Shares in Klaviyo, the US-based marketing automation platform, surged in after-hours trading on Friday after the company delivered quarterly results that comfortably topped Wall Street estimates. The stock climbed more than 15%, adding billions to its market capitalisation, as investors cheered a 34% year-on-year increase in revenue to $245m (approximately £190m).
The Boston-headquartered firm, which listed on the New York Stock Exchange in 2023, reported a net loss that narrowed sharply compared with the same period last year. Adjusted earnings per share came in at $0.12, beating the consensus forecast of $0.08. Chief Executive Andrew Bialecki attributed the outperformance to 'strong execution' and accelerating adoption of the company's AI-powered personalisation tools.
Klaviyo raised its full-year revenue guidance to a range of $1.01bn to $1.02bn, up from a previous forecast of $980m to $990m. The upgrade reflects sustained demand from e-commerce and retail clients, who are increasingly relying on data-driven marketing to boost customer retention. 'Klaviyo is benefiting from a structural shift toward first-party data and AI-led customer engagement,' said Lisa Chen, an analyst at Jefferies, in a note to clients.
The rally comes against a mixed backdrop for tech stocks, with the Nasdaq Composite edging up 0.3% on Friday. Klaviyo's performance stands out in the software sector, where many peers have flagged slower enterprise spending. The company's customer count rose to over 150,000, while average revenue per user ticked higher, signalling that existing clients are expanding their use of the platform.
For UK investors with exposure to US tech stocks through pension funds or ETFs, Klaviyo's rally underscores the potential of niche software players that are capitalising on the AI boom. However, the stock remains volatile, and its valuation — at roughly 12 times forward sales — leaves little room for error. Analysts caution that competition from larger rivals such as Salesforce and HubSpot remains a persistent risk.