Company Performance - Klaviyo, Inc. (KVYO) shares have increased by 10.9% over the past month and reached a new 52-week high of $39.77 [1] - The stock has gained 40.5% since the beginning of the year, outperforming the Zacks Business Services sector (17.1%) and the Zacks Technology Services industry (36.7%) [1] Earnings and Revenue - Klaviyo has a strong record of positive earnings surprises, beating earnings consensus estimates in the last four quarters [2] - In the latest earnings report on August 7, 2024, Klaviyo reported EPS of $0.15, exceeding the consensus estimate of $0.09, and beat the revenue estimate by 4.78% [2] - For the current fiscal year, Klaviyo is expected to post earnings of $0.49 per share on revenues of $915.97 million, reflecting a 36.11% change in EPS and a 31.21% change in revenues [3] - For the next fiscal year, earnings are projected to be $0.58 per share on $1.15 billion in revenues, indicating year-over-year changes of 19.64% and 25.74%, respectively [3] Valuation Metrics - Klaviyo has a Value Score of F, while its Growth and Momentum Scores are A and B, respectively, resulting in a VGM Score of B [6] - The stock trades at 80.3X current fiscal year EPS estimates, which is a premium compared to the peer industry average of 24.9X [6] - On a trailing cash flow basis, Klaviyo trades at 5X versus the peer group's average of 11.9X [6] Zacks Rank - Klaviyo currently holds a Zacks Rank of 2 (Buy) due to rising earnings estimates [7] - The recommendation is to select stocks with Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, indicating potential for Klaviyo shares in the near future [7] Industry Context - The Technology Services industry is positioned in the top 25% of all industries, suggesting favorable conditions for both Klaviyo and its peers [10]

Klaviyo, Inc. (KVYO) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnin ...

Shares of Klaviyo Inc KVYO have soared more than 40% year to date.Stifel says the company is positioned to capture market share in the "sizable digital marketing space in the coming years.”Analyst Parker Lane initiated coverage of Klaviyo with a Buy rating and price target of $45.The Klaviyo Thesis: The company has a large TAM (total addressable market). It offers "ample opportunity for both net new customer acquisition and expansion," Lane said in the initiation note.Check out other analyst stock ratings.K ...

Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Klaviyo, Inc. (KVYO) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Klaviyo, Inc. is one of 312 companies in the Business Services group. The Business Services group currently sits at #5 within the Zacks Sector Rank. T ...

After reaching an important support level, Klaviyo, Inc. (KVYO) could be a good stock pick from a technical perspective. KVYO recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average. A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving av ...

Klaviyo, Inc. (KVYO) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends i ...

phakphum patjangkata/iStock via Getty Images Sometimes I curse myself for paying too much attention to the market and not sticking to my guns on the fundamentals. The best day to buy a chunk of Klaviyo (NYSE:KVYO) would have been "Carry Trade Collapse Day" on Monday, August 5th, for around $22; Nonetheless, my average cost for Klaviyo is around $26. I first wrote about it on December 20th, extolling its strengths of integration of customer and automated marketing data, which would allow it to build a moat. ...

Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $222 million, representing a 35% year-over-year growth [4][22] - Non-GAAP operating margin was reported at 15%, exceeding expectations [22] - Non-GAAP gross profit was $175 million, with a gross margin of 79%, up 140 basis points year-over-year [25] - Free cash flow for the quarter was $37 million, slightly down from the previous year [26] - Guidance for Q3 2024 revenue is projected to be between $225 million and $227 million, indicating a growth of 28% to 29% year-over-year [27] Business Line Data and Key Metrics Changes - The company added over 5,000 new customers in Q2, bringing the total to more than 151,000, a 16% increase year-over-year [22] - Dollar-based net revenue retention rate (NRR) was 112% for the quarter, reflecting a decline due to previous price increases and customer trends [23] - The SMS business continues to be a key growth driver, with significant adoption and integration into customer strategies [9][66] Market Data and Key Metrics Changes - International revenue grew 41% year-over-year, with France being the fastest-growing country, up more than 65% from Q1 [24] - EMEA revenue growth accelerated to 45% in Q2 from 43% in Q1 [24] - The company expanded SMS capabilities into Austria, Switzerland, and Spain, increasing SMS coverage to 12 countries [16] Company Strategy and Development Direction - The company is focused on investing in go-to-market efforts to capture mid-market and international opportunities [15] - Continued investment in AI features to enhance customer engagement and marketing strategies [13][14] - The company aims to expand its product offerings and improve customer retention through enhanced features and integrations [11][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the diversity of the customer base, which provides resilience in various operating environments [30] - There is an acknowledgment of macro pressures affecting customer spending, particularly in the SMB market [23] - The company is committed to driving durable growth through strategic investments and product enhancements [27][28] Other Important Information - Klaviyo was named an Inc. Best Workplace for the sixth consecutive year and recognized by Newsweek as one of America's greatest workplaces for 2024 [21] - The company launched several new features, including AI tools for marketing optimization and product analytics [12][18] Q&A Session Summary Question: What are the demand drivers underpinning the strength in growth? - Management highlighted strength in the entrepreneur segment and upper market, driven by marketing efficiency and product improvements [30] Question: What is enabling the increase in new customer adds despite a weaker SMB market? - The company is shifting resources towards SMB and mid-market, seeing benefits from product-led growth and direct marketing efforts [32] Question: How is the company addressing the bottom line and Q4 guidance? - Management indicated that reinvestment in growth areas is ongoing, with a focus on unit economics to ensure returns [34] Question: How is the company monetizing new products, particularly AI? - AI tools are expected to drive incremental usage and revenue, with plans for future monetization as adoption increases [39] Question: What is the status of SMS traction and its impact on gross margins? - The company is seeing good adoption of SMS, particularly in international markets, and is focused on enhancing SMS functionalities [66]

