Klaviyo surges 5.5% on Google AI partnership
Strategic collaboration integrates Google's search and ads with Klaviyo's customer data platform
Klaviyo shares jumped 5.5% to $16.76 on Tuesday after the Boston-based marketing automation platform announced a strategic partnership with Google to develop AI-driven customer experiences, marking a rare bright spot for a stock that has fallen 60% from its 52-week high.
The partnership integrates Google's capabilities in search, advertising, artificial intelligence, and messaging with Klaviyo's real-time customer data platform, which processes 3.4 billion daily customer interactions across more than 8 billion profiles. The collaboration aims to help brands move beyond static marketing campaigns toward "autonomous AI-driven customer experiences" that automatically adapt to customer intent and behavior.
"Commerce is entering a phase where software doesn't just execute tasks, it makes decisions," said Andrew Bialecki, Klaviyo's Co-Founder and Co-CEO. "Together with Google, we're expanding how AI and customer data power experiences across commerce, messaging, and real-world interactions."
The announcement comes as Klaviyo's stock trades near its 52-week low of $15.53, a steep decline from its February 2025 peak of $41.86. The company has faced pressure from broader sector valuation compression and investor concerns about potential AI disruption, despite reporting strong fourth-quarter earnings in early February that beat analyst expectations.
Key integrations announced as part of the partnership include Google Ads for enhanced ad targeting, BigQuery for enterprise data centralization, and RCS for Business, which Klaviyo describes as transforming mobile messaging into an interactive storefront. The company is among the first globally to offer access to the Google Search to RCS experience, allowing consumers to initiate conversations with AI-powered customer agents directly from Google Search results, currently in a limited pilot with select customers.
Analysts remain broadly bullish on Klaviyo despite recent price target adjustments, which largely reflected sector-wide multiple compression rather than company-specific fundamentals. Benchmark maintained a Buy rating and raised its price target to $33 on February 11 following Klaviyo's "healthy 4Q print and guide." Truist Securities lowered its target to $35 from $45 on the same day, citing "notable sector-level valuation compression" while maintaining a Buy rating. Citigroup analyst Tyler Radke kept a Buy rating with a $40 price target.
The average analyst price target across 24 firms stands at approximately $36.92, representing more than 120% upside from current levels, according to StockAnalysis.com data. Of the 24 analysts covering Klaviyo, 23 rate the stock a Buy or Strong Buy, with just one Hold recommendation and no Sell ratings.
Truist analyst Terry Tillman expressed confidence in Klaviyo's fundamentals despite the valuation pressure, noting the company delivered accelerating enterprise traction, record additions of high-value customers, and growing multi-product adoption in its fourth quarter. The firm highlighted Klaviyo's "data scale and purpose-built infrastructure" as providing defensibility against AI disruption concerns.
Google views the partnership as significant, with Stephen Brough, Global GTM Head of RCS for Business, stating: "Google views Klaviyo as a key marketing player in this new era of agentic commerce. This deepened collaboration across our two companies and product lines will help Google bring real-time customer intelligence to every touchpoint a consumer has - from ads to AI."
Klaviyo reported $1.23 billion in trailing twelve-month revenue with 29.6% year-over-year growth, though the company remains unprofitable with negative EBITDA of $54.4 million over the same period. The stock's forward price-to-earnings ratio stands at 35.71, according to market data, reflecting investor expectations for continued growth rather than current profitability.
The company's challenge will be demonstrating that the Google partnership can accelerate revenue growth and margin expansion enough to justify its premium valuation in a tougher market environment. With the integrations already live for Google Ads, BigQuery, and Nano Banana, early adoption metrics and customer feedback on the new AI-driven capabilities will be closely watched in coming quarters.