and entertainment, restaurants, and travel, as well as from business-to-business (“B2B”) companies. As of June 30, 2025, our platform had efficiently scaled to over 176,000 customers. See the section titled “Key Performance Metrics – Customers” for additional information on how we define customers.

Current wording

Today, our customers primarily operate within the retail and eCommerce vertical. Due to the flexibility and adaptability of our technology, we also see organic growth from customers in other verticals, such as education, events and entertainment, restaurants, and travel, as well as from business-to-business (“B2B”) companies. As of September 30, 2025, our platform had efficiently scaled to over 183,000 customers. See the section titled “Key Performance Metrics – Customers” for additional information on how we define customers.

Previous wording

We generate revenue through the sale of subscriptions to our customers for the use of our platform. Our subscription plans are tiered based on the number of active consumer profiles stored on our platform and the number of emails and SMS messages sent. We currently permit our customers to send unlimited push notifications, which are included as part of our email subscription plan. Active consumer profiles are identified profiles that can be reached via at least one enabled marketing channel in Klaviyo; this means the profile is not suppressed, either by revoking consent or being rendered undeliverable. The vast majority of our subscription plans today are monthly.

Current wording

We generate revenue through the sale of subscriptions to our customers for the use of our platform. Our subscription plans are tiered based on the number of active consumer profiles stored on our platform and the number of emails, text messages and WhatsApp messages sent. We currently permit our customers to send unlimited push notifications, which are included as part of our email subscription plan. Active consumer profiles are identified profiles that can be reached via at least one enabled marketing channel in Klaviyo; this means the profile is not suppressed, either by revoking consent or being rendered undeliverable. The vast majority of our subscription plans today are monthly.

Previous wording

Our land-and-expand strategy aligns our success with that of our customers. As our customers’ businesses grow, they utilize more active consumer profiles and send more emails and SMS messages, which naturally increases their usage of our platform. Our revenue also expands when our customers add additional marketing channels, such as SMS, additional use cases, such as Reviews, and additional applications such as Klaviyo Service and Klaviyo Analytics, or when their other brands, business units, and geographies start using our platform.

Current wording

Our land-and-expand strategy aligns our success with that of our customers. As our customers’ businesses grow, they utilize more active consumer profiles and send more emails, text messages and WhatsApp messages, which naturally increases their usage of our platform. Our revenue also expands when our customers add additional marketing channels, such as text messaging, mobile push and WhatsApp, additional use cases, such as Reviews, and additional applications such as Klaviyo Service, Klaviyo Analytics, and Klaviyo AI, or when their other brands, business units, and geographies start using our platform.

Previous wording

We believe our product-led growth strategy enables us to efficiently expand penetration within our existing customer base. We focus on expansion in three primary ways. First, as our customers increase their usage of our platform through the number of active consumer profiles they store and email and SMS messages they send, they move to higher subscription tiers. Second, we cross-sell additional offerings (e.g., Marketing Analytics) and marketing channels (e.g., SMS) to customers who started on our platform with our email offering, as well as add-ons, such as Reviews and our Advanced KDP offering. Finally, we offer our platform to our customers’ other brands, business units, and geographies. Going forward, our ability to increase sales to existing customers will depend on a number of factors, including our customers’ satisfaction with our solutions and the ability of our customers to attract new consumers. We expect these three forms of revenue expansion to continue in the future.

Current wording

We believe our product-led growth strategy enables us to efficiently expand penetration within our existing customer base. We focus on expansion in three primary ways. First, as our customers increase their usage of our platform through the number of active consumer profiles they store and email, text messages and WhatsApp messages they send, they move to higher subscription tiers. Second, we cross-sell additional offerings (e.g., Klaviyo Service, Marketing Analytics, etc.) and marketing channels (e.g., text messaging and WhatsApp) to customers who started on our platform with our email offering, as well as add-ons, such as Reviews and our Advanced KDP offering. Finally, we offer our platform to our customers’ other brands, business units, and geographies. Going forward, our ability to increase sales to existing customers will depend on a number of factors, including our customers’ satisfaction with our solutions and the ability of our customers to attract new consumers. We expect these three forms of revenue expansion to continue in the future.

