Klaviyo (KVYO)
Market Price (2/8/2026): $19.1 | Market Cap: $5.7 BilSector: Information Technology | Industry: Application Software
Klaviyo (KVYO)
Market Price (2/8/2026): $19.1Market Cap: $5.7 BilSector: Information TechnologyIndustry: Application Software
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -15% | Weak multi-year price returns2Y Excs Rtn is -71%, 3Y Excs Rtn is -110% | Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -101 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -8.7% |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 33% | Significant share based compensationSBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 14% | |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 16%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 14% | Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -5.3% | |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -32% | Key risksKVYO key risks include [1] a significant concentration risk from its pivotal reliance on the Shopify partnership and [2] customer churn and declining retention rates stemming from its recent shift to an active profile-based pricing model. | |
| Megatrend and thematic driversMegatrends include Cloud Computing, E-commerce & Digital Retail, and Digital Advertising. Themes include Software as a Service (SaaS), Show more. |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -15% |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 33% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 16%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 14% |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -32% |
| Megatrend and thematic driversMegatrends include Cloud Computing, E-commerce & Digital Retail, and Digital Advertising. Themes include Software as a Service (SaaS), Show more. |
| Weak multi-year price returns2Y Excs Rtn is -71%, 3Y Excs Rtn is -110% |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -101 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -8.7% |
| Significant share based compensationSBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 14% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -5.3% |
| Key risksKVYO key risks include [1] a significant concentration risk from its pivotal reliance on the Shopify partnership and [2] customer churn and declining retention rates stemming from its recent shift to an active profile-based pricing model. |
Qualitative Assessment
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Klaviyo (KVYO) stock has lost about 25% since 10/31/2025 because of the following key factors:
1. Multiple Analyst Downgrades and Price Target Reductions.
Several financial analysts reduced their price targets for Klaviyo (KVYO) during this period, with the average price target decreasing by over 11%. For example, Piper Sandler, Morgan Stanley, Barclays, Goldman Sachs, and Keybanc all lowered their price targets, signaling a less optimistic outlook on the stock's future performance.
2. High Valuation and Increased Downside Risk.
Klaviyo was noted to be trading at a premium valuation, specifically 7.3 times sales and 31 times forward price-to-earnings (P/E). This elevated valuation made the stock particularly sensitive to any indications of slowing revenue growth or declining profit margins, thereby increasing its downside risk in the market.
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1. Multiple Analyst Downgrades and Price Target Reductions.
Several financial analysts reduced their price targets for Klaviyo (KVYO) during this period, with the average price target decreasing by over 11%. For example, Piper Sandler, Morgan Stanley, Barclays, Goldman Sachs, and Keybanc all lowered their price targets, signaling a less optimistic outlook on the stock's future performance.
2. High Valuation and Increased Downside Risk.
Klaviyo was noted to be trading at a premium valuation, specifically 7.3 times sales and 31 times forward price-to-earnings (P/E). This elevated valuation made the stock particularly sensitive to any indications of slowing revenue growth or declining profit margins, thereby increasing its downside risk in the market.
