#1klaviyo#2Disclaimer Klaviyo, Inc. (the "Company" or "we") has filed a registration statement on Form S-1 (File No. 333-274211) (including a preliminary prospectus) with the Securities and Exchange Commission (the "SEC") for the offering to which this communication relates. The registration statement has not yet become effective. Shares of the Company's Series A common stock may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. Before you invest, you should read the preliminary prospectus in that registration statement and the other documents the Company has filed with the SEC for more complete information about the Company and this offering. You can obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies of the preliminary prospectus may be obtained from Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, by telephone at (866) 471-2526, or by email at [email protected]; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014; and Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by telephone at 1-800-831-9146. This presentation and the accompanying oral presentation are not a prospectus and shall not constitute an offer to sell, nor a solicitation of an offer to buy, any of the Company's securities. The information contained in this presentation and the accompanying oral presentation has been prepared solely for informational purposes for you to familiarize yourself with the Company's business. We request that you keep any information we provide at this meeting confidential and that you do not disclose any of the information to any other parties without the Company's and the underwriters' prior express written permission. This presentation and the accompanying oral presentation contain forward-looking statements that involve substantial risks and uncertainties. All statements other than historical factual information are forward-looking statements, including without limitation statements regarding: our strategies, mission, plans, objectives and goals; the market demand for our platform; our ability to efficiently use our capital resources; projections regarding the demand and market size for our platform in the U.S. and globally; growth opportunities and plans for future operations, products and services; our ability to attract new customers and expand our relationships with existing customers; and any other statements that address events or developments that we intend or believe will or may occur in the future. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "shall," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions, although not all forward-looking statements are accompanied by such words. Forward-looking statements are based on assumptions and assessments made by our management in light of their experience and perceptions of historical trends, current conditions, expected future developments and other factors they believe to be appropriate, and speak only as of the date of this presentation. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or other events to be materially different from any future results, performance or other events expressed or implied by the forward-looking statements. Given these uncertainties, you should not place undue reliance on forward-looking statements. Our actual future results, performance or other events may be materially different from what we expect. Important factors that could cause actual results, performance or other events to differ materially from our expectations include our expectations regarding our revenue, expenses, and other operating results; our ability to acquire new customers and grow our customer base; our ability to successfully retain existing customers and expand sales within our existing customer base; our ability to increase usage of our platform and upsell and cross-sell additional products and communications channels; our ability to move up market and address enterprise and other larger customers; launching new products and adding new product capabilities; future investments in developing and enhancing our platform and our business; our expectations regarding our ability to expand internationally; our ability to add more use cases to our platform and increase our presence in other verticals; our anticipated capital expenditures and our estimates regarding our capital requirements; the estimated size of our addressable market opportunity for our platform; investments in our selling and marketing efforts and our ability to promote our brand; expectations regarding our integrations with third-party platforms, including Shopify; our ability to compete effectively with existing competitors and new market entrants; our reliance on our senior management team and our ability to identify, recruit, and retain skilled personnel; our growth strategies for our platform and our ability to effectively manage our growth; economic and industry trends and other macroeconomic factors, such as fluctuating interest rates and rising inflation, including the impact on our customer spending and consumer spending generally; and the impact of the COVID-19 pandemic or future global pandemics and other global financial, economic, and political events on our industry, business, and results of operations. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. This presentation and the accompanying oral presentation also contain estimates and other statistical data made by third parties and by the Company relating to market size and growth and other industry data. These data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Market data and industry information used throughout this presentation are based on management's knowledge and experience in the markets in which the Company operates. We also relied, to the extent available, upon management's review of independent industry surveys and publications and other publicly available information prepared by a number of third party sources. All of the market data and industry information used in this presentation involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Although we believe that these sources are reliable as of their respective dates, we cannot guarantee the accuracy or completeness of this information, and we have not independently verified this information. Projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors. These and other factors could cause results to differ materially from those expressed in our estimates and beliefs and in the estimates prepared by independent parties. All third-party brand names and logos appearing in this presentation are trademarks or registered trademarks of their respective holders. Any such appearance does not necessarily imply any affiliation with or endorsement of the Company. Non-GAAP Financial Measures We present non-GAAP operating (loss) income, non-GAAP operating income margin, free cash flow and free cash flow margin as supplemental measures of performance that are neither required by, nor presented in accordance with, accounting principles generally accepted in the United States of America ("GAAP"). We present these non-GAAP financial measures because we believe they are useful to investors