Good afternoon, everyone. Looks like this is the finale for Tuesday at the TMT Conference here. I'm Michael Berg, the SMID Cap analyst at Wells Fargo, and I'm pleased to be joined by Amanda Whalen, CFO of Klaviyo. Thank you for joining us today, Amanda.
Thank you so much.
I think maybe a good place for us to start here is just for those in the audience who may not be familiar with the Klaviyo story, just give us a quick background of what Klaviyo is, what they do, and what the story of the company is.
Sure. Klaviyo powers smarter digital relationships. We help companies bring together all of the data that they know about their consumers and use that data to power personalized communication with those consumers. That's primarily in the form of email, SMS, mobile push, and reviews as well. We have over 150,000 customers who use Klaviyo, brands all the way from entrepreneurs up through large enterprises who you're very familiar with, companies like Skims, Good American, TaylorMade, Stanley 1913, and Mattel all use Klaviyo. An interesting fact about us is that we were actually started as a database company. We started as a company to help businesses figure out how do you bring together all of these different pieces of information that live in disparate systems that can be hard to connect, to get that information into one place, to then use it to power these smarter digital relationships.
It sounds so easy and so simple, but if you're a business, it actually can be very hard to bring that data together. Another interesting piece of history of Klaviyo is that we were actually a bootstrapped business. Our founders self-funded the business for several years. In fact, at the time when we brought on our first outside capital, we were already profitable, which means that we've always been big believers that you can not only grow rapidly but grow efficiently at the same time, that it's not an either/or choice and so a core part of Klaviyo and how we've grown is that we've always grown with a focus on growing rapidly and efficiently together.
So as the providers of powering these strong commerce relationships, we just had Cyber Monday, we just had Black Friday. You had a press release earlier today, some pretty impressive stats. I'll read them off: 18 billion messages sent, helping over 150,000 brands and $3 billion in KAV. So I guess, what have been your takeaways, key takeaways from the Black Friday, Cyber Monday, shopping spree, as well as maybe help us understand some of these, the strength of these metrics here?
Sure. I'll start with one of the important ones you said, over $3 billion in KAV. So KAV stands for Klaviyo Attributed Value. It is the revenue that we help our customers generate using Klaviyo to power their communications. Because for us, at the end of the day, the most important metric of success is how much revenue, not just open rates or click rates, but dollars of revenue our customers are generating using Klaviyo. And we let them track that with KAV by having very precise attribution that we can track end-to-end, what is the result of when you send a message, how does it track all the way through the system into actually resulting in a purchase from a customer. And over Black Friday, Cyber Monday, as you said, our customers generated over $3 billion in KAV. So it was a fantastic Black Friday, Cyber Monday for them.
Another thing that we saw that was really interesting and very important for our business was that loyalty and brand relationships won out over discounting. Interestingly, what we saw was consistent with last year, almost half of the revenue that our customers generated over Black Friday, Cyber Monday came from repeat loyal customers. These are the ones who businesses have already built relationships with, and then they used Black Friday, Cyber Monday to deepen and strengthen those relationships. The other interesting thing related to that was you might think that the larger a discount, the more successful that discount is, because over Black Friday, Cyber Monday, customers are out there searching for the best deals possible. But what we saw actually was that the best-performing discounts were in the 10%-15% and 20%-25% range. So moderate discounts, certainly meaningful, but not the big ones.
It was consumers looking for a discount from a brand they know and love was really what drove them to the purchase over Black Friday Cyber Monday. Another interesting trend that we saw is that the power of using multiple channels together, so our customers who added SMS onto their Klaviyo account this year generated a 20% higher revenue than they generated last year, so what we're seeing is the power of consolidation, that these multiple channels work better together, and that actually helps them power higher revenue as well.
You talked about how adding SMS had a 20% uplift on average for your customer base year- over- year. Anything else to point to in relative strength or weaknesses compared to last year for this, you know, Black Friday, Cyber Monday, period we just went through?
Yeah. Another couple of interesting trends that we saw, increased usage of our AI capabilities. So we have artificial intelligence built into the product, and primarily our customers were using that to power segmentation, how can I be more targeted and more personalized in communications, and then also using it to power their email generation about how do I build this message from scratch, and then the last thing that I would say that was a big trend that we saw this year was customers integrating more data into Klaviyo so that they can use that to send the right message to the right consumer at the right time. In fact, we saw a 60% year-on-year increase per customer in the number of what we call events, which is basically a piece of data coming in from an integration that the average customer had coming into Klaviyo over last year.
