Shares of Klaviyo, Inc. (KVYO) surged 5% on Wednesday, as analysts maintained their positive outlook on the software company's growth prospects, despite concerns over near-term operating margin pressure.
Canaccord Genuity reiterated its "Buy" rating on Klaviyo, citing the company's strong performance and growth trajectory. Meanwhile, Morgan Stanley analysts praised Klaviyo's ability to sustain a 34% year-over-year revenue growth, approaching a billion-dollar revenue run rate.
However, Morgan Stanley also acknowledged that early projections for 2025 indicate continued investments, which could limit operating margin expansion. The analysts noted that Klaviyo's management plans to continue investing heavily in marketing and product efforts, resulting in similar operating margins in 2025 as in 2024.
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