Customer Growth and Market Expansion - As of June 30, 2024, Klaviyo had over 151,000 customers, with a significant increase in customers generating over $50,000 of ARR, rising to 2,386 from 1,458 a year prior, representing a 64% year-over-year growth[80] - International sales accounted for 31.9% of total revenue for the six months ended June 30, 2024, indicating strong growth in global markets[73] - The company has expanded its operations internationally, opening offices in London and Sydney, and offering SMS capabilities in over 10 countries as of June 30, 2024[73] - The company anticipates continued revenue growth driven by increased customer usage and expansion into new industry verticals beyond retail and eCommerce[77] Financial Performance - Revenue for the three months ended June 30, 2024 increased by $57.6 million or 35.0%, reaching $222.2 million compared to $164.6 million for the same period in 2023[101] - Revenue for the six months ended June 30, 2024 increased by $111.5 million or 34.8%, totaling $432.2 million compared to $320.7 million for the same period in 2023[102] - Gross profit for the three months ended June 30, 2024 increased by $44.8 million or 35.3%, reaching $171.9 million compared to $127.1 million for the same period in 2023[105] - Gross profit for the six months ended June 30, 2024 increased by $90.4 million or 36.6%, to $337.0 million compared to $246.6 million for the same period in 2023[106] Cost and Expenses - Cost of revenue for the three months ended June 30, 2024 increased by $12.8 million or 34.1%, amounting to $50.3 million compared to $37.5 million for the same period in 2023[103] - Cost of revenue for the six months ended June 30, 2024 increased by $21.2 million or 28.6%, totaling $95.2 million compared to $74.1 million for the same period in 2023[103] - Selling and marketing expenses for the three months ended June 30, 2024 were $94.5 million, up from $63.4 million in the same period in 2023[96] - Selling and marketing expenses for the six months ended June 30, 2024 increased by $62.4 million or 50.3%, to $186.4 million compared to $124.0 million for the same period in 2023[108] - Research and development expenses for the three months ended June 30, 2024 were $55.7 million, compared to $33.1 million for the same period in 2023[96] - Research and development costs for the six months ended June 30, 2024 increased by $43.7 million or 64.2%, to $111.8 million compared to $68.1 million for the same period in 2023[111] - General and administrative expenses for the three months ended June 30, 2024 were $35.8 million, an increase from $23.7 million in the same period in 2023[96] - General and administrative expenses for the six months ended June 30, 2024 increased by $28.3 million or 60.6%, to $75.0 million compared to $46.7 million for the same period in 2023[113] Cash and Liquidity - As of June 30, 2024, the company had cash, cash equivalents, and restricted cash totaling $794.6 million, with $322.8 million in money market funds[119] - Total working capital increased to $740.8 million as of June 30, 2024, up from $672.9 million as of December 31, 2023, representing a growth of approximately 10.1%[121] - Net cash provided by operating activities for the six months ended June 30, 2024, was $67.1 million, compared to $57.0 million for the same period in 2023, reflecting an increase of 17.5%[123][126] - Cash and restricted cash at the end of the period reached $794.6 million, up from $439.8 million at the end of June 30, 2023, indicating a year-over-year increase of approximately 80.5%[122] - The company expects continued growth in cash balances as business operations expand, with a diversified cash management strategy to mitigate risks[129] - The company had no debt as of June 30, 2024, eliminating potential market risk for interest expense[136] Market Strategy and Innovations - Klaviyo's platform combines data and application layers with advanced machine learning and AI capabilities, enhancing customer engagement across email, SMS, and push notifications[68] - The company focuses on a land-and-expand strategy, where customer growth leads to increased usage of the platform, driving revenue expansion[68] - Klaviyo has invested in product innovation, recently launching Klaviyo AI to enhance customer engagement and campaign management[74] - Klaviyo's SMS offering, launched in 2021, has seen increased adoption, with expectations of higher communication costs impacting gross margins, particularly in the fourth quarter[76] Other Financial Metrics - Interest income for the six months ended June 30, 2024 increased by $11.2 million or 135.2%, to $19.5 million compared to $8.3 million for the same period in 2023[117] - Non-cancellable lease obligations as of June 30, 2024, totaled $49.3 million, with $13.3 million due within the next 12 months[130] - Non-cancellable obligations with marketing vendors and service providers amounted to $279.2 million as of June 30, 2024[132] - The company maintains a full valuation allowance on its U.S. federal and state net deferred tax assets, indicating uncertainty in realizing these assets[93] - The company has not experienced significant inflationary pressures, but continues to monitor and manage costs to mitigate potential impacts[137] Seasonal Trends - Seasonality impacts demand, particularly in the fourth quarter, as customers increase marketing campaigns during the holiday shopping season[84]

Klaviyo, Inc. (NYSE:KVYO) Q1 2024 Earnings Conference Call May 8, 2024 4:30 PM ET Company Participants Jack Grant - Senior Director of Investor Relations and Strategic Finance Andrew Bialecki - Co-Founder and Chief Executive Officer Amanda Whalen - Chief Financial Officer Conference Call Participants Arjun Bhatia - William Blair Robert Oliver - Baird Katie Keyser - Morgan Stanley Callie Valenti - Goldman Sachs Brent Bracelin - Piper Sandler Raimo Lenschow - Barclays Scott Berg - Needham Terry Tillman - Tru ...