Klaviyo, Inc. Class A (KVYO) AI Stock Analysis

• Market Cap: $7.40B
• Dividend Yield: N/A
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: 34.29%
• EPS Growth: 86.52%
• Country: US
• Employees: 2,182
• Sector: Technology
• Sector Strength: 69
• Industry: Software - Infrastructure
• EPS (TTM): 0.07
• Shares Outstanding: 90,501,470
• 10 Day Avg. Volume: 2,227,085
• 30 Day Avg. Volume: 1,747,532
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 9.61
• Price to Cash Flow (P/CF): 37.50
• P/FCF Ratio: 37.50
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 14.44
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $46.89
• Price Target Upside: 42.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

Klaviyo's overall score reflects strong financial performance and positive earnings call sentiment, offset by bearish technical indicators and a challenging valuation. The company shows robust revenue growth and cash flow management, but ongoing net losses and declining gross margins pose challenges. The stock's technical indicators suggest potential short-term pressure, while the high negative P/E ratio highlights valuation concerns despite strong business momentum.

Positive Factors

International Growth

Klaviyo is well positioned to drive international growth, with the platform available in 7 languages and SMS functionality in 19 countries.

Market Expansion

The expansion of the Woo Partnership, where Klaviyo is Woo's preferred marketing automation vendor, is expected to drive further expansion in international markets.

Product Expansion

Klaviyo announced two significant new product offerings, Customer Hub and Marketing Analytics, which represent meaningful new high-margin products to cross-sell into the base.

Negative Factors

Competitive Landscape

This fills a void in the market for a cohesive, integrated marketing/service offering, likely putting Klaviyo into more direct competition with vendors like Zendesk, Kustomer, and Intercom.

Cost Concerns

A top concern for investors is the potential for future growth to be more costly and margin dilutive compared to past achievements.

Klaviyo, Inc. Class A Business Overview & Revenue Model

Company Description

Klaviyo, Inc., a technology company that provides a software-as-a-service platform to enable its customers to send the right messages at the right time across email, short message service (SMS), and push notifications. The company offers Klaviyo, a marketing automation platform that sends personalized and targeted messages. Its products include email marketing solution to track every click and purchase to optimize campaigns; SMS, a text marketing solution for ecommerce growth and retention; and mobile push solution that reaches customers directly on their lock screen with mobile push notifications. The company also provides Review solution to get the product reviews; and a customer data platform that helps store, analyze, and use data at scale. It serves individuals, small and medium enterprises, and companies in North America, Western Europe, Canada, the United Kingdom, Australia, and New Zealand. The was incorporated in 2012 and is based in Boston, Massachusetts.

How the Company Makes Money

Klaviyo makes money primarily through a subscription-based revenue model, where businesses pay for access to its marketing automation platform. The company offers tiered pricing plans based on the number of contacts and features used by the customer, which allows it to cater to a wide range of business sizes, from small enterprises to large corporations. Klaviyo also earns revenue through transactional fees associated with its SMS marketing services. Additionally, the company's strategic partnerships with e-commerce platforms like Shopify enhance its reach and customer acquisition, contributing significantly to its earnings.

Klaviyo, Inc. Class A Financial Statement Overview

Summary

Klaviyo, Inc. demonstrates strong revenue growth and solid cash flow management, which positions it well for future profitability. While net losses persist, operational efficiency and strong balance sheet metrics provide a stable foundation for continued growth and potential profitability improvement.

Income Statement

Klaviyo, Inc. has shown impressive revenue growth with a 34.3% increase from 2023 to 2024. The Gross Profit Margin is strong at 76.4% for 2024, indicating efficient cost management. However, the company is still operating at a net loss, with a negative Net Profit Margin of -4.9% and a negative EBIT Margin of -9.0%, highlighting ongoing profitability challenges.

Balance Sheet

The balance sheet is robust, with a high equity ratio of 81.2%, indicating strong financial stability. Debt-to-Equity Ratio is low at 0.05, showing minimal leverage. However, Return on Equity is negative due to net losses, reflecting a need to improve profitability to enhance shareholder returns.

Cash Flow

Cash flow is strong, with a Free Cash Flow growth of 35.2% indicating effective cash management and operational efficiency. The Operating Cash Flow to Net Income ratio is negative due to net losses but shows improvement over previous periods, suggesting enhanced cash-generating capability despite accounting losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
937.46M	698.10M	472.75M	290.64M
	Gross Profit
716.16M	520.21M	344.72M	205.94M
	EBIT
-84.08M	-330.62M	-55.04M	-79.23M
	EBITDA
-66.36M	-293.35M	-40.03M	-73.80M
	Net Income Common Stockholders
-46.14M	-308.23M	-49.19M	-79.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
881.47M	738.56M	385.82M	327.91M
	Total Assets
1.27B	1.09B	629.08M	464.45M
	Total Debt
53.44M	51.58M	62.41M	65.47M
	Net Debt
-828.03M	-686.98M	-323.41M	-262.44M
	Total Liabilities
239.32M	174.27M	1.67B	2.70B
	Stockholders Equity
1.03B	914.78M	-1.04B	-2.24B
Cash Flow		Free Cash Flow
148.73M	110.01M	-41.80M	-36.97M
	Operating Cash Flow
165.96M	119.37M	-23.55M	-22.74M
	Investing Cash Flow
-17.23M	-9.36M	-18.75M	-14.23M
	Financing Cash Flow
-5.80M	242.73M	101.30M	211.26M

Klaviyo, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.83
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KVYO, the sentiment is Positive. The current price of 32.83 is above the 20-day moving average (MA) of 27.77, above the 50-day MA of 32.06, and below the 200-day MA of 35.49, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 60.92 is Neutral, neither overbought nor oversold. The STOCH value of 93.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KVYO.

Klaviyo, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KVYO	66 Neutral	$7.40B	―	-4.74%	―	34.29%	86.52%
MDB	66 Neutral	$13.17B	―	-6.70%	―	19.22%	28.46%
BASE	65 Neutral	$949.53M	―	-57.86%	―	16.35%	14.27%
S	64 Neutral	$6.22B	―	-17.68%	―	32.25%	20.56%
WEX	60 Neutral	$4.26B	16.03	24.37%	―	0.90%	26.13%
Sector *	60 Neutral	$10.95B	10.52	-7.07%	3.00%	7.30%	-12.04%
CFLT	55 Neutral	$6.75B	―	-34.18%	―	24.11%	21.87%

Klaviyo, Inc. Class A Corporate Events

Klaviyo Achieves Record Sales During Holiday Season

Klaviyo reported record-breaking results during the 2024 Black Friday Cyber Monday period, helping over 157,000 brands achieve exceptional sales, with $3 billion in Klaviyo Attributed Value generated. Consumers prioritized brand loyalty over steep discounts, favoring 10-25% off deals. Klaviyo’s use of AI and SMS marketing strategies led to a 20% year-on-year increase in e-commerce revenue, highlighting the importance of personalized consumer engagement and cross-channel marketing for sustained growth.