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Stock Movement Drivers
Fundamental Drivers
The -26.4% change in KVYO stock from 10/31/2025 to 2/7/2026 was primarily driven by a -27.4% change in the company's P/S Multiple.| (LTM values as of) | 10312025 | 2072026 | Change |
|---|---|---|---|
| Stock Price ($) | 26.00 | 19.14 | -26.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,078 | 1,154 | 7.0% |
| P/S Multiple | 6.9 | 5.0 | -27.4% |
| Shares Outstanding (Mil) | 285 | 301 | -5.3% |
| Cumulative Contribution | -26.4% |
Market Drivers
10/31/2025 to 2/7/2026| Return | Correlation | |
|---|---|---|
| KVYO | -26.4% | |
| Market (SPY) | 1.3% | 24.4% |
| Sector (XLK) | -6.1% | 26.6% |
Fundamental Drivers
The -38.5% change in KVYO stock from 7/31/2025 to 2/7/2026 was primarily driven by a -41.1% change in the company's P/S Multiple.| (LTM values as of) | 7312025 | 2072026 | Change |
|---|---|---|---|
| Stock Price ($) | 31.10 | 19.14 | -38.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,007 | 1,154 | 14.6% |
| P/S Multiple | 8.5 | 5.0 | -41.1% |
| Shares Outstanding (Mil) | 274 | 301 | -8.9% |
| Cumulative Contribution | -38.5% |
Market Drivers
7/31/2025 to 2/7/2026| Return | Correlation | |
|---|---|---|
| KVYO | -38.5% | |
| Market (SPY) | 9.6% | 27.9% |
| Sector (XLK) | 7.6% | 26.2% |
Fundamental Drivers
The -58.4% change in KVYO stock from 1/31/2025 to 2/7/2026 was primarily driven by a -64.8% change in the company's P/S Multiple.| (LTM values as of) | 1312025 | 2072026 | Change |
|---|---|---|---|
| Stock Price ($) | 46.01 | 19.14 | -58.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 869 | 1,154 | 32.8% |
| P/S Multiple | 14.2 | 5.0 | -64.8% |
| Shares Outstanding (Mil) | 268 | 301 | -11.0% |
| Cumulative Contribution | -58.4% |
Market Drivers
1/31/2025 to 2/7/2026| Return | Correlation | |
|---|---|---|
| KVYO | -58.4% | |
| Market (SPY) | 15.8% | 49.3% |
| Sector (XLK) | 22.9% | 50.6% |
Fundamental Drivers
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Market Drivers
1/31/2023 to 2/7/2026| Return | Correlation | |
|---|---|---|
| KVYO | ||
| Market (SPY) | 76.2% | 43.8% |
| Sector (XLK) | 111.8% | 41.4% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| KVYO Return | - | - | -15% | 48% | -21% | -42% | -42% |
| Peers Return | 37% | -52% | 93% | 12% | -5% | -32% | -8% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | -1% | 81% |
Monthly Win Rates [3] | |||||||
| KVYO Win Rate | - | - | 50% | 67% | 50% | 0% | |
| Peers Win Rate | 62% | 32% | 62% | 50% | 45% | 0% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| KVYO Max Drawdown | - | - | -24% | -22% | -42% | -42% | |
| Peers Max Drawdown | -10% | -58% | -3% | -22% | -30% | -32% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -1% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: HUBS, CRM, ADBE, INTU, SHOP.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 2/6/2026 (YTD)
How Low Can It Go
KVYO has limited trading history. Below is the Information Technology sector ETF (XLK) in its place.
| Event | XLK | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -34.0% | -25.4% |
| % Gain to Breakeven | 51.6% | 34.1% |
| Time to Breakeven | 278 days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -31.5% | -33.9% |
| % Gain to Breakeven | 46.0% | 51.3% |
| Time to Breakeven | 79 days | 148 days |
| 2018 Correction | ||
| % Loss | -24.1% | -19.8% |
| % Gain to Breakeven | 31.8% | 24.7% |
| Time to Breakeven | 105 days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -53.6% | -56.8% |
| % Gain to Breakeven | 115.3% | 131.3% |
| Time to Breakeven | 1,183 days | 1,480 days |
Compare to HUBS, CRM, ADBE, INTU, SHOP
In The Past
SPDR Select Sector Fund's stock fell -34.0% during the 2022 Inflation Shock from a high on 12/27/2021. A -34.0% loss requires a 51.6% gain to breakeven.