Previous wording

We believe we have significant expansion opportunities in international markets. We started by serving customers in North America and, in 2019, we expanded our operations to London, England to penetrate the European region. In 2022, we opened our office in Sydney, Australia to capitalize on the opportunities in Asia Pacific. In 2024, we expanded our presence in the European region by adding operations in Dublin, Ireland. In 2025, we expanded our presence in the Asia Pacific region by adding operations in Singapore. We have already experienced significant growth with international sales outside of the Americas accounting for 34.2% of our revenue for the six months ended June 30, 2025. We also continue to expand our product offerings to better serve the international market. As of the date of this Quarterly Report on Form 10-Q, we offer SMS capabilities in more than 20 countries, and we offer our platform in English, French, German, Portuguese, Korean, Spanish and Italian. We believe that the introduction of additional languages to our platform increases our efficacy and ease of use in other regions. We also currently only bill in U.S. Dollars, and we believe that adding additional currencies to our platform will help us further our international expansion efforts.

Current wording

Asia Pacific and European regions by adding operations in Singapore and France, respectively. We have already experienced significant growth with international sales outside of the Americas accounting for 34.6% of our revenue for the nine months ended September 30, 2025. We also continue to expand our product offerings to better serve the international market. As of the date of this Quarterly Report on Form 10-Q, we offer text messaging capabilities in more than 20 countries, and we offer our platform in English, French, German, Portuguese, Korean, Spanish, Italian, Dutch, Swedish, Spanish (Mexico), and Polish. We believe that the introduction of additional languages to our platform increases our efficacy and ease of use in other regions. We also currently only bill in U.S. Dollars, and we believe that adding additional currencies to our platform will help us further our international expansion efforts.

Previous wording

Since our inception, we have been focused on product innovation, seeking to create what we believe is the best software solution for our customers. We originally launched our platform with email messaging as our first marketing channel. Since then, we have successfully added other marketing channels, such as SMS and Mobile Push, additional use cases, such as Reviews, and additional applications, such as Klaviyo Service and Klaviyo Analytics. We have also introduced Klaviyo AI, a suite of features that provide customers with AI-powered tools to streamline data segmentation, create and orchestrate campaigns, and drive better engagement.

Current wording

Since our inception, we have been focused on product innovation, seeking to create what we believe is the best software solution for our customers. We originally launched our platform with email messaging as our first marketing channel. Since then, we have successfully added other marketing channels, such as text messaging, mobile push, and WhatsApp, additional use cases, such as Reviews, and additional applications, such as Klaviyo Service and Klaviyo Analytics. We have also introduced Klaviyo AI, a suite of features that provide customers with AI-powered tools to streamline data segmentation, create and orchestrate campaigns, and drive better engagement including our Marketing Agent and Customer Agent offerings as well as our MCP Server capability.

Previous wording

As of June 30, 2025, we had 3,291 customers generating over $50,000 of ARR, compared to 2,386 customers generating over $50,000 of ARR as of June 30, 2024, representing growth of 38% year-over-year.

Current wording

As of September 30, 2025, we had 3,563 customers generating over $50,000 of ARR, compared to 2,619 customers generating over $50,000 of ARR as of September 30, 2024, representing growth of 36% year-over-year.

Previous wording

As of June 30, 2025 and 2024, our NRR was 108% and 112%, respectively. The decrease in this metric from June 30, 2024 to June 30, 2025 was largely driven by relatively lower comparable expansion of existing customer plans.

Current wording

As of September 30, 2025 and 2024, our NRR was 109% and 110%, respectively. The decrease in this metric from September 30, 2024 to September 30, 2025 was largely driven by relatively lower comparable expansion of existing customer plans.

