KVYO Stock Forecast & Price Target

Klaviyo Inc demonstrates robust growth potential as evidenced by its expansion into over 100 countries and a notable 2.5x growth in annual recurring revenue (ARR) in France since September 2023. The company's mid-market and enterprise ARR segments are growing at 40% year-over-year, highlighting strong momentum within high-revenue cohorts. Additionally, Klaviyo anticipates enhancing operating margins by 300-500 basis points by the fourth quarter of FY28, driven by scaling and improvements in research and development efficiencies, which collectively signal a positive outlook for the company.

Klaviyo Inc. is facing a challenging outlook due to anticipated declines in gross margins, primarily driven by an expected shift in revenue mix towards lower-margin SMS and WhatsApp messaging services. Additionally, the company's guidance for its fiscal 2028 operating margin at 16% was below market expectations, compounded by the absence of a revenue or growth target for that period, which has raised concerns among investors. Macroeconomic headwinds are also likely to hinder sales cycles and customer retention, particularly given the high proportion of monthly contracts, further exacerbating potential financial pressures.