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Klaviyo, Inc. Class A (KVYO)
NYSE:KVYO
US Market
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Klaviyo, Inc. Class A (KVYO) AI Stock Analysis

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KVYO

Klaviyo, Inc. Class A

(NYSE:KVYO)

Rating:67Neutral
Price Target:
$38.00
▲(11.67% Upside)
Klaviyo's strong financial performance, particularly in revenue growth and cash flow generation, is a key strength. The positive sentiment from the earnings call, highlighting strategic growth and innovation, further supports the stock's potential. However, challenges in profitability and valuation metrics, along with technical indicators suggesting caution, moderate the overall score.
Positive Factors
Customer Growth
Klaviyo is gaining momentum up market with strong growth in net new customers with significant contributions from customer referrals.
Earnings
Klaviyo is up 11% after reporting results where revenue and EBIT margin exceeded expectations.
Product Expansion
Klaviyo's evolving vision to be a B2C CRM platform, leveraging AI, automation, and its rich data platform, is highly compelling and should fuel continued momentum across all fronts.
Negative Factors
Investor Sentiment
Investor sentiment remains mixed with underappreciated growth initiatives unfolding.
Stock Price Performance
Klaviyo’s share price and valuation have been disappointing since the IPO, remaining flat despite increased revenue estimates.

Klaviyo, Inc. Class A (KVYO) vs. SPDR S&P 500 ETF (SPY)

Klaviyo, Inc. Class A Business Overview & Revenue Model

Company DescriptionKlaviyo, 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 MoneyKlaviyo generates revenue primarily through a subscription-based model. Customers pay for access to its marketing automation platform, with pricing tiers based on the number of contacts in their database and the volume of messages sent. This allows Klaviyo to earn recurring revenue from its clients. The company also offers additional features and capabilities, such as advanced analytics and customized integrations, which can be purchased at higher subscription levels. In addition to its core subscription services, Klaviyo partners with e-commerce platforms and other technology providers to expand its reach and offer integrated solutions, further enhancing its revenue potential. These partnerships are significant in driving customer acquisition and retention, contributing to the company's overall earnings growth.

Klaviyo, Inc. Class A Key Performance Indicators (KPIs)

Any
Any
Total Customers
Total Customers
Indicates the total number of clients using Klaviyo's services, highlighting market penetration and the company's ability to attract and retain users.
Chart InsightsKlaviyo's customer base has shown consistent growth, with a notable acceleration in recent quarters, reaching 167,000 by the end of 2024. The earnings call highlights a strong start to 2025, with over 169,000 customers, driven by international expansion and high customer retention. Despite macroeconomic challenges, Klaviyo's strategic focus on AI-driven capabilities and new product innovations is paying off, as evidenced by significant growth in high-value customers and successful penetration in European markets like France, Germany, and Spain.
Data provided by:Main Street Data

Klaviyo, Inc. Class A Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: 10.85%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
Klaviyo's earnings call reflected a strong quarter with significant revenue growth, successful customer and international expansion, and innovative AI-driven product enhancements. However, challenges in maintaining gross margins due to infrastructure and SMS costs were noted, alongside leadership changes.
Q2-2025 Updates
Positive Updates
Significant Revenue Growth
Klaviyo reported revenue of $293 million, up 32% year-over-year, demonstrating continued momentum in the market.
Strong Customer Growth
The company ended Q2 with more than 176,000 customers, up 17% year-over-year, with strength driven by momentum in entrepreneurial customers.
International Expansion Success
International revenue grew over 42% year-over-year, with EMEA revenue up 47% and APAC growth accelerating.
AI-Enabled Innovations
Launch of new AI-powered capabilities such as the Omnichannel Campaign Builder and channel affinity powered by Klaviyo AI, contributing to better customer engagement and increased ROI.
High Net Revenue Retention
Achieved a Q2 NRR of 108%, in line with the last two quarters, driven by consistent gross revenue retention and expanding product offerings.
Negative Updates
Gross Margin Pressure
Non-GAAP gross margin was 76%, down approximately 2 points year-over-year due to increased infrastructure costs and the growth of the SMS product.
Leadership Changes
Announcement of the retirement of President Steve Rowland, who will be staying on until the end of Q1 next year.
Infrastructure Costs
Increased infrastructure costs impacted gross margin, though efficiencies from these investments are expected in the future.
Company Guidance
During Klaviyo's Second Quarter Fiscal 2025 Earnings Call, the company reported robust financial performance with a revenue of $293 million, marking a 32% increase year-on-year. The call highlighted Klaviyo's strategic focus on sustainable growth, international expansion, and moving upmarket, supported by their vertically integrated AI-driven data platform. Key metrics discussed included a non-GAAP operating margin of 14%, free cash flow of $59 million, and a net revenue retention rate (NRR) of 108%. The company added 7,000 new customers in the quarter, reaching a total of over 176,000 customers, and saw significant growth in its 50,000+ ARR customer cohort, which increased by 38% year-over-year. Klaviyo also emphasized its progress in product innovation, unveiling new features such as the Omnichannel Campaign Builder and channel affinity powered by Klaviyo AI, alongside its strategic investments in expanding its service offerings with new AI-driven products like the Helpdesk and Conversational Agent. The guidance for Q3 includes a revenue projection of $297 million to $301 million and a non-GAAP operating income of $32.5 million to $35.5 million, reflecting the company's confidence in maintaining strong growth momentum.

