Thank you. With that, I would like to turn the call over to Andrew Zilli, Vice President of Investor Relations. You may begin. Thanks. Good afternoon, and thanks for joining Klaviyo's first quarter 2025 earnings call. Our earnings press release, investor presentation, SEC filings, and a replay of today's call can be found on our IR website at investors.klaviyo.com. With me on the call today are Andrew Bialecki, Co-founder and CEO, and Amanda Whalen, CFO. As a reminder, our commentary today will include non-GAAP measures. Reconciliations to the most directly comparable GAAP measures can be found in today's earnings press release or earnings release supplemental materials, which can be found on our investor relations website. Additionally, some of our comments today contain forward-looking statements that are subject to risks, uncertainties, and assumptions, which could change. Should any of these risks materialize, or should our assumptions prove to be incorrect, actual company results could differ materially from these forward-looking statements. A description of these risks, uncertainties, and assumptions, and other factors that could affect our financial results are included in our SEC filings, including our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. Except as required by law, we do not undertake any responsibility to update these forward-looking statements. With that, I'll now turn it over to Andrew. Thanks, Zilli, and thank you all for joining us today. Klaviyo delivered a strong start to 2025 with Q1 revenue of $280 million, representing 33% year-over-year growth. We now empower over 169,000 customers worldwide, from individual entrepreneurs to global enterprises, to build smarter digital relationships. We are a must-have omnichannel platform for businesses looking to connect with their consumers in a meaningful way and drive revenue. Our performance once again proved out three defining themes for Klaviyo. First, we are a growth company, and we are executing well on our strategy to deliver sustainable, efficient, long-term growth with notable momentum growing in the mid-market and above and expanding internationally. Second, our vertically integrated data-first approach with the powerful embedded Klaviyo Data Platform and fast pace of innovation are core differentiators. Third, Klaviyo is uniquely positioned to redefine the next era of consumer engagement as the only CRM built for B2C businesses. The future of marketing is more personalized, but companies can only deliver on that if they know who their consumers are and where to best reach them. With B2C CRM, we've brought together multichannel marketing automation, customer service, and marketing analytics onto one AI-powered data platform. This allows companies to take action on their data and build long-term loyal consumer relationships across every touchpoint. B2C CRM positions 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 solution that unifies marketing, service, and analytics. That's more personalization and less costly service interactions, delivering better outcomes for both consumers and brands. Klaviyo Marketing combines our messaging channels with campaigns, flows, forms, reviews, and more. It remains at the core of our platform, and in Q1, our team delivered several new features that leverage data and AI to make it even easier for brands to engage with their consumers across channels. This includes automated campaign follow-up to improve campaign re-engagement, brand voice consistency for email AI to automatically capture and apply unique brand guidelines to AI-generated content, and several new form features to drive better sign-up rates. We also recently introduced custom objects, which allows brands to define their own data structure with fully customizable properties. For example, a restaurant can create an object to capture reservation occasions, allowing them to store that on the consumer profile and leverage it for future engagement opportunities. Currently, in limited availability, this feature is particularly important for larger brands and customers outside of e-commerce. We also launched automated conversations for SMS, which enables our customers to drive more sales with a tailored shopping experience by integrating campaigns and flows into SMS conversations. This enables our customers to collect more information from their consumers and use that information to provide product recommendations, making the interactions more engaging and personalized. Our commitment to innovating across our platform remains core to why a diverse set of customers choose Klaviyo. In Q1, we signed new or expansion deals with companies of all sizes, including Quip, Burt's Bees Baby, Mark Fisher, Kendo Beauty, and Features. We also power many of the fastest-growing companies in the consumer space. Bain recently released their 2025 Insurgent Brands list, made up of companies with more than $25 million of annual revenue and growing 10 times their category average. Approximately 70% of the companies on the 2025 list are Klaviyo customers. Many companies are faced with a common challenge: the complexity brought by multiple-point solutions and older legacy systems that do not integrate together and make it extremely difficult to build lasting consumer relationships. This is driving a secular shift as companies are looking to modernize and consolidate their tech stack to enable a faster and more personalized consumer experience. Our modern vertically integrated platform positions Klaviyo well as companies of all sizes look to consolidate onto a unified data-powered platform. The more complex use cases that often come with larger brands play to Klaviyo's strengths. Our platform can handle the scale, security requirements, and multi-country needs of many larger customers, and our API-first design offers the flexibility to support a wide range of use cases. Our competitive position against the legacy marketing clouds has never been stronger, as evidenced by several notable new mid-market and enterprise customer wins. One great example of this is a deal we signed in Q1 with the Hershey Company. The team was seeking a more modern and intuitive marketing platform for email and SMS for their direct-to-consumer commerce platforms. They also wanted marketing analytics for their Hershey's Chocolate World destination and their shop, Hersheys.com e-commerce platform, and chose Klaviyo as their partner to drive this forward. We also welcomed Belkin, a leading consumer electronics brand, to Klaviyo in Q1. The amount of manual development work required by their legacy marketing cloud was slowing down the marketing team's efforts. Belkin chose Klaviyo's marketing platform to help them improve their user experience, unlock more one-to-one personalization options, and leverage automations while reducing the time spent by the marketing team operating in the platform. We signed a great new deal with Gorjana, a Southern California-based jewelry brand that sells digitally and