Klaviyo dips despite posting largest quarterly beat since 2023

Klaviyo's (NYSE:KVYO) fourth quarter 2024 financial results featured year-over-year revenue growth of 34% to $270.2M, surpassing the consensus estimate, but shares were sinking on Thursday morning.

"Klaviyo reported a solid 4Q, highlighted by its largest revenue upside since its first IPO quarter," said Needham analysts, led by Scott Berg, in a Thursday note. "4Q sales metrics were all positive, including the most net new customer additions (+10k) since the IPO, NRR stabilizing, and Q/Q ARPA growth suggesting positive SMS uptake in a seasonally strong quarter. KVYO shares were mixed after hours, reflecting we believe a negative reaction to the company's new pricing model not driving any upside to FY25 revenue guidance."

Needham maintained its Buy rating on the marketing automation platform and increased its price target to $56 from $46 following the results.

Similarly, KeyBanc Capital Markets reiterated its Overweight rating and boosted its price target to $55 from $45.

"A theme emerging through this earning's season for us is the continued investor preference for small and mid-cap growth," said KeyBanc analysts, led by Jackson Ader, in an investor note. "As the herd of 20%+ growers thins, the scarcity of premium growth has and will put an in-kind premium on those growers' multiples. We believe Klaviyo is adding itself onto the short list of premium growth assets and has a number of tailwinds behind it to sustain its premium growth status."

KeyBanc also noted international growth from Klaviyo last quarter, as it launched in six new languages, with strong enterprise adoption reported in France, Germany and the Nordics.

Finally, Canaccord Genuity maintained its Buy rating and hiked its price target to $50 from $40.

"Looking ahead, at the high-end of guidance, management's initial view pointed to 24% growth and 12% operating margins, which is more or less flat year-over-year and gives Klaviyo leeway to incrementally invest across product category expansion, international growth, and its continued push up-market," said CG analysts, led by David Hynes, in a note. 

Competitor HubSpot (HUBS) was down less than 1% on Thursday morning.