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Klaviyo (KVYO) Reports Impressive Earnings But Jeffries Downgrades Target Price To $29

Klaviyo (KVYO) Reports Impressive Earnings But Jeffries Downgrades Target Price To $29

FinvizFinviz2026/02/15 14:00
By:Finviz

Klaviyo, Inc. (NYSE:

) is one of the 12 best mid cap AI stocks to buy according to hedge funds. Klaviyo, Inc. (NYSE:KVYO) reported its fourth-quarter financial results on February 10. The company’s revenue reached $350 million, a 30% increase compared with the same period last year. Non-GAAP operating income for the quarter came in at $51 million, resulting in a 15% operating margin. Non-GAAP gross margin for the quarter was 73%, while non-GAAP operating expenses accounted for 58% of the total revenue. Non-GAAP operating expenses reached their lowest levels since the company went public.

Klaviyo (KVYO) Reports Impressive Earnings But Jeffries Downgrades Target Price To $29 image 0

Free cash flow jumped to $87 million, showing a 61% year-over-year rise. Non-GAAP operating income totalled $169 million for the full year, with a 14% margin. Free cash flow margin reached 16%, and the company’s cash balance exceeded $1 billion for the first time. From a customer perspective, 60% of Annual Recurring Revenue (ARR) now comes from multiproduct customers. More than 15% of ARR is generated by customers who use at least three products. It reflects strong cross-sell and expansion opportunities within the existing client base.

Andrew Bialecki, Co-Founder, Co-CEO & Chairperson of Klaviyo, Inc. (NYSE:KVYO) pointed:

“We’re now serving more than 193,000 customers in over 100 countries, and we saw strong momentum across every part of the business, especially in our enterprise customer base and internationally.”

Following the Q4 results announcement, Jefferies lowered its price target on Klaviyo, Inc. (NYSE:KVYO) from $35 to $29 while maintaining a Buy rating on February 10.  Jefferies said that the company’s fourth-quarter revenue came in above expectations, but long-term questions around AI remain unresolved.

Klaviyo, Inc. (NYSE:KVYO) is a technology company that offers a software-as-a-service platform across the United States,  the Asia-Pacific, the Middle East, Europe, and Africa. It sells its products to small and medium-sized businesses, enterprises, entrepreneurs, and mid-market businesses. Klaviyo was founded in 2012 and is based in Boston, Massachusetts.

While we acknowledge the potential of KVYO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the

best short-term AI stock
.

READ NEXT:  
Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy
 and 
30 Most Fantastic Stocks Every Investor Should Pay Attention To
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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