Klaviyo (KVYO) Reports Impressive Earnings But Jeffries Downgrades Target Price To $29

Financial Performance - Klaviyo, Inc. reported Q4 revenue of $350 million, a 30% increase year-over-year [1] - Non-GAAP operating income for Q4 was $51 million, resulting in a 15% operating margin [1] - Non-GAAP gross margin for the quarter was 73%, with operating expenses at 58% of total revenue, marking the lowest level since the company went public [1] - Free cash flow increased to $87 million, reflecting a 61% year-over-year rise [2] - For the full year, non-GAAP operating income totaled $169 million with a 14% margin [2] - Free cash flow margin reached 16%, and cash balance exceeded $1 billion for the first time [2] Customer Metrics - 60% of Annual Recurring Revenue (ARR) now comes from multiproduct customers [2] - More than 15% of ARR is generated by customers using at least three products, indicating strong cross-sell and expansion opportunities [2] - The company serves over 193,000 customers in more than 100 countries, with strong momentum in the enterprise customer base and internationally [3] Market Position and Analyst Insights - Klaviyo is recognized as one of the 12 best mid-cap AI stocks to buy according to hedge funds [1] - Following the Q4 results, Jefferies lowered its price target from $35 to $29 while maintaining a Buy rating, citing long-term questions around AI [3] - Klaviyo operates a software-as-a-service platform targeting small and medium-sized businesses, enterprises, and mid-market businesses globally [4]