Klaviyo, Inc. Class A Financial Statement Overview

Summary
Klaviyo, Inc. displays significant revenue growth and maintains strong gross margins, illustrating robust market presence. However, negative EBIT and net profit margins highlight ongoing challenges in achieving profitability.
Income Statement
65
Positive
Klaviyo, Inc. shows strong revenue growth with a Revenue Growth Rate of 43% from 2023 to 2024 and 39% from 2024 to TTM (Trailing-Twelve-Months). Gross Profit Margin remains robust at around 76% TTM. However, the company is struggling with profitability as indicated by negative EBIT and Net Profit Margins, suggesting operational inefficiencies or high costs.
Balance Sheet
70
Positive
The company's Balance Sheet is stable with a low Debt-to-Equity Ratio of 0.10 TTM, indicating low leverage. The Equity Ratio is solid at 79% TTM, showcasing financial stability. However, the high liabilities in previous years highlight potential financial risks.
Cash Flow
75
Positive
Cash flow performance is strong with positive Operating Cash Flow and Free Cash Flow TTM. The Free Cash Flow to Net Income Ratio is favorable, suggesting efficient cash management despite net losses. However, a decline in Operating Cash Flow from 2024 to TTM indicates potential future cash flow challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.08B937.46M698.10M472.75M290.64M
Gross Profit813.17M716.16M520.21M344.72M205.94M
EBITDA-88.72M-66.36M-293.35M-40.03M-73.80M
Net Income-66.69M-46.14M-308.23M-49.19M-79.39M
Balance Sheet
Total Assets1.40B1.27B1.09B629.08M464.45M
Cash, Cash Equivalents and Short-Term Investments935.52M881.47M738.56M385.82M327.91M
Total Debt99.19M53.44M51.58M62.41M65.47M
Total Liabilities301.13M239.32M174.27M1.67B2.70B
Stockholders Equity1.10B1.03B914.78M-1.04B-2.24B
Cash Flow
Free Cash Flow159.32M148.73M110.01M-41.80M-36.97M
Operating Cash Flow168.96M165.96M119.37M-23.55M-22.74M
Investing Cash Flow-25.21M-17.23M-9.36M-18.75M-14.23M
Financing Cash Flow-2.12M-5.80M242.73M101.30M211.26M

Klaviyo, Inc. Class A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price34.03
Price Trends
50DMA
33.07
Positive
100DMA
32.04
Positive
200DMA
36.19
Negative
Market Momentum
MACD
-0.07
Negative
RSI
56.31
Neutral
STOCH
57.96
Neutral
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 34.03 is above the 20-day moving average (MA) of 32.24, above the 50-day MA of 33.07, and below the 200-day MA of 36.19, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 56.31 is Neutral, neither overbought nor oversold. The STOCH value of 57.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KVYO.

Klaviyo, Inc. Class A Risk Analysis

Klaviyo, Inc. Class A disclosed 63 risk factors in its most recent earnings report. Klaviyo, Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Klaviyo, Inc. Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$5.89B21.4622.19%-1.62%36.57%
77
Outperform
$18.65B-4.00%19.24%59.66%
68
Neutral
$1.34B-55.90%12.76%16.97%
67
Neutral
$8.47B-6.42%33.17%82.85%
64
Neutral
$5.73B-26.98%32.25%20.56%
61
Neutral
$34.83B4.75-10.43%2.08%6.55%-10.00%
57
Neutral
$5.91B-32.18%23.02%21.01%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KVYO
Klaviyo, Inc. Class A
34.03
2.94
9.46%
WEX
WEX
169.82
-5.59
-3.19%
MDB
MongoDB
227.86
-7.04
-3.00%
CFLT
Confluent
16.93
-3.39
-16.68%
S
SentinelOne
16.67
-5.12
-23.50%
BASE
Couchbase
24.32
6.85
39.21%

Klaviyo, Inc. Class A Corporate Events

Executive/Board Changes
Klaviyo Announces President Steve Rowland’s Retirement
Neutral
Aug 5, 2025

On August 5, 2025, Klaviyo, Inc. announced that its President, Steve Rowland, will retire effective December 31, 2025. To ensure a smooth transition, Rowland will remain in a transitional role until his retirement date, receiving his regular salary and benefits. Post-retirement, he will serve as a consultant until March 31, 2026, with compensation in the form of continued vesting of equity awards.

The most recent analyst rating on (KVYO) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Klaviyo, Inc. Class A stock, see the KVYO Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Klaviyo, Inc. Stockholders Approve Key Governance Proposals
Neutral
Jun 11, 2025

On June 10, 2025, Klaviyo, Inc. held its annual meeting of stockholders virtually, where four key proposals were voted on. The stockholders elected Ed Hallen, Michael Medici, and Roxanne Oulman as Class II directors, ratified Deloitte & Touche LLP as the independent auditor, approved executive compensation, and decided on an annual frequency for advisory votes on executive compensation. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (KVYO) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Klaviyo, Inc. Class A stock, see the KVYO Stock Forecast page.

Private Placements and Financing
Klaviyo Announces $372M Secondary Offering for Tax Obligations
Neutral
May 16, 2025

On May 13, 2025, Klaviyo, Inc. announced a secondary offering of $372 million in Series A common stock, primarily to cover CEO Andrew Bialecki’s tax obligations related to stock options. The company will not receive proceeds from this offering, which is managed by Goldman Sachs and Morgan Stanley, and its completion is subject to market conditions.

The most recent analyst rating on (KVYO) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Klaviyo, Inc. Class A stock, see the KVYO Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 07, 2025