across retail locations in the United States. They were using a point solution vendor for email and were experiencing several pain points, like issues with geotargeting, having to use a separate vendor for forms, and difficulty with reporting and analytics. They were also going to have to use a standalone CDP to properly analyze their data. They came to Klaviyo for email, SMS, push, and marketing analytics because of the combination of our built-in data platform, our extensive pre-built integration library, and our ability to simplify even their most complex use cases. Internationally, the investments we made in our product and go-to-market are yielding great results. Over the last several quarters, we added several new languages, expanded our SMS channel to new countries, and added more sales reps with local language capabilities, fueling continued international growth in Q1. We saw notable strength in France, Germany, and Spain, each of which delivered more than 100% year-on-year growth in new business in the quarter. In Q1, we signed a new deal with Moose Knuckles, a Canadian luxury outerwear brand. They were seeking a solution to better identify and understand their customers and agility in setting up personalized communications. Without a centralized CRM, they lacked a unified view of in-store and online shoppers. Klaviyo stood out for its intuitive segmentation engine, seamless data ingestion from existing systems, and AI-powered features built throughout the platform. We also expanded our relationship with BAUHAUS, a leading home-improvement chain in Europe. They were using multiple vendors across their Nordics business without a single source of truth. They are consolidating that region onto Klaviyo, leveraging marketing automation and marketing analytics. We're excited to further our relationship with BAUHAUS in the future. We also started working with new customers like My 1st Years, a leading U.K. baby and child brand, and expanded with existing customers like Reebok for their European business. We're also continuing our targeted marketing efforts in specific regions, including our K-Sydney event, which was held today, and our K-London event in June. Many of these wins were driven by our strong and growing partner ecosystem, which continues to expand our reach and functionality. Our recently announced WooCommerce partnership is already exceeding expectations, with new customer adoption across diverse segments in retail, non-retail, and international. In Q1, we also deepened our relationship with major tech platforms like Meta and TikTok through expanded integrations with Klaviyo. Importantly, they are seeing the value of building on the Klaviyo Data Platform to help their customers drive growth and build stronger data-informed relationships. We continue to expand the number of hospitality integrations with the availability of Punchh, a loyalty vendor for restaurants. Before I wrap it up and hand it over to Amanda, let me quickly touch on the current macro environment. We've been talking with a lot of customers and have heard some consistent themes. In general, many of our customers are feeling tentative but optimistic. Many of them have already diversified their supply chain over the last year, and several brands with no exposure to China mentioned they are considering going on the offensive, growing inventory for the holiday season and going after more market share. Klaviyo's importance in both favorable and challenging macroeconomic environments stems from the critical role our platform plays. We help companies retain and engage their existing loyal consumers, and those existing consumers are an important component of every business, regardless of economic cycle. Customers have also told us that consolidating from multiple-point solutions to Klaviyo is a key consideration, as it enables a single source of truth to build personalized, loyal relationships. Building those loyal relationships is absolutely essential, and Klaviyo enables our customers to do exactly that with exceptional and measurable ROI. We have a massive market opportunity ahead of us, and our data-first B2C CRM platform is a key differentiator that positions Klaviyo to redefine consumer engagement. As we look ahead, we are focused on continuing to deliver the innovations that our customers and partners are asking for. This includes further integrating AI throughout the Klaviyo platform, adding more marketing channels, and expanding service use cases. We are well-positioned to be the platform every consumer wants to stand or dive on, from marketing to service to analytics, enabling them to build strong, personalized relationships with each of their consumers. I would like to turn it over to Amanda. Thanks, Andrew. Klaviyo drove a strong first quarter to kick off 2025 as we continue to deliver efficient growth at scale. Revenue grew 33% year-over-year to $280 million, and we delivered a non-GAAP operating margin of 11.6%. We are really pleased with these results. Our first quarter results were continued proof of the value we deliver to customers and reflect the successful execution of our growth strategy. We are adding new customers, growing in the mid-market, expanding with existing customers, and expanding internationally. We ended Q1 with more than 169,000 customers, up 16% year-over-year. This was better than our expectations, as our customer retention was stronger than anticipated following the pricing updates we announced during the quarter and remained consistent with prior quarters. In fact, our customer retention rates coming off the holiday season were consistent with the trends we saw in Q1 last year. Our success in attracting larger customers is evident as we ended the quarter with 3,030 customers with over $50,000 in ARR, up 40% year-over-year, and we now have more than 1,000 customers paying us more than $100,000 in ARR. We continue to see a strong trend of new lands in this cohort, demonstrating the payoff from our investments in the mid-market and above. We delivered a Q1 NRR of 108% in line with last quarter, driven by consistent gross revenue retention, improvement in email expansion, and, to a lesser extent, benefit from the pricing changes. While we do not forecast or guide to this number, we are pleased with the consistency we are seeing. We are continuing to drive progress in our cross-sell motion, and we are seeing more of our larger customers land on Klaviyo with multiple products. In Q1, our SMS penetration within SMB and mid-market customers increased again. We saw strong adoption of our marketing analytics application, and we are seeing a lot of interest from customers for our new Customer Hub service offering. As you heard from Andrew, our investments made towards expanding internationally on both the go-to-market and product fronts are delivering returns as our strong international growth continued in the first quarter. EMEA revenue grew 47% year-over-year, and total EMEA and APAC revenue grew 42% year-over-year. Our