Earlier this week, Klaviyo announced a partnership with Google to connect Google’s search, ads, AI, messaging and Search-to-RCS capabilities with Klaviyo’s real-time customer data platform, enabling brands to create AI-driven, autonomous customer experiences across discovery, purchase, service and loyalty.
An interesting aspect of this collaboration is that Klaviyo is among the first globally to offer Google’s Search-to-RCS entry point, allowing customers to start conversations with AI-powered customer agents directly from search results within a native mobile messaging experience.
Next, we’ll examine how integrating Google’s Search-to-RCS and broader AI tools into Klaviyo’s platform could influence the company’s long-term investment narrative.
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To own Klaviyo, you need to believe it can turn its real time data and AI tools into a broader B2C customer platform that eventually earns attractive software margins. The Google partnership looks incrementally positive for that thesis by deepening AI powered messaging and discovery, but it does not change the near term reality that rising infrastructure and messaging costs, along with ongoing losses, remain the key catalyst and risk the market is watching.
The most relevant recent announcement here is Klaviyo’s launch of Marketing Agent and Customer Agent, which already push the company beyond email into autonomous marketing and service. Combined with Google’s Search to RCS and AI integrations, these products tie directly into the core catalyst of expanding Klaviyo’s addressable market, while also testing whether new AI services can scale without further pressuring gross margins and profitability.
But against this potential, investors should also weigh the risk that growing dependence on third party ecosystems like Google and messaging channels could…
Read the full narrative on Klaviyo (it’s free!)
Klaviyo’s narrative projects $1.9 billion revenue and $88.3 million earnings by 2028. This requires 21.4% yearly revenue growth and a $155.0 million earnings increase from -$66.7 million today.
Uncover how Klaviyo’s forecasts yield a $33.38 fair value, a 94% upside to its current price.
Compared with the consensus view, the most optimistic analysts were already baking in about 22.5% annual revenue growth and US$75.0 million in earnings by 2028, assuming Klaviyo becomes a core data and engagement layer for agentic commerce. The Google news could either reinforce that bullish belief or highlight how uncertain it is that Klaviyo’s AI and platform differentiation, especially around deep ecosystem integrations, will actually sustain that kind of trajectory over time.
