Klaviyo (KVYO) Is Up 15.0% After Strong Q3 and Raised 2025 Revenue Guidance—What's Changed

• Klaviyo reported third quarter 2025 results showing revenue of US$310.88 million, up from US$235.09 million a year earlier, and improved its net loss to US$426,000 from US$1.35 million in the prior year period.
• Management raised full-year 2025 revenue guidance to US$1.215–1.219 billion, citing rapid adoption of new AI-driven products and strong momentum across both international and mid-market customer segments.
• We’ll explore how the raised revenue outlook, propelled by AI-powered product growth, affects Klaviyo’s long-term investment narrative.

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Klaviyo Investment Narrative Recap

To be a Klaviyo shareholder, you need confidence that AI-driven product expansion and international growth will convert strong topline gains into sustainable long-term profitability, despite persistent competition and margin pressure. The recent Q3 results and raised guidance reinforce the impact of Klaviyo’s AI rollout as a short-term growth catalyst, but do not fully remove concerns around margin compression from channel costs, the biggest risk still facing the business model.

Among the company’s recent announcements, the launch of its AI-powered Marketing Agent and Customer Agent stands out. This move aligns closely with Klaviyo's current growth story, as rapid adoption of these tools underpins higher revenue guidance and demonstrates progress against the primary catalyst of product innovation driving broader market penetration.

However, despite margin headwinds subsiding for now, investors should be aware that rising infrastructure and SMS costs continue to pressure gross margins, which means that...

Read the full narrative on Klaviyo (it's free!)

Klaviyo's outlook anticipates $1.9 billion in revenue and $88.3 million in earnings by 2028. Achieving this would require annual revenue growth of 21.4% and an earnings increase of $155 million from the current level of -$66.7 million.

Uncover how Klaviyo's forecasts yield a $44.82 fair value, a 47% upside to its current price.

Exploring Other Perspectives

Four community estimates of fair value for Klaviyo range from US$14.85 to US$44.82, revealing significant differences in growth outlooks among Simply Wall St Community members. While recent AI product launches are driving optimism about future revenue, persistent competition and margin pressures remain critical factors in shaping performance expectations; explore these alternative viewpoints to better inform your perspective.

Explore 4 other fair value estimates on Klaviyo - why the stock might be worth as much as 47% more than the current price!

Build Your Own Klaviyo Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Klaviyo research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Klaviyo research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Klaviyo's overall financial health at a glance.

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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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