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Investing.com - TD Cowen raised its price target on Klaviyo Inc (NYSE:KVYO) to $46.00 from $45.00 on Wednesday, while maintaining a Buy rating following the company’s second-quarter results. According to InvestingPro data, analyst targets for Klaviyo range from $37 to $60, with the company maintaining strong financial health scores.
The marketing automation platform reported 32% revenue growth in the quarter, significantly exceeding Wall Street expectations of 26%. Management raised its fiscal year 2025 growth guidance to 27-28%, an increase of 200 basis points from previous forecasts. InvestingPro data shows the company maintaining impressive gross profit margins of 75.77% with trailing twelve-month revenue reaching $1 billion.
Klaviyo maintained a net revenue retention rate of 108% and achieved a record number of customers spending over $50,000. The company also reported a substantial quarter-over-quarter increase in total new customers, with particular strength in the entrepreneur segment.
TD Cowen noted that Klaviyo continues to show growth across its core initiatives including up-market expansion, SMS capabilities, and international markets, with no apparent headwinds from macroeconomic conditions or tariffs. The firm highlighted that customers view Klaviyo as a high-return investment tool for driving revenue.
New product offerings including WhatsApp/RCS channels, Marketing Analytics, and the Customer Hub beta have shown strong early adoption, supporting TD Cowen’s view of Klaviyo as a SMIDcap Top Pick with an attractive valuation at approximately 6.5x EV/CY26E Sales. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels. Subscribers can access 8 additional ProTips and comprehensive valuation metrics in the Pro Research Report.
In other recent news, Klaviyo Inc. reported its second-quarter earnings for 2025, surpassing Wall Street expectations with an earnings per share of $0.16, compared to the forecasted $0.13. The company achieved revenue of $293 million, which exceeded predictions by 10.12%. This strong performance has led several analyst firms to adjust their outlooks for Klaviyo. Piper Sandler raised its price target to $55, citing the company’s largest earnings beat since its 2023 IPO and noting international growth of 42% year-over-year. Benchmark also increased its price target to $46, highlighting Klaviyo’s effective use of infrastructure leverage. Stifel raised its target to $42, acknowledging the company’s stronger-than-expected results and improved guidance. Meanwhile, Cantor Fitzgerald reiterated its Overweight rating and maintained a $48 price target, emphasizing the better-than-expected new customer additions and notable net additions of high-spending customers. These developments reflect growing confidence among analysts in Klaviyo’s strategic growth and financial performance.
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