Klaviyo, Inc.
For the period ended Mar 31, 2026. Filed May 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 5, 2026
KVYO$20.71-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001835830-25-000110
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0001835830-26-000027
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 133 previous paragraphs and 117 current paragraphs.
58 unchanged; 44 reworded; 15 added; 27 removed; 4 previous and 0 current paragraphs rearranged.
Tables are not compared: 23 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
The Organization for Economic Cooperation and Development (“OECD”) introduced an international tax framework that provides for a global minimum tax of 15% for large multinational companies. The framework and guidance do not have a material impact on our effective rates for income taxes or cash taxes paid, due to the safe harbor relief during the transition period. We continue to closely monitor developments.
Current report
Revenue
Current report
Cost of Revenue
Current report
Gross Profit
Current report
Selling and Marketing
Current report
Research and Development
Current report
Research and development costs for the three months ended March 31, 2026 increased by $10.7 million or 15.4%, to $80.0 million compared to $69.3 million for the three months ended March 31, 2025. This increase was primarily due to an increase of approximately $4.8 million in salaries and related personnel expenses as a result of increased allocatable costs and a bonus plan change to increase target bonus percentages and $4.5 million in technology expenses.
Current report
General and Administrative
Current report
Other Expense, Net
Current report
Other expense, net, for the three months ended March 31, 2026 decreased by $0.2 million or 34.3% to $(0.4) million compared to $(0.7) million for the three months ended March 31, 2025. This decrease was primarily due to favorable foreign exchange fluctuations.
Current report
Interest Income
Current report
Provision (benefit) for Income Taxes
Current report
Share Repurchase Authorization
Current report
On March 2, 2026, the Company announced that its Board of Directors authorized a share repurchase program (the “Share Repurchase Program”), pursuant to which the Company may repurchase up to $500.0 million of its issued and outstanding shares of Series A common stock. Repurchases under the Share Repurchase Program may be made from time to time in the open market, through privately negotiated transactions or other means, including pursuant to 10b5-1 plans, or any combination of the foregoing, and in compliance with applicable securities laws and other applicable requirements. As part of the Share Repurchase Program, the Company entered into an accelerated share repurchase (the “ASR Agreement”) with a third-party investment bank (the “Dealer”) to repurchase $100.0 million of shares of its Series A common stock. Under the ASR Agreement, on March 3, 2026, the Company paid the Dealer $100.0 million and received an initial delivery of 4,307,869 shares of Series A common stock at a price of $18.87 per share, representing approximately 75% of the total value of shares to be received under the ASR Agreement. The shares received upon initial delivery were recorded as treasury stock, resulting in a reduction to stockholders’ equity. The remaining portion to be repurchased under the ASR Agreement represents a forward contract indexed to the Company's own stock and will be recorded as additional-paid-in capital as a reduction to stockholders’ equity.
Current report
The final number of shares to be repurchased pursuant to the ASR Agreement will be based on the volume-weighted average price of Series A common stock on specified dates during the term of the ASR Agreement, less a discount, and subject to adjustments pursuant to the terms and conditions of the ASR Agreement. Upon settlement, the Dealer may deliver additional shares of Series A common stock to the Company, or in certain circumstances, the Company may be required to deliver shares to the Dealer. The final settlement of the transaction is expected to be completed no later than the second quarter of 2026. As of March 31, 2026, approximately$400.0 million remained available for repurchase under the Share Repurchase Program.
Removed paragraphs (27)
Previous report
The Organisation for Economic Co-operation and Development (“OECD”) is coordinating negotiations among more than 140 countries with the goal of achieving consensus around substantial changes to international tax policies, including the implementation of a minimum global effective tax rate of 15%. Various countries have implemented or are in the process of implementing the legislation, which does not currently apply to us. As additional jurisdictions enact such legislation, we expect our effective tax rate and cash tax payments could increase in future years.
Previous report
Revenue - Three Month Change
Previous report
Revenue - Nine Month Change
Previous report
Cost of Revenue - Three Month Change
Previous report
Cost of Revenue - Nine Month Change
Previous report
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.