For us, that's an indication that companies are bringing more and more of these disparate pieces of data together, all centralizing them under Klaviyo so that they have one consistent view of that customer across all of the journey and all of the touchpoints that that brand might have with that customer.
So the data is a super interesting topic here. Obviously, you mentioned that Klaviyo was built as a data company first, kind of the data ingestion. Maybe we could, is there a way to simply explain, like, what you guys are doing differently at the data layer that helps SMBs do these sophisticated marketing techniques? Because when I think about, oh, you know, some of the large legacy marketing vendors, it takes a lot of people to do a lot of things.
Yeah.
And then the cost of maintaining that is quite extensive. So is there a simple way of explaining that so the audience can appreciate that value add that Klaviyo is bringing to the SMBs of the world?
Sure. The simplest way to explain it is that generally in databases, you have one of two choices of two different paths that you can go down. You can either build a structured relational database, which was very, very fast, but also depends heavily on having the exact right structure set up from the start. Because any time that you wanna make a change to it, it's gonna be fairly involved and fairly complicated. Or on the other hand, you can build an unstructured database where the data flows in however you want it to, but it can be fairly slow, so you end up with this choice of either I can have speed or I can have flexibility. What Klaviyo gives customers is the best of both.
We intelligently store the data coming in in multiple different ways based on the way that we know that our customers are gonna wanna use that data. So we understand when purchase history is coming in or when information about a customer and their profile is coming in. We have an understanding of what are the most likely ways that that information's gonna be used. We're storing and sorting the data to maximize that use case. What it means is that for our customer, if you're an SMB, you don't have to think about in advance how do I want this data to be structured? We've done that for you intelligently upfront. So all you have to think about is, I know that I sell, you know, if I use an example of one of our customers here on the West Coast, they sell both home goods and apparel.
They say, "I know that I wanna be able to segment my customers into the people who buy couches who are different from the people who buy sweaters. I don't need to think about how I set up my data to do that. I can just tell Klaviyo, create a segment for me of everyone who has either browsed or purchased sweaters in the past, and boom, there you go. Now you can send them a personalized email based on what they're interested in.
So these SMBs that are sending these messages, they can also be a little bit, I don't wanna say finicky, but sensitive to changes in the environment.
Yeah.
We've been in a tough macro for some time here. Meant it, but it appears that 2025 might be the year of rate cuts. How are you guys thinking about potential impacts to your end customers and how they're thinking about reinvesting for growth or incremental spend after a potential, a look at what looks like a really healthy Black Friday, Cyber Monday period?
Sure. You know, what we have seen from our customers this year, and we've been speaking about it all years, some sensitivity to what's happening in the macro environment. We've seen them be more thoughtful and intentional about the messages that they send. They're making sure they're highly targeted, that they're getting great ROI. That actually works really well with Klaviyo because we help them be very personalized and targeted, but it has a little bit of an impact on the expansion that we see with their business, and we've seen them be sensitive to the sizes of their subscriptions. We let our customers change their plans if they want to on a month-to-month basis, and we've seen them be thoughtful in making sure that the size of their plan is aligned to the size of their usage that month.
For now, what we're assuming in our business is that those trends hold steady because we've seen them consistent all year. And, you know, we haven't made any assumptions as we think about the business going forward that that's going to change. But certainly, if we see upside, then that would be a wonderful thing. We love seeing our customers grow their business.
So you mentioned something about the expansion rate. NRR has trended down modestly over the past four, six quarters, most recent quarter at 110, and you've talked about how you expect it to continue to trending down. What, how can we think about NRR without talking specifically about 2025, how that should trend, and what would need to happen for that to inflect upwards?
Sure. I'll break the NRR down into components, starting with what's happening with GRR, so our gross retention rate. Our gross retention rate remains steady and strong. For our customers, once they're on Klaviyo and they are generating KAV and seeing that revenue that comes in from Klaviyo on a regular basis, we are a must-have product. Even when you're in a challenging macro environment, the last thing that you wanna do is turn off something that's helping you generate strong, consistent revenue from your most loyal and most profitable customers. GRR remains consistent and strong. We have seen some pressure on expansion, which we just spoke about, particularly around the expansion of existing customers and their existing products.