Q1 revenue overperformance was driven by broad-based strength. Consistent with our expectations, the pricing updates that went live in February contributed an immaterial amount to first-quarter revenue. We continue to believe that the pricing changes will have a minimal impact on full-year growth rates, and we will only provide further updates if our view changes. Moving on, first-quarter non-GAAP gross margin was 77%, down approximately 3 percentage points year-over-year, primarily due to increased infrastructure costs and the continued growth of our SMS product. A portion of the incremental infrastructure costs supported the expansion of important feature capabilities for larger customers and new verticals, and our ongoing commitment to provide infrastructure to serve businesses of all sizes. Turning to non-GAAP operating expenses. As a reminder, in Q1, we began accruing for our employee cash bonus program on a quarterly basis, resulting in an increase in each line item year-over-year. G&A, as a percentage of revenue, declined year-over-year as a result of smaller one-time items compared to last year. R&D, as a percentage of revenue, also declined due to an increase in capitalized software. Sales and marketing, as a percentage of revenue, increased year-over-year as a result of timing of marketing program spend and incremental investments for B2C CRM. For the first quarter, our non-GAAP operating income was $32 million, representing a non-GAAP operating margin of 11.6%. This came in better than our guidance, primarily as a result of the revenue upside we saw in the quarter. We generated free cash flow of $6.6 million during the quarter, which was better than expected due to the higher collections and timing of payments. As a reminder, we paid out our employee cash bonus program in Q1, which impacted free cash flow. Before turning to guidance, let me briefly discuss the macro environment. While potential tariffs and consumer sentiment are top of mind for our customers and for Klaviyo, thus far, we have not seen a material impact on our business. Klaviyo drives revenue for our customers from their existing consumers, which is typically a highly efficient and profitable growth channel. Should they need to scale back, many customers have told us that retention would be one of the last areas where they would reduce spending. Instead, they would be more likely to pull back on new consumer acquisition costs, such as ad spending. Klaviyo's position as a high ROI must-have revenue generator for brands of all sizes gives us greater stability through a range of economic cycles. Our business performed well in Q1 and remained strong. However, we are also paying close attention to the macro environment and the impact it may have on our business. As a result, our guidance reflects a balance between the strength of our business and the uncertainty of the macro environment. We believe this is a prudent approach as it factors in some potential economic risk. As we look ahead, we remain optimistic about 2025 and beyond. For Q2, we expect revenue of $276 million-$280 million, representing year-over-year growth of 24%-26%, driven by continued strength up market and internationally. We expect second-quarter non-GAAP operating income of $28.5 million-$31.5 million, representing a non-GAAP operating margin of 10%-11%. For the full year 2025, we are raising revenue guidance to $1.171 billion-$1.179 billion for year-over-year growth of 25%-26%. We expect non-GAAP operating income of $133 million-$139 million, representing a non-GAAP operating margin of 11%-12%. In closing, we are off to a strong start this year, and our growth strategy is bearing fruit as we're delivering balanced top and bottom line growth efficiently and at scale. Our position in the market continues to strengthen. We are the only CRM for consumer brands that can power personalized engagement with our marketing automation, customer service, and marketing analytics applications built on top of the Klaviyo Data Platform. This vertically integrated offering is establishing a foundation of sustainable growth for both Klaviyo and our customers. With that, I'll open the call up for Q&A. Operator? Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. We ask that you please limit yourself to one question before returning to the queue. Your first question comes from the line of Raimo Lenschow from Barclays. Your line is open. Perfect. Thank you. And congrats from me. Simple question. You addressed it on the call already a little bit. If you think about uncertain times, AB and Amanda, what have you seen before? We have just had 2022, 2023, where it was a little bit more uncertain. Can you compare kind of what you saw there and customer behavior at the moment that you are seeing there? Thank you. And congrats from me again. Yeah. Thanks for the question, Raimo. The first thing we'll say is we're very happy about the quarter. Thanks to our customers, to Klaviyo for making it all possible. It's because Klaviyo's mission-critical to the businesses that we work with. We're a revenue engine for these businesses, and we help connect them to their most important asset, which is their customers and their existing customers. I think when the economic environment is a little more uncertain, as I've talked to customers in the last few weeks, the last few months, they're doubling down on existing consumer relationships. They know there's very high ROI from our products. They're leaned into that. As the economic cycle kind of waxes and wanes, we built Klaviyo to really be an all-weather company, an all-weather set of products. When businesses are growing, the number of customers, new customers, we can help with acquisition. On the flip side, when it's more challenging, I think a lot of businesses turn back to focusing on their existing customers and those relationships that they already have. Klaviyo is the source of truth for all that. I think we're very happy with where we are. Also, as we've talked to our customers, we mentioned in the opening remarks, our customers are cautious, but they're optimistic because of those relationships they have with their customers and their ability to grow off of that. We've also talked to a lot of businesses, and they're very resilient. Our customer base is very diverse. There's a variety of folks with different business models, different supply chains. I think as collectively, I think we've been there to support them, and we think that they're going to they've been working through this cautiously, but I think they're optimistic about what's ahead. Just to add a couple of points to what AB had to say there. First, as we shared, we're really pleased with the ongoing strength and resilience that we've seen not only in our business, but in our customers as well. We are closely monitoring the key metrics in our business, like customer sales cycle, which remains stable, and KAV, which is continuing to grow. As we think about Klaviyo over multiple economic cycles, it's