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Gross Profit - Three Month Change
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Gross Profit - Nine Month Change
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Selling and Marketing - Three Month Change
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Selling and Marketing - Nine Month Change
Previous report
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 report
Research and Development - Three Month Change
Previous report
Research and development costs for the three months ended September 30, 2025 increased by $16.9 million or 30.3%, to $72.7 million compared to $55.8 million for the three months ended September 30, 2024. This increase was primarily due to an increase of approximately $6.3 million in salaries and related personnel expenses as a result of increases in headcount and the introduction of a company-wide bonus program, $4.2 million in restructuring expense, $3.8 million of stock-based compensation due to the vesting of RSUs, and $2.9 million in technology expenses.
Previous report
Research and Development - Nine Month Change
Previous report
Research and development costs for the nine months ended September 30, 2025 increased by $46.9 million or 28.0%, to $214.5 million compared to $167.6 million for the nine months ended September 30, 2024. This increase was primarily due to an increase of approximately $25.5 million in salaries and related personnel expenses as a result of increases in headcount and the introduction of a company-wide bonus program, $12.5 million of stock-based compensation due to the vesting of RSUs, $5.7 million in technology expenses, and $4.2 million in restructuring expense.
Previous report
General and Administrative - Three Month Change
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General and Administrative - Nine Month Change
Previous report
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 report
Other (Expense) Income, Net - Three Month Change
Previous report
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 report
Other (Expense) Income, Net - Nine Month Change
Previous report
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 report
Interest Income - Three Month Change
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Interest Income - Nine Month Change
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(Benefit) for Income Taxes - Three Month Change
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Provision for Income Taxes - Nine Month Change
Previous report
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.
Reworded paragraphs (44)
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 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.
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 196,000 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, intelligence, and action layers into one vertically-integrated solution with advanced machine learning and AI capabilities and over 350 integrations, enabling businesses to create and store unified consumer profiles, derive new insights, and rapidly segment their consumers.
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 have enhanced our Klaviyo Marketing suite to incorporate text messaging and WhatsApp channels, Reviews, Klaviyo AI, 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.
Current wording
Klaviyo began as a database designed for speed, flexibility, and unlimited data storage. The Klaviyo Data Platform (“KDP”) generates unified, highly granular consumer profiles populated with data from customers’ own systems and over 350 third-party integrations, and provides customers user-friendly ways to track new types of data, sync data in and out of Klaviyo at scale, and drive revenue growth. Building upon our robust data infrastructure, we developed tools, 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. In addition to our email offering, we now incorporate text messaging and WhatsApp channels, Reviews, Marketing Agent, Klaviyo Service, Klaviyo Analytics, and others.
Previous 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.
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 AI, we combine marketing, service, analytics, and our data platform into a single solution designed to meet the high-volume, fast-paced needs of our customers.
Previous 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.
Current wording
Klaviyo Service is an AI-powered customer service offering that integrates with marketing and data to help businesses provide seamless customer support via Customer Hub, Customer Agent and Helpdesk. Marketing Analytics 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, cleanse, and analyze data as well as run more advanced reporting and predictive analytics to drive revenue growth for our customers. These offerings leverage Klaviyo’s unified platform to deliver an integrated, AI-first customer experience that enhances automation, personalization, and efficiency across channels.
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 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.
Current wording
Today, our customers primarily operate within the retail and eCommerce vertical. Due to the flexibility and adaptability of our technology, we have also seen organic growth from customers in other verticals, such as education, events and entertainment, restaurants, and travel, as well as from B2B companies. As of March 31, 2026, our platform had efficiently scaled to over 196,000 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, 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.
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 as well as tickets and conversations executed through Klaviyo Service. 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, 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.
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, WhatsApp messaging, and mobile push and additional use cases, such as Customer Agent, Marketing Agent, Marketing Analytics, and Advanced KDP, or when their other companies, business units, and geographies start using our platform.
Previous wording
Attracting new customers to our platform is a key driver of our revenue growth strategy. We have successfully grown our retail and eCommerce customer base and believe we have significant room to expand within this vertical as well as expand into other industries, including education, events and entertainment, restaurants, wellness, and travel as well as from B2B companies. Our ability to attract new customers will depend on a number of factors, including our ability to innovate, the effectiveness and pricing of our new and existing products and capabilities, and the success of our selling and marketing efforts.