in assessing the operating performance of our business without the effect of non-cash items and significant expenses and income that are required by GAAP to be recorded in our consolidated financial statements. In addition, we may use these non-GAAP financial measures to assess our historical and prospective operating performance, to provide meaningful comparisons of operating performance across periods, and to better understand trends in our business. We also use these for internal planning purposes, and to enhance our understanding of our operating performance. Our non-GAAP financial measures may not be comparable to similarly titled measures in other organizations because other organizations may not calculate non-GAAP financial measures in the same manner as we do, thus limiting its usefulness as a comparative measure. Because of these limitations, non-GAAP financial measures should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using non-GAAP financial measures on a supplemental basis. You should review the reconciliations of these non-GAAP measures to the most directly comparable GAAP measure included as an appendix to this presentation and not rely on any single financial measure to evaluate our business. 2023 Ⓒ Klaviyo Confidential 2#3Offering summary Issuer Offering Size Over-allotment Pricing Range Exchange/Ticker Expected Pricing Date Use of Proceeds Lead Bookrunners Joint Bookrunners Bookrunners Co-Managers Klaviyo, Inc. 19,200,000 Shares of Series A Common Stock (60% Primary / 40% Secondary) 15% (100% Secondary) $25.00 $27.00 per share NYSE/KVYO Tuesday, September 19, 2023 Working capital and other general corporate purposes and to fund growth strategies. Klaviyo may also use a portion of the net proceeds to acquire or invest in complementary businesses, products, services, technologies, or other assets. However, Klaviyo is not party to any acquisition or investment agreements at this time. A portion of the net proceeds will be used to satisfy anticipated tax withholding and remittance obligations related to the settlement of outstanding RSUS in connection with this offering. Klaviyo will not receive any proceeds from the sale of shares of its Series A common stock being offered by the selling stockholders. Goldman Sachs, Morgan Stanley, Citigroup Barclays, Mizuho, William Blair Piper Sandler, Truist Securities Baird, Canaccord Genuity, Needham & Company, TD Cowen 2023 Ⓒ Klaviyo Confidential 3#4Who we are#5Tivat Andrew Bialecki Co-founder & CEO Ed Hallen Co-founder & CPO#6Own your data Easy-to-use Coordinated across channels Real-time action Granular segmentation AI/ML-enabled predictive insights Clear attributable value Own your growth#7Aggregate data in one single source of record Put data to use in marketing and other apps Use machine learning and Al to optimize experiences A#8Men Women Location 01 Initial connection Website Intake //TRACKFIRST // The El Award wir the every Blog Q& Be the first to know with Texts Get exclusive early access to new arrivals and back in stock promotions and more. Sign up 02 Revenue-driving engagement Men Email Abandonded cart TRACKFIRST // Women Shop All ecking out new styles? The running classics you had your eyes on are selling out fast. Don't wait, you're one step away from a better run. Check Out Now IN YOUR CART Elite Runner Daily Trainer Classic Charcoal 03 Real-time engagement SMS Returning customer browse TRACKFIRST Hey Andrew Still thinking bout our Elite Runner // Daily Tiner? For 24 hours, we're givira 30% off all shoes, just for you. Check out the link below. https://kavt.io/a/3atPvs 05 Personalization across channels 04 Ongoing engagement //TRACKFIRST // You have great taste! 30% OFF VIP ACCES Email Post purchase replenish Hey Andre Thank you for bein Customer. For being s loyal customer we wanted to give you 30% off with the coupon bow. 70bjd-8394nkf#9Unrefined batch and blast messaging 3 Idea Send to: contacts (all) |·18 Not applicable to most customers: low engagement rates Poor experiences, unsubscribes, brand damage, and lost revenue#10Cobbled together solutions Submit another request if click rates are low 3 Idea Send campaign Review open and click rates OI Request data segmentation Guesswork messaging "Prove value" Receive CSV Manually filter lists 8 Send follow-on messages#11Callan AUTO PAR AB and Ed, 2011#12Data store#13Historical profile data Name Location Preferences Segmentation Status Data store Real-time event data Purchase Reviews Engagement Support Surveys Alerts#14Email > SMS | 1₁} Messaging infrastructure Segmentation Push Personalized experiences Campaigns and flows Data science and predictive analytics Data store 03#15Email SMS Push Messaging infrastructure Personalized experiences Campaigns and flows Data science and predictive analytics eCommerce Segmentation Data store Data Reviews Customer service Customer data platform Reports all In-store experiences#16Profile data#17klaviyo Home 88 Audience Content >Messaging Flows Analytics James Black twebb@jamesbla All profiles Alice Goldsmith [email protected] +1 555 555-5555 Boston, Massachusetts (UTC-6) Details Metrics and insights Metrics $141 Revenue Shopify Profile data Highlighted metrics These are set to highlight important metrics in your account. Selected metrics Metric Lists and segments Active on site, last 30 days S Fulfilled order, last 30 days Viewed product, last 30 days Last 30 days 6 Placed orders $ Shopify SCheckout started, last 30 days All-time $35 Average order value 8% $ Shopify Value 15 1 2 Edit metrics 5 Last 30 days 12% Activity log All events Last 7 days View messages Sent review request by email 57 minutes ago Shipment delivered 2 hours ago 4 Order Eucalyptus Oil for $29.99 4 days ago Open ticket 4 days ago Support Z Closed ticket 4 days ago "Yes the discount applies to our Eucalyptus Oils..." Blog Profile actions V#18Metrics $141 Revenue Highlighted metrics These are set to highlight important metrics in your account. Shopify Selected metrics Profile data Metric Active on site, last 30 days Last 30 days All-time 6 Placed orders Shopify $35 Average order value 8% Shopify Value Edit metrics 15 Last 30 days 12%#19dit metrics er value Cast 30 days 12% Event data Activity log All events Last 7 days Sent review request by email 57 minutes ago Shipment delivered 2 hours ago Order Eucalyptus Oil for $29.99 4 days ago > Closed ticket 4 days ago "Yes the discount applies to our Eucalyptus Oils..."#20Predictive analytics O Higher propensity to respond to SMS#21Profile data Customer since 2021 Event data Purchased running shoes Event data Returned running shoes Predictive analytics Higher propensity to respond to SMS Event data )– Discount code received via SMS Event data Purchased running shoes after receiving discount code Predictive analytics Via SMS#22Profile data Customer since 2021 Event data Purchased running shoes Event data Returned running shoes Predictive analyt Higher propensity to respond to SMS#23analytics pensity to SMS Event data O Discount code received via SMS Event data Purchased running shoes after receiving discount code Predictive analytics Via SMS#24file data O ustomer nce 2021 Event data Purchased running shoes Event data Returned running shoes Predictive analytics Higher propensity to respond to SMS Event da O Discount c received via#25We send the right message at the right time to the right channel, to the right person#26Platform#27300+ Native integrations & open APIs 1.5B+ Daily events Figures are for the last twelve months ending June 30, 2023.