EUR/USD likely to find a peak near 1.25: UBS
On Thursday, Mizuho (NYSE:MFG) Securities raised its price target on Klaviyo Inc (NYSE:KVYO) shares to $52 from the previous $42 while maintaining an Outperform rating on the stock. The revision comes after Klaviyo reported a substantial fourth-quarter earnings beat, with revenues increasing by 34% year-over-year. This growth was attributed to a robust holiday shopping season and the company’s successful expansion in the mid-market and international sectors. According to InvestingPro data, the company maintains impressive gross profit margins of 77.6% and has demonstrated strong momentum with a 48.5% return over the past six months.
Klaviyo’s fourth-quarter performance showed a notable improvement from the third quarter, with earnings rising from $9 million to $13 million. The company’s guidance for 2025 revenue growth aligns with consensus expectations, ranging between 23-24% on a dollar basis. Mizuho analysts believe that this forecast might be on the conservative side, potentially positioning Klaviyo to outperform expectations and adjust future projections upward, despite some uncertainties arising from recent pricing changes. InvestingPro analysis reveals the company maintains a strong financial position with a current ratio of 6.44, indicating robust liquidity. For deeper insights into Klaviyo’s financial health and growth prospects, subscribers can access the comprehensive Pro Research Report, which covers over 1,400 US stocks.
The company’s core growth drivers were highlighted as remaining strong, with Klaviyo continuing to gain ground through its mid-market presence, international growth, and expansion within its existing customer base. The stabilization of the Net Revenue Retention (NRR) rate during the quarter was seen as a positive indicator of the company’s performance.
In anticipation of new product announcements at Klaviyo’s upcoming Built for B2C event, Mizuho’s positive outlook is reinforced. The firm’s confidence in Klaviyo’s strategic execution and multiple avenues for growth underpin the decision to reiterate the Outperform rating and to increase the price target to $52. This new target suggests an enterprise value to next twelve months’ revenue multiple of 13 times.
In other recent news, Klaviyo Inc. reported its fourth-quarter 2024 revenue, which exceeded expectations by reaching $270.2 million, compared to the forecasted $257.47 million. However, the company did not meet its earnings per share (EPS) forecast, reporting $0.07 against an expected $0.12. Analysts from Needham raised their price target for Klaviyo shares to $56, maintaining a Buy rating, following the company’s strong fourth-quarter sales performance and the addition of over 10,000 new customers. Canaccord Genuity also expressed confidence in Klaviyo by increasing the stock target to $50 and maintaining a Buy rating, citing the company’s strong execution and growth potential through partnerships and international expansion.
Klaviyo’s recent performance has been bolstered by its partnership with Shopify (NYSE:SHOP) and new collaborations, such as with WooCommerce, which are anticipated to positively influence future guidance. The company plans to unveil new "Built for B2C" product offerings, including a Customer Relationship Management (CRM) system, which is expected to enhance its suite of solutions for business-to-consumer companies. Klaviyo’s customer base has expanded significantly, with a notable increase in high-value clients generating over $50,000 in annual recurring revenue. Despite some concerns over a new pricing model not impacting fiscal year 2025 revenue forecasts, analysts remain optimistic about Klaviyo’s growth trajectory.
The company’s full-year 2024 revenue reached $937 million, marking a 34% increase, with a free cash flow of $149 million, up 35% from the previous year. Looking ahead, Klaviyo projects revenue growth of 23-24% for 2025 and plans to continue investing in international expansion and product development, particularly focusing on AI integration. Both Canaccord and Needham have highlighted Klaviyo’s strategic initiatives and robust market positioning as key factors for its anticipated continued growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.