And so I think, you know, if you think about what might change that, it would be a shift in the macro environment that helps our customers continue to grow their businesses. And as their businesses grow, they grow with Klaviyo as well. And then the last component of NRR would be the cross-sell. So once we land with one customer expanding across multiple products, historically, our customers have started with our data plus email product that allows them to store profiles with us, which is all the data that they know about a customer, and then send a number of email messages with it, and then historically, they've expanded. Our second product, which we added a few years ago, is SMS, sending SMS messages.
And then more recently, CDP, which gives them more advanced analytic capabilities and reviews, which lets them communicate with customers so that customers can submit reviews about products, and the brands can use that in a very targeted personalized way. We're seeing great progress on the cross-sell side. Our customers are really seeing the power and the benefits of consolidation. And the main reason that they really believe in consolidation is because it helps them create a better journey for their consumers. If you can communicate with a customer seamlessly across SMS and email and know that I sent you one message in the morning and I'm gonna send you another message maybe in the afternoon or maybe tomorrow, not right at the same time, you can help those channels actually be better together and power more revenue than either one of them could individually.
The other benefit that our customers see from consolidation is they see the benefit that comes from having all of their reporting and all of their attribution in one place. So it's really easy to see what are the channels that are being most effective, what's having the greatest impact with customers, where am I generating revenue, and it helps them be more effective in their marketing. So therefore, what we're seeing is great progress on that cross-sell, and as we continue to add new products, I think we're optimistic that over time that cross-sell as a component of expansion can continue to grow.
So there's definitely a lot of good things currently in place and a pipeline ahead. Maybe taking a step back, is there a way or a framework to think about this NRR dynamic in the medium to long term? I know with marketing in particular, there's some fluctuations with macro cycles, but like internally, is there a framework of how you think about how this metric will, trend or in a more steady state environment?
Yeah. You know, we haven't guided to NRR over the long term, but the main puts and takes that I would think about is consistent gross retention. And particularly as we move up into the mid-market and land larger customers, we see improvements in gross retention there. As you might imagine, those customers take longer to land, but once they do, they're even more incredibly sticky. On the cross-sell side, I think as we see, start adding more products, we see the potential to expand there. On the expansion side, there is an interesting dynamic in our business that I think is important to understand. Intuitively, folks often think that as you land larger customers, that should help on the expansion side. And it certainly does as you're cross-selling more products. But those larger customers tend to land at a larger initial sale.
And then because they're at a different point in their growth curve, they may not see as much business expansion over time. And so, you know, over time as we expand into that mid-market and enterprise space, you may actually see it cause a bit of a ceiling there on NRR just because those customers tend to land larger. Now, as a finance person, I like getting the money upfront, and so we appreciate that. We think it's actually a good thing for the business, but it may have an impact on NRR.
So speaking of the upmarket motion, it seems to be going pretty well right now. You're up to over 2,600 upmarket customers. It's a key growth lever. We're talking about the four key growth levers for the Klaviyo business. Help us understand what are the key investments still needed to target that upmarket? What does it look like when you do land one of them? Like, are you displacing something? Is it like, what catalyzes someone to adopt Klaviyo upmarket, or is it simply like, hey, your small customers got big?
Yeah. Increasingly, we are landing large customers who are starting with us with very large deals from the start. So we actually, in our most recent two quarters, had a record number of new lands who began with us at that 50K level and above. Generally, what we're seeing is we're starting to see a flywheel effect from the fact that we are serving so many of these large and well-known brands, brands like Stanley 1913, Mattel, Toys "R" Us, Fruit of the Loom, Perry Ellis, and others. And when brands see companies like me, they understand that this is, you know, a business that Klaviyo can serve. Typically, with many of these businesses, what we're replacing is older legacy technology, technology that might have been around 15 or 20 years.
It's customizable to do almost anything that you would want, but typically to do that customization requires a significant investment of both development resources and of time. And what Klaviyo does is we enable customers to do all of the sophisticated things that they wanna do with their data, but to do it quickly and do it simply. So a great example of that would be Samsonite. Samsonite, the luggage brand, came to us over the summer. They had spent four years with a legacy provider, and in those four years, they had set up four automations. And automation is the bread and butter of marketing automation. It's a triggered message that says, and I'm gonna send the right message to the right customer at the right time based on what they're doing exactly then.
We believe that a brand that size should have anywhere from 8- 12, maybe even more automations set up. But in a legacy environment, that can be really challenging. Each one might take, you know, months, if not even years to get set up. With Klaviyo, you can do it in minutes or weeks.
