Last week Klaviyo reported Q3 earnings and while everything was not 100% rosy, there is a lot to like:

* A well-regarded product suite.

* 34% total revenue growth y/y. EMEA growing 45% y/y. (!!)

* An enviable > 110% Net Revenue Retention rate.

* SMS adoption going well -- 80% of top 50 customers are using SMS.

* An increasingly multi-product portfolio.

* A growing third-party ecosystem of over 400 technology connections.

And oh, did I mention this other key fact?

* Klaviyo has a big slow competitor to take massive share from in Salesforce.

That is what I call a massive tailwind. Klaviyo calls it a "durable trend" where a lot of folks are modernizing off old technology.

Hello, Salesforce Marketing Cloud. Did I say hello? I actually meant, goodbye and good riddance.

Some other tidbits:

* The company is expanding its management team with a new Chief Product as well as a Chief Technology Officer. Hope this goes well.

* Mostly competing against single-channel competitors. Attentive has something to worry about here, even though the product is very well-regarded. Consolidation is a strong trend in the market right now.

Economic guidance:

* We are in a value-oriented economy. Especially SMB customers careful about how many emails/SMS they send. Retention is still fantastic for Klaviyo, however, across all segments. Not all SaaS can say this right now.

* Expecting 2025 to look like the second half of 2024.

All in all, a lot to like here. I am guessingWall St expected higher guidance? To be honest I am not a stock watcher. I am a strategy and performance watcher.

Hard to find a lot to worry about in the results. My previous biggest worry for Klaviyo was cross-sell and up-sell. This has been solved from where I sit.

In fact, in a consolidating and modernizing world I see few companies that will benefit more from this trend than Klaviyo -- and that includes Shopify itself.