Current wording
Attracting new customers to our platform is a key driver of our revenue growth strategy. We have successfully grown our retail and eCommerce customer base and believe we have significant room to expand within this vertical as well as expand further into other industries, including education, events and entertainment, restaurants, wellness, and travel as well as from B2B companies. Our ability to attract new customers will depend on a number of factors, including our ability to innovate, the effectiveness and pricing of our new and existing offerings and capabilities, and the success of our selling and marketing efforts.
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, 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.
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 use cases (e.g. Customer Agent, Marketing Analytics, etc.) and marketing channels (e.g. text messaging and WhatsApp) to customers who started on our platform with our email 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
When we first launched our platform, we intentionally focused on serving entrepreneurs and small and medium-sized businesses (“SMBs”) based on the need we saw for a simple and easy-to-use, yet powerful solution for customers in this category, and the large market opportunity within this group of customers. As our customers have scaled and become mid-market companies and larger enterprises themselves, their success with Klaviyo has attracted more interest from similarly sized businesses that are looking to drive better engagement with their consumers. Our ability to continue to move up-market is dependent on a number of factors, including our ability to further adapt our platform to the needs of larger accounts, the effectiveness of our sales team, and pricing.
Current wording
When we first launched our platform, we intentionally focused on serving entrepreneurs and SMBs based on the need we saw for a simple and easy-to-use, yet powerful solution for customers in this category, and the large market opportunity within this group of customers. As our customers have scaled and become mid-market companies and larger enterprises themselves, their success with Klaviyo has attracted more interest from similarly sized businesses that are looking to drive better engagement with their consumers. Our ability to continue to move up-market is dependent on a number of factors, including our ability to further adapt our platform to the needs of larger accounts, the effectiveness of our sales team, and pricing.
Previous 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.
Current 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 continued our expansion into the Asia Pacific and European regions by adding operations in Singapore and France, respectively. In 2026, we further expanded our North American presence by adding operations in Canada. We have already experienced significant growth with international sales outside of the Americas accounting for 36.6% of our revenue for the three months ended March 31, 2026. 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 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.
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 messaging, and additional use cases, such as Customer Agent, Marketing Agent, Marketing Analytics, and Advanced KDP. We have also introduced AI 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
Increased Adoption of Our SMS Offering
Current wording
Increased Adoption of Our Text Messaging and WhatsApp Messaging Offerings
Previous wording
We have seen notable success in the expansion of our platform with our SMS offering, which launched in 2021. Once customers adopt our SMS offering, they typically grow their usage over time as they gain comfort and confidence in the new channel. Our SMS offering has higher associated communication sending costs, and as the number of SMS messages sent by our customers increases, we expect our gross margin to decline modestly. SMS messaging is particularly concentrated in the fourth quarter of each year due to the holiday shopping season, and as a result, we expect our gross margin to be most heavily impacted in that quarter. 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. We believe we will see our overall gross profit dollars increase as customers send more SMS messages if our SMS offering continues to gain traction.
Current wording
We have seen notable success in the expansion of our platform with our text messaging and WhatsApp messaging offerings. Once customers adopt our text messaging and WhatsApp messaging offerings, they typically grow their usage over time as they gain comfort and confidence in the new channel. Our text messaging and WhatsApp messaging offerings have higher associated communication sending costs, and as the number of text messages and WhatsApp messages sent by our customers increases, we expect our gross margin to decline modestly. Text messaging and WhatsApp messaging are particularly concentrated in the fourth quarter of each year due to the holiday shopping season, and as a result, we expect our gross margin to be most heavily impacted in that quarter. 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. We believe we will see our overall gross profit dollars increase as customers send more text messages and WhatsApp messages if our text messaging and WhatsApp messaging offerings continue to gain traction.