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About Klaviyo (KVYO)
We founded Klaviyo in 2012 to provide businesses of all sizes with powerful technology that captures, stores, analyzes, and predictively uses their own data to drive measurable, high-value outcomes. Klaviyo enables businesses to drive revenue growth by making it easy to bring their first-party data together and use it to create and deliver highly personalized consumer experiences across digital channels. Our modern and intuitive SaaS platform combines our proprietary data and application layers into one vertically-integrated solution with advanced machine learning and artificial intelligence capabilities. This enables business users of any skill level to harness their data in order to send the right message at the right time across email, SMS, and push notifications, more accurately measure and predict performance, and deploy the specific actions and campaigns that drive the highest impact. By combining easy implementation, rapid time-to-value, and clearly attributable outcomes, which we measure and refer to as KAV, we drive substantial ROI for our customers. We focused on marketing automation within retail and eCommerce as our first application use case, and we believe our software is highly extensible across a broad range of functions and verticals. As of June 30, 2023, our platform had efficiently scaled to over 130,000 customers, and in 2022 we delivered over $37 billion of KAV to our customers. Businesses today struggle to deliver impactful consumer experiences because they cannot effectively harness increasingly complex consumer data. At a time when consumers expect more personalized, relevant, and consistent interactions across digital channels, they are instead inundated with an overwhelming number of inconsistent and ineffective marketing messages. As user tracking rules change, third-party data has become unreliable, complicated, and expensive to use. Meanwhile, the proliferation of first-party data has made it difficult for businesses to aggregate, synthesize, and use these disparate data sets. Other software solutions were not purpose-built to harness customers’ first-party data to deliver impactful consumer experiences. Data-focused offerings, such as cloud data warehouses or operational databases, provide the ability to store and analyze significant volumes of data for general-purpose use cases but are not purpose-built for consumer data and lack the front-end application layer. Marketing solutions are insufficient because they lack the underlying data intelligence. Simple marketing solutions use a flattened and narrowed view of a consumer’s historical data. This basic profile data alone significantly limits the granularity of segmentation businesses can use. Profile data is also difficult to combine with event data, which includes all digital touch points of a consumer’s engagement with a brand and provides necessary real-time information. Point marketing solutions tend to focus on single engagement channels, driving inconsistent and disjointed consumer experiences across digital channels. In an attempt to bridge this gap, other marketing solutions use a patchwork of third-party technologies, such as separate consumer data, learning, and messaging applications. These solutions often require significant technical expertise to implement, operate, and maintain, which limits flexibility, reduces speed, and increases costs. Furthermore, these solutions are not able to provide clear revenue attribution, minimizing ROI. We built Klaviyo to address these challenges. By vertically integrating our data layer and marketing application, we make it easy for businesses to create and store unified consumer profiles and then use those profiles to derive new insights and ultimately drive revenue generation. We purpose-built a centralized, scalable, and flexible cloud-native data store for our customers to intelligently aggregate and process first-party consumer profile and event data without friction. This approach enables our customers to seamlessly generate unified and highly-granular consumer profiles, populated with data from customers’ systems and from over 300 third-party integrations, from eCommerce platforms – such as Shopify, Salesforce Commerce Cloud, and WooCommerce – to loyalty, customer service, and shipping solutions. We built an application layer on top of our data layer to provide a comprehensive set of tools and features that enable our customers to easily turn consumer preferences into insights and actions. Combining our data layer and application layer into one vertically-integrated platform allows our customers to rapidly segment their consumers, easily create highly-personalized experiences, and automatically send messages customized to their unique brands. This integrated approach also means our customers do not have to pre-configure their data or manage complex integrations. Our platform and customers benefit from significant network effects. As of June 30, 2023, we assembled over 6.9 billion consumer profiles across our customer base, and in the twelve month period ended June 30, 2023, we processed over 695 billion events, which are data on how consumers engage across channels, such as opening an email, browsing a website, or placing an order. As we add more customers and more anonymized data on our platform, we are able to better refine our predictive models of consumer behavior. These network effects also enable us to continually refine our guided software recommendations to drive more impactful campaigns and specific actions. Our land-and-expand strategy aligns our own success with that of our customers. We generate revenue through the sale of subscriptions to our customers for the use of our platform. Our subscription plans are tiered based on the number of active consumer profiles stored on our platform combined with the number of emails and SMS messages sent. As our customers’ businesses grow, they utilize more consumer profiles and send more emails and SMS messages, which naturally increases their usage of our platform. Our revenue also expands when our customers add additional channels, such as SMS, or when their other brands, business