Previous wording

Klaviyo Attributed Value. We define Klaviyo Attributed Value (“KAV”) as the amount of revenue our customers generated through orders placed by consumers within a specified period of time after a message is sent using our platform, which in the case of email is five days from when the message is sent, and in the case of SMS is twenty-four hours from when the message is sent. For email, the message also needs to be opened or clicked in order for the transaction to fall within our definition. KAV excludes orders placed with customers that do not opt-in to sharing data on placed orders, orders for which we cannot determine the currency or value, or unusual orders that appear to us to be anomalies. Since our definition of a customer does not include persons or entities that use our platform on a free trial basis, any revenue generated through orders placed with these persons or entities is also excluded from our definition of KAV. We do not net chargebacks or sales refunds from our calculation of KAV. If a customer leaves Klaviyo, we stop counting that customer’s KAV after their last contracted month. We believe KAV serves as a measure of the return-on-investment that we help generate for our customers and illustrates the value our platform can drive to our customers, which we believe enhances our ability to maintain existing customers and attract new customers. We use KAV as an internal estimate to track the value we drive to customers through our platform. KAV is an operational measure, does not represent revenue earned by us, and does not directly correlate to our pricing, revenue, or results of operations. Further, KAV is not a forecast of future revenue and investors should not place undue reliance on KAV as an indicator of our future or expected results.

Current wording

Klaviyo Attributed Value. We define Klaviyo Attributed Value (“KAV”) as the amount of revenue our customers generated through orders placed by consumers within a specified period of time after a message is sent using our platform, which in the case of email is five days from when the message is sent, and in the case of text messages and WhatsApp messages is twenty-four hours from when the message is sent. For email, the message also needs to be opened or clicked in order for the transaction to fall within our definition. KAV excludes orders placed with customers that do not opt-in to sharing data on placed orders, orders for which we cannot determine the currency or value, or unusual orders that appear to us to be anomalies. Since our definition of a customer does not include persons or entities that use our platform on a free trial basis, any revenue generated through orders placed with these persons or entities is also excluded from our definition of KAV. We do not net chargebacks or sales refunds from our calculation of KAV. If a customer leaves Klaviyo, we stop counting that customer’s KAV after their last contracted month. We believe KAV serves as a measure of the return-on-investment that we help generate for our customers and illustrates the value our platform can drive to our customers, which we believe enhances our ability to maintain existing customers and attract new customers. We use KAV as an internal estimate to track the value we drive to customers through our platform. KAV is an operational measure, does not represent revenue earned by us, and does not directly correlate to our pricing, revenue, or results of operations. Further, KAV is not a forecast of future revenue and investors should not place undue reliance on KAV as an indicator of our future or expected results.

Previous wording

Generally, demand for our services increases during the fourth quarter as our customers run more marketing campaigns and deploy marketing spend as a result of increased consumer spending patterns during the holiday shopping season. This is specifically prominent within the retail and eCommerce sector in which the majority of our customers operate today. Given our revenue model allows our customers to scale usage as needed, our sequential revenue growth has been historically stronger in the fourth quarter of each year compared to the revenue growth we see in other quarters. Our customers utilize the SMS offering in particular during the holidays; as such, to the extent that the SMS offering grows in proportion to our other channels, we expect that we would see further seasonality. We believe seasonality may continue to impact our quarterly results going forward.

Current wording

Generally, demand for our services increases during the fourth quarter as our customers run more marketing campaigns and deploy marketing spend as a result of increased consumer spending patterns during the holiday shopping season. This is specifically prominent within the retail and eCommerce sector in which the majority of our customers operate today. Given our revenue model allows our customers to scale usage as needed, our sequential revenue growth has been historically stronger in the fourth quarter of each year compared to the revenue growth we see in other quarters. Our customers utilize the text messaging offering in particular during the holidays; as such, to the extent that the text messaging offering grows in proportion to our other channels, we expect that we would see further seasonality. While our profile-based pricing structure helps reduce the impact of seasonality on our revenue, we believe seasonality may continue to impact our quarterly results.

Previous wording

We expect our gross profit to increase over time due to an increase in revenue. We expect our gross margin to decline modestly in the near term as the volume of SMS messages sent through our platform increases and as our cloud-based infrastructure costs and outbound communication sending costs increase as our customers increase usage of our platform and capabilities. This gross margin impact could be partially offset by gaining further leverage on costs with our increased scale, increased usage of higher margin products by our customers, and ongoing efforts to drive infrastructure efficiency.

