Klaviyo, the marketing automation company, made a strong entrance on the New York Stock Exchange (NYSE) on Wednesday, marking the first notable IPO for a U.S. venture-backed software company since late 2021. In its debut, Klaviyo shares rose by 9.2%, opening at $36.75 and closing at $32.76 after fluctuating throughout the day. See latest stock price for Klaviyo.
The company, known for its SaaS platform that helps businesses manage marketing campaigns via email, SMS, and push notifications, priced 19.2 million shares at $30 each, valuing the company at over $9 billion. Of those shares, 11.5 million were sold by the company, raising $345 million in capital. Klaviyo was previously valued at $9.5 billion during a private funding round in 2021. Trading under the ticker symbol “KVYO,” this IPO follows the recent listing of grocery delivery company Instacart, signaling a potential reopening of the tech IPO market after a 21-month freeze.
This shift comes as the Nasdaq begins to rebound following a challenging period for tech stocks due to inflation and rising interest rates. Despite the resurgence, companies like Klaviyo and Instacart are being valued well below their peaks, reflecting the ongoing caution in the market. Instacart, for example, closed its second day of trading with a valuation of $11 billion, significantly down from its $39 billion height in previous private rounds.
Founded in 2012, Klaviyo initially gained traction in the e-commerce industry by helping businesses leverage customer data for targeted marketing efforts. The company has since expanded to serve a variety of industries, including restaurants, travel, and entertainment. Klaviyo’s ability to use first-party data to create personalized customer experiences has become its hallmark. In the latest quarter, Klaviyo reported revenue growth of 51%, totaling $164.6 million. Additionally, the company swung to profitability, reporting $10.9 million in net income compared to a loss of $11.7 million the year prior.
One of Klaviyo’s strongest partnerships is with Shopify, which owns about 11% of Klaviyo’s shares and invested $100 million into the company last year. Shopify’s integration with Klaviyo has proven to be significant, with 78% of Klaviyo’s recurring revenue coming from Shopify-based customers.
Klaviyo’s success in the public market is seen as a key step toward reviving the IPO landscape for tech companies, setting a hopeful precedent for other venture-backed firms looking to go public. As Klaviyo continues to grow, it aims to maintain its leadership in digital marketing, helping more than 130,000 customers worldwide optimize their customer engagement efforts.
Klaviyo went public on September 20, 2023. The company’s IPO was well-received, marking a significant milestone for the marketing automation platform.
Here is the link to the Klaviyo S1.
Klaviyo Inc. is a marketing automation platform specializing in email and SMS marketing for businesses. It helps companies utilize customer data to create personalized marketing campaigns, driving customer engagement and growth. Founded in 2012, Klaviyo has grown significantly and is now valued at over $9 billion, with a strong presence in the e-commerce sector. Its innovative tools, focus on customer retention, and strategic partnerships, such as with Shopify, have made it a leading player in the marketing software industry.
Klaviyo’s ticker symbol is KVYO. It is traded on the New York Stock Exchange (NYSE).
Klaviyo’s NYSE debut signals not only the company’s growing influence in the marketing technology sector but also the potential reopening of the U.S. tech IPO market. By raising $345 million and reaching a valuation of over $9 billion, Klaviyo has positioned itself as a leader in marketing automation, thanks to its robust platform and strong partnerships, particularly with Shopify. As more businesses look to harness the power of first-party data, Klaviyo’s continued growth and innovation will be essential in shaping the future of digital marketing.
Giles Thomas
CEOOptimize your Shopify conversion rates. 5 lesson course, learn 51 ecommerce best practices to get more visitors to buy.
