Klaviyo’s stock dropped 32.4% after the quarter as investors reacted to signs of notable deceleration and cautious outlook concerns, particularly in growth momentum despite solid revenue gains and margin expansion.

• Revenue grew 28% year-over-year to $358 million, reflecting continued top-line expansion.
• Non-GAAP operating margin improved to over 16%, the highest in the company’s history, indicating ongoing margin discipline.
• Customer count surpassed 196,000 brands, with a record number of multimillion-dollar ARR deals closed.
• Largest customers’ revenue (GMV) grew roughly 2x faster than the broader market, highlighting strength with marquee clients.
• Despite these positives, management’s remarks and the steep stock decline suggest investors are concerned about slowing growth dynamics and a cautious outlook not fully offset by margin gains or product innovation.