important to remember that we index to digital relationships, those profiles and relationships that a brand has with their consumers, and not to GMV. Our business tends to experience less volatility, both in good times and in bad, and that's illustrated recently by the trends that we're seeing of KAV growth outpacing GMV growth as our customers focused, as AB said, on those loyal existing customer relationships. From our business perspective, we are focused on controlling the things that we can control and leaning into the strengths that have long defined Klaviyo. This includes, just like AB was talking about, staying close to our customers, investing in strategic growth priorities, and operating the business prudently, just as we always have. Very clear. That's very helpful. Thank you. Our next question comes from a line of Jackson Ader from KeyBanc Capital Markets. Your line is open. Great. Thanks for taking our questions, guys. First one is, can you just give us a sense for maybe your overall exposure or end customers' exposure to either China or other tariff countries in terms of the goods that they sell on their platform that run through Klaviyo? Sure. Thanks for the question, Jackson. There are many different ways to be exposed to China, especially with a customer base that's as large and diverse as ours. It is a bit of a complex situation. As AB mentioned, we've been having many conversations with our customers over the last month. As you might imagine, our customer base sells many diverse products, and because of that, their supply chains are very diverse as well. We've heard from many of them that they've been already diversifying their supply chain away from China over the last several quarters as tariff potential started to emerge. We have also heard from some brands who have no exposure to China, and they are viewing this point in time as an opportunity where they are thinking about doubling down, acquiring increased inventory, and even potentially going on the offensive to win market share. Overall, what they are telling us, as we said earlier, is that they are tentative, but they are really optimistic in this dynamic environment. From our business perspective, we are very confident that we drive high ROI for our customers, and we are essential for both their growth and their retention, which makes us an incredibly important partner to them in both good and challenging macro times. Okay. Great. That is helpful. A quick follow-up. If we think about all the new products that have been launched, whether it's CRM or Customer Hub or certain, what kind of growth or expectation for contribution from those new products are baked into 2025 at this point? Thank you. Yeah. I can take that. The first thing is we haven't baked in a lot of revenue into our guidance and our projections for this year to give ourselves time to tune those products and make sure we've really got them right for customers before we scale them out. I'll tell you, since the launch in February, we broadened out Klaviyo's vision from just marketing and email and SMS to well beyond that, to say, "Hey, what are all the aspects of the customer experience that Klaviyo can help with?" We believe the core three apps for the consumer, for the B2C CRM stack, are marketing, service, and analytics. I can tell you that we launched the first product within our service portfolio, Customer Hub, and that's been in a beta for the last few months. We've got hundreds of businesses using it. It's a way to extend onto your website the customer experience, allow people to log in, get help with past orders, get recommendations, get service, get questions answered. The feedback there has been really strong. I think most importantly, just like our marketing products, we're able to tie back actual attributed revenue, additional sales that customers are seeing from those consumers, those website visitors that are taking advantage of this new functionality. That's the tune of I've talked to a couple of brands where it's generating, these are small, medium-sized businesses that are generating incremental tens of thousands of dollars in sales. They can see the ROI from these new products. What we're excited about is marketing and service. We think about those as the proactive and reactive sides of the customer experience. We're excited to bring those together and show that service can be more than just answering questions, but can actually drive a better engagement so much that it leads to additional sales. We're off to a good start there. We're working on pricing and packaging for that, but critically, the feedback has been really strong. On the analytics side, we launched a marketing analytics product, SKU, in February. That was based on talking to customers and realizing that the analytics that Klaviyo was providing as part of our formerly our CDP product, it's actually applicable to a lot more businesses that were excited to use some of our RFM analysis, some of our funnel analysis to help them figure out which customers were at what stage of the life cycle and connect that directly back into marketing. Again, to drive incremental revenue, right, and it makes the overall ROI of the Klaviyo, their investment in Klaviyo, higher. We realized that wasn't just something for larger enterprise brands, but actually our entrepreneurs, our smaller SMBs, our SMBs also benefit from that. We are very happy with the progress we have made and the sales we have seen for that product in Q1. We expect that is going to be a revenue driver as well. We did not bake a lot of revenue expectation into the year from those new products, but we are excited about the potential they are going to have in 2026 and future years. One thing we are particularly excited about with marketing analytics is, just as AB said, the power of the results that it drives for our customers. One of my favorite stories from the quarter was Cara Cara, a growing B2C brand, longtime Klaviyo email customer. They recently consolidated their tech stack onto Klaviyo, adding SMS and marketing analytics because they wanted to get new insight into which messaging was resonating with which customers. By using this really data-driven multi-channel approach, they were able to achieve 170x ROI in just three months. Over 48% of their Klaviyo revenue came from repeat purchaser segments who they identified using that RFM modeling in marketing analytics. That's great. Really thorough. Thank you very much. Your next question comes from the line of Gabriela Borges from Goldman Sachs. Your line is open. Hey, good afternoon. Thank you. Amanda, just on Jackson's earlier question, is there a way to think about the relative sizing of those two cohorts that you mentioned, the cautiously optimistic diversifying cohort versus the offensive cohort? As you looked at the second half of the year, you mentioned taking into account macroeconomic risk. Maybe just a little bit on your forecasting approach there. When we calculate the math, it feels like the second