units, and geographies start using the platform. In addition, we recently launched our reviews and Customer Data Platform, or CDP, products. Klaviyo reviews allows customers to collect product reviews alongside consumer data and messages. Klaviyo CDP gives customers user-friendly ways to transform and cleanse data, run more advanced reporting and predictive analysis to drive revenue growth, and sync data into and out of Klaviyo at scale. Our CDP offering provides enhanced features and functionality to our core platform offering, including advanced reporting and improved data management tools with minimal additional implementation required. The success of our land-and-expand strategy is evidenced by our highly-attractive NRR. Our NRR was 111%, 115%, 119%, 121%, 121%, 120%, 119%, 119%, 119%, and 119% as of March 31, 2021, June 30, 2021, September 30, 2021, December 31, 2021, March 31, 2022, June 30, 2022, September 30, 2022, December 31, 2022, March 31, 2023, and June 30, 2023, respectively. Our go-to-market strategy is primarily product-led, and we attract the majority of our new customers through inbound channels, such as word-of-mouth, agency partnerships, and platform integrations. Many of our customers come through our self-service channel by simply signing up for our platform without the need for a salesperson's involvement. We have built a large and growing ecosystem of major eCommerce platforms, agency partnerships, and developers, which helps us efficiently attract new customers. More recently, we have developed an outbound sales team focused on larger accounts. Our strong product reputation makes our customer acquisition strategy highly-efficient, as reflected by our CAC payback period of only 14 months for the quarter ended June 30, 2023. Once customers access the Klaviyo platform, they can easily integrate with more than 300 critical third-party data sources to import and explore their first-party data and design and run campaigns and automations, providing rapid time-to-value. Today, our customers primarily operate within the retail and eCommerce vertical, and we are also seeing organic demand from customers in other verticals, such as education, events and entertainment, restaurants, and travel, as well as from business-to-business, or B2B, companies. We have begun to explore ways to serve these new verticals more intentionally, and to that end we launched Klaviyo for Wellness in June 2023. When we first launched our platform, we intentionally focused on serving entrepreneurs and small and medium-sized businesses, or SMBs. As our customers have scaled and become mid-market companies and larger enterprises themselves, their success with Klaviyo has attracted more interest from similarly sized businesses that are looking to drive better engagement with their consumers. As such, we have continued to build out a sales team to focus on mid-market and enterprise customers. As of June 30, 2023, we had 1,458 customers generating over $50,000 of ARR, representing growth of 94% year-over-year. Efficiency is part of our DNA. We have raised $454.8 million in primary capital since our inception, of which we have utilized only $15.0 million in the operation of our business as of June 30, 2023, which is net of the $439.8 million of cash, cash equivalents, and restricted cash on our balance sheet as of June 30, 2023 and capital used for share repurchases and tender offers. We grew our revenue 62.7% year-over-year, from $290.6 million in 2021 to $472.7 million in 2022. Our net losses for 2021 and 2022 were $79.4 million and $49.2 million, respectively, representing a year-over-year decrease of 38.0%. We grew our gross profit 67.4% year-over-year, from $205.9 million in 2021 to $344.7 million in 2022, representing gross profit margins of 70.9% and 72.9%, respectively. In 2021 and 2022, our operating cash flow was $(22.7) million and $(23.6) million, respectively. We were incorporated in 2012 under the name Klaviyo, Inc. as a Delaware corporation. Our principal executive offices are located at 125 Summer Street, 6th Floor, Boston, MA.
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Here are 1-3 brief analogies for Klaviyo (KVYO):
- Klaviyo is like Mailchimp for scaling e-commerce businesses.
- Klaviyo is like HubSpot for direct-to-consumer (DTC) marketing automation.
- Klaviyo is like a specialized Salesforce Marketing Cloud for e-commerce brands.
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- Klaviyo Marketing Automation Platform: A software-as-a-service (SaaS) platform designed for e-commerce and retail businesses to automate and personalize customer communication across multiple channels.
- Email Marketing Service: Enables businesses to design, send, and automate highly personalized email campaigns, flows, and newsletters to their customer base.
- SMS Marketing Service: Provides tools for companies to engage customers through targeted and timely text message campaigns and automated messaging.
- Customer Data and Segmentation Service: Unifies customer data from various sources, enabling deep segmentation and the creation of highly personalized marketing strategies and targeted communications.
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Klaviyo (symbol: KVYO) primarily sells its marketing automation platform to other companies, specifically e-commerce businesses.
According to its public filings, no single customer accounted for more than 1% of Klaviyo's revenue in recent periods. This indicates a highly diversified customer base rather than reliance on a few major clients. Therefore, it is not possible to list specific 'major customer companies' with their symbols, as no individual company represents a significant portion of Klaviyo's revenue.
Instead, Klaviyo's customer base consists of a broad range of e-commerce brands across various sizes and industries. The primary categories of companies that utilize Klaviyo's services are:
- Direct-to-Consumer (DTC) Brands: These are companies that sell their products directly to consumers online, bypassing traditional retailers. They often rely heavily on personalized email and SMS marketing for customer acquisition, retention, and loyalty, which is Klaviyo's core offering.
