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
-
Stock Market Today: Dow Dives 1,679 Points on Trump Tariff ShockU.S. stocks lost roughly $3.1 trillion in market cap on Thursday – the biggest one-day decline since the start of the COVID-19 pandemic in March 2020.
-
Did Florida’s Chance at $1,000 in Property Tax Rebates Vanish?State Taxes The Florida Legislature bypassed Gov. Ron DeSantis’ wish to cut property taxes and instead voted to lower the state’s sales tax.
-
Stock Market Today: Dow Dives 1,679 Points on Trump Tariff ShockU.S. stocks lost roughly $3.1 trillion in market cap on Thursday – the biggest one-day decline since the start of the COVID-19 pandemic in March 2020.
-
Wall Street Is Worried About Apple Stock. Should You Be Too?Analysts expect Trump's sweeping tariffs to have an outsized impact on Apple stock. How concerned should investors be?
-
The Stock Market Is Selling Off. Here's What Investors Should DoInvestors are fleeing the equities market en masse in response to the Trump administration's "jaw-dropping" tariffs. But the experts say don't panic.
-
How Building Liquidity Into Your Retirement Plan Can Pay OffTo succeed in investing for retirement, you need time and discipline — liquidity can give you both.
-
Striking Oil in Opportunity Zones: Now Might Be the Best Time to InvestYou could unlock hidden wealth in QOZs with strategic oil and gas investments, potentially combining tax advantages with long-term growth in an essential industry.
-
Stock Market Today: It's the Old Up-Down Again on Liberation DayMarkets look forward to what comes with the reordering of 80-year-old global trade relationships.
-
Can a New Manager Cure Vanguard Health Care Fund?Vanguard Health Care Fund has assets of $40.5 billion but has been ailing in recent years. With a new manager in charge, what's the prognosis?
-
What You Don't Know About Annuities Can Hurt YouLack of awareness leads many to overlook these potent financial tools, and with the possibility of running out of money in retirement, that could really hurt.