half revenue guide is about the same as it was before. Just a little bit on how you thought about that. Thank you. Yeah. Great question. As we said, there is an incredible amount of diversity across our customer base, and therefore, not sizing the specifics. As you think about the revenue guidance and the outlook that we have built in, we raised the revenue guidance on the back of strong Q1 performance as well as robust customer demand signals that we are seeing. These conversations that we are having with our customers indicate that they are very clearly focused on retention and growth with their loyal consumers, as well as focused on efficiency, which is exactly where our platform helps them to deliver value. As we looked at the back half of the year, we undertook extensive scenario planning and a deep analysis of our business, just given the macro backdrop. That includes looking closely at trends in operational metrics like customer KAV trends, looking at sales cycle length, all of which have remained consistent through the end of April. Overall, we've got a lot of confidence in the trajectory of the business. While it remains healthy, we're mindful of the current macro environment. We built a healthy dose of prudence into the guidance for the back half of the year that gives us flexibility to adjust for unforeseen risks throughout the year. As we look forward, we will continue to monitor the macro environment, and we will remain agile in responding to any changes that we see out there. We are going to plan to continue to invest behind our growth strategy because we've seen great returns from those investments thus far. We're confident that our platform's value proposition, combined with disciplined approach to execution, positions us really well for continued success. Thank you very much. Your next question comes from a line of Parker Lane from Stifel. Your line is open. Hi, guys. Thanks for taking the question. Amanda, maybe just to stay on the same theme of the prudent guidance in light of the uncertainty out there. When you look at things like SMS attach, international traction, messaging volume, are there any particular areas you feel like would be most sensitive or have been accounted for for greater sensitivity in light of what we're seeing out there? Yeah. It's a great question. In this type of environment where you're seeing lots of uncertainty, we looked at multiple different scenarios. What might happen under multiple different views of the economy, how customers might respond. If anyone has a crystal ball out there, it's fairly challenging to see. We wanted to make sure that we are prepared for a variety of different scenarios. As we've mentioned before, what we've seen in the past in our business is that because we index to digital relationships as opposed to GMV, we tend to have less volatility both on the upside and the downside. That gives us some confidence in what we expect to see in the back half of the year. Maybe I'll add one other thing. As Amanda talked about the ROI of our products, even with SMS, where there is a slightly higher cost basis to our customers, we are able to show the ROI of SMS campaigns, obviously, as well as email campaigns, all this marketing directly in Klaviyo. As long as that ROI continues to be very positive, even if there is a little bit of variance in that, it is so good that we find, as I talk to businesses, they are not constraining budgets so long as they are seeing that performance. That is one of the things that gives us confidence about Klaviyo going forward. As Amanda said, because you are not marketing to customers you do not know and have to acquire, they are customers you already know and are getting to come back. That obviously helps with the ROI. It also means that sort of the budget and the marketing that you can deploy is already somewhat known. It's already in your Klaviyo account. And I think that also gives us some confidence. Got it. Appreciate the feedback. Your next question comes from a line of Brent Bracelin from Piper Sandler. Your line is open. Thank you. Good afternoon. I wanted to go back to the new service and analytics products. AB, what's the sweet spot relative to size of customer that is responding most favorably to the new products? And then, Amanda, could you maybe frame the potential RPU uplift as you see some early customers consolidate the tech stacks? Is it the 10%, maybe 20%, more than 20% uplift to RPU? Just love to hear those two things. Any color there would be helpful. Thanks. Yeah. So I'll touch on each of the two new product categories. Let's take analytics first. We mentioned we actually think that has wide applicability. I mean, there's maybe some subset of our smallest entrepreneurs that are just starting out. They don't have enough data mass to use our marketing analytics product. For the vast majority of Klaviyo customers, we actually think it's a great, it's an easy add-on. It's an easy attach product. We think that will apply to the vast majority of our customers. For service, it's interesting. Customer Hub, we actually think, is applicable to all businesses. It's a way to extend the personalization and use the data that's already in your Klaviyo Data Platform, a way to use that now extended onto your website. That also applies to all market segments. We've designed, it's interesting. We started service really focused on, "Okay, let's work with SMBs and make sure the product market fit is really good there." I think based on, as Amanda talked about, some of the opportunities that we're seeing in the mid-market enterprise, that's making us think harder about how we can make sure that our service products scale to the enterprise more quickly. We think there's a moment right now with service where obviously there's a big focus on automation and how to do more with that, using AI and obviously using the Klaviyo data that backs that and combining that with AI is very powerful. We are really thinking about how we can bring that to a larger swath of our customers faster than just our SMBs. The last thing I'll say is the story of, "Hey, all of the entire consumer experience, you want one brain, one Klaviyo Data Platform, one data platform that undergirds all that. You want all of the applications that interface with your end consumers, our customers' customers. You want all that driven from one comprehensive platform." That resonates a ton with SMBs and actually more than we expected. It resonates a lot with enterprise. We are very much leaning into that opportunity. Yeah, I mean, I talked a little bit about some of the RPU uplift that we're thinking about. Yeah. In terms of the RPU uplift, service as AB mentioned is early days. We are still in beta, so more to come on service and service pricing, both as we approach GA later this year and also as we continue to build out the suite of offerings related to service. Marketing analytics has a nice RPU uplift associated with it. It's a portion of email. It's not necessarily the same