Current wording

We expect our gross profit to increase over time due to an increase in revenue. We expect our gross margin to decline modestly in the near term as the volume of text messages and WhatsApp messages sent through our platform increases and as our cloud-based infrastructure costs and outbound communication sending costs increase as our customers increase usage of our platform and capabilities. This gross margin impact could be partially offset by gaining further leverage on costs with our increased scale, increased usage of higher margin products by our customers, and ongoing efforts to drive infrastructure efficiency.

Previous wording

Three and Six Months Ended June 30, 2025 Compared to the Three and Six Months Ended June 30, 2024

Current wording

Three and Nine Months Ended September 30, 2025 Compared to the Three and Nine Months Ended September 30, 2024

Previous wording

Revenue for the three months ended June 30, 2025 increased by $70.9 million or 31.9%, to $293.1 million compared to $222.2 million for the three months ended June 30, 2024. The increase was due to new business, expanded usage of our platform, and growth of our SMS channel. For the three months ended June 30, 2025, sales to existing customers accounted for approximately 44% of the increase in revenue while approximately 56% of the increase in revenue was related to new customers. Sales to new customers represent the revenue recognized from new customers acquired in the 12 months prior to the period end.

Current wording

Revenue for the three months ended September 30, 2025 increased by $75.8 million or 32.2%, to $310.9 million compared to $235.1 million for the three months ended September 30, 2024. The increase was due to new business, geographic expansion, expanded usage of our platform, and growth of our text messaging and WhatsApp channels. For the three months ended September 30, 2025, sales to existing customers accounted for approximately 44% of the increase in revenue while approximately 56% of the increase in revenue was related to new customers. Sales to new customers represent the revenue recognized from new customers acquired in the 12 months prior to the period end.

Previous wording

Revenue for the six months ended June 30, 2025 increased by $140.7 million or 32.6%, to $572.9 million compared to $432.2 million for the six months ended June 30, 2024. The increase was due to new business, expanded usage of our platform, and growth of our SMS channel. For the six months ended June 30, 2025, sales to existing customers accounted for approximately 42% of the increase in revenue while approximately 58% of the increase in revenue was related to new customers. Sales to new customers represent the revenue recognized from new customers acquired in the 12 months prior to the period end.

Current wording

Revenue for the nine months ended September 30, 2025 increased by $216.5 million or 32.4%, to $883.8 million compared to $667.3 million for the nine months ended September 30, 2024. The increase was due to new business, geographic expansion, expanded usage of our platform, and growth of our text messaging and WhatsApp channels. For the nine months ended September 30, 2025, sales to existing customers accounted for approximately 42% of the increase in revenue while approximately 58% of the increase in revenue was related to new customers. Sales to new customers represent the revenue recognized from new customers acquired in the 12 months prior to the period end.

Previous wording

Cost of revenue for the six months ended June 30, 2025 increased by $43.7 million or 45.9%, to $138.9 million compared to $95.2 million for the six months ended June 30, 2024. This was primarily due to an increase of approximately $20.7 million in cloud-based infrastructure costs, $15.9 million in outbound communication sending costs on behalf of our customers due to increased SMS usage, $4.5 million in technology expenses, and $2.5 million in salaries and personnel expenses as a result of increases in headcount.

Current wording

Cost of revenue for the three months ended September 30, 2025 increased by $21.8 million or 40.1%, to $76.1 million compared to $54.4 million for the three months ended September 30, 2024. This was primarily due to an increase of approximately $10.0 million in outbound communication sending costs on behalf of our customers due to increased text message and WhatsApp usage, $6.4 million in cloud-based infrastructure costs, $2.3 million in technology expenses, and $1.9 million in salaries and personnel expenses as a result of increases in headcount.

Previous wording

Cost of revenue for the three months ended June 30, 2025 increased by $21.0 million or 41.7%, to $71.2 million compared to $50.3 million for the three months ended June 30, 2024. This was primarily due to an increase of approximately $8.8 million in outbound communication sending costs on behalf of our customers due to increased SMS usage, $8.6 million in cloud-based infrastructure costs, and $2.5 million in technology expenses.