- Small and Medium-sized Businesses (SMBs) in E-commerce: A significant portion of Klaviyo's customer base comprises SMBs that are building and scaling their online presence. Klaviyo's platform is designed to be accessible and effective for businesses that may not have large marketing teams or budgets.
- Growing E-commerce Enterprises: While accessible to SMBs, Klaviyo also serves larger, established e-commerce companies that require sophisticated segmentation, automation, and analytics for their complex customer engagement strategies.
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- Amazon.com, Inc. (AMZN)
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Andrew Bialecki, Chief Executive Officer
Andrew Bialecki is the co-founder and Chief Executive Officer of Klaviyo, a role he has held since 2012. Prior to co-founding Klaviyo with Ed Hallen, he gained valuable experience in various technical roles, including Lead Engineer at Applied Predictive Technologies, Senior Engineer at Performable, and Chief Technology Officer at RockTech. Bialecki holds a Bachelor of Arts degree in Physics, Astronomy, and Astrophysics from Harvard University. He notably bootstrapped Klaviyo for its first three years, making the company profitable before seeking outside investment, and maintained significant control, owning 38% when the company went public in 2023.
Amanda Whalen, Chief Financial Officer
Amanda Whalen has served as Klaviyo's Chief Financial Officer since May 2022. Before joining Klaviyo, Whalen held the position of Executive Vice President and CFO of Walmart International, where she was responsible for finance across eight international markets with over $90 billion in revenue. Her career also includes roles as CFO and Chief Administrative Officer for DaVita Rx, part of DaVita Inc., and various strategic and finance leadership positions at companies such as C&S Wholesale Grocers, Saputo Dairy Foods, and Dean Foods. Whalen began her career at Bain & Company and earned her Bachelor's degree from Princeton University and an MBA from MIT's Sloan School of Management.
Ed Hallen, Co-Founder and Chief Product Officer
Ed Hallen is a co-founder of Klaviyo and serves as its Chief Product Officer. He co-founded Klaviyo with Andrew Bialecki in 2012. His professional background includes experience at Google, Accel-KKR, and Applied Predictive Technologies. Hallen holds an MBA from MIT Sloan School of Management and a BS in Systems Engineering and Government from the University of Virginia.
Steve Rowland, President
Steve Rowland has served as President of Klaviyo since July 2023. Prior to Klaviyo, he was the Chief Revenue Officer of Okta, Inc. Rowland also held roles as Vice President, Americas at Splunk Inc., and President of DataStax, Inc. He brings extensive experience in sales and field operations to his role.
Surabhi Gupta, Chief Technology Officer
Surabhi Gupta has served as Klaviyo's Chief Technology Officer since September 2024. Before her current role, she was Senior Vice President, Head of Engineering, Vice President, Head of Engineering, and Vice President, Product Engineering at Robinhood Markets, Inc. Gupta also previously served as a Director of Engineering at Airbnb, Inc.
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The key risks to Klaviyo (KVYO) are:
- Intense Competitive Landscape: Klaviyo operates in a fiercely competitive market for B2C CRM and marketing automation platforms, particularly within the e-commerce sector. The company faces competition from a range of rivals, including established players like Adobe, Salesforce, and Mailchimp, as well as various innovative startups. This competitive pressure could lead to pricing pressures, necessitating continuous innovation, and potentially result in a loss of market share if Klaviyo fails to adapt to evolving market trends or customer demands. As Klaviyo expands into new verticals and international markets, it may encounter increased competition from local providers or larger, more diversified software companies.
- Reliance on Third-Party Platforms and Evolving Data Privacy Regulations: Klaviyo's business success is partly contingent on its ability to integrate seamlessly with third-party e-commerce platforms, notably Shopify, with which it has a pivotal partnership. This creates a concentration risk, where Klaviyo's revenue growth could be disproportionately affected if Shopify expands its own marketing tools or begins to champion competing solutions. Furthermore, Klaviyo is subject to increasing data privacy and compliance requirements, such as GDPR and CCPA. Adhering to these evolving regulations may require significant investment in data security and legal resources, which could impact its ability to maintain competitive pricing and margins.