RPU uplift that you would see from a product like SMS. One of the wonderful things about both marketing analytics and service is that they are leveraging the same underlying data, the same consumer relationships. In other words, largely the same cost structure associated with our email and data platform. They don't necessarily come with the same per message sending cost that a product like SMS does. Therefore, they also come with a nice gross margin profile that's more akin to what we see in our email plus data product. Helpful color. Thank you. Your next question comes from a line of Arjun Bhatia from William Blair. Your line is open. Perfect. Thank you. Maybe I'll stick to the same theme. In terms of the new solutions, obviously a pretty exciting kind of add-on to the core platform here. When you're thinking about the service solution, AB, I'm curious, for customers, does it necessitate the replacement of some sort of an incumbent solution? Maybe I'm thinking of a Zendesk that might be in there. Or given where you're positioned, can it sit alongside for now? How are you thinking about those dynamics? Then similarly, on the go-to-market side, should we expect this to be a little bit more of a higher touch go-to-market motion, or can you sell these solutions through the low touch self-serve type of approach as well? Thank you. Yeah. Great. Happy to comment on both. We're talking about service. Let's break it into a couple of different products, pieces of functionality that we're building into our K-service product grouping. The Customer Hub that we've released, we actually just think is novel and new. It's a new experience embedded on a business's website. It makes it easy for consumers to log in to see past purchases, past orders, and then get recommendations. There's a marketing element to it, as well as then get asked questions, right? Get help. Interestingly, that help could be more service. Hey, I have questions about the thing I bought." It could also just be more of a marketing sales use case of, "Hey, I'm curious. What size should I buy of this thing that I'm interested in?" That we think is totally novel, and that can sit alongside existing service products. The second thing that we're really focused on is this idea of, "Hey, automating more of those conversations," let's say, right? I think that if you look at it as that as a product category, it's obviously been around for a few years, but it's really leveled up because of AI-native solutions. This is where I think with Klaviyo, we're happy if you want to plug into our Customer Hub. If you want to use something you already have, adopt our Customer Hub first, that's great. We think we have the ability, because of our ability to build really usable products, really scalable products, as well as the fact that we have the source of truth about your customer. Giving that context to our service kind of AI chat agents, that's going to make our product really compelling. In that case, I think there may be a little bit of running side by side, baking things off. A lot of the customers I've talked to said, "Hey, look, if you can consolidate all this together so that there's one consumer experience that spans marketing, service, obviously know who my customers are with your analytics products, that sounds great." I think our customers are looking for this unified set of applications. The second thing around, "Hey, is this going to be higher touch or not?" For service, I think for our SMB customers, again, we take a lot of pride in the quality of the products we build and how adoptable they are without needing to necessarily talk to somebody on the Klaviyo end. I expect a lot of SMBs who are designing workflows and pathing such that they can adopt these all on their own. One of the great parts about our Customer Hub project is it's literally to, after you kind of review the design of it, since it's embedded on your website, it's one click to turn on. It's so fast. It doesn't require any engineering, any coding. It's just easy to turn on right away. I think our service agent will be similar. Now, we expect, similar with marketing, there will be customers that have more questions, that have more complex implementations, data feeds they want to pull in. We're excited to do that. Obviously, we know how to do that with marketing and all the marketing channels we support. We'll provide the exact same great experience for those more mid-market enterprise customers or for folks that need it. Perfect. Very helpful. Thank you. Congrats on a nice start here. Your next question comes from a line of Terry Tillman from Truist. Your line is open. Yeah. Thanks. Hi, AB, Amanda, and Zilli. Congrats on the international traction. It's a single question, but multi-partner. What are you seeing in terms of the international traction in terms of when you're signing new customers? Are they kind of similar personas as how your business has been in the U.S.? Are they buying kind of multiple products at one time? The second part of this is, where are you in actually kind of field sales reps or kind of outbound investments versus harvesting those investments? Thank you. Yep. Yeah. Happy to take this one. Yeah. Terry, I think that's spot on. I think what we found as we've expanded internationally and especially in Europe, very proud of over 40% growth year on year in Europe. Europe is now over 34%. We are international now, 34% of our total business. Yeah. What we are finding is, as we've expanded, added language capabilities, we've added SMS, we've added support in Klaviyos that speak people's native tongues, native languages. That has made it a lot easier to enter some of those large European markets: France, Germany, Spain, all of which we talked about growing at over 100% year on year. The persona is pretty similar. It started out largely as SMBs. We are very excited about that progress. Actually, we think that if you look at, if you kind of compare it to our growth, say, in the U.S., where we also started with SMBs and then growing into mid-market and now enterprise, I think we have the opportunity to do the exact same thing in Europe, just on a faster timeline. We started this year. We made some decisions to make some investments in local sales teams and started to test that. We also launched just last week the full Klaviyo website and experience in German and Spanish and Italian, in addition to French, which we launched last year. We think that is going to lay the groundwork for more growth there. I think we will continue to see that in SMB. I actually think we'll see that even sort of a faster acceleration into the mid-market. Maybe if you looked at Klaviyo's overall growth, where we were same time period if you're in the U.S. Thank you. Your next question comes from a line of Rob Oliver from Baird. Your line is open. Great. Thanks, guys. I appreciate it. I had two, AB, for you. I was wondering if you could give us or frame for us a little bit where we are with the Meta and TikTok integrations