So that's incredible. All the benefits you can have relative to legacy vendors upmarket. Seems like there's a very healthy runway there left. What are the areas, whether it's on the product side or on the go-to-market side, do you feel like are key to more wholly unlocking that mid-market or enterprise opportunity set?
Sure. Yeah. Our, our product was built from the very beginning to be able to scale. Andrew and Ed, who are two co-founders, worked for a company who served enterprise clients when they began. The reason that we originally targeted SMBs was because of the faster cash conversion cycle, which helps a lot when you're a bootstrapped business. But they always had the vision that we would go on to serve larger and larger customers and therefore built the product to be able to handle that. We continue to evolve that scale. I think scalability is never done, but it, you know, continues to be an investment, but we've been very pleased, and I think the volume that you spoke about of messaging that we saw over Black Friday, Cyber Monday is a great testament to our ability to handle massive amounts of scale.
We launched some important features earlier this year for our mid-market and enterprise customers. One big one was Portfolios, which enables brands who operate multiple brands under one single corporate parent to have separate Klaviyo accounts, but to have consolidated view and reporting of what's happening with the revenue. And that was a really important unlock for us in that mid-market space. The main investments that we're making in mid-market are behind our go-to-market team. We are scaling out our mid-market account executives. We've been hiring there for folks who are quota carrying, feet on the street, out there winning the deals that are coming to us, you know, largely inbound and some outbound, and really helping with that group to continue to evolve the way that we sell. So it's not just a point sale of one person selling into a single point of contact in the marketing team.
It's a more multifaceted sale involving, you know, often the IT team who wants to talk to deliverability and understand the way that the database is built. It is the finance team who wants to understand the ROI. You're bringing in multiple parts of Klaviyo to speak to multiple parts of the customer. And our go-to-market investments have really helped us be able to do that more effectively.
So when I think of that upmarket customer, especially in today's globalized world, I think of, okay, they're probably selling to multiple countries, if not many countries.
Mm-hmm.
International has also been a stated focal point for Klaviyo in terms of expansion and growth in the future. Maybe you can help us talk about where you are in that journey. You just recently announced that you support eight languages in 18 countries, if I, if I'm correct there.
Mm-hmm.
What's the next step in the international journey, and when do you expect some of these large investments that you have made to start bearing fruit?
Sure, so international, we're very excited about. I have a background in international from Walmart International. And what amazed me when I joined Klaviyo was that relative to Walmart, where I came from, which was a $100 billion business, but still only 20% or so of total Walmart revenue, Klaviyo was over 30% international, but we only operated in English and only in U.S. dollars. So it's not like we were making it easy for our customers to do business with it. Many of them are multilingual. They were finding the product because it was an important driver. But we had this hypothesis that if we unlocked local languages and made it easier for customers to work with us, that that would also unlock new pools of demand.
Sure enough, what we saw earlier this year when we launched France, which was our first foray into a new language, and we started offering the product in French, the support in French, doing local marketing in French, France was our highest growing country that quarter. And so, you know, we expect to start seeing the benefits of these new languages that we've launched, fairly quickly because what it helps customers do is come to us in a self-serve manner. They now can see the website, can see local languages. And then as we build on and build around that by adding, you know, local customer examples, by adding a local partner network, by investing in sales folks who can speak local language, that we will continue to see even more growth internationally.
We're gonna dig a little bit deeper into your finance hat here, but when I think about these investments, right, your investment cycle specifically for international and upmarket, among other things. You recently, on the most recent earnings call, talked about margins as a starting point being flat for 2025. How can we think about the cost of the incremental customer acquisition, whether it be for international or upmarket? Does that look different than your core today, and is that gonna be a meaningful headwind to margin expansion? Once again, I know I appreciate the focus on growth for the time for now, but how can we think about those cost dynamics at play?
Sure. I will say, you know, as background on Klaviyo, I spoke about the fact that we were bootstrapped, but it's been one of the wonderful things over the last few years coming in as CFO is that our CEO and our co-founder are very focused on unit economics. I once spent a two-hour car ride with Andrew debating the nuances of how to allocate certain costs in our unit economics calculations. But when we're making investments, we're always looking at what is the payback on this. We tend to have a bias towards CAC payback, just given our history, you know, as being bootstrapped and being really focused on cash efficiency. In the mid-market space, you do see a longer payback period.