#28name birthday loyalty tier first active location Profile data + placed order added product review received email Event data || first active location added product review placed order loyalty tier name Meaningful data#296.9B+ Unified consumer profiles Figure is as of June 30, 2023.#30Klaviyo often becomes the single system-of-record for our custome#31Customer CLV Churn risk Next order dates Benchmarks Tailored strategies#32Benchmarks Tailored strategies Next order dates Xs! սովՉ Customer CLV Predictive analytics $500 Total customer lifetime value (CLV) Historic CLV ($401) Predictive CLV ($99) Average time between orders: Churn risk prediction: 35 days 21% -2 days -2 days#33Churn risk Benchmarks Tailored strategies A7วนอนครทว Next order dates $500 Average time between orders: 35 days -2 days#34Tailored strategies Next order dates Customer CLV Benchmarks Churn risk $500 Churn risk prediction: 21% -2 days#35Al capabilities today guided consumer intelligence Predictive analytics Mia Rivera Viewed wine glasses Viewed wir Mon at 8:55 a.m. Predictive analytics Expected date of next order Total CLV: $1347 Churn risk: 43% Average time between orders: 35 days Average order value: $114.48 A/B testing Beach day must-haves Get our best deals on fetching pet accessories-just in time for summer. Shop now A 21% placed order rate Test results Winning metric Placed order rate +11% Beach day must-haves Get our best deals on fetching pet accessories-just in time for summer. Test size 45% of total recipients Shop now Winner A 95% win confidence Statistically significant B 10% placed order rate Benchmarks Benchmarks Average order value Your company Your peer group Industry median How to improve placed order rate →→ Business performance Average cart size Average order count Average order value Placed order rate Good Good Good A Poor#36Generative and predictive Al Idea generation and execution Content generation Decision making tools#37Easy-to-use automated flows P Yes When someone starts checkout but has not made a purchase Wait 4 hours Predicted churn is greater than 80% Email with coupon Open rate Click rate Active on site 20% Waiting Review 10% Delivered 5% Skipped Live 0 0 1,200 100 No Email without coupon Open rate Click rate Active on site 20% Waiting Review 10% Delivered 5% Skipped Live 0 0 1,200 100#38Easy-to-use automated flows Yes B When someone starts checkout Wait 4 hours Has consented to SMS Send text message No Send email G+C Good Company Good news, Cameron. That print you were eyeing just went on sale for 20% off.#39+] Summer sales email Default Blocks TT Text ⠀⠀⠀ Butt Horizon Universal ::: Generate Image O Campaign Content Subject line * Love is in the air Subject Line Assistant Analyze Style Examples Love is in the air Shop the deals that warm hearts Love means 20% off |00| Split Learn ✓ Keep it short 10 words or less to retain your audience's attention 999 X Preview & test K LOGO PLACE LOVE is in the air Shop the deals that warm hearts. 20% OFF WITH CODE: LOVE20 EXTRA SAVINGS Women's wool coats Use your discount code on already Saved just now Save & exit#40Coordinated engagement across channels Q + Compose Inbox Drafts 311 Email NEW! Blissful Body Serum G+C-GplusCcosmetics.com Unsubsobe Picked for you! Based on other products you enjoy, we bet you'll love our Blissful Silk Body Serum Check it out Wed, May 31,897 AM (2 days ago) Our new Blissful Silk Body Serum. The newest product to our serum line is loaded with botanicals and vitamins to keep your skin looking revitalized all day long. Shop now 4 I SMS G+C Good Company Sarah, you've earned $10 in VIP rewards! Why not try our Blissful Silk Body Serum? Shop now at https://klvt.io/fGu15 G+C Push 9:00 Wednesday, June 8 Order delivered Sarah, your packaged has arrived. Enjoy! now 3#41Coordinated engagement for frictionless cross channel connectivity When someone 7 booked class B-Bo Wait 4 hours Has booked class o previously CPIs VIP customer is consented to SMS SMS Membership Upsell Love spending time with us? Let's make Live Email Get early access to our new collection Thanks for being a VIP Shop the presale is consented to push Push: Membership Upsell Love spending time with us?Lets make Live Emat Membership Upsell Love spending time with us? smake Live is consented to SMS SMS Membership Upsell Love spending time with us? Lasmaket. < SMS is consented to push G+C Sarah, you've earned $10 in VIP rewards! Why not try our Blissful Silk Body Serum? Shop now at https://klv1.io/1Gu15 Push: Membership Upsell Love spending time with us? Let's make Live Good Company Email Memebership Upsell Love spending time with us? Lats make 01 is consented to SMS ESMS Membershihp Upsell Love spending time with us? Lake Live BE G+C Push 9:00 Wednesday, June 8 New Product Sarah, check out our new product! is consented to push Push: Membership Upsell Love spending time with us? Let's make now Email Memebership Upsell Love spending time with us? Let's make t#4214.8% of customers using SMS#43Reviews When someone has submitted a review Review rating is 4 or 5 No How can we help? Yes VHere's 15% off Thanks for your review! We appreciate you! Here's 15% off your next purchase Shop now 09/07/23 Alice G. Skin looks & feels flawless!#447 ↓ When someone has submitted a review Review rating is 4 or 5 Here's 15% off How can we help? How can we help? We noticed that you weren't thrilled- let us know how we can make it right. Get support 7 ↓ When someone is ready to review Consented to SMS Yes Send email Send text message G+C Good Company Hey Alice! What did you think of our Blissful Silk Face Serum? Let us know! https://kavl.io/0/3atPvs Reviews Alice Goldsmith Review submitted Review requested Package has been delivered Ordered face serum for $70 Checkout started Viewed product 9⁹ Our new Blissful Silk Face Serum is a hit! 09/07/23 Alice G. Skin looks & feels flawless! Shop now When someone has submitted a review Review rating is 4 or 5 How can we help? Here's 15% off Thanks for your review! We appreciate you! Here's 15% off your next purchase Shop now 09/07/23 Alice G. Skin looks & feels flawless! ✰✰✰✰✰#45Customer data sources 300+ pre-built integrations Apps In-store purchases Ecommerce website Location Loyalty tier Support ticket detalls Customer data platform Best time to send Personalized product recs Marketing personalization Email & SMS Forms Paid advertising Mobile push Third party systems 菜 Data warehouses Z Customer support Reviews + and more...