For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Klaviyo, Inc. (KVYO) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.Klaviyo, Inc. is a member of our Business Services group, which includes 308 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Se ...

Klaviyo, Inc. (KVYO) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The power of a c ...

Financial Data and Key Metrics - Revenue for Q3 2024 was $235 million, representing a 34% year-over-year growth [7][39] - Non-GAAP operating margin was 14%, consistent with previous quarters [39] - The company added over 6,000 new customers, bringing the total customer base to more than 157,000, up 16% year-over-year [40] - Free cash flow for the quarter was $34 million, up 57% from the prior year [53] Business Line Data and Key Metrics - SMS adoption continues to grow, with more than 80% of the top 50 customers now using Klaviyo SMS [45] - The company expanded its SMS coverage to 18 countries, including recent additions in Norway, Denmark, Sweden, Finland, Italy, and Portugal [17] - The Reviews product saw a 27% increase in the number of reviews collected by Happy Wax over their first 100 days using the product [25] - The CDP (Customer Data Platform) product is gaining traction, with customers leveraging it for advanced analytics and data governance [94][96] Market Data and Key Metrics - International revenue grew 41% year-over-year, with EMEA delivering 45% growth and APAC accelerating from last quarter [48] - The company expanded its product availability to five new languages: German, Portuguese, Korean, Spanish, and Italian, bringing the total to seven languages [19] - Notable international wins include The Body Shop, Minelli, and Passionata, all of which are leveraging Klaviyo for personalized communications [87] Company Strategy and Industry Competition - Klaviyo is focused on four primary growth vectors: adding new customers, growing in the mid-market, expanding with existing customers, and expanding internationally [40] - The company is investing in AI-driven tools to enhance productivity, deepen customer engagement, and drive revenue growth [20][21] - Klaviyo is differentiating itself through vertical integration, making its platform fast to implement, easy to scale, and capable of handling complex use cases [8][26] - The company is also expanding its ecosystem of third-party partners, with 20 new applications added to the integration directory in the last three months [31] Management Commentary on Operating Environment and Future Outlook - Management highlighted the softness in the SMB market but noted strength in the entrepreneur and high-end market segments [40] - The company expects continued pressure on customer expansion, particularly in the SMB space, due to macroeconomic factors [47] - For Q4 2024, the company expects revenue to be between $256 million and $258 million, representing 27% to 28% year-over-year growth [54] - Full-year revenue guidance was raised to $923 million to $925 million, with a non-GAAP operating margin of 11% [56] Other Important Information - Klaviyo announced two new leadership hires: Surabhi Gupta as Chief Technology Officer and Adil Wali as Chief Product Officer [37] - The company is implementing a new employee cash bonus program, which will impact Q4 operating income by approximately $10 million to $13 million [55] - Klaviyo is preparing for the holiday season, with a dedicated Black Friday Cyber Monday hub to help customers plan and strategize [36] Q&A Session Summary Question: Customer Acquisition Channels - Klaviyo's customer acquisition channels include inbound marketing, partnerships with digital agencies and platforms like Shopify, and a sales-driven motion for mid-market and enterprise customers [61][62] - The company is seeing strength across all channels, particularly in