Klaviyo Inc-A (NYSE:KVYO) reported financial results for its fourth quarter and full fiscal year 2025 that surpassed analyst expectations, leading to a positive after-hours market reaction. The company, a provider of a business-to-consumer customer relationship management (CRM) platform, demonstrated accelerating growth and improving profitability, which was met with investor approval.
Earnings and Revenue Performance Versus Estimates
The company's fourth-quarter results exceeded consensus forecasts on both the top and bottom lines. This outperformance was a key driver behind the stock's immediate positive move following the announcement.
- Revenue: Klaviyo reported Q4 revenue of $350.2 million, representing a 30% year-over-year increase. This figure came in ahead of the analyst estimate of approximately $340.6 million.
- Earnings Per Share (Non-GAAP): The company posted non-GAAP diluted earnings per share of $0.19 for the quarter, beating the consensus estimate of $0.17.
For the full fiscal year 2025, revenue reached $1.23 billion, growing 32% compared to the prior year. The company also highlighted a significant improvement in profitability on an adjusted basis, with non-GAAP operating income rising to $169.2 million, yielding a 14% margin.
Market Reaction and Price Action
The market's initial response to the earnings beat and strong forward guidance was decisively positive. In after-hours trading following the release, Klaviyo's stock price rose approximately 4.7%. This move stands in contrast to the stock's performance over recent weeks, which had seen some pressure. Prior to the earnings announcement, the shares were down about 25.7% over the past month, indicating that the strong results and outlook may have alleviated some investor concerns.
Raised Outlook and Analyst Comparisons
Management provided an optimistic outlook for fiscal year 2026, raising its guidance above previous expectations. The company's forecast for the coming year appears robust when set against current analyst estimates.
- FY26 Revenue Guidance: Klaviyo anticipates full-year revenue between $1.501 billion and $1.509 billion, which implies year-over-year growth of 21.5% to 22.5%. This range is notably higher than the analyst sales estimate of $1.511 billion, effectively meeting the high end of market expectations.
- Q1 2026 Guidance: For the first quarter, the company expects revenue of $346 million to $350 million, representing growth of 23.5% to 25%. This guidance brackets the analyst estimate of approximately $351 million for Q1 sales.
The raised outlook suggests confidence in continued demand for its autonomous CRM platform, driven by factors like enterprise customer growth, international expansion, and increased adoption of its AI and multi-product offerings.
Key Highlights from the Earnings Report
Beyond the financial metrics, Klaviyo's press release emphasized several operational strengths that underpin its growth narrative:
- Customer Growth: The total customer count grew to over 193,000, up from over 167,000 a year ago.
- Enterprise Momentum: The company is successfully moving up-market, with the number of customers generating over $50,000 in annual recurring revenue (ARR) growing 37% to 3,912. Notably, the number of customers with over $1 million in ARR doubled year-over-year.
- Strong Retention and Expansion: The dollar-based net revenue retention rate improved to 110%, indicating that existing customers are spending more over time.
- Healthy Cash Generation: The business model continues to produce significant cash flow, with free cash flow for the year reaching $200.4 million.
For a detailed breakdown of future earnings estimates and historical performance, readers can review more information here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