And so we balance it out by keeping a tight eye on what's happening with the LTV to CAC in that space and making sure that we're really happy with the investments that we're making there. So in general, when you're seeing us make investments, it's because we've tested them, we've proved them out, and we're happy with the returns that we're seeing and the payback that we're seeing, and then we wanna put more support behind it. So that's very much the case in mid-market where we're seeing, you know, strong LTV to CAC, and then as well in international, where small amounts of changes in investment, like putting the product into a new language, can lead to material improvement and revenue growth.
No, I mean, it sounds like an incredibly healthy path forward. Staying on margins, you also mentioned that you implemented a new cash bonus in Q4 here, and it's gonna move forward in perpetuity. How can we think about that being a part of the building blocks for this flat margin guide for next year? And how big of a percentage of revenue can we think of that bonus being relative to where it is in 2024 moving forward?
Sure. The way to think about the cash bonus is that we've put it in this year. There was a large one-time accrual in Q4 that was a catch-up for this year. And then next year, as we go forward, and we talked about those margin expectations for next year, that that bonus is taken into account when we, when we gave that guidance. And so therefore, that is part of the expectation as we think about next year. Now, for us, the bonus is really strategically important. We had historically been relative to our peers that lighter on cash and heavier on equity. We very much wanted our employees and do want our Klaviyos to be very aligned to the success of growing the company.
However, we were hearing from employees, both existing Klaviyos and new folks who were thinking of joining us, that they wanted a mix of cash and equity. It was more similar to what was in the market, and so we decided the best way to get there was to do it by implementing a bonus program, which we had not had, for our Klaviyos outside of the go-to-market team previously, so that we could increase the portion of cash, but do it in a way that aligned pay with performance, and then importantly, it also allows us to better manage dilution. We take dilution and stock-based compensation very seriously. We see it as a real expense to our business and to our shareholders.
And so as we think about that mix going forward, it will mean more on the cash side, but lighter on the equity side, which will help with dilution going forward.
So we have managed to make it almost 2/3 of the way through and haven't touched on AI yet. I think we deserve a medal for that. On that product note, you, Klaviyo, has recently hired a new CTO and a new CPO. Obviously, Andrew has a big background in technology, or both founders have, technology background. So maybe you can help us understand what each brings to the table in terms of, and how the R&D organization will be focused or, I guess, shifted, and, you know, what are they, how are they thinking about AI in terms of the product roadmap?
Yeah. Great question. We are incredibly excited about both Surabhi and Adil. Surabhi Gupta joining us as Chief Technology Officer, and Adil Wali joining us as Chief Product Officer. Surabhi is joining us most recently from Robinhood. Before that, she was in at Airbnb, and before that, she was at Google. And Surabhi brings a few wonderful things to the table. One, she has experience operating at significant growth and significant scale. If you think about Airbnb and Robinhood, they were at, you know, very significant portions of their growth stage and operating very large teams. So she understands how do you put in place the systems and processes to make engineering teams run really, really well at scale.
She also has great experience on consumer-oriented businesses, which for a business like ours with over 150,000 customers, that ability to really deeply think through the business impact of each engineering and design choice that we're making and how do you optimize that experience to really draw customers through the funnel is incredibly impactful when you're working with many customers at scale, and she's also very focused on making sure that the engineering team continues to deliver on being an incredibly scalable, reliable product for our customer, to being efficient in terms of our usage of resources, particularly around cloud computing, and to building and delivering great products and doing all three at the same time, so incredibly excited about the impact that she's already having on the business.
And then Adil, as Andrew, our CEO, said, you know, with good product, and we continue to be very focused on building great products. You can never have too many cooks in the kitchen. Andrew continues to be heavily involved in product. Ed, our co-founder, does as well. And then Adil brings a wonderful, and very unique background as a serial entrepreneur. In fact, one business that he started, was actually a Klaviyo customer. So he had the experience of building an e-commerce business using Klaviyo. And then the most recent five years spent at Meta leading their fintech business. So he has seen entrepreneur. He brings that very strong entrepreneurial spirit with him and the experience of running product at very, very large scale.
He is helping us think through how do we build and deliver the best products for our customers, be incredibly strategically focused, and think about how do we scale this business going forward.
So now that you have these two wonderful people on board, you already have tons of engineering expertise from the top down. How do you think about the R&D velocity at Klaviyo moving forward? Like, it's already, you know, you've already had SMS take off. These new products are doing well. The platform's expanding rapidly. Can the R&D velocity get better? Can all these, can new features come on board more quickly? Is there a way how you're thinking about that framework there?
