Bank of America just raised its EUR/USD forecast
Thursday saw Klaviyo Inc (NYSE:KVYO), currently trading near its 52-week high of $49.55, receiving a positive outlook from Stifel analysts, with the firm raising its price target on the company’s stock to $54.00, up from the previous $45.00, while maintaining a Buy rating. According to InvestingPro data, the stock has delivered an impressive 62% return over the past year. The upgrade followed Klaviyo’s announcement of its largest revenue beat of the year, which was driven by several positive developments within the company.
The email marketing platform provider’s strong performance was attributed to a significant increase in net customer additions and the stabilization of its in-period Net Revenue Retention (NRR). The company has maintained robust revenue growth of 35.4% in the last twelve months, with an impressive gross profit margin of 77.6%. Additionally, the company experienced an acceleration of revenue growth in the EMEA region. Klaviyo’s management has also issued a first-quarter 2025 top-line outlook that surpassed analysts’ expectations.
According to Stifel analysts, Klaviyo’s successful quarter was bolstered by a robust holiday season, strategic pricing changes implemented earlier in the year, an increase in SMS feature usage, and gaining traction in both upmarket segments and international markets. These factors were core drivers of the company’s performance in the fourth quarter.
Despite the upbeat revenue news, Klaviyo is preparing for certain challenges ahead. The company is planning incremental investments in new products and verticals, which are expected to impact profit expectations for 2025. Additionally, the implementation of a cash bonus program is among the moving parts that could weigh on profitability.
Klaviyo is set to provide more details about its investment priorities and future product roadmap during its upcoming livestreamed event, "Built for B2C," which is scheduled for Thursday at 4 PM ET. The event is anticipated to offer investors and stakeholders further insight into the company’s strategies for the coming year.
In other recent news, Klaviyo Inc has seen a series of positive developments. The company reported a notable 34% growth in the fourth quarter, surpassing expectations, and provided a revenue guidance for fiscal year 2025 that exceeds market projections. This strong performance has led several analysts to revise their outlooks on Klaviyo. Cantor Fitzgerald increased its price target to $54, maintaining an Overweight rating, while TD Cowen, Truist Securities, and KeyBanc Capital Markets all raised their targets to $55, each retaining a Buy rating. Loop Capital Markets went further, lifting its target to $60, also with a Buy rating, following Klaviyo’s solid fourth-quarter results.
The company’s strategic initiatives, including international expansion and a focus on key growth drivers such as SMS marketing, have contributed to its robust financial performance. Analysts have noted stabilization in small and medium-sized business demand and positive momentum in SMS cross-selling. Klaviyo’s pricing strategy adjustments, focusing on active profiles, are expected to enhance revenue, though they have led to some customer churn. Despite this, analysts remain optimistic about Klaviyo’s growth trajectory, citing its strong execution and potential to capitalize on a vast and largely untapped market.
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