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Klaviyo, Inc. Class A (KVYO)
NYSE:KVYO
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Klaviyo, Inc. Class A
(NYSE:KVYO)
71Outperform
Positive Factors
International Growth
Klaviyo has expanded from 1 to 7 languages and SMS deliverability from 5 to 17 countries, which is expected to help sustain strong international growth momentum.
Market Expansion
Klaviyo's recent successes with well-known brand names like Reebok and Champion demonstrate strong traction with its newer up-market efforts.
Product Innovation
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.
Market Challenges
The Service offering is likely a fit for smaller eCommerce brands with more limited Service needs.
Klaviyo, Inc. Class A (KVYO) vs. S&P 500 (SPY)
Market Cap
$9.01B
Dividend YieldN/A
Average Volume (3M)1.65M
Price to Earnings (P/E)―
Beta (1Y)1.17
Revenue Growth34.29%
EPS Growth86.52%
CountryUS
Employees2,182
SectorTechnology
Sector Strength51
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.17
Shares Outstanding90,501,470
10 Day Avg. Volume1,475,079
30 Day Avg. Volume1,654,748
Financial Highlights & Ratios
PEG RatioN/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 Ratio37.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$51.58Price Target Upside56.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
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 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. shows impressive revenue growth and strong cash flow management, with a robust balance sheet. However, ongoing net losses and negative margins highlight profitability challenges that need addressing to enhance shareholder returns.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.82
Very Positive
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.77
Positive
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.88
Very Positive
| 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
Negative
33.00
Price Trends
40.97
Negative
40.04
Negative
34.74
Negative
Market Momentum
-2.60
Negative
40.15
Neutral
55.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KVYO, the sentiment is Negative. The current price of 33 is below the 20-day moving average (MA) of 35.59, below the 50-day MA of 40.97, and below the 200-day MA of 34.74, indicating a bearish trend. The MACD of -2.60 indicates Negative momentum. The RSI at 40.15 is Neutral, neither overbought nor oversold. The STOCH value of 55.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $168.42B | 25.97 | 47.28% | ― | 10.65% | 44.84% | |
75 Outperform | $269.68B | 44.11 | 10.26% | 0.57% | 8.72% | 51.47% | |
71 Outperform | $9.01B | ― | -4.74% | ― | 34.29% | 86.52% | |
67 Neutral | $31.62B | 7,306.53 | 0.29% | ― | 21.07% | ― | |
63 Neutral | $15.79B | ― | -1.24% | ― | 7.32% | 88.51% | |
58 Neutral | $22.11B | 10.47 | -17.86% | 2.40% | 4.75% | -24.81% |
* Technology Sector Average
Performance Comparison
KVYO
Klaviyo, Inc. Class A
33.94
8.29
32.32%
ADBE
Adobe
394.47
-112.76
-22.23%
CRM
Salesforce
285.96
-18.80
-6.17%
HUBS
HubSpot
626.90
-2.92
-0.46%
SHOP
Shopify
109.28
30.86
39.35%
TWLO
Twilio
106.27
44.00
70.66%
Klaviyo, Inc. Class A Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -29.79% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
Klaviyo demonstrated robust revenue growth and cash flow, driven by successful international expansion and strategic partnerships. However, challenges such as declining gross margins and potential churn from pricing changes present obstacles. Overall, the positive aspects significantly outweigh the negatives, indicating strong business momentum.Highlights
Record Revenue Growth
Klaviyo reported Q4 revenue of $270 million, up 34% year-over-year, reaching a $1 billion revenue run rate with an annual revenue growth of 34% to $937 million.
Strong Free Cash Flow
The company generated nearly $150 million in free cash flow for the year, with a Q4 free cash flow of $54 million, up 57% year-over-year.
International Expansion Success
EMEA revenue grew 49% year-over-year, while overall international revenue increased by 22%. The platform was made available in six additional languages.
Partnerships and Integrations
New partnerships with companies like WooCommerce and integrations with platforms like Canva and Pinterest were established, enhancing customer reach and platform capabilities.
AI and Analytics Enhancements
Over 200 new features were delivered, including AI functionalities like Text AI and Email AI, and new analytics tools like the RFM Action Center.
Lowlights
Gross Margin Decline
Non-GAAP gross margins were 74% in Q4, down approximately 5 points year-over-year, due to increased infrastructure costs and growth of SMS products.
Pricing Changes and Potential Impact
New pricing features and enforcement of pricing based on active profiles could lead to incremental churn, impacting customer counts in Q1.
Challenges in SMB Segment
Despite some stabilization, the SMB segment has been a challenging area, with customer count improvements potentially driven by holiday demand.
Company Guidance
During Klaviyo's fourth quarter and full-year fiscal 2024 earnings call, the company provided comprehensive guidance reflecting strong financial performance and strategic initiatives. Klaviyo reported Q4 revenue of $270 million, up 34% year-over-year, and a full-year revenue of $937 million, achieving a 34% annual growth with nearly $150 million in free cash flow. The company highlighted its expansion strategy, adding over 10,000 new customers to reach a total of more than 167,000 customers, marking a 17% increase year-over-year. Notably, Klaviyo's dollar-based net revenue retention rate stabilized at 108%, indicating robust customer engagement despite challenging market conditions. International expansion was a key focus, with EMEA revenue growth accelerating to 49%, fueled by strong performance in France, Germany, and the Nordics. Klaviyo also emphasized its strategic partnerships, such as the new alliance with WooCommerce, expected to enhance its presence across various markets and verticals. For fiscal 2025, Klaviyo forecasts revenue of $1.156 billion to $1.164 billion, representing 23% to 24% growth, maintaining a non-GAAP operating margin of 11% to 12%. The guidance underscores Klaviyo's commitment to sustainable, long-term growth through strategic investments in customer acquisition, international expansion, and product innovation.Klaviyo, Inc. Class A Corporate Events
Business Operations and StrategyFinancial Disclosures
Klaviyo Achieves Record Sales During Holiday Season
Positive
Dec 3, 2024
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.