Current wording

Cost of revenue for the nine months ended September 30, 2025 increased by $65.5 million or 43.8%, to $215.1 million compared to $149.6 million for the nine months ended September 30, 2024. This was primarily due to an increase of approximately $27.0 million in cloud-based infrastructure costs, $25.7 million in outbound communication sending costs on behalf of our customers due to increased text message and WhatsApp usage, $6.8 million in technology expenses, and $4.4 million in salaries and personnel expenses as a result of increases in headcount.

Previous wording

Gross profit for the three months ended June 30, 2025 increased by $49.9 million or 29.0%, to $221.9 million compared to $171.9 million for the three months ended June 30, 2024. This increase was primarily due to revenue growth offset by an increase in cost of revenue due to increased usage.

Current wording

Gross profit for the three months ended September 30, 2025 increased by $54.0 million or 29.9%, to $234.7 million compared to $180.7 million for the three months ended September 30, 2024. This increase was primarily due to revenue growth offset by an increase in cost of revenue due to increased usage.

Previous wording

Gross profit for the six months ended June 30, 2025 increased by $97.0 million or 28.8%, to $434.0 million compared to $337.0 million for the six months ended June 30, 2024. This increase was primarily due to revenue growth offset by an increase in cost of revenue due to increased usage.

Current wording

Gross profit for the nine months ended September 30, 2025 increased by $151.0 million or 29.2%, to $668.7 million compared to $517.7 million for the nine months ended September 30, 2024. This increase was primarily due to revenue growth offset by an increase in cost of revenue due to increased usage.

Previous wording

Selling and marketing expenses for the three months ended June 30, 2025 increased by $32.1 million or 34.0%, to $126.6 million compared to $94.5 million for the three months ended June 30, 2024. This increase was primarily due to an increase of approximately $14.2 million in salaries and related personnel expenses as a result of increases in headcount and the introduction of a company-wide bonus program, $4.6 million in marketing expenses associated with our advertising campaigns across multiple channels of media, $4.4 million in professional services, $4.2 million in stock-based compensation due to the vesting of restricted stock units (“RSUs”), $3.3 million in partnership-related expenses across our ecosystem, and $1.2 million in technology expenses.

Current wording

Selling and marketing expenses for the three months ended September 30, 2025 increased by $27.6 million or 27.6%, to $127.7 million compared to $100.0 million for the three months ended September 30, 2024. This increase was primarily due to an increase of approximately $15.1 million in salaries and related personnel expenses as a result of increases in headcount and the introduction of a company-wide bonus program, $5.6 million in stock-based compensation due to the vesting of restricted stock units (“RSUs”), $3.1 million in partnership-related expenses across our ecosystem, $1.4 million in professional services, $1.1 million in technology expenses, and $1.0 million in marketing expenses associated with our advertising campaigns across multiple channels of media.

Previous wording

Selling and marketing expenses for the six months ended June 30, 2025 increased by $63.8 million or 34.2%, to $250.2 million compared to $186.4 million for the six months ended June 30, 2024. This increase was primarily due to an increase of approximately $28.8 million in salaries and related personnel expenses as a result of increases in headcount and the introduction of a company-wide bonus program, $13.9 million in marketing expenses associated with our advertising campaigns across multiple channels of media, $7.4 million in professional services, $6.5 million in partnership-related expenses across our ecosystem, $5.0 million in stock-based compensation due to the vesting of RSUs, and $2.3 million in technology expenses.

Current wording

Selling and marketing expenses for the nine months ended September 30, 2025 increased by $91.4 million or 31.9%, to $377.8 million compared to $286.4 million for the nine months ended September 30, 2024. This increase was primarily due to an increase of approximately $43.9 million in salaries and related personnel expenses as a result of increases in headcount and the introduction of a company-wide bonus program, $14.9 million in marketing expenses associated with our advertising campaigns across multiple channels of media, $10.5 million in stock-based compensation due to the vesting of RSUs, $9.5 million in partnership-related expenses across our ecosystem, $8.7 million in professional services, and $3.4 million in technology expenses.

