Klaviyo (KVYO) is one of the best-performing stocks Thursday after the marketing platform provider beat top- and bottom-line expectations for its second quarter and raised its full-year outlook.
In the three months ended June 30, Klaviyo's revenue increased 35% year-over-year to $222.2 million. Its earnings per share (EPS) improved to 15 cents from 9 cents in the year-ago period.
"We delivered another strong quarter, as businesses of all sizes turn to our platform to power smarter digital relationships and drive revenue," said Klaviyo CEO Andrew Bialecki in a statement. "Klaviyo continues to prove itself essential for our customers, providing them with a powerful data platform that's not only fast, flexible, and intuitive, but also uses leading artificial intelligence technology to give marketers an edge."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results blew past analysts' expectations. Wall Street was anticipating revenue of $212 million and earnings of 10 cents per share, according to CNBC.
As a result of its strong performance in the first half of 2024, Klaviyo raised its full-year outlook. The company now anticipates revenue to arrive between $910 million to $918 million and operating income in the range of $103 million to $111 million. This compares with its previous forecast for revenue of $899 million to $907 million and operating income of $97 million to $105 million.
"We are well positioned for the back half of the year and beyond as we continue to invest in our strategic initiatives to drive efficient and durable growth," said Klaviyo Chief Financial Officer Amanda Whalen in a statement.
Is Klaviyo stock a buy, sell or hold?
Klaviyo has struggled on the price charts since its September 2023 initial public offering (IPO). Still, Wall Street is bullish on the tech stock.
According to S&P Global Market Intelligence, the average analyst target price for KVYO stock is $34.88, representing implied upside of nearly 20% to current levels. Additionally, the consensus recommendation is Buy.
Financial services firm Needham is one of those with an upbeat outlook toward KVYO, as evidenced by its Buy rating and $40 price target.
"We believe that KVYO's valuation is in the top quartile of public software-as-a-service vendors today due to it having one of the group's fastest revenue growth rates coupled with strong recent profitability," says Needham analyst Scott Berg.
Needham's $40 price target is one of the highest on Wall Street and sits roughly 36% above where the stock is currently trading.
Related Content
-
RV Living or Vacation Home? What's Best for Your Retirement?You may fantasize about RV living or owning a cabin in the mountains or by the beach. Both options can be affordable and fun, but kick the tires first!
-
Four Ways to Help Prevent a Market Downturn From Scrambling Your Nest EggYou may not be able to avoid a market decline when you're newly retired and starting to rely on your nest egg for income, but you can plan for that risk.
-
Four Ways to Help Prevent a Market Downturn From Scrambling Your Nest Egg
You may not be able to avoid a market decline when you're newly retired and starting to rely on your nest egg for income, but you can plan for that risk.
-
Is Your Home Disaster-Ready? An Insurance Expert's Guide to Preparing for Storms and FiresHomeowners can take these steps to protect their properties from hurricanes, tornadoes, wildfires and hail, while also potentially reducing their insurance costs.
-
Stock Market Today: Stocks Rise as Treasury Yields DropA round of not-too-terrible economic data helped boost the bond market Thursday.
-
A Financial Adviser's Defense of Annuities: They're Just MisunderstoodAnnuities can offer retirement income stability and security against market volatility, though some do have drawbacks. The key is to understand their features before buying.
-
Diversification: An Investment Adviser's Guide to Why You Need It and How to Achieve ItHow confident are you that your money will go the distance? Building a balanced portfolio can shore up your investments' long-term stability.
-
How My Dad Taught Me the Compounding Returns of FatherhoodAs Father's Day approaches, I remember how my father's small acts of love and generosity added up over time and influenced my relationships with my own children, proving that the best investments can grow across generations.
-
Stock Market Today: Stocks Lose Steam After CPI, US-China Trade DealWall Street initially cheered soft inflation data and hopeful tariff news, but momentum stalled in late-day trading.
-
June Fed Meeting: Live Updates and CommentaryThe June Fed meeting is a key economic event, with Wall Street keyed into what Fed Chair Powell & Co. have to say about interest rates and the economy.