Previous wording
As more customers use our platform, we are seeing organic growth from customers in other verticals, such as education, events and entertainment, restaurants, and travel, as well as from B2B companies. While we started with consumer engagement as our initial use case in the retail and eCommerce vertical, we see a large opportunity into other products and verticals. Without an active sales motion, we have attracted customers from verticals other than retail and eCommerce, which indicates the strong interest and applicability of our platform to new verticals. We continue to explore ways to serve these new verticals more intentionally. In the future, we intend to more actively invest in addressing new industry verticals and product use cases.
Current wording
As more customers use our platform, we are seeing organic growth from customers in other verticals, such as education, events and entertainment, restaurants, and travel, as well as from B2B companies. While we started with consumer engagement as our initial use case in the retail and eCommerce vertical, we see a large opportunity into other products and verticals. Without an active sales motion, we have attracted customers from verticals other than retail and eCommerce, which indicates the strong interest and applicability of our platform to new verticals. We continue to explore ways to serve these new verticals more intentionally. We intend to continue actively investing in addressing new industry verticals and product use cases.
Previous 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.
Current wording
As of March 31, 2026, we had 4,175 customers generating over $50,000 of ARR, compared to 3,030 customers generating over $50,000 of ARR as of March 31, 2025, representing growth of 38% year-over-year.
Previous 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.
Current wording
As of March 31, 2026 and 2025, our NRR was 110% and 108%, respectively. The increase in this metric from March 31, 2025 to March 31, 2026 was largely driven by expansion of existing customer plans and cross-selling additional offerings.
Previous wording
A significant majority of our revenues are derived from sales of subscriptions, which are comprised of fees paid by customers to access our cloud-based software platform for storing first-party consumer data and using it to create and deliver personalized and targeted consumer experiences across digital channels. A small portion of our revenue is currently derived from professional services.
Current wording
A significant majority of our revenues are derived from sales of subscriptions, which are comprised of fees paid by customers to access our cloud-based software platform for storing first-party consumer data and using it to create and deliver personalized and targeted consumer experiences across digital channels. A small portion of our revenue is currently derived from professional services. For more information on how we recognize our revenues, see Note 2. Summary of Significant Accounting Policies within the Notes to the Consolidated Financial Statements.
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 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.
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 offerings by our customers, and ongoing efforts to drive infrastructure efficiency.
Previous wording
Our selling and marketing costs primarily consist of employee-related costs including payroll, benefits, bonuses, and stock-based compensation; sales commissions and partnership expenses for revenue sharing agreements, including to Shopify Inc. and certain of its affiliates (collectively, “Shopify”), other commerce platform partners, and agency partners; costs associated with advertising and marketing activities; and allocated overhead costs, including rent, facilities, depreciation, and costs related to information technology. Sales commissions are considered an incremental cost to obtain contracts with customers and these costs are deferred and amortized over the expected benefit period. On July 28, 2022, we entered into a collaboration agreement and strategic partnership with Shopify pursuant to which we issued warrants to Shopify (the “Shopify Warrants”), in exchange for promotion of our marketing services with customers within the Shopify ecosystem. In accordance with relevant accounting policies, we recognize a prepaid marketing expense in connection with vesting of the Shopify Warrants. This prepaid marketing expense represents the probable future economic benefit being amortized over a seven-year expected benefit period and is recorded based on the fair value of the warrants on the grant date.
Current wording
Our selling and marketing costs primarily consist of employee-related costs including payroll, benefits, bonuses, and stock-based compensation; sales commissions and partnership expenses for revenue sharing agreements, including to Shopify, other commerce platform partners, and agency partners; costs associated with advertising and marketing activities; and allocated overhead costs, including rent, facilities, depreciation, and costs related to information technology. Sales commissions are considered an incremental cost to obtain contracts with customers and these costs are deferred and amortized over the expected benefit period. On July 28, 2022, we entered into a collaboration agreement and strategic partnership with Shopify pursuant to which we issued warrants to Shopify (the “Shopify Warrants”), in exchange for promotion of our marketing services with customers within the Shopify ecosystem. In accordance with relevant accounting policies, we recognize a prepaid marketing expense in connection with vesting of the Shopify Warrants. This prepaid marketing expense represents the probable future economic benefit being amortized over a seven-year expected benefit period and is recorded based on the fair value of the warrants on the grant date.