the entrepreneur segment and the high-end market [63][64] Question: Macroeconomic Impact on SMB Segment - The company noted consistent softness in the SMB segment due to macroeconomic pressures, with customers focusing on the ROI of their software spend [68][69] - Despite the challenges, Klaviyo remains a must-have platform for customers, driving strong results across diverse customer segments and geographies [70][71] Question: Impact of New Leadership Hires on Technology - The new CTO and CPO bring experience in scaling world-class businesses and will focus on building scalable, reliable, and secure systems to support Klaviyo's growth [74][76] Question: Vision for the Next $1 Billion in ARR - Klaviyo plans to expand its product portfolio beyond email and SMS, focusing on mobile, social channels, and CDP to drive growth [79][81] - The company is open to M&A opportunities but will also rely on its ecosystem of partners to address various use cases [83] Question: International Expansion Progress - Klaviyo is seeing strong growth in international markets, particularly in EMEA, with notable wins in France, Germany, Spain, and Finland [86][87] - The company is adding local language-speaking sales reps to support international growth and is expanding its product capabilities in multiple languages [87][89] Question: Cross-Sell and Upsell Opportunities - SMS adoption is strong, with 80% of the top 50 customers using Klaviyo SMS, and the company is expanding SMS coverage and integrations [92] - The CDP product is gaining traction, with customers using it for analytics and data governance, leading to faster ROI [94][96] Question: NRR Decline and Future Growth - The decline in NRR is driven by softness in customer expansion, particularly in the SMB segment, and the trend of customers landing larger with multiple products upfront [99][101] - The company expects the NRR decline to continue in the near term but remains optimistic about cross-sell opportunities with SMS, CDP, and Reviews [102][103] Question: Upmarket Traction and Competitive Dynamics - Klaviyo is competing with legacy marketing vendors and is seeing success in displacing older technologies, particularly in the mid-market and enterprise segments [108] - The company expects to grow with its upmarket customers by expanding across business units and geographies [109] Question: Q4 Margin Expectations - Q4 operating margins are expected to decline due to seasonal factors, including increased email and SMS sending volumes and higher marketing expenses [112] - Excluding the impact of the new cash bonus program, Q4 operating margins would be in line with previous guidance [112] Question: Seasonality of New Customer Adds and SMS Volume - Q4 is historically a strong quarter for new customer adds, particularly in the lower end of the market, as customers prepare for the holiday season [115] - SMS volume is expected to be seasonally strong during the holiday period, with customers adding more subscribers and being intentional about message frequency [117][118] Question: Upmarket Pipeline and Seasonality - The company expects upmarket customer decisions to materialize post-holidays, with many customers making tech stack upgrades in January [121][122] Question: Shopify's Enterprise Expansion Impact on Klaviyo - Klaviyo's partnership with Shopify continues to strengthen, particularly as Shopify expands into the enterprise market, with both companies working together to integrate commerce and marketing [124][126] Question: Connecting Klaviyo to Ad Audiences - Klaviyo is integrating with ad platforms like Google, Meta, and TikTok to help customers with demand generation and customer acquisition [130][132] - The company is enabling customers to pass data back to ad platforms for better targeting and improved acquisition funnel performance [133]