Previous wording

General and administrative expenses for the six months ended June 30, 2025 increased by $22.2 million or 29.6%, to $97.1 million compared to $75.0 million for the six months ended June 30, 2024. This increase was primarily due to an increase of approximately $13.2 million in salaries and related personnel expenses as a result of payroll taxes from increased option exercises, $4.6 million in payment processing fees related to an increase in customer transactions, $2.3 million in stock-based compensation due to the vesting of RSUs, and $1.7 million in technology expenses.

Current wording

General and administrative expenses for the three months ended September 30, 2025 increased by $7.0 million or 18.4%, to $45.3 million compared to $38.2 million for the three months ended September 30, 2024. This increase was primarily due to an increase of approximately $2.6 million related to tax filings in multiple jurisdictions and $2.3 million in payment processing fees related to an increase in customer transactions.

Previous wording

General and administrative expenses for the three months ended June 30, 2025 increased by $18.4 million or 51.3%, to $54.1 million compared to $35.8 million for the three months ended June 30, 2024. This increase was primarily due to an increase of approximately $11.6 million in salaries and related personnel expenses as a result of payroll taxes from increased option exercises, $2.8 million in stock-based compensation due to the vesting of RSUs, $2.3 million in payment processing fees related to an increase in customer transactions, and $1.0 million in technology expenses.

Current wording

General and administrative expenses for the nine months ended September 30, 2025 increased by $29.2 million or 25.8%, to $142.4 million compared to $113.2 million for the nine months ended September 30, 2024. This increase was primarily due to an increase of approximately $13.6 million in salaries and related personnel expenses primarily as a result of payroll taxes from increased option exercises, $6.9 million in payment processing fees related to an increase in customer transactions, $3.4 million related to tax filings in multiple jurisdictions, and $2.6 million in technology expenses.

Previous wording

Other (expense) income, net, for the three months ended June 30, 2025 increased by $0.9 million to $(0.9) million compared to $0.0 million for the three months ended June 30, 2024. This increase was primarily due to unfavorable foreign exchange fluctuations.

Current wording

Other (expense) income, net, for the three months ended September 30, 2025 increased by $0.3 million or 138.9% to $(0.1) million compared to $0.2 million for the three months ended September 30, 2024. This increase was primarily due to unfavorable foreign exchange fluctuations.

Previous wording

Other (expense) income, net, for the six months ended June 30, 2025 increased by $1.6 million or 2,660.7% to $(1.6) million compared to $0.1 million for the six months ended June 30, 2024. This increase was primarily due to unfavorable foreign exchange fluctuations.

Current wording

Other (expense) income, net, for the nine months ended September 30, 2025 increased by $1.9 million or 669.3% to $(1.7) million compared to $0.3 million for the nine months ended September 30, 2024. This increase was primarily due to unfavorable foreign exchange fluctuations.

Previous wording

Interest income for the six months ended June 30, 2025 decreased by an immaterial amount compared to the six months ended June 30, 2024.

Current wording

Interest income for the nine months ended September 30, 2025 decreased by an immaterial amount compared to the nine months ended September 30, 2024.

Previous wording

Provision for Income Taxes - Three Month Change

Current wording

(Benefit) for Income Taxes - Three Month Change

Previous wording

The Company recorded income tax expense of $0.7 million for the six months ended June 30, 2025 compared to income tax expense of $1.3 million for the six months ended June 30, 2024 representing a decrease of $0.5 million. This was primarily due to greater stock based compensation windfalls in 2025.

Current wording

The Company recorded income tax benefit of $0.2 million for the three months ended September 30, 2025 compared to income tax benefit of $1.2 million for the three months ended September 30, 2024 representing an increase of $1.0 million. This increase was primarily due to filings in foreign jurisdictions.

Previous wording

The Company recorded income tax expense of $1.8 million for the three months ended June 30, 2025 compared to income tax expense of $0.9 million for the three months ended June 30, 2024 representing an increase of $0.9 million. This was primarily due to an increase in profits before taxes in our international entities.