Previous wording
Interest income consists of income earned from our cash deposits held in interest-bearing accounts and money market funds.
Current wording
Interest income consists of income and dividends earned from our cash deposits held in interest-bearing accounts and money market funds.
Previous wording
The following table sets forth our consolidated statement of operations data expressed as a percentage of revenue:
Current wording
The following table sets forth our consolidated statements of operations data expressed as a percentage of revenue:
Previous wording
Three and Nine Months Ended September 30, 2025 Compared to the Three and Nine Months Ended September 30, 2024
Current wording
Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025
Previous 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.
Current wording
Revenue for the three months ended March 31, 2026 increased by $78.2 million or 27.9%, to $358.0 million compared to $279.8 million for the three months ended March 31, 2025. The increase was due to new business, including new customers, geographic expansion, expanded usage of our platform, including our text messaging and WhatsApp messaging channels, and new offerings. For the three months ended March 31, 2026, 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
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.
Current wording
Cost of revenue for the three months ended March 31, 2026 increased by $21.4 million or 31.6%, to $89.1 million compared to $67.7 million for the three months ended March 31, 2025. This was primarily due to an increase of approximately $11.7 million in outbound communication sending costs on behalf of our customers, driven by increased text message and WhatsApp usage, $3.5 million in salaries and related personnel expenses as a result of an increase in salaries, allocatable costs, and increased target bonus percentages for our Company-wide bonus program in 2026, $2.7 million in cloud-based infrastructure costs, $1.9 million in amortization from capitalized software costs, and $1.2 million in technology expenses.
Previous 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.
Current wording
Gross profit for the three months ended March 31, 2026 increased by $56.8 million or 26.8%, to $268.9 million compared to $212.1 million for the three months ended March 31, 2025. 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 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.
Current wording
Selling and marketing expenses for the three months ended March 31, 2026 increased by $10.5 million or 8.5%, to $134.1 million compared to $123.5 million for the three months ended March 31, 2025. This increase was primarily due to an increase of approximately $10.4 million in salaries and related personnel expenses as a result of increased salaries as well as a bonus plan change to increase target bonus percentages, $1.7 million in partnership-related expenses across our ecosystem, and $1.6 million in professional services, partially offset by a decrease of $2.2 million related to timing of marketing campaigns and $1.6 million in stock-based compensation driven by forfeitures of unvested equity awards and the completion of vesting of certain equity awards.
Previous 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.
Current wording
General and administrative expenses for the three months ended March 31, 2026 increased by $10.1 million or 23.4%, to $53.1 million compared to $43.0 million for the three months ended March 31, 2025. This increase was primarily due to an increase of approximately $3.9 million in stock-based compensation from the vesting of RSUs, $2.1 million in technology expenses, $2.1 million in professional services, and $1.8 million in payment processing fees related to increased volume of customer transactions.
Previous wording
Interest income for the three months ended September 30, 2025 decreased by an immaterial amount compared to the three months ended September 30, 2024.
Current wording
Interest income for the three months ended March 31, 2026 increased by an immaterial amount compared to the three months ended March 31, 2025.
Previous 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.
Current wording
The Company recorded an income tax provision of $1.7 million for the three months ended March 31, 2026 compared to an income tax benefit of $(1.1) million for the three months ended March 31, 2025 representing a change of $2.7 million. This was primarily due to an increase in foreign operations.
Previous wording
We assess our liquidity in terms of our ability to generate cash to fund our operating, investing, and financing activities. In doing so, we review and analyze our primary sources and uses of liquidity to include cash balances on hand and cash flows from operations.
Current wording
We assess our liquidity in terms of our ability to generate cash to fund our operating, investing, and financing activities. In doing so, we review and analyze our primary sources and uses of liquidity, including cash balances on hand and cash flows from operations.
Previous 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.
Current wording
Since our inception through March 31, 2026, we have financed our operations primarily through payments received from our customers and sales of equity securities, including the completion of our IPO in September 2023. As of March 31, 2026, our principal sources of liquidity included cash, cash equivalents, and restricted cash totaling $985.3 million, with such amounts held for working capital purposes. Our cash equivalents were comprised of $376.1 million in money market funds.
