Bank of America just raised its EUR/USD forecast
On Thursday, Needham analysts increased the price target for Klaviyo Inc (NYSE:KVYO) shares from $46.00 to $56.00, while maintaining a Buy rating. The adjustment follows Klaviyo’s impressive fourth-quarter performance, which was marked by the company’s most significant revenue surplus since its initial public offering. With a robust 35.41% revenue growth and impressive 77.61% gross profit margins, the company continues to show strong execution. The quarter saw robust sales figures, with a record addition of over 10,000 new customers and signs of stable Net Revenue Retention (NRR). Additionally, quarter-over-quarter Average Revenue Per Account (ARPA) growth indicated a favorable reception to Klaviyo’s SMS marketing solutions during a seasonally strong period. InvestingPro analysis reveals 14 additional key insights about Klaviyo’s performance and potential.
Klaviyo’s stock experienced volatility in after-hours trading, initially climbing approximately 10% before dipping to a similar degree. Trading near its 52-week high of $49.55, the stock has delivered impressive returns with a 62.24% gain over the past year and a 13.97% increase year-to-date. This fluctuation is attributed to investor concerns that the company’s newly introduced pricing model did not contribute to an increased revenue forecast for fiscal year 2025. Despite these concerns, analysts at Needham expressed optimism regarding Klaviyo’s recent transparency about its partnership with Woo Commerce, which is expected to have a positive impact on future guidance, although it is not currently included in the FY25 revenue projections. Get deeper insights into Klaviyo’s financial health and growth potential with a comprehensive Pro Research Report, available exclusively on InvestingPro.
The company is set to unveil new "Built for B2C" product offerings, including a novel Customer Relationship Management (CRM) system, at an event scheduled for 4pm ET today. With a strong financial health score of 2.84 (GOOD) according to InvestingPro metrics, and a market capitalization of $12.67 billion, Klaviyo appears well-positioned for this expansion. Needham views this announcement as a potentially significant expansion into the B2C market, one that might surpass the impact of the Customer Data Platform (CDP) due to the anticipated higher adoption rate if the product meets expectations. The new CRM is seen as an important step for Klaviyo in enhancing its product suite tailored for business-to-consumer companies.
In other recent news, Klaviyo Inc. reported its fourth-quarter 2024 earnings, revealing a revenue of $270.2 million, which exceeded the forecast of $257.47 million. However, the company missed its earnings per share (EPS) forecast, reporting an EPS of $0.07 compared to the expected $0.12. Despite this mixed performance, Klaviyo’s stock saw an increase in after-hours trading. The company also added over 10,000 new customers in the fourth quarter, with a notable 46% increase in customers generating over $50,000 in annual recurring revenue. For the full year 2024, Klaviyo’s revenue reached $937 million, reflecting a 34% growth from the previous year. Looking ahead to 2025, Klaviyo projects revenue between $1.156 billion and $1.164 billion, representing a growth of 23-24%. The company plans to continue investing in international expansion and product development, particularly focusing on AI integration. Additionally, Klaviyo introduced new pricing features, including auto downgrade and flexible sending options, to address customer requests and reduce pricing friction.
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