#46klaviyo Home > Campaigns Flows Reviews BSign-up forms 88 Audience Content Analytics Conversations a CDP Intelligence Transformation Code Syncing Webhooks James Black twebb@jamesbl... C Search Intelligence Audience performance Starred segments Audience performance Track the performance of your starred segments by channel. Conversion metric Placed Order Segment July 2023 Repeat Customers Created July 10, 2023 Typeform Submissions Created May 15, 2023 All Customers New Zealand Created April 2, 2022 Survey Eligible Users Created June 3, 2020 Funnel analysis SMS consented users Created May 30, 2018 Gift Box Subscribers Created December 1, 2021 Repeat Customers Created May 15, 2023 Win-Back Opportunities RFM analysis Date range Last 30 days Last 7 days Last 30 days Week-to-date Month-to-date Custom 82,098 69,277 101,328 21.033 Custom CLV A Size change -4,000 3,920 1,934 -283 293 231 100 Total conversions C Email conversions C 5,913 23,165 9,176 6,198 11,987 20,007 007 4,291 12,292 6,322 3,918 9,871 14,001 C Last updated 2 minutes ago G SMS conversions C 1,622 Plans Support 10,873 2,854 2,280 2,116 6,006 ACC#47klaviyo Home > Campaigns Flows Reviews BSign-up forms 88 Audience Content Analytics Conversations CDP Intelligence Transformation Code Syncing Webhooks James Black twebb@jamesbl... ↑ Q Search Intelligence Audience performance Funnel analysis Compare distribution of customers Customers Added vs. dropped Feb 8, 2023 May 1, 2023 Champions Loyal Recent Needs attention At risk RFM analysis Inactive 0 5K Champions 10K Percent change over time Custom CLV Feb 8, 2023 12,391 (6.34%) May 1, 2023 22,475 (11.5%) 15K 20K 25K 30K 35K 40K 45K 50K C Plans Support 55K 60K#48klaviyo Home > Campaigns Flows Reviews BSign-up forms 88 Audience Content Analytics Conversations a CDP Intelligence Transformation Code Syncing Webhooks James Black twebb@jamesbl... ↑ Q Search Intelligence Audience performance Compare distribution of customers 40K Customers Added vs. dropped Percent change over time Added to group Dropped from group 30K 20K 10K 0 -10K Funnel analysis -20K -30K RFM analysis -40K Champions Custom CLV Loyal Recent Needs attention At risk Inactive C Plans Support#49klaviyo Home Campaigns Flows Reviews BSign-up forms 88 Audience Content Analytics Conversations CDP Intelligence Transformation Code Syncing Webhooks James Black twebb@jamesbl... C Q Search Intelligence Audience performance Funnel analysis Group change over time Filter by group All groups Champions Loyal Recent Needs attention At risk Inactive Never purchased RFM analysis Feb 8, 2023 Custom CLV Champions Loyal D Recent Needs attention At risk Inactive May 1, 2023 Plans Support#50Email Picked for you! Based on other products you enjoy we bet you'll love our Blissful Body Serum Check it out SMS G+C Good Company Sarah, you've earned $10 in VIP rewards! Why not try our Silk Body Serum in Blissful Collection? Shop now at https://klv1.io/fGu15 Push 9:00 Thursday, September 7 G+C B Order delivered Sarah, your packaged has arrived. Enjoy! Reviews Our new Blissful Silk Body Serum is a hit! 09/07/23 Sarah L. Skin looks & feels flawless! ***** Shop now HD#51✔ O Easy implementation Rapid time-to-value Clearly attributable outcomes Klaviyo Attributed Value* *See "Select defined terms" appendix slide for the full definition of Klaviyo Attributed Value (KAV).#52$37B+ 2022 KAV#53Ecosystem#54Our platform completes the direct-to-consumer tech stack COMMERCE PLATFORMS S shopify PrestaShop salesforce Commerce cloud WIX BIGCOMMERCE Magento Commerce WOO COMMERCE nuvemshop OTHER VERTICAL PLATFORMS olo Omindbody Square CUSTOMER PLATFORM klaviyo#55Our partner ecosystem enriches customer offerings and expands reach *Figure is as of December 31, 2022. Commerce platforms S shopify BIGCOMMERCE WOOCOMMERCE mindbody eventbrite amazon prime olo 5,000+ unique marketing agency and consulting partners* klaviyo Developers Other technology partners Google Meta zendesk Qgorgias LOYALTYLION - Okendo yotpo.#56klaviyo X S shopify#5752 Tobi Lütke CEO Shopify#5899 We've done a lot of amazing work together. 41#5999 There's more entrepreneurship because of the work that Shopify and Klaviyo have been doing together. KIFL 1 OL 111#6099 Helping thousands and thousands of businesses all around the world to realize those dreams. ILL#61Harley Finkelstein President Shopify#6299 Klaviyo and Shopify are both deeply passionate about empowering creators and merchants and entrepreneurs.#6399 And we are both very much merchant obsessed.#6420+ unique eting agency consulting partners* klaviyo 300+ integrations#6550+ unique eting agency consulting partners* klaviyo | ∞ Meta#6650+ unique eting agency consulting partners* klaviyo | Google#6720+ unique eting agency consulting partners* klaviyo | zendesk#6820+ unique eting agency consulting partners* klaviyo | Other technology partners#69*Figure is as of December 31, 2022. 5,000+ unique marketing agency and consulting partners* klaviyo#70klaviyo X m#7111 Justin Ragsdale VP of strategy IM Digital#72Commerce platforms hopify BIGCOMMERCE COMMERCE mindbody entbrite amazon prime olo klaviyo Developers#737 </> Integrate with our data platform Run & execute code Power applications Build machine learning models#74Customers#75Large and growing customer base 130K+ customers¹ 1,458 customers spend $50K+ ARR¹,2 94% YoY growth¹ BLENDERS EYEWEAR Martens ܥܘ CASE MATE GHOSTBED MIXTILES NUTRITION WAREHOUSE CITIZEN SABA TAYLOR STITCH GOOD AMERICAN HOMAGE HONEY LOVE LAIRD LALO magnolia SUPERFOOD. Panda Tea DAGNE DOVER GRAZA GRIND Heist PREMIER dermalogica ROCKETBOOK TECOVAS URBANYOM FINE BOOTMAKERS ¹Figures are as of June 30, 2023. 2 See "Select defined terms" appendix slide for the full definition of Annualized Recurring Revenue (ARR). MAISON MIRU Rumpl ZARINA#76klaviyo X LALO DAGNE DOVER CITIZEN#77W Deepa Gandhi Co-founder & COO Dagne Dover#78Richard Cowell VP digital strategy Citizen Watch America#79Michael Wieder Co-founder Lalo#80+] Confirmed booking Actions %20 Logic Email SMS Profile property Push notification Webhook Delay Conditional split Trigger split A/B Testing ⠀ ⠀ -3. Yes When someone booked class Wait 2 hours Is consented to SMS SMS: Membership Upsell Love spending time with us? Lets make it... Live No Saved just now Manage v Email: Membership Up Love spending time with us? Lets ma Live Analytics G+C Good Company Turn on Treat your body and mind by becoming a member today. You'll get unlimited yoga classes, sauna access, and more. Plus, we're offering 15% off membership for a limited time. Explore memberships: goodyoga.com/b39011#81Integrations will help efficiently expand our motion into new verticals Fitness and wellness services O MINDBODY. Online and offline Square Restaurants olo#82Go-to-market#83Efficient inbound motion Word of mouth Agency Partners Platform Partners n Frictionless customer experience $ Rapid time-to-value Self-serve low-touch sales Land with email customer database Automatic upsells platform usage increases, cross-sell SMS Targeted outbound motion Focused on large customers Deliver actionable insights across channels#8414 Month CAC payback period See "Select defined terms" appendix slide for the full definition of Customer Acquisition Cost (CAC) Payback Period.#85Total addressable market#86Large and growing TAM Global TAM U.S. TAM SAM $585M* in LTM revenue *Figure is as of June 30, 2023. $16B $34B $68B#87Growth drivers#88Multiple growth vectors to scale Attract new customers ~25K added YoY Expand sales within existing customer base Increase usage of our platform & expand within customers Cross-sell communication channels (SMS at ~15%)* Expand internationally 31% of revenue from EMEA and APAC for the six months ended June 30, 2023 *Figures are as of June 30, 2023. See "Select defined terms" appendix slide for the full definition of Annualized Recurring Revenue (ARR). Grow our mid-market and enterprise presence 1,458 customers generating over $50,000 of ARR (94% YoY growth)*#89Attract new customers Expand sales within existing customer base Expand internationally Grow our mid-market and enterprise presence Further invest in our platform Expand into new verticals New use cases Developer-led apps#90Team#91Experienced and passionate team ltarput Andrew Bialecki Co-founder, chief executive officer, director, & chairperson Ed Hallen Co-founder, chief product officer, & director Steve Rowland Jennifer Ceran Chano Fernandez Non-employee members of our board of directors President Ping Li Amanda Whalen Chief financial officer Allen Chaves Chief technology officer Landon Edmond Chief legal officer Michael Medici Roxanne Oulman Susan St. Ledger Tony Weisman#922 We are 1% done#93Madeline, Product#94Hansen, Product WWW#95Pat, Operations#96Andrea, Partnerships#97Allie, Customer Success#98Devin, Product#99Ravenna, Legal#100Tyler, Customer Success#101Devin, Customer Success#102Chris, Engineering Klavi#103Business model & financials#104Amanda Whalen CFO AT#105Growing rapidly at scale, in a very efficient manner#106Delivering efficient, rapid growth at scale 12 months ending June 30, 2023 Revenue $585M 55%+YOY growth See "GAAP to non-GAAP reconciliation" appendix slides. Non-GAAP operating income $37M* 6% non-GAAP operating margin*#107Push SMS Email Reviews CDP Products klaviyo Profiles Number of active consumer profiles Our scalable business model Majority monthly subscriptions Tiers based on usage, active consumer profiles, messages sent Unlimited push notifications Multi-lever land & expand#108Strong customer and spend growth Total customers 130K+ 24% YoY growth | Revenue /customer ~$5K 22% YoY growth Customers >$50K ARR 1,458 94% YoY growth#109Rapid revenue growth at scale Last twelve months (LTM) revenue ($M) 55%+ $374 LTM 2Q22 $585 LTM 2Q23#110Rapid revenue growth at scale Last twelve months (LTM) revenue ($M) $76 $90 3Q21 YoY growth 50%+ growth for the last six quarters. 4Q21 $99 1Q22 $109 2022 63% $119 3Q22 57% $145 4Q22 62% $156 1Q23 57% $165 2Q23 51%#111Consistent ARR growth across cohorts 128% Cohort expansion 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 See "Select defined terms" appendix slide for the full definition of Dollar-Based Net Revenue Retention Rate (NRR). 2022 2021 2020 2019 2018 2017 2016 2015 and before#112Healthy gross profit Growing gross profit dollars Non-GAAP gross profit ($M) $55 $60 $72 3Q21 YoY growth See "GAAP to non-GAAP reconciliation" appendix slides. 4Q21 1Q22 $78 2Q22 60% $87 3Q22 56% $108 4Q22 80% $121 1Q23 67% $127 2Q23 63%#113Healthy gross margin Attractive gross margins Non-GAAP gross margin 73% 3Q21 67% 4Q21 73% 1Q22 See "GAAP to non-GAAP reconciliation" appendix slides. 72% 2Q22 73% 3Q22 74% 4Q22 77% 1Q23 77% 2Q23#114Gaining leverage with scale OpEx % of revenue (non-GAAP) G&A R&D S&M 84% 19% 20% 45% 3Q21 95% 19% 21% 55% 4Q21 81% 16% 21% 43% 1022 See "GAAP to non-GAAP reconciliation" appendix slides. 82% 17% 22% 44% 2022 86% 17% 25% 44% 3Q22 68% 16% 20% 32% 4Q22 62% 13% 20% 29% 1Q23 65% 14% 20% 30% 2Q23#115Proven ability to generate operating income and free cash flow -$8 3Q21 -$25 4Q21 (11%) (28%) See "GAAP to non-GAAP reconciliation" appendix slides. Operating income Non-GAAP ($M) -$8 -$12 -$16 $10 $23 $21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 Non-GAAP operating margin (8%) (11%) (14%) 7% 15% 13%#116Proven ability to generate operating income and free cash flow -$19 3Q21 -$15 Free cash flow Non-GAAP ($M) -$24 4Q21 1Q22 See "GAAP to non-GAAP reconciliation" appendix slides. (25%) (17%) (24%) -$14 -$22 $19 $14 Non-GAAP FCF margin (13%) (19%) 13% 2Q22 3Q22 4Q22 1Q23 2Q23 $40 9% 24%#117Long-term operating model Non-GAAP Gross margin R&D (% revenue) S&M (% revenue) G&A (% revenue) Non-GAAP operating margin FCF margin FY21 71% 21% 47% 19% (15)% (13)% See "GAAP to non-GAAP reconciliation" appendix slides. FY22 73% 22% 40% 16% (6)% (9)% Long-term 71-74% 18-20% 23-25% 10-11% 20%+ 25%+#118Klaviyo combines scale, growth, and efficiency#119Elevating businesses to new heights#120Received email for "50% off... Just now Cate Moore Predicted next order Today Fulfilled order Placed order for $... 32 hrs Predicted CLV: $85 Added yel... 36 hrs Information First active Last active 32 hrs Location Status Canary yellow Favorite color 07/02/2021 09/15/2022 IL, US VIP Smart send time Tuesday 8 p.m. tops Short sleeve Top product Clicked SMS Historic CLV: $285 Birthday 02/28/1986 Average rating Refunded order Checkout started 85% Churn risk protection $285 Average order value $365 Total CLV#121T 50% off yellow tops and dresses Shop now-don't miss out!#122Benchmarks Business performance Average cart size Average order count Average order value Status Good ✔ Excellent Good Avg. monthly revenue per recipient $2.15 Revenue G Total revenue: $24M Automations: $16M Campaigns: $8M#123klaviyo#124GAAP to Non-GAAP reconciliation Non-GAAP Gross Profit (in thousands) Gross Profit on a GAAP Basis Add: Amortization of Prepaid Marketing Expense Add: Stock-Based Compensation Expense ¹ 2 Add: Restructuring Expense ² Non-GAAP Gross Profit Revenue Gross Margin Year Ended December 31 2021 $205,944 960 $206,904 $290,640 70.9% 2022 $344,723 129 $344,852 $472,748 72.9% Non-GAAP Gross Margin 71.2% ¹ Represents non-cash share-based awards granted. During the years ended December 31, 2022 and 2021, stock-based compensation expense of $1.5 million and $16.7 million, respectively, related to repurchasing and retiring our common stock which was paid in cash, and thus are excluded from the table above. 2 Represents restructuring costs incurred in connection with a reduction in the Company's workforce announced in March 2023. During the period ended March 31, 2023, stock-based compensation expense of approximately $0.5 million related to the reduction in workforce is excluded from restructuring expense and included in stock-based compensation from the table above. 72.9% Six Months Ended June 30 2022 $150,270 80 $150,350 $208,345 72.1% 72.2% 2023 Ⓒ Klaviyo 2023 $246,624 43 1,156 $247,823 $320,674 76.9% 77.3% Confidential 49#125GAAP to Non-GAAP reconciliation (cont'd) Non-GAAP Operating Expenses (in thousands) Sales and Marketing (S&M) Expense on a GAAP Basis Less: Amortization of Prepaid Marketing Expense Less: Stock-Based Compensation Expense ¹ Less: Restructuring Expense ² Non-GAAP S&M Expense Revenue S&M Expense as a % of Revenue Year Ended December 31 2021 $156,342 20,874 $135,468 $290,640 53.8% 2022 $213,848 22,040 985 $190,823 $472,748 45.2% Non-GAAP S&M Expense as a % of Revenue 46.6% ¹ Represents non-cash share-based awards granted. During the years ended December 31, 2022 and 2021, stock-based compensation expense of $1.5 million and $16.7 million, respectively, related to repurchasing and retiring our common stock which was paid in cash, and thus are excluded from the table above. 2 Represents restructuring costs incurred in connection with a reduction in the Company's workforce announced in March 2023. During the period ended March 31, 2023, stock-based compensation expense of approximately $0.5 million related to the reduction in workforce is excluded from restructuring expense and included in stock-based compensation from the table above. 40.4% Six Months Ended June 30 2022 $91,919 813 $91,106 $208,345 44.1% 43.7% 2023 Ⓒ Klaviyo 2023 $123,970 26,448 179 1,802 $95,541 $320,674 38.7% 29.8% Confidential 50#126GAAP to Non-GAAP reconciliation (cont'd) Non-GAAP Operating Expenses (in thousands) Research and Development (R&D) Expense on a GAAP Basis Less: Amortization of Prepaid Marketing Expense Less: Stock-Based Compensation Expense ¹ Less: Restructuring Expense ² Non-GAAP R&D Expense Revenue R&D Expense as a % of Revenue Year Ended December 31 2021 $65,599 5,900 $59,699 $290,640 22.6% 2022 $104,077 1,230 $102,847 $472,748 22.0% Non-GAAP R&D Expense as a % of Revenue 20.5% ¹ Represents non-cash share-based awards granted. During the years ended December 31, 2022 and 2021, stock-based compensation expense of $1.5 million and $16.7 million, respectively, related to repurchasing and retiring our common stock which was paid in cash, and thus are excluded from the table above. 2 Represents restructuring costs incurred in connection with a reduction in the Company's workforce announced in March 2023. During the period ended March 31, 2023, stock-based compensation expense of approximately $0.5 million related to the reduction in workforce is excluded from restructuring expense and included in stock-based compensation from the table above. 21.8% Six Months Ended June 30 2022 $45,275 634 $44,641 $208,345 21.7% 21.4% 2023 Ⓒ Klaviyo 2023 $68,087 813 3,300 $63,974 $320,674 21.2% 19.9% Confidential 51#127GAAP to Non-GAAP reconciliation (cont'd) Non-GAAP Operating Expenses (in thousands) General and Administrative (G&A) Expense on a GAAP Basis Less: Amortization of Prepaid Marketing Expense Less: Stock-Based Compensation Expense ¹ Less: Restructuring Expense ² Non-GAAP G&A Expense Revenue G&A Expense as a % of Revenue Year Ended December 31 2021 $63,236 7,514 $55,722 $290,640 21.8% 2022 $81,834 4,458 $77,376 $472,748 17.3% Non-GAAP G&A Expense as a % of Revenue 19.2% ¹ Represents non-cash share-based awards granted. During the years ended December 31, 2022 and 2021, stock-based compensation expense of $1.5 million and $16.7 million, respectively, related to repurchasing and retiring our common stock which was paid in cash, and thus are excluded from the table above. 16.4% 2 Represents restructuring costs incurred in connection with a reduction in the Company's workforce announced in March 2023. During the period ended March 31, 2023, stock-based compensation expense of approximately $0.5 million related to the reduction in workforce is excluded from restructuring expense and included in stock-based compensation from the table above. Six Months Ended June 30 2022 $38,372 4,196 $34,176 $208,345 18.4% 16.4% 2023 Ⓒ Klaviyo 2023 $46,657 1,307 1,108 $44,242 $320,674 14.5% 13.8% Confidential 52#128GAAP to Non-GAAP reconciliation (cont'd) Non-GAAP Operating (Loss) Income (in thousands) Operating Loss on a GAAP Basis Add: Amortization of Prepaid Marketing Expense Add: Stock-Based Compensation Expense ¹ Add: Restructuring Expense ² 2 Non-GAAP Operating Income (Loss) Revenue Operating Margin Year Ended December 31 2021 ($79,233) 35,248 ($43,985) $290,640 (27.3%) 2022 ($55,036) 22,040 6,802 ($26, 194) $472,748 (11.6%) Non-GAAP Operating Margin (15.1%) (5.5%) ¹ Represents non-cash share-based awards granted. During the years ended December 31, 2022 and 2021, stock-based compensation expense of $1.5 million and $16.7 million, respectively, related to repurchasing and retiring our common stock which was paid in cash, and thus are excluded from the table above. 2 Represents restructuring costs incurred in connection with a reduction in the Company's workforce announced in March 2023. During the period ended March 31, 2023, stock-based compensation expense of approximately $0.5 million related to the reduction in workforce is excluded from restructuring expense and included in stock-based compensation from the table above. Six Months Ended June 30 2022 ($25,296) 5,723 ($19,573) $208,345 (12.1%) (9.4%) 2023 Ⓒ Klaviyo 2023 $7,910 26,448 2,342 7,366 $44,066 $320,674 2.5% 13.7% Confidential 53#129GAAP to Non-GAAP reconciliation (cont'd) Non-GAAP Free Cash Flow (in thousands) Net Cash Used in Operating Activities Acquisition of Property and Equipment Capitalization of Software Development Costs Non-GAAP Free Cash Flow Revenue Net Cash Used in Operating Activities Margin Non-GAAP Free Cash Flow Margin Year Ended December 31 2021 ($22,738) (13,023) (987) ($36,748) $290,640 (7.8%) (12.6%) 2022 ($23,552) (15,821) (2,424) ($41,797) $472,748 (5.0%) (8.8%) Six Months Ended June 30 2022 ($27,142) (9,965) (941) ($38,048) $208,345 (13.0%) (18.3%) 2023 Ⓒ Klaviyo 2023 $57,026 (769) (2,836) $53,421 $320,674 17.8% 16.7% Confidential 54#130GAAP to Non-GAAP reconciliation (cont'd) Non-GAAP Gross Profit (in thousands) Gross Profit on GAAP Basis Add: Amortization of Prepaid Marketing Expense Add: Stock-Based Compensation Expense ¹,2 Add: Restructuring 3 Non-GAAP Gross Profit Revenue Gross Margin Non-GAAP Gross Margin Q1'21 $42,226 $48,839 500 $42,726 $58,271 72.5% Q2'21 73.3% 29 Q3'21 72.9% 73.0% $55,290 $59,589 120 $66,949 $75,876 Q4'21 72.9% 73.0% 311 $89,544 66.5% Q1'22 $48,868 $55,410 $59,900 $72,232 $78,118 $86,574 66.9% $72,179 $78,091 53 Q2'22 72.7% 27 72.7% Q3'22 $99,322 $109,023 $119,168 71.6% 71.7% $86,549 $107,904 25 72.6% 72.6% ¹ Represents non-cash share-based awards granted. Stock-based compensation expense of $1.5 million for the quarter ending December 31, 2022 related to the cancellation of an executive's unvested RSUS outstanding for which the service-based vesting condition was satisfied but the liquidity-based vesting condition was not, which was paid in cash, and thus is excluded from the table above. This is included within general and administrative expense. Q4'22 2 Represents non-cash share-based awards granted. Stock-based compensation expense of $16.7 million related to repurchasing and retiring our common stock was paid in cash, thus excluded from the table above. 3 Represents restructuring costs incurred in connection with a reduction in the Company's workforce announced in March 2023. During the period ended March 31, 2023, stock-based compensation expense of approximately $0.5 million related to the reduction in workforce is excluded from restructuring expense and included in stock-based compensation from the table above. 24 Q1'23 74.3% 74.3% $119,514 $127,110 26 1,156 $145,235 $156,088 $107,928 $120,696 $127,127 76.6% 77.3% 2023 Ⓒ Klaviyo Q2'23 17 Confidential $164,586 77.2% 77.2% 55#131GAAP to Non-GAAP reconciliation (cont'd) Non-GAAP Operating Expense (in thousands) Sales and Marketing (S&M) Expense on a GAAP Basis Less: Amortization of Prepaid Marketing Expense Less: Stock-Based Compensation Expense ¹,2 Less: Restructuring 3 Non-GAAP S&M Expense Revenue S&M Expense as a % of Revenue Non-GAAP S&M Expense as a % of Revenue Q1'21 $35,949 $28,414 $24,715 $58,271 Q2'21 $11,234 $1,200 $6,515 61.7% 42.4% Q3'21 42.4% $66,949 $75,876 40.6% Q4'21 53.7% 45.1% $40,723 $51,256 $43,865 $48,054 $61,482 $60,447 $60,613 $1,925 $89,544 Q1'22 $27,214 $34,208 $49,331 $43,163 $47,943 $52,570 57.2% 55,1% $702 Q2'22 44.2% $111 43.5% Q3'22 $99,322 $109,023 $119,168 44.1% 44.0% $96 $8,816 $13,224 $13,224 51.6% 44.1% Q4'22 ¹ Represents non-cash share-based awards granted. Stock-based compensation expense of $1.5 million for the quarter ending December 31, 2022 related to the cancellation of an executive's unvested RSUS outstanding for which the service-based vesting condition was satisfied but the liquidity-based vesting condition was not, which was paid in cash, and thus is excluded from the table above. This is included within general and administrative expense. 2 Represents non-cash share-based awards granted. Stock-based compensation expense of $16.7 million related to repurchasing and retiring our common stock was paid in cash, thus excluded from the table above. ³ Represents restructuring costs incurred in connection with a reduction in the Company's workforce announced in March 2023. During the period ended March 31, 2023, stock-based compensation expense of approximately $0.5 million related to the reduction in workforce is excluded from restructuring expense and included in stock-based compensation from the table above. $76 Q1'23 41.6% $127 $47,147 $45,460 32.5% $1,802 $145,235 $156,088 38.8% 29.1% 2023 Ⓒ Klaviyo Q2'23 $63,357 $13,224 $52 $50,081 Confidential $164,586 38.5% 30.4% 56#132GAAP to Non-GAAP reconciliation (cont'd) Non-GAAP Operating Expense (in thousands) Research and Development (R&D) Expense on a GAAP Basis Less: Amortization of Prepaid Marketing Expense Less: Stock-Based Compensation Expense ¹,2 Less: Restructuring 3 Non-GAAP R&D Expense Revenue R&D Expense as a % of Revenue Non-GAAP R&D Expense as a % of Revenue Q1'21 1,599 $14,643 $14,412 $17,293 $13,044 $58,271 25.1% Q2'21 22.4% 1,393 Q3'21 21.5% 2,204 $66,949 $75,876 19.4% 22.8% Q4'21 19.9% 704 $13,019 $15,089 $18,547 $20,893 $23,748 $89,544 Q1'22 $19,251 $21,227 $24,048 $30,090 $28,712 21.5% 20.7% 334 Q2'22 21.4% 300 $99,322 $109,023 21.0% 22.1% Q3'22 21.8% 298 $29,792 $119,168 25.3% 25.0% ¹ Represents non-cash share-based awards granted. Stock-based compensation expense of $1.5 million for the quarter ending December 31, 2022 related to the cancellation of an executive's unvested RSUS outstanding for which the service-based vesting condition was satisfied but the liquidity-based vesting condition was not, which was paid in cash, and thus is excluded from the table above. This is included within general and administrative expense. Q4'22 2 Represents non-cash share-based awards granted. Stock-based compensation expense of $16.7 million related to repurchasing and retiring our common stock was paid in cash, thus excluded from the table above. 3 Represents restructuring costs incurred in connection with a reduction in the Company's workforce announced in March 2023. During the period ended March 31, 2023, stock-based compensation expense of approximately $0.5 million related to the reduction in workforce is excluded from restructuring expense and included in stock-based compensation from the table above. 298 Q1'23 19.8% 19.6% $35,032 $33,055 $28,414 $31,181 551 3,300 $145,235 $156,088 22.4% 20.0% 2023 Ⓒ Klaviyo Q2'23 262 $32,793 Confidential $164,586 20.1% 19.9% 57#133GAAP to Non-GAAP reconciliation (cont'd) Non-GAAP Operating Expense (in thousands) General and Administrative (G&A) Expense on a GAAP Basis Less: Amortization of Prepaid Marketing Expense Less: Stock-Based Compensation Expense ¹,2 3 Less: Restructuring ³ Non-GAAP G&A Expense Revenue G&A Expense as a % of Revenue Non-GAAP G&A Expense as a % of Revenue Q1'21 1,170 $9,977 $58,271 $11,147 $14,708 $17,637 $19,744 $20,066 19.1% Q2'21 17.1% 403 Q3'21 22.0% 3,225 $66,949 $75,876 21.4% Q4'21 23.2% 19.0% 2,716 $89,544 Q1'22 $14,305 $14,412 $17,028 $15,979 $18,197 $20,537 22.0% 19.0% 4,087 Q2'22 20.2% 16.1% 109 Q3'22 $99,322 $109,023 $119,168 $18,306 $20,640 $22,822 $22,991 $23,666 16.8% 103 16.7% 17.3% 17.2% ¹ Represents non-cash share-based awards granted. Stock-based compensation expense of $1.5 million for the quarter ending December 31, 2022 related to the cancellation of an executive's unvested RSUS outstanding for which the service-based vesting condition was satisfied but the liquidity-based vesting condition was not, which was paid in cash, and thus is excluded from the table above. This is included within general and administrative expense. Q4'22 2 Represents non-cash share-based awards granted. Stock-based compensation expense of $16.7 million related to repurchasing and retiring our common stock was paid in cash, thus excluded from the table above. 3 Represents restructuring costs incurred in connection with a reduction in the Company's workforce announced in March 2023. During the period ended March 31, 2023, stock-based compensation expense of approximately $0.5 million related to the reduction in workforce is excluded from restructuring expense and included in stock-based compensation from the table above. 159 Q1'23 15.7% 1,119 $22,663 $20,764 15.6% 1,108 $145,235 $156,088 14.7% 13.3% 2023 Ⓒ Klaviyo Q2'23 188 $23,478 Confidential $164,586 14.4% 14.3% 58#134GAAP to Non-GAAP reconciliation (cont'd) Non-GAAP Operating (Loss) Income (in thousands) Operating Loss on a GAAP Basis Add: Amortization of Prepaid Marketing Expense Add: Stock-Based Compensation Expense 1,2 Add: Restructuring ³ 3 Non-GAAP Operating Income (Loss) Revenue Operating Loss Margin Non-GAAP Operating Margin Q1'21 14,503 Q2'21 (33.5%) Q3'21 3,025 12,064 ($19,513) ($8,695) ($20,363) ($30,662) ($12,979) ($12,317) ($25,663) (13.0%) (8.6%) (8.5%) Q4'21 (26.8%) (10.9%) 5,656 Q1'22 (34.2%) (27.9%) Q2'22 5,176 Q3'22 547 8,816 522 ¹ Represents non-cash share-based awards granted. Stock-based compensation expense of $1.5 million for the quarter ending December 31, 2022 related to the cancellation of an executive's unvested RSUS outstanding for which the service-based vesting condition was satisfied but the liquidity-based vesting condition was not, which was paid in cash, and thus is excluded from the table above. This is included within general and administrative expense. Q4'22 2 Represents non-cash share-based awards granted. Stock-based compensation expense of $16.7 million related to repurchasing and retiring our common stock was paid in cash, thus excluded from the table above. 3 Represents restructuring costs incurred in connection with a reduction in the Company's workforce announced in March 2023. During the period ended March 31, 2023, stock-based compensation expense of approximately $0.5 million related to the reduction in workforce is excluded from restructuring expense and included in stock-based compensation from the table above. ($4,077) 557 $20,775 ($5,010) ($5,670) ($8,299) ($25,006) ($7,803) ($11,770) ($16,325) $9,704 $23,291 $99,322 $109,023 $119,168 $145,235 $156,088 $164,586 $58,271 $66,949 $75,876 $89,544 (13.1%) (11.3%) (21.5%) (2.8%) (7.9%) (10.8%) (13.7%) Q1'23 13,224 13,224 $878 6.7% 1,823 7,366 0.6% 14.9% 2023 Ⓒ Klaviyo Q2'23 $7,032 Confidential 13,224 519 4.3% 12.6% 59#135GAAP to Non-GAAP reconciliation (cont'd) Non-GAAP Free Cash Flow (in thousands) Net Cash Used in Operating Activities Acquisition of Property and Equipment Capitalization of Software Development Costs Non-GAAP Free Cash Flow Revenue Net Cash Used in Operating Activities Margin Non-GAAP Free Cash Flow Margin Q1'21 (5,451) Q2'21 (176) Q3'21 (166) ($3,978) $10,478 ($17,140) ($12,098) ($19,421) ($7,721) ($17,324) (486) Q4'21 $58,271 $66,949 $75,876 (16.5%) 11.0% (6.8%) 15.7% (22.6%) (2,936) (1,577) (3,059) (4,004) (5,961) (4,427) (1,429) Q1'22 (159) Q2'22 (218) (13.5%) Q3'22 (723) (585) Q4'22 ($9,605) $7,376 ($19,203) ($15,316) ($23,643) ($14,405) ($22,336) $18,587 $13,921 (19.6%) (7.1%) (14.5%) $20,914 $15,552 (25.3%) (17.1%) (23.8%) (13.2%) (18.7%) Q1'23 $89,544 $99,322 $109,023 $119,168 $145,235 $156,088 (898) (1,306) (325) 14.4% 12.8% 10.0% 8.9% 2023 Ⓒ Klaviyo Q2'23 $41,474 (444) (1,530) $39,500 Confidential $164,586 25.2% 24.0% 60#136Select defined terms Annualized Recurring Revenue: We define Annualized Recurring Revenue, or ARR, for any date of determination, as the annualized value of existing paid subscriptions, which we calculate by taking the Monthly Recurring Revenue as of that date of determination and multiplying that Monthly Recurring Revenue by twelve. Customer Acquisition Cost Payback Period: We define our Customer Acquisition Cost, or CAC, payback period as the number of months it would take for our non-GAAP gross profit to exceed our adjusted selling and marketing expenses. We calculate our CAC payback period as of any date of determination by first calculating the change in revenue from the date that was twelve months prior to the date of determination to the revenue on the date of determination. We then multiply the change in revenue by our gross margin as calculated over the twelve months preceding the date of determination, but excluding any impact of stock-based compensation expense. We then divide that amount by our selling and marketing expense over the same preceding twelve month period, adjusted to exclude the impact of stock-based compensation expense and amortization of a prepaid marketing expense associated with the Shopify Warrants (as defined herein). We then obtain the quotient of (i) 12 and (ii) the resulting amount to arrive at our CAC payback period. Shopify Warrants means the warrants issued on July 28, 2022, to Shopify Inc. (and certain of its affiliates), to purchase up to an aggregate of 15,743,174 shares of our existing common stock at an exercise price of $0.01 per share, or an aggregate purchase price of approximately $157,432, expiring upon the earliest of (i) July 28, 2032 and (ii) the occurrence of certain liquidation transactions. Customers: We define a customer as a distinct paid subscription to our platform. A single organization could have multiple discrete contracting divisions or subsidiaries or brands each with paid subscriptions to our platform, which would, in general, constitute multiple distinct customers. In some cases at the customer's request, we allow subscriptions under the same parent organization to be consolidated into a single paid subscription in which case such consolidated paid subscriptions would constitute a single customer. We measure our total number of customers as a point-in-time calculation measured as of the end of a particular period. Customers do not include persons or entities that use our platform on a free trial basis. Customers Generating Over $50,000 of ARR: We calculate our number of customers generating over $50,000 of ARR as those customers that have an average ARR of greater than $50,000 over the prior twelve months (or the entire duration of the customer's paying relationship, if it is less than twelve months) as of the date of determination. 2023 Ⓒ Klaviyo Confidential 61#137Select defined terms (cont'd) Dollar-Based Net Revenue Retention Rate: We calculate our Dollar-Based Net Revenue Retention rate, or NRR, by first identifying the cohort of customers as of twelve months prior to the date of determination. We then calculate the ARR from this customer cohort as of twelve months prior to the date of determination, or the Prior Period ARR, and the ARR from this customer cohort as of the date of determination, or the Current Period ARR. Current Period ARR includes any expansion, price increases, and customer subscriptions that are deactivated and subsequently reactivated during the applicable twelve-month period and reflects contraction or attrition over the last twelve months from this customer cohort, but excludes any ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time NRR. We then calculate the weighted average point-in-time NRR as of the last day of each month in the current trailing twelve-month period to arrive at the NRR, with the weightings determined by the total ARR at the end of each period. Klaviyo Attributed Value: We define Klaviyo Attributed Value, or KAV, as the amount of revenue our customers generated through orders placed by consumers within a specified period of time after a message is sent using our platform, which in the case of email is five days from when the message is sent, and in the case of SMS is twenty-four hours from when the message is sent. For email, the message also needs to be opened or clicked in order for the transaction to fall within our definition. KAV excludes orders placed with customers that do not opt-in to sharing data on placed orders, orders for which we cannot determine the currency or value, or unusual orders that appear to us to be anomalies. Since our definition of a customer does not include persons or entities that use our platform on a free trial basis, any revenue generated through orders placed with these persons or entities is also excluded from our definition of KAV. We do not net chargebacks or sales refunds from our calculation of KAV. If a customer leaves Klaviyo, we stop counting that customer's KAV after their last contracted month. KAV does not represent revenue earned by us and does not directly correlate to our revenue or results of operations. We use KAV as an internal estimate to track the value we drive to customers through our platform. Monthly Recurring Revenue: We define Monthly Recurring Revenue, or MRR, as the amount of revenue that we expect to receive in the next monthly period for our existing paid subscriptions, assuming no changes to such subscriptions in the next month. We measure MRR as a point-in-time calculation measured as of a particular date. MRR is a legal and contractual determination made by assessing the contractual terms of each paid subscription. MRR is not determined by reference to historical revenue, deferred revenue or any other U.S. GAAP financial measure over any period. It is forward looking and contractually derived as of the date of determination. 2023 Ⓒ Klaviyo Confidential 62