Previous wording
Our primary cash needs are for personnel-related expenses, selling and marketing expenses, and third-party cloud infrastructure expenses.
Current wording
Our primary cash needs are for personnel-related expenses, selling and marketing expenses, third-party cloud infrastructure expenses, and outbound communication sending costs.
Previous wording
(1)Restricted cash related to our required collateral to fund payroll and credit card obligations in the Australia entity.
Current wording
(1)Restricted cash related to our required collateral to fund payroll and credit card obligations in our Australia entity.
Previous wording
Working capital consists of current assets (including cash, current portion of restricted cash, accounts receivable, current deferred contract acquisition costs, current prepaid expenses and other current assets), less current liabilities (including accounts payable, accrued expenses, current lease liabilities, and deferred revenue, all of which is current).
Current wording
Working capital consists of current assets (including cash, current portion of restricted cash, accounts receivable, current deferred contract acquisition costs, current prepaid expenses and other current assets), less current liabilities (including accounts payable, accrued expenses, current lease liabilities, and current deferred revenue).
Previous 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.
Current wording
Net cash provided by operating activities of $34.3 million for the three months ended March 31, 2026 was primarily attributable to a net income of $9.0 million adjusted for non-cash charges of $78.8 million and net cash outflows of $53.5 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $41.8 million of stock-based compensation expense, $13.2 million of prepaid marketing expense amortization, $9.6 million of amortization related to deferred contract acquisition costs, $7.0 million of operating lease costs, and $6.3 million of depreciation and amortization expense. Net cash outflows from changes in operating assets and liabilities primarily consisted of a $21.0 million increase in deferred contract acquisition costs related to higher sales commissions resulting from our increased revenues, $17.2 million decrease in accrued expenses and accounts payable due to timing of payments, a $12.2 million increase in accounts receivable due to an increase in customer billings, a $5.8 million increase in prepaid expenses and other assets, and a $5.5 million decrease in operating lease liabilities due to payments related to our operating lease obligations. The cash outflow was offset by cash inflows primarily from a $8.2 million increase in deferred revenue resulting from increased billings for subscriptions.
Previous 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.
Current wording
Net cash provided by operating activities of $14.4 million for the three months ended March 31, 2025 was primarily attributable to a net loss of $14.1 million adjusted for non-cash charges of $70.4 million and net cash outflows of $41.9 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $38.3 million of stock-based compensation expense, $13.2 million of prepaid marketing expense amortization, $6.6 million of amortization related to deferred contract acquisition costs, $5.8 million of operating lease costs, and $4.8 million of depreciation and amortization expense. Net cash outflows from changes in operating assets and liabilities primarily consisted of a $18.1 million decrease in accrued expenses and accounts payable due to timing of payments, a $12.6 million increase in accounts receivable due to an increase in customer billings, a $11.0 million increase in deferred contract acquisition costs related to increase in sales commissions resulting from the increase in revenues, a $5.9 million increase in prepaid expenses and other assets, and a $5.4 million decrease in operating lease liabilities due to payments related to our operating lease obligations. The cash outflow was offset by cash inflows primarily from a $11.7 million increase in deferred revenue resulting from increased billings for subscriptions.
Previous 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.
Current wording
Net cash used in investing activities of $15.7 million for the three months ended March 31, 2026 consisted of $11.7 million purchases of property and equipment and $3.6 million of capitalized software development costs.
Previous 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.
Current wording
Net cash used in investing activities of $7.7 million for the three months ended March 31, 2025 consisted of $5.1 million of capitalized software development costs and $2.7 million purchases of property and equipment.
Previous 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.
Current wording
Net cash used in financing activities was $98.8 million for the three months ended March 31, 2026 and primarily consisted of approximately $100.0 million used for payments relating to the accelerated share repurchase and $2.8 million used for the payment of employee tax obligations related to the net share settlement of stock-based compensation awards upon vesting offset by $3.2 million of proceeds from our employee stock purchase plan and $0.7 million of proceeds from the exercise of stock options.
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Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
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 continued our expansion into the
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
Interest income for the nine months ended September 30, 2025 decreased by an immaterial amount compared to the nine months ended September 30, 2024.