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."
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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.
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