Current wording

The Company recorded income tax expense of $0.5 million for the nine months ended September 30, 2025 compared to income tax expense of $0.1 million for the nine months ended September 30, 2024 representing an increase of $0.5 million. This increase was primarily due to an increase in profits before taxes in our international entities.

Previous wording

Since our inception through June 30, 2025, we have financed our operations primarily through payments received from our customers and sales of equity securities, including the completion of our initial public offering in September 2023. As of June 30, 2025, our principal sources of liquidity included cash, cash equivalents, and restricted cash totaling $936.3 million, with such amounts held for working capital purposes. Our cash equivalents were comprised of $319.3 million in money market funds.

Current wording

Since our inception through September 30, 2025, we have financed our operations primarily through payments received from our customers and sales of equity securities, including the completion of our initial public offering in September 2023. As of September 30, 2025, our principal sources of liquidity included cash, cash equivalents, and restricted cash totaling $981.0 million, with such amounts held for working capital purposes. Our cash equivalents were comprised of $322.7 million in money market funds.

Previous wording

Net cash provided by operating activities of $70.1 million for the six months ended June 30, 2025 was primarily attributable to a net loss of $38.4 million adjusted for non-cash charges of $146.5 million and net cash outflows of $38.0 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $83.7 million of stock-based compensation expense, $26.4 million of prepaid marketing expense amortization, $13.8 million of amortization related to deferred contract acquisition costs, $12.4 million of operating lease costs, $8.7 million of depreciation and amortization expense and $1.5 million of bad debt expense. Net cash outflows from changes in operating assets and liabilities primarily consisted of a $22.6 million increase in deferred contract acquisition costs related to increase in sales commissions resulting from the increase in revenues, a $17.3 million increase in accounts receivable due to an increase in customer billings, a $11.3 million decrease in operating lease liabilities due to payments related to our operating lease obligations, a $4.5 million increase in prepaid expenses and other assets, and a $0.3 million decrease in accrued expenses and accounts payable due to timing of payments. The cash outflow was offset by cash inflows primarily from a $18.2 million increase in deferred revenue resulting from increased billings for subscriptions.

Current wording

Net cash provided by operating activities of $124.8 million for the nine months ended September 30, 2025 was primarily attributable to a net loss of $38.8 million adjusted for non-cash charges of $217.1 million and net cash outflows of $53.5 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $124.2 million of stock-based compensation expense, $39.7 million of prepaid marketing expense amortization, $21.5 million of amortization related to deferred contract acquisition costs, $18.2 million of operating lease costs, $13.1 million of depreciation and amortization expense and $1.9 million of bad debt expense. Net cash outflows from changes in operating assets and liabilities primarily consisted of a $35.2 million increase in deferred contract acquisition costs related to increase in sales commissions resulting from the increase in revenues, a $20.0 million increase in accounts receivable due to an increase in customer billings, a $17.5 million decrease in operating lease liabilities due to payments related to our operating lease obligations, a $1.7 million increase in prepaid expenses and other assets, and a $1.9 million decrease in accrued expenses and accounts payable due to timing of payments. The cash outflow was offset by cash inflows primarily from a $23.4 million increase in deferred revenue resulting from increased billings for subscriptions.

Previous wording

Net cash provided by operating activities of $67.1 million for the six months ended June 30, 2024 was primarily attributable to a net loss of $17.8 million adjusted for non-cash charges of $118.8 million and net cash outflows of $33.9 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $69.1 million of stock-based compensation expense, $26.4 million of prepaid marketing expense amortization, $8.4 million of amortization related to deferred contract acquisition costs, $8.2 million of depreciation and amortization expense, and $6.3 million of operating lease costs. Net cash outflows from changes in operating assets and liabilities primarily consisted of a $14.7 million increase in deferred contract acquisition costs related to increase in sales commissions resulting from the increase in revenues, a $7.8 million decrease in operating lease liabilities due to payments related to our operating lease obligations, a $7.3 million increase in prepaid expenses due to prepayments for cloud infrastructure and hosting costs, and a $4.7 million decrease in accrued expenses and accounts payable due to timing of payments. The cash outflow was offset by cash inflows primarily from a $6.7 million increase in deferred revenue resulting from increased billings for subscriptions.