- Customer Retention and Impact of Pricing Model Changes: Klaviyo's shift to an active profile-based pricing model has introduced a risk to customer retention, as it has the potential to increase costs for some customers. This change has already been associated with some customer churn, and a continued or accelerated trend could negatively affect Klaviyo's revenue growth and overall market share. While Klaviyo's Net Revenue Retention (NRR) rate was 108% as of December 31, 2024, this represents a decline from 119% a year prior, which some analysts view as a concern regarding the company's ability to upsell existing customers or retain high-value accounts.
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Klaviyo faces a clear emerging threat from Shopify's increasing vertical integration into marketing services. As a key partner and platform for many of Klaviyo's customers, Shopify has the ability, data, and incentive to expand its existing marketing tools, such as Shopify Email and Shopify Audiences, into more comprehensive marketing automation and customer data platform (CDP) functionalities. If Shopify continues to build out or acquire capabilities that directly compete with Klaviyo's core offerings, potentially bundling them with its e-commerce platform or offering them at a reduced cost, it could directly cannibalize Klaviyo's market, especially among small to medium-sized businesses leveraging the Shopify ecosystem.
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Klaviyo (KVYO) operates in a significant addressable market across its core products and expanding services.
The company identifies its global market opportunity at $68 billion. Within its core vertical of retail and e-commerce marketing automation for small and medium-sized businesses, Klaviyo estimates its serviceable addressable market (SAM) to be over $16 billion. Furthermore, the opportunity outside of these core verticals is estimated at $34 billion globally.
For the United States alone, the total addressable market (TAM) opportunity for Klaviyo's platform across all verticals is estimated at $34 billion. Klaviyo is also expanding its addressable market by evolving its platform from solely marketing automation into a broader B2C CRM and customer service platform. This expansion is driven by new AI-first products, including Conversational Agent, Helpdesk, and advanced analytics.
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Here are 3-5 expected drivers of future revenue growth for Klaviyo (KVYO) over the next 2-3 years:- Expansion of Multi-Product Platform and Increased Adoption: Klaviyo is actively expanding its multi-product offerings and demonstrating strong adoption of new services. The company's new service product line, which recently reached general availability, has shown the fastest adoption rate of any of its products, including text messaging, according to recent earnings calls. This multiproduct expansion is identified as a core engine for Klaviyo's long-term growth, reflected in its Net Revenue Retention (NRR) rate, which accelerated to 109% in Q3 2025.
- Growth in Mid-Market and Enterprise Customers: Klaviyo is strategically focusing on and successfully expanding its footprint within the mid-market and enterprise customer segments. The company reported a record number of net additions to its cohort of customers generating over $50,000 in Annual Recurring Revenue (ARR), with this segment growing 36% year-over-year to 3,563 customers in Q3 2025. This demonstrates a strong move upmarket, capturing larger businesses.
- International Expansion: International markets represent a significant growth opportunity for Klaviyo. The company has seen accelerated international revenue growth for six consecutive quarters, with EMEA and APAC regions contributing 43% revenue growth in Q3 2025. Klaviyo is actively serving over 183,000 customers in more than 100 countries.
- Adding New Customers: Klaviyo continues to grow its customer base, consistently adding thousands of new customers each quarter. In Q3 2025, the company added 7,000 new customers, bringing its total to over 183,000. This ongoing acquisition of new businesses, ranging from entrepreneurs to larger enterprises, forms a fundamental driver of revenue.
- Advancements and Integration of AI-driven Products and Services: Klaviyo is heavily investing in and leveraging artificial intelligence to enhance its platform and offerings. The company views AI as a "force multiplier" and is implementing a multi-pronged AI strategy, including the introduction of Agentic AI and marketing agent workflows. The launch of AI-powered tools like the Customer Agent and Marketing Agent is expected to significantly enhance service offerings and drive future growth by enabling more sophisticated and automated customer engagement.
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Share Repurchases
Klaviyo has not had any significant share repurchase programs or authorizations over the last 3-5 years.
Share Issuance
- Klaviyo completed its Initial Public Offering (IPO) in September 2023, offering 11,507,693 shares of Series A common stock at $30.00 per share, generating gross proceeds of approximately $345.2 million.
- The total shares offered in the IPO, including those sold by certain selling stockholders, amounted to 19,200,000 shares at $30.00 per share, resulting in gross proceeds of $576.0 million. Klaviyo did not receive proceeds from the shares sold by selling stockholders.