Sure. You know, and so I think in any great business, one of the things that makes Klaviyo great is the fact that we are never satisfied. We always want it to be bigger, faster, more efficient, and all three at the same time, and so, you know, we are really excited about the potential to continue to accelerate our R&D, velocity and launch great new products, and you asked about AI. We continue to make investments in AI. Our customers tell us that AI is really important to them in helping their productivity, that if you're a marketer, while Klaviyo, relative to other solutions out there, is so easy in terms of the ability to segment and to set up flows, AI can help make that even faster.
And so we've added natural language AI capabilities for our customers to be able to set up segments and flows using AI. We also have used AI and Generative AI to solve for them the problem of the blank page. I know I need to send an email about a shoe sale this weekend, but I just don't know where to start.
Well, if we have enough data from your business, we can not only give you a sample email about the topic that you wanna email about, we can also give you multiple versions of it, and we can make sure that it is in your brand voice and the way that you uniquely wanna communicate with your customers, which makes the work of the marketer so much easier because rather than having to generate it from scratch, now they can tweak and edit, which makes them so much more productive. But what we're really excited about in AI is not just this productivity enhancement. It's the ability to generate new ideas that make our customers even better at the way that they communicate with their customers. An early example is Forms AI, where a customer can say, "I know I wanna put a form on my website.
Can you tell me the best place in the customer journey to insert that, the best format to use, the best language?" We will automatically test thousands of different versions and come back to you with a recommendation. Our goal is to have, as Andrew, our CEO, likes to say it, if you think of Klaviyo as a video game, we want our Klaviyo AI to be better than at playing the game of Klaviyo than any customer ever could be. We wanna be giving our customers not just helping them optimize the ideas that they already have, but helping them generate and create new ideas that are driving revenue for them.
And so we're really excited about the fact that we have so much data from millions of customer interactions across billions of consumers over the years that gives us a vast proprietary data set that we can use to help customers find those ideas that they wouldn't have had otherwise.
So the value and vision of AI as it pertains to Klaviyo seems quite robust. I have to ask, put your CFO hat on it, how are we gonna monetize this?
In the near term, if you think about the first generation of AI that I talked about, that helps our customers with productivity, we're not monetizing that separately. We are a premium product. We are generally priced higher than our competitors because we believe that we help our customers generate higher revenue and more value. And AI is part of what helps us do that. So it is part of what differentiates us from a competitive standpoint and helps us justify the premium price that we have in the market today. As we get more into these, you know, AI features that will help our customers generate incremental revenue, we'll start to look at how do we monetize that separately and think about how we share in some of that incremental value that we're creating.
Now, is there any sort of gross margin headwind to think about as you incorporate AI into the products given the computing inferencing cost?
In our business, less so than one might expect because the models that we're training, while our proprietary data is quite vast, it is not nearly as large as training a model on the entirety of the internet. And so the relative cost, if it is something that we can use a general model for, we will be using, leveraging general models that have come at a lower cost. And then when we're training proprietary data, it is our proprietary models, it's on our proprietary data, which is a much smaller data set and therefore lower cost.
Now, when I think about the underlying data set, you know, there's Shopify's, there's Walmart's, there's Amazon's in terms of the big commerce vendors. How do you view your, your data set as differentiated to help power these merchants to maximize the value of the Klaviyo platform?
The way that I would think about it is that many of those that you just spoke about, you know, particularly Shopify in the commerce space, is the commerce platform, and for most of our customers, they have two primary anchors in their tech stack. They have their commerce platform, and then they have what we would call their customer platform, so their commerce platform is building their website, handling their payments, you know, helping them get started on their business, think about how do they operate for many of them, you know, cross-border, you name it, their customer platform, and for those businesses, they are building their business by adding new merchants and then monetizing on the payments.
On the customer side of the house with Klaviyo, we're bringing together all of the data that they have about their consumers and thinking about how do I use that to target communication to drive higher revenue so that we not only, you know, see what's happening on your commerce platform, we also see your fulfillment data, we see your loyalty data, we see your reviews information, we see all these different sources of information that really give you a 360-degree view of the consumer and use it to power personalized relationships, and the more personal you can be in your communication, the greater, the stronger that relationship is, and the more revenue you can generate from it.
Amanda, we are out of time here. Flew by.
Thank you.
Thank you so much for your time and insights. It's been lovely hosting, and enjoy the rest of your time here.
Thank you so much. Appreciate it.