on the platform. They both seem like potentially meaningful opportunities, particularly as you continue to fill out the product portfolio at the low to mid-range. Amanda, just a follow-up for you. You had mentioned how you saw better-than-expected retention off of the price increases in the wake of the price increases. Clearly very encouraging. I was wondering if you could just comment relative to kind of why you thought that was and what sort of confidence that gives you guys relative to appetite, not just for additional price increases down the road, but receptivity of additional products from Klaviyo and additional value from Klaviyo. Thanks. Yep. Okay. Great. On Meta and TikTok, if you think about Klaviyo Marketing, obviously our primary focus has been on the direct channels between a business and its end customers, consumers. Email, SMS, things where the business has kind of complete control and direct connection. We're obviously putting a lot of product and engineering investment towards continuing to build out other channels there. We've launched support for mobile applications, also owned and operated by a business. Now, in the last 12 months, we've taken a look at, "Hey, what are other places, digital places on the internet that businesses and consumers are meeting?" Obviously, a big part of that is social platforms, Meta and TikTok. A couple of things that we're doing there. What we've launched in the last few months is better, tighter integrations into the ad networks and some of the shopping capabilities on those platforms. For example, with Meta, on Instagram shops, you can now take some of the reviews and the content that you're collecting from customers, and you can use that not just as social proof in email, in SMS, on your website. You can actually also use that inside of Instagram. It's deepening the connection between Klaviyo and these platforms. That is a way you can look at our reviews, products, functionality, and leveraging those assets beyond just email, SMS, mobile. For TikTok, that is one where we are excited for every social network. They often have a variety of different ad units. One of the things we are excited about is a lot of those advertising networks have a way to not just drive click-through traffic, but actually collect some information about who that end consumer is. For TikTok, they have lead ad units that allow somebody, rather than just acquiring clicks for traffic, you can actually also acquire somebody's name, phone number, email address. Obviously, that inside of Klaviyo is very powerful. It basically gives them a way to collect more subscribers directly from those other platforms. We are going to continue to invest in these social networks, other major internet applications. We're doing, obviously, some work with WhatsApp, building a tighter integration there. I think our primary focus is still on these kind of owned and operated channels like email, SMS, mobile. I think we're going to try to round out our entire marketing portfolio with some of these other channels that we know are important for brands and consumers. To your question on pricing, thank you so much. We were very pleased by the higher-than-expected retention rates that we saw following the February pricing changes because it validates the important role that we play as a must-have revenue-driving platform for brands who are serious about their growth and serious about their retention. The key difference that we saw from pilot into GA was that our team took and applied the learnings from the pilot to get out ahead of and mitigate the churn risks as we moved into GA. We went out and very proactively communicated with customers about the tools and the resources that we had put in place to help them clean up their active profiles, which allows them to more effectively target the right customers and drive high ROI from those highly engaged profiles who remain. The consistent retention in Q1 shows the stickiness of the platform and the value that customers get from having all of their data on Klaviyo's vertically integrated platform, where they can easily take action and build lasting customer relationships. In fact, in some cases, we have already seen customers who left Klaviyo earlier in the year because of profile enforcement coming back to us because of the value and the ease of use of our platform. To your question on new products and how this fits in as we think about pricing going forward, as we mentioned last quarter, these changes that we made in February are very important because they anchor the pricing in the value of the consumer profile and the power of the data that it contains. There are also, if you recall, were some parts of it that reduced pricing friction for our customers so that Klaviyo can be as easy to buy as we are easy to use. It's that anchoring on consumer profiles that's really important as we think going forward because consumer profiles are also the driver of pricing for, for instance, our new marketing analytics. Having this change, while it provides very little, minimal, as we said, uplift to revenue, is very important strategically because it provides that foundation for growth in the future. I appreciate all the color. Thank you, guys. Your next question comes from a line of Elizabeth Porter from Morgan Stanley. Your line is open. Great. Thank you so much for the question. The commentary on existing customers and Klaviyo being the last thing that they're willing to cut is really encouraging. I was hoping you just could provide additional color on what you're seeing on more of the new customer top-of-funnel demand side. Could you just talk to what you saw from the growth ads? Is WooCommerce starting to become a bigger contributor to customer acquisition? And just lastly, how top-of-funnel has trended kind of thus far into Q2? Thank you. Yep. Okay. I'll talk through some of what we're seeing on the demand side and the top-of-funnel side. As Amanda mentioned, look, the fact that we have such great retention, which I think then translates into word of mouth from customers, I mean, that's a key part of how we thought about driving demand. I'll give you a quick rundown as to what we're seeing a little bit by a different type of customer. You mentioned for our smallest customers, for the just-starting-out entrepreneurs, we call them, we're actually seeing quite a bit of strength in that cohort. I think we think that's a testament to, again, businesses loving Klaviyo. When they spin up a new venture, they're either using Klaviyo because they've used it in a past life or referring it to friends. That's been something we've really been investing in. We're very excited to see that kind of continued growth in that smaller SMB segment. In our core SMB segment, we continue to see those customers growing with us. Interestingly, there, I think we're seeing increasing demand, both internationally. We knew about that. Also, a little bit more outside of pure retail. Other use cases: travel, hospitality, restaurants, etc. In that core kind of SMB segment, still seeing very good growth there. We mentioned in the mid-market and enterprise, Amanda already talked about measuring deal cycles. We're not seeing any real lengthening there. We're very excited about some of the milestones we've hit. Having over 1,000 customers now at $100,000 in ARR, we think there's a lot of opportunity there. I mentioned how sharing our product vision of this B2C CRM and building it all AI-first from the ground up attached to our Klaviyo Data Platform, so all of these applications work together, that has gotten a lot of folks' attention in that mid-market enterprise segment. I think a lot of folks are excited for us to deliver on that. We do see some good leading indicators in terms of pipeline growth and then, obviously, customer additions. We're clearly early in Q2, so we're not going to specifically disclose metrics related to April. I will say that we look at all of our key operational metrics and indicators on a daily basis. Through the end of April, those remained consistent. We took those trends that we're seeing in the business into account when we were building our outlook. We have really strong confidence in the Q2 guide. Great. Thank you very much. Your next question comes from a line of DJ Hines from Canaccord. Your line is open. Hey, thank you, guys. Congrats on the next quarter. AB, I was hoping you could talk a little bit about how you're thinking about sequencing or prioritizing investment dollars these days. I feel like from the time of the IPO, you've been very explicit. It's kind of new customer acquisition or new logo ads first, then up-market, then international. Now the surface area has greatly expanded with all the new product introductions. Just talk about kind of prioritization of investments these days and where you're focused. Sure. In general, we're going to be a very ambitious company. For us, that means aiming at the biggest opportunities. Where is the place we can drive the most value for customers and not restrict ourselves to just the markets or the products we have today? Let me touch on a couple of things there that I think we are very excited about. The first is what we are doing around machine learning and artificial intelligence. I have talked in the past about the fact that we can help businesses use their data to do better personalization and do that automatically. We actually, increasingly over the last few months, think that opportunity is even larger than we previously thought. I think there's the opportunity to use some of the technology that's come out, the improvements in some of the large language models to actually help businesses automate more of the content creation, even without personalization, and the amount of leveling up that that does. We think that a lot of the businesses that work with Klaviyo, we give them very powerful tools, but they're actually rate-limited by how fast they can dream up and create content. A lot of those barriers are going away. That technological leap, plus the fact that we have all of this data to provide as context into that content creation process, and that we can measure the results and iterate and help businesses improve, we think there's a massive opportunity there. We think that's both an opportunity to strengthen our product-market fit with existing customers, but we also think there's large monetization opportunities because there's incremental value we can provide to businesses. We are putting a lot of focus on that. We already talked about the mid-market and now moving into the enterprise. We think that there's a lot of businesses there, some of which still aren't aware of Klaviyo, that when they find out that Klaviyo exists and that we've built sort of marketing and now other applications with this data-first, AI-first point of view, they're eager to level up. The technologies, the marketing technology from 10 years, 15 years ago, it's not state of the art anymore. They are looking for best-in-breed. We think that we can fill that and do a great job there. We are putting a lot of effort there. Finally, obviously, the B2C CRM, this expansion of new marketing channels as well as these other applications of service and analytics. I think service is a very interesting use case. We think about marketing as kind of the how do you help customers and consumers, remind them what's top of mind in a very personal way. We think the other side of that of when people need help, how are we doing that in a way that answers our question more quickly? We think that's a huge market and very important. All three of those, we think, match our criteria of, hey, the market is very large. When we talk to customers, there's a lot of willingness to try. They want to level up what they're doing. They know AI is this new age. I think we have teams that are very committed, working really hard to build great products and great experiences for all those opportunities. Yep. Very helpful. Thank you. We have time for one more question. Your final question comes from a line of Brett Huff from Stephens. Your line is open. Thanks so much for fitting me in. Appreciate it. Congrats on a nice quarter. Digging in a little bit on international, which we've been excited about. How did international perform relative to your expectations vis-à-vis what's built in the guidance? The thrust of the question is trying to understand, as we look at the raised guidance, which is great, how much of that is being buoyed by international because that seems like it's a net new market you all are going after, right? It's new stuff that maybe has less to do with macro. Thanks for the time. Yeah. Great question. Thanks so much, Brett. The international trends that we're seeing are, as you said, incredibly strong. We made investments last year in launching new languages, in expanding SMS to multiple markets. We're seeing those paid off this year. The fact that I think we're particularly proud of is France, Germany, and Spain each growing their new business in the quarter over 100% year over year, which was 4-10 times faster than those markets were growing last year. It certainly is an important accelerator. It's an accelerator that we continue to invest behind, making investments like AB spoke about earlier. Last year, we launched the product in new languages. This year, we're launching an important part of the customer journey by making local websites in German, Spanish, and Italian. Built into the guidance is an assumption that we're going to continue to see results from those strong investments that we've made. There is also an assumption that we will start to see some benefit that comes through later in the year from some of the investments that we're making now in go-to-market and localization of that customer journey that really helps to build upon the investments that we started last year. Great. Thanks so much. This concludes today's conference call. Thank you for your participation. You may now disconnect.