- Share issuances have led to an increase in outstanding shares, from 0.23 billion in 2022 to 0.285 billion in Q2 2025.
Inbound Investments
- Klaviyo raised $320 million in a Series D funding round on May 18, 2021, with Sands Capital as the lead investor.
- The company secured $200 million in a Series C funding round on November 17, 2020, led by Accel and Summit Partners.
- Klaviyo also received a $100 million corporate investment in August 2022, with Shopify participating.
Outbound Investments
- Klaviyo has made one investment in Recurate and acquired Gatsby and Napkin.
Capital Expenditures
- Klaviyo's capital expenditures are primarily focused on maintaining and expanding its business operations and remaining competitive, including product and platform investments.
- Capital expenditures as a percentage of current assets were 0.76% in 2023, 0.63% in 2024, and are estimated at 0.52% for 2025.
- Capital expenditures as a percentage of EBITDA were 5.49% in 2023, 4.55% in 2024, and are estimated at 3.98% for 2025.
Latest Trefis Analyses
| Title | Date | |
|---|---|---|
| DASHBOARDS | ||
| Klaviyo Earnings Notes | 12/29/2026 | |
| Would You Still Hold Klaviyo Stock If It Fell 30%? | 10/17/2025 | |
| How Does Klaviyo Stock Compare With Peers? | 08/13/2025 | |
| Why Klaviyo Stock Moved: KVYO Stock Has Gained 17% Since 2023 Fiscal End, Primarily Due To Favorable Change In Revenues | 08/08/2025 | |
| KVYO Dip Buy Analysis | 07/10/2025 | |
| Klaviyo (KVYO) Valuation Ratios Comparison | 05/15/2025 | |
| Klaviyo (KVYO) Operating Cash Flow Comparison | 02/17/2025 |
| Title | |
|---|---|
| ARTICLES |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 211.97 |
| Mkt Cap | 117.9 |
| Rev LTM | 15,064 |
| Op Inc LTM | 3,436 |
| FCF LTM | 4,128 |
| FCF 3Y Avg | 3,289 |
| CFO LTM | 4,202 |
| CFO 3Y Avg | 3,402 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 18.2% |
| Rev Chg 3Y Avg | 13.5% |
| Rev Chg Q | 19.6% |
| QoQ Delta Rev Chg LTM | 4.1% |
| Op Mgn LTM | 18.9% |
| Op Mgn 3Y Avg | 13.4% |
| QoQ Delta Op Mgn LTM | 0.7% |
| CFO/Rev LTM | 28.5% |
| CFO/Rev 3Y Avg | 26.0% |
| FCF/Rev LTM | 24.9% |
| FCF/Rev 3Y Avg | 22.5% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 117.9 |
| P/S | 4.8 |
| P/EBIT | 21.6 |
| P/E | 20.4 |
| P/CFO | 18.2 |
| Total Yield | 2.8% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 2.2% |
| D/E | 0.0 |
| Net D/E | -0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -31.8% |
| 3M Rtn | -29.0% |
| 6M Rtn | -32.8% |
| 12M Rtn | -39.5% |
| 3Y Rtn | -10.9% |
| 1M Excs Rtn | -32.4% |
| 3M Excs Rtn | -32.0% |
| 6M Excs Rtn | -43.0% |
| 12M Excs Rtn | -56.0% |
| 3Y Excs Rtn | -81.4% |
Price Behavior
Price Behavior
| Market Price | $19.14 | |
| Market Cap ($ Bil) | 5.8 | |
| First Trading Date | 09/20/2023 | |
| Distance from 52W High | -61.1% | |
| 50 Days | 200 Days | |
| DMA Price | $27.80 | $30.19 |
| DMA Trend | down | down |
| Distance from DMA | -31.2% | -36.6% |
| 3M | 1YR | |
| Volatility | 59.0% | 58.6% |
| Downside Capture | 364.12 | 229.20 |
| Upside Capture | 63.06 | 103.97 |
| Correlation (SPY) | 28.5% | 49.2% |
