Klaviyo soars following Q2 results and guidance increase

Klaviyo (NYSE:KVYO) rocketed more than 25% during early market action Thursday after its second quarter earnings beat estimates, and it increased its full-year revenue guidance.

As a result, KeyBanc upgraded the stock to Overweight from Sector Weight. It set a price target of $33.

Klaviyo automates eCommerce SMS and email marketing for businesses. It went public last September. 

"The company has bucked the trend seen at peers showing accelerating revenue in 2Q24 to 35% as a number of growth drivers are hitting at once," said KeyBanc analyst Jackson Ader, in a note. "The two areas we are most positive on are the continued strength up market, where Klaviyo landed a record number of net-new $50K customers in the quarter, and an international opportunity that is growing nearly 40% with the foundation still being laid."

Klaviyo noted it ended the second quarter with 2,385 customers generating more than $50,000 of ARR, compared to 1,458 customers generating that much revenue during the same quarter last year.

"We grew our revenue 35% year-over-year to $222 million, and we delivered $41 million in operating cash flow and $37 million in free cash flow," said Klaviyo CEO Amanda Whalen. "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."

Klaviyo expects revenue to range from $910M to $918M, with a mid-point of $914M, for the full year of 2024. This is more than the consensus estimate of $903.5M.

The company has a Buy rating from Seeking Alpha analysts and Wall Street analysts. It is not covered by Seeking Alpha's Quant system.