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We feel now is a pretty good time to analyse Klaviyo, Inc.'s (NYSE:KVYO) business as it appears the company may be on the cusp of a considerable accomplishment. Klaviyo, Inc., a technology company, provides a software-as-a-service platform in the United States, other Americas, the Asia-Pacific, Europe, the Middle East, and Africa. On 31 December 2024, the US$13b market-cap company posted a loss of US$46m for its most recent financial year. The most pressing concern for investors is Klaviyo's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Klaviyo
According to the 20 industry analysts covering Klaviyo, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$7.0m in 2026. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 92% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Klaviyo's growth isn’t the focus of this broad overview, however, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that Klaviyo has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are too many aspects of Klaviyo to cover in one brief article, but the key fundamentals for the company can all be found in one place – Klaviyo's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:
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Valuation: What is Klaviyo worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Klaviyo is currently mispriced by the market.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Klaviyo’s board and the CEO’s background.
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Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.