BOSTON, May 6, 2026 – Klaviyo Inc. saw its stock plummet nearly 30% during midday trading on Wednesday, as the marketing automation company’s strong first-quarter performance was overshadowed by the announcement that Chief Financial Officer Amanda Whalen will step down later this year. Shares were hovering around $16.33, after hitting an intraday low of $15.59, erasing gains from what was otherwise a beat-and-raise quarter.
Q1 Results Beat Expectations
For the quarter ended March 31, Klaviyo reported a 28% year-over-year revenue increase to $358.0 million, surpassing the FactSet consensus estimate of $348.6 million. Adjusted earnings per share came in at $0.22, two cents above analyst forecasts. The company also raised its full-year 2026 revenue guidance to a range of $1.514 billion to $1.522 billion, implying 23% growth.
CFO Departure Stirs Uncertainty
Despite the positive numbers, investor sentiment soured after the company disclosed that Amanda Whalen will remain CFO only until August 21, after which she will transition to an advisory role through November while the board searches for a permanent replacement. The departure, described as unrelated to any financial control issues or disputes, adds a layer of leadership uncertainty at a time when investors are closely monitoring growth trajectories.
Q2 Guidance Disappoints
Klaviyo’s second-quarter outlook signaled a deceleration in growth. The company projects revenue between $359 million and $363 million, representing 23% to 24% year-over-year growth—cooling from the 28% pace achieved in Q1. More concerning, its non-GAAP operating margin guidance of 13% to 14% falls short of the 16.4% reported in the prior quarter, raising questions about cost control and profitability.
Stifel analysts responded by slashing their price target to $28 from $35, citing margin pressure, CFO turnover, rising carrier messaging fees, and increased spending on artificial intelligence initiatives. Piper Sandler lowered its target to $26 from $30, while Wells Fargo cut to $26 from $30, both retaining overweight ratings but acknowledging heightened uncertainty around future earnings surprises and margin expansion.
Customer Growth and International Expansion
On a positive note, Klaviyo ended the quarter with more than 196,000 customers. The number of clients generating over $50,000 in annual recurring revenue surged 38% to 4,175. Net revenue retention stood at 110%, indicating that existing customers increased spending by 10% year-over-year after accounting for churn. Internationally, revenue outside the Americas grew 39%, with sales in Europe, the Middle East, and Africa (excluding the UK) jumping 51%.
Competitive Landscape
Klaviyo continues to compete aggressively against broader marketing platforms like Salesforce and email specialists such as Intuit’s Mailchimp, as well as customer engagement firms like Braze. The company is increasingly targeting larger retailers and consumer brands, leveraging its data-driven messaging capabilities. In Shopify’s app marketplace, Klaviyo appears alongside Mailchimp and Brevo under email and SMS marketing categories.
Market Implications
The sharp selloff reflects a broader reassessment of Klaviyo’s growth narrative. Should AI investments, higher messaging costs, or the CFO transition continue to pressure margins, and if revenue growth keeps decelerating, investors may shift focus from top-line expansion to operating leverage. The coming quarters will be critical for the company to demonstrate that it can balance growth with profitability.