KVYO Betas & Captures as of 1/31/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.11 | 0.97 | 0.75 | 1.16 | 1.45 | -0.04 |
| Up Beta | 8.69 | 5.96 | 0.87 | 1.62 | 1.34 | 0.03 |
| Down Beta | -3.14 | -2.52 | -1.39 | 0.30 | 1.46 | -0.34 |
| Up Capture | -155% | 64% | 119% | 72% | 100% | 106% |
| Bmk +ve Days | 11 | 22 | 34 | 71 | 142 | 430 |
| Stock +ve Days | 7 | 20 | 32 | 61 | 120 | 293 |
| Down Capture | 707% | 341% | 207% | 184% | 145% | 108% |
| Bmk -ve Days | 9 | 19 | 27 | 54 | 109 | 321 |
| Stock -ve Days | 13 | 20 | 28 | 63 | 129 | 294 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with KVYO | |
|---|---|---|---|---|
| KVYO | -61.9% | 58.4% | -1.44 | - |
| Sector ETF (XLK) | 21.2% | 27.4% | 0.68 | 51.0% |
| Equity (SPY) | 15.4% | 19.4% | 0.61 | 49.8% |
| Gold (GLD) | 73.9% | 24.8% | 2.19 | -4.7% |
| Commodities (DBC) | 8.9% | 16.6% | 0.34 | 7.6% |
| Real Estate (VNQ) | 4.6% | 16.5% | 0.10 | 24.0% |
| Bitcoin (BTCUSD) | -27.1% | 44.7% | -0.57 | 27.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with KVYO | |
|---|---|---|---|---|
| KVYO | -10.7% | 57.3% | -0.21 | - |
| Sector ETF (XLK) | 17.3% | 24.7% | 0.63 | 41.5% |
| Equity (SPY) | 14.4% | 17.0% | 0.68 | 44.0% |
| Gold (GLD) | 21.4% | 16.9% | 1.03 | 2.3% |
| Commodities (DBC) | 11.5% | 18.9% | 0.49 | 8.0% |
| Real Estate (VNQ) | 5.0% | 18.8% | 0.17 | 21.2% |
| Bitcoin (BTCUSD) | 16.1% | 58.0% | 0.49 | 25.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with KVYO | |
|---|---|---|---|---|
| KVYO | -5.5% | 57.3% | -0.21 | - |
| Sector ETF (XLK) | 22.6% | 24.2% | 0.85 | 41.5% |
| Equity (SPY) | 15.4% | 17.9% | 0.74 | 44.0% |
| Gold (GLD) | 15.7% | 15.5% | 0.84 | 2.3% |
| Commodities (DBC) | 8.0% | 17.6% | 0.37 | 8.0% |
| Real Estate (VNQ) | 6.0% | 20.7% | 0.25 | 21.2% |
| Bitcoin (BTCUSD) | 68.7% | 66.7% | 1.08 | 25.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 11/5/2025 | 7.1% | 9.1% | 13.3% |
| 8/5/2025 | 15.0% | -1.2% | 1.5% |
| 5/6/2025 | 6.4% | 18.7% | 7.4% |
| 2/19/2025 | -5.8% | -13.8% | -30.0% |
| 11/6/2024 | -16.3% | -9.1% | -1.5% |
| 8/7/2024 | 33.4% | 31.1% | 28.3% |
| 5/8/2024 | 11.8% | 15.2% | 4.5% |
| 2/27/2024 | -4.3% | -14.1% | -9.7% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 5 | 4 | 5 |
| # Negative | 4 | 5 | 4 |
| Median Positive | 11.8% | 16.9% | 7.4% |
| Median Negative | -10.6% | -13.8% | -10.6% |
| Max Positive | 33.4% | 31.1% | 28.3% |
| Max Negative | -16.3% | -15.7% | -30.0% |
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Bialecki, Andrew | Chief Executive Officer | Direct | Sell | 12232025 | 32.97 | 100,000 | Form | ||
| 2 | Edmond, Landon | Chief Legal Officer | Direct | Sell | 12192025 | 31.38 | 14,190 | 445,302 | 11,105,310 | Form |
| 3 | Whalen, Amanda | Chief Financial Officer | Direct | Sell | 12192025 | 31.38 | 14,000 | 439,363 | 14,190,602 | Form |
| 4 | Hallen, Ed | Hodgkins Trust | Sell | 12192025 | 30.35 | 34,878 | 1,058,547 | 4,055,488 | Form | |
| 5 | Hallen, Ed | Hodgkins LLC | Sell | 12192025 | 30.37 | 82,672 | 2,510,749 | 15,951,721 | Form |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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