Current wording

Net cash provided by operating activities of $105.9 million for the nine months ended September 30, 2024 was primarily attributable to a net loss of $19.2 million adjusted for non-cash charges of $176.1 million and net cash outflows of $51.1 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $100.7 million of stock-based compensation expense, $39.7 million of prepaid marketing expense amortization, $13.8 million of amortization related to deferred contract acquisition costs, $12.8 million of depreciation and amortization expense, and $9.6 million of operating lease costs. Net cash outflows from changes in operating assets and liabilities primarily consisted of a $24.5 million increase in deferred contract acquisition costs related to increase in sales commissions resulting from the increase in revenues, a $14.0 million increase in prepaid expenses due to prepayments for cloud infrastructure and hosting costs, a $11.8 million decrease in operating lease liabilities due to payments related to our operating lease obligations, a $11.5 million increase in accounts receivable due to an increase in customer billings, and a $2.8 million decrease in accrued expenses and accounts payable due to timing of payments. The cash outflow was offset by cash inflows primarily from a $12.8 million increase in deferred revenue resulting from increased billings for subscriptions.

Previous wording

Net cash used in investing activities of $7.1 million for the six months ended June 30, 2024 consisted of $5.0 million of capitalized software development costs and $2.0 million purchases of property and equipment.

Current wording

Net cash used in investing activities of $24.8 million for the nine months ended September 30, 2025 consisted of $15.7 million of capitalized software development costs, $7.0 million purchases of property and equipment, and $2.0 million of business acquisition costs.

Previous wording

Net cash used in investing activities of $15.0 million for the six months ended June 30, 2025 consisted of $10.3 million of capitalized software development costs and $4.7 million purchases of property and equipment.

Current wording

Net cash used in investing activities of $11.6 million for the nine months ended September 30, 2024 consisted of $8.0 million of capitalized software development costs and $3.6 million purchases of property and equipment.

Previous wording

Net cash used in financing activities was $1.4 million for the six months ended June 30, 2025 and primarily consisted of approximately $6.1 million of proceeds from our employee stock purchase plan and $1.5 million of proceeds from the exercise of stock options offset by $8.9 million used for the payment of employee tax obligations related to the net share settlement of stock-based compensation awards upon vesting.

Current wording

Net cash used in financing activities was $1.6 million for the nine months ended September 30, 2025 and primarily consisted of approximately $9.7 million of proceeds from our employee stock purchase plan and $1.7 million of proceeds from the exercise of stock options offset by $13.1 million used for the payment of employee tax obligations related to the net share settlement of stock-based compensation awards upon vesting.

Previous wording

Net cash used in financing activities of $5.1 million for the six months ended June 30, 2024 primarily consisted of approximately $4.4 million of proceeds from our employee stock purchase plan and $4.3 million of proceeds from the exercise of stock options offset by $13.8 million used for the payment of employee tax obligations related to the net share settlement of stock-based compensation awards upon vesting.

Current wording

Net cash used in financing activities of $6.0 million for the nine months ended September 30, 2024 primarily consisted of approximately $7.0 million of proceeds from our employee stock purchase plan and $6.2 million of proceeds from the exercise of stock options offset by $19.3 million used for the payment of employee tax obligations related to the net share settlement of stock-based compensation awards upon vesting.

Previous wording

We enter into various noncancellable lease agreements for certain office space and equipment used in the normal course of business. Our noncancellable lease obligations as of June 30, 2025 were $125.3 million, with $19.8 million payable within 12 months.

Current wording

We enter into various noncancellable lease agreements for certain office space and equipment used in the normal course of business. Our noncancellable lease obligations as of September 30, 2025 were $142.3 million, with $25.3 million payable within 12 months.

Previous wording

We enter into various noncancellable agreements with marketing vendors and various service providers. Our noncancellable obligations as of June 30, 2025 were $281.3 million.

Current wording

We enter into various noncancellable agreements with marketing vendors and various service providers. Our noncancellable obligations as of September 30, 2025 were $247.5 million.