Klaviyo, Inc. (KVYO) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to loss of $1.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 36.36%. A quarter ago, it was expected that this company would post earnings of $0.09 per share when it actually produced earnings of $0.15, delivering a surprise of 66.67%.Over the last four quarters, the company has su ...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number 001-41806 Klaviyo, Inc. (Exact name of registrant as specified in its charter) Delaware 46-0989964 (State or other j ...

Revenue and Growth - Q3 2024 revenue reached $235.1 million, representing a 34% year-over-year growth[1][7] - Raised full-year 2024 revenue guidance to a range of $923.0 million to $925.0 million, representing 32% to 33% year-over-year growth[13] - Revenue for the three months ended September 30, 2024, was $235,094 thousand, compared to $175,807 thousand in the same period in 2023[30] - Revenue for the nine months ended September 30, 2024, was $667,300 thousand, compared to $496,481 thousand in the same period in 2023[31] Profitability and Margins - Gross profit for Q3 2024 was $180.7 million with a gross margin of 77%, up from 67% in Q3 2023[7] - Non-GAAP operating income for Q3 2024 was $33.7 million, with a non-GAAP operating margin of 14%, compared to 10% in Q3 2023[9] - Non-GAAP gross margin is calculated as non-GAAP gross profit divided by total revenue, and non-GAAP operating margin is calculated as non-GAAP operating income divided by total revenue[24] - Non-GAAP gross profit for the nine months ended 2024 rose to $525,367 from $388,158 in 2023, reflecting improved profitability[39] - Non-GAAP operating income for the nine months ended 2024 reached $97,376, up from $61,901 in 2023, showing better operational efficiency[40] - Non-GAAP net income for the nine months ended 2024 was $127,631, compared to $74,255 in 2023, indicating stronger overall financial performance[41] - Non-GAAP gross margin for the nine months ended 2024 improved to 78.7% from 78.2% in 2023, indicating better cost control[39] - Non-GAAP operating margin for the nine months ended 2024 increased to 14.6% from 12.5% in 2023, showing enhanced operational efficiency[40] - Non-GAAP net income per share (diluted) for the nine months ended 2024 was $0.43, up from $0.27 in 2023, reflecting higher earnings per share[41] Cash Flow and Liquidity - Free cash flow for Q3 2024 was $34.2 million, representing a free cash flow margin of 15%[12] - Net cash provided by operating activities for the three months ended September 30, 2024, was $38,784 thousand, compared to $23,700 thousand in the same period in 2023[32] - Cash, cash equivalents, and restricted cash increased from $794,629 thousand at the beginning of the period to $827,898 thousand at the end of September 2024[32] - Net cash provided by operating activities increased to $105,866 in 2024 from $80,727 in 2023, indicating stronger cash flow generation[33] - Free cash flow for the three months ended 2024 was $34,246, up from $21,870 in 2023, demonstrating improved cash management[38] - Cash provided by operating activities grew to $105,866 in the nine months ended September 30, 2024, up from $80,727 in the same period in 2023[43] - Free Cash Flow increased to $94,268 in the nine months ended September 30, 2024, compared to $75,292 in the same period in 2023[43] - Operating Cash Flow Margin slightly decreased to 15.9% in the nine months ended September 30, 2024, from 16.3% in the same period in 2023[43] - Free Cash Flow Margin decreased to 14.1% in the nine months ended September 30, 2024, from 15.2% in the same period in 2023[43] Customer Metrics - Total customers grew to over 157,000 as of September 30, 2024, up from over 135,000 in the same period last year[4] - Customers generating over $50,000 in ARR increased by 54% year-over-year to 2,619 as of September 30, 2024[4] - Dollar-Based Net Revenue Retention Rate (NRR) was 110% as of September 30, 2024[4] International Expansion and Localization - Expanded SMS offerings to 18 countries, including Norway, Denmark, Sweden, Finland, Italy, and Portugal[3] - Launched Klaviyo in five new languages, bringing total supported languages to seven[2] Expenses and Compensation - Stock-based compensation expense is a significant recurring expense and an important part of employee compensation, impacting non-GAAP financial measures[25] - Stock-based compensation expense for the nine months ended 2024 was $100,690, down from $302,317 in 2023, reflecting reduced equity-based costs[33] - Non-GAAP Selling and Marketing expenses decreased to $214,880 in the nine months ended September 30, 2024, compared to $151,715 in the same period in 2023[42] - Non-GAAP Research and Development expenses increased to $127,279 in the nine months ended September 30, 2024, from $98,925 in the same period in 2023[42] - Non-GAAP General and Administrative expenses rose to $85,832 in the nine months ended September 30, 2024, compared to $75,617 in the same period in 2023[42] - Total Non-GAAP Operating Expenses increased to $427,991 in the nine months ended September 30, 2024, from $326,257 in the same period in 2023[42] Net Loss and Financial Position - Net loss for the three months ended September 30, 2024, was $(1,345) thousand, compared to $(297,104) thousand in the same period in 2023[30] - Net loss for the nine months ended September 30, 2024, was $(19,169) thousand, compared to $(281,938) thousand in the same period in 2023[31] - Net loss for the nine months ended 2024 improved to $(19,169) from $(281,938) in 2023, showing significant reduction in losses[33] - Klaviyo's total assets increased from $1,089,050 thousand in December 2023 to $1,193,199 thousand in September 2024[29]

Have you been paying attention to shares of Klaviyo, Inc. (KVYO) ? Shares have been on the move with the stock up 10.9% over the past month. The stock hit a new 52-week high of $39.77 in the previous session. Klaviyo, Inc. has gained 40.5% since the start of the year compared to the 17.1% move for the Zacks Business Services sector and the 36.7% return for the Zacks Technology Services industry. What's Driving the Outperformance? The stock has a great record of positive earnings surprises, as it hasn't miss ...

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 ...