Klaviyo (KVYO): Assessing Valuation After $195 Million Follow-On Equity Offering

If you’re holding shares in Klaviyo (KVYO) or considering an investment, you may have noticed the company recently completed a follow-on equity offering, raising $195 million by issuing 6.5 million new shares. Moves like this often garner investor attention, as they can indicate Klaviyo's intent to fund future growth or strengthen its balance sheet. However, follow-on offerings may also raise questions about potential dilution and management’s outlook, making this an important development for investors to monitor. Examining the broader context, Klaviyo’s share price performance over the past year has been mixed. The stock is up just over 1% in that period but remains down more than 21% year-to-date. Recent trading has shown modest momentum, with a 2% gain in the past month followed by a slight decline in the previous quarter. In the background, the company continues to report double-digit annual revenue growth, while the equity offering suggests evolving capital strategies since its IPO. With new shares added to the market and momentum in the stock price relatively subdued, investors may be weighing whether this presents an opportunity to invest in Klaviyo at a compelling valuation or if the market already reflects expectations for future growth in the current price.

Most Popular Narrative: 29.6% Undervalued

According to the community narrative, Klaviyo’s current share price is well below fair value, suggesting significant upside potential if bullish forecasts are realized.

Growing international expansion, supported by new language rollouts, local channel integrations (e.g., WhatsApp), and localization efforts, is driving strong topline growth (for example, 42% international revenue growth year-over-year). Further penetration of both SMB and enterprise segments is likely to expand future revenue and earnings.

Think Klaviyo’s global moves could trigger a new wave of growth? The factors behind this undervaluation are rapid product rollouts and ambitious financial targets that could reshape its future earnings if they are achieved. Curious about the boldest forecast influencing this valuation? The deeper story is hiding in the numbers.

Result: Fair Value of $46.53 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent margin pressures or uncertainty around the success of new AI products could quickly change Klaviyo's future valuation path.

Find out about the key risks to this Klaviyo narrative.

Another View: Caution from the SWS DCF Model

While some see Klaviyo as undervalued based on market multiples, a different picture emerges when using the SWS DCF model. This approach also suggests the stock is undervalued, but it brings its own assumptions and sensitivity to future cash flows. Could this alternative method reveal deeper risks or opportunities ahead?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Klaviyo for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Klaviyo Narrative

If you think there is more to Klaviyo's story or want to test your own research, you can build your own view in under three minutes and do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Klaviyo.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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