KVYO Stock Forecast & Price Target

Klaviyo Inc. exhibits strong financial momentum, evidenced by significant growth in its $50k+ annual recurring revenue (ARR) segment, which is expanding at a rate of 40% year-over-year. The company has successfully penetrated over 100 countries, with notable performance in France, experiencing approximately 2.5 times new ARR growth since September 2023, strengthened by enhanced partner networks and in-country sales efforts. Furthermore, Klaviyo projects an expansion of operating margins by 300-500 basis points by the fourth quarter of FY28, driven by operational efficiencies and the leverage of its foundational technology investments.

Klaviyo Inc. is facing a negative outlook primarily due to lower gross margin expectations driven by an anticipated shift in revenue mix toward lower-margin SMS and WhatsApp messaging channels. Additionally, the absence of a revenue or growth target for fiscal year 2028, combined with an operating margin guide slightly below market expectations, has raised concerns among investors. Compounding these issues are macroeconomic headwinds that could hinder sales cycles and customer retention, as the company's reliance on monthly contracts increases the risk of customer attrition and further financial pressures.