Updated Aug 10 at 5:03pm ET.
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Analysts at Benchmark moved their rating to Hold, signaling they see less reason to buy the stock at current levels. This change comes just after the company reported its latest quarterly numbers and announced a small acquisition.
While the company is still growing its sales by about 26 percent, a downgrade from a firm like Benchmark suggests a shift in how professionals view its path forward. It often means analysts are waiting to see if the company can maintain its growth rate as it tries to sign up larger, more complex corporate clients.
Security researchers found that the company was accidentally sharing the sign-up details of new customers, including their passwords, with outside advertising firms. The issue has reportedly been fixed, but it is a reputational risk for a company that sells itself as a secure vault for sensitive customer data.
For a business like this, trust is everything. Brands use this platform to store years of customer history and private contact information. While there is no sign yet that this data was used maliciously, any slip in how the company handles its own users' credentials could make large corporate clients more hesitant to trust it with their most valuable data.
Klaviyo reported revenue of about 371 million dollars for the quarter, which was higher than the 360 million dollars analysts expected. The company is seeing early success with its AI agents, which are software tools that can handle customer questions or create marketing content without manual work. Because these tools rely on the data Klaviyo already stores for brands, they are harder for competitors to replicate.
Management also raised its revenue forecast for the full year to about 1.53 billion dollars. While earnings per share of 19 cents were exactly what was expected, the raised outlook suggests the company is successfully moving beyond small shops to serve larger brands that spend more on automation.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Klaviyo has agreed to buy Agency, a startup that builds AI tools for customer success. The deal brings Elias Torres, a well-known tech founder, into the company as Chief Product Officer to lead the development of AI agents.
This move is a direct bet on making marketing software autonomous. By owning this technology, Klaviyo can build features that automatically respond to customer messages and manage relationships, which makes its platform more essential to brands trying to save on labor costs.
Erica Smith will join the company as CFO on September 1, 2026. She comes from CyberArk and will replace Amanda Whalen, who is stepping down after several years in the role. Whalen will stay on as an advisor through November to help with the transition.
A smooth change in financial leadership is important for a growing software company. Since the departure was planned and announced months ago, this hire provides clarity on who will be managing the company's cash and financial reporting as it scales.
Source: 8-K filing
Many analysts lowered their price targets on August 6 following the company's second-quarter earnings report. Even so, 19 of 22 analysts still rate the stock a buy, and the average target of $30 suggests 69% upside from today's price.
The company has a habit of beating sales targets, though its profit record is more mixed. It shows a business that is still prioritizing fast growth over maximizing every cent of profit.
| Expectation | |
|---|---|
| EPS | $0.21 |
| Revenue | $380M |
