Data and marketing automation company Klaviyo plans to go public
Introduction
Klaviyo, a data and marketing automation company, has announced its intention to list on the New York Stock Exchange under the symbol “KVYO.” The company is seeking to join the public markets, following in the footsteps of Instacart, a grocery-delivery service that also submitted its IPO filing on the same day. Klaviyo and Instacart aim to break open an IPO window that has seen limited activity since late 2021.
About Klaviyo
Klaviyo, founded in 2012, specializes in helping companies store user data and create profiles to facilitate targeted marketing campaigns through various channels, including email and text messages. Initially serving online businesses in the e-commerce industry, Klaviyo has expanded its services to include other verticals, such as restaurants, travel, and events and entertainment, due to increasing demand.
Financial Performance
In the first six months of this year, Klaviyo reported a net income of $15.2 million, a significant improvement compