Illustrative EV/Revenue approach. Assumes growth slows faster than expected (macro/ecommerce + competition), margin expansion under-delivers, and the market assigns a lower multiple. Adds ~$1.0B net cash as a simplification (no traditional debt; lease liabilities exist).

Illustrative. Assumes continued multi-product and international growth plus operating leverage consistent with management's FY28 non-GAAP margin framework.

Illustrative. Assumes Klaviyo becomes a category-defining autonomous B2C CRM suite, upmarket accelerates, and margin expansion approaches/extends beyond long-term targets.

FY25 results validate raised guidance and show continued cash generation while investing in new products (service + AI agents).

Re-rates narrative from high-growth tool to scaling platform with leverage.

Monetization proof that new products (Marketing Agent / Customer Agent / Service) increase ARPC and/or retention (NRR) without hurting margins.

Raises long-term TAM and increases durability of NRR and gross retention.

Continued acceleration in $50k+ ARR customers and larger-deal momentum as the platform broadens into a full CRM suite.

Improves revenue durability and supports multiple expansion.

International revenue continues to grow faster than overall revenue, expanding EMEA/APAC mix and proving repeatable GTM outside the Americas.

Adds a second growth engine and supports management TAM narrative.

A slowdown in ecommerce/consumer brand marketing spend could reduce new customer adds and expansion, pressuring growth and NRR.

Mitigation: Track NRR + new customer adds + upmarket mix each quarter; require large-customer growth to stay resilient in weaker macro.

Competition from larger suites (Salesforce/Adobe/HubSpot) or specialized tools could compress pricing or limit upmarket expansion.

Mitigation: Monitor win rates upmarket, attach rates for new products, and whether NRR holds as customers scale.

Dependence on integrations/partners (notably Shopify ecosystem economics) could raise CAC or affect distribution if terms or platform dynamics change.

Mitigation: Watch disclosures around partner fees/revenue share and diversify the top-of-funnel via other commerce platforms and direct sales.

AI/agentic products may not monetize (or become table-stakes), leading to higher R&D without meaningful ARPC expansion.

Mitigation: Demand evidence of rising ARPC and/or improved NRR tied to Service/Agent adoption within 2-4 quarters of rollout.

Meaningful stock-based compensation and Shopify warrant-related accounting can create dilution and make non-GAAP optics look better than GAAP.

Mitigation: Track share count trends and net dilution (management targets <2.5% by 2028); focus on free cash flow and per-share metrics over time.

Privacy/security incidents or tightening GDPR/consumer data rules could increase compliance costs or reduce data-driven personalization effectiveness.

Mitigation: Track security posture, disclosures, and any step-change in compliance spend; prefer steady gross retention and customer growth as proof of trust.