Shares of Klaviyo, Inc. (KVYO) surged 5.06% in pre-market trading on Thursday, following the company's impressive third-quarter earnings report and upgraded full-year guidance. The marketing automation platform provider continues to demonstrate strong growth, attracting positive attention from Wall Street analysts.
Klaviyo reported Q3 non-GAAP earnings of $0.18 per diluted share, surpassing the FactSet analyst consensus of $0.14 and improving from $0.15 a year earlier. Revenue for the quarter ended September 30 reached $310.9 million, up significantly from $235.1 million in the same period last year and exceeding analyst expectations of $299.8 million. This strong performance showcases Klaviyo's ability to maintain robust growth in a challenging economic environment.
Adding to investor optimism, Klaviyo raised its full-year 2025 revenue guidance to a range of $1.215 billion to $1.219 billion, up from its previous outlook of $1.195 billion to $1.203 billion. The company also provided Q4 revenue guidance of $331 million to $335 million, slightly above the analyst consensus of $330.5 million. This upward revision in guidance signals management's confidence in the company's growth trajectory and ability to execute its strategic plans.
The strong results and positive outlook have prompted several analysts to upgrade their ratings and price targets for Klaviyo. Jefferies raised its price target to $35 from $32, while maintaining a Buy rating. Baird increased its target price to $40 from $39. TD Cowen reiterated a Buy rating with a price target of $46, citing strong growth prospects. William Blair analyst Arjun Bhatia also reiterated a Buy rating, highlighting Klaviyo's strategic AI advancements as a key factor in the company's success.
As Klaviyo continues to outperform expectations and gain traction in the marketing automation space, investors are showing increased confidence in the company's long-term potential. The pre-market surge reflects this optimism and sets the stage for potentially continued momentum in the stock.