Klaviyo (KVYO) executives told investors at Citi's 2026 Global TMT Conference on Tuesday that artificial intelligence is accelerating both product development and customer outcomes across its marketing platform.
The company, founded in 2012 by Ed Hallen and Andrew Bialecki, has grown to a $5.3 billion market capitalization with a gross profit margin of 74%. Hallen, who serves as co-founder and chief strategy officer, emphasized that the firm's long-term durability hinges on delivering measurable customer outcomes quickly.
"What's durable is giving customers what they're trying to achieve, and doing it faster than anyone else," Hallen said.
Customer Agent, the company's AI-driven marketing tool, is growing at 40% quarter-over-quarter, making it the fastest-growing product in Klaviyo's history. Meanwhile, Composer, which launched roughly two months before the conference, had already been adopted by 138,000 customers. Revenue from neither product has yet been included in reported financial results.
Hallen noted that internal AI integration has produced a two-fold improvement in shipping speed for common features, and he cautioned that the impact is likely to be even more significant going forward.
"We've seen a 2X change in how fast we're shipping things," Hallen said. "We really think there's just radical more coming."
Internally, Klaviyo uses AI to automate expense report processing, handle customer requests, answer support queries, produce documentation and manage routine implementation work.
Founded out of a background in large-scale business intelligence software, Klaviyo initially tackled data unification problems for major organizations including Bank of America, Walmart and Starbucks. The company describes itself as the "data source of record" that consolidates information on sales, inventory, staffing and other operational data before layering on revenue-generation channels such as email, SMS, WhatsApp, website personalization and help-desk tools.
Klaviyo's relationship with Shopify is described as symbiotic: Shopify owns the transaction and commerce experience layer, while Klaviyo provides the customer data and personalization layer, including an integration with Shopify's Sidekick app.
On the SMS side, the company is moving toward a more mature pricing model by separating carrier fees from platform pricing. Additional products mentioned include K:Social and K:BOS, the latter being the company's user conference held in Boston.
Analyst sentiment has shifted recently, with 20 analysts revising their earnings estimates downward ahead of the upcoming reporting period. Klaviyo's shares were trading around $18.61, down roughly 5.8%, while the stock carried a P/E ratio of 738. Neither Composer nor Customer Agent revenue has factored into those estimates yet.
Hallen also revealed that the company's internal philosophy remains that it is only "1% done," a mindset he said is especially amplified in the AI era where developers can build faster and deliver more value to customers.
"The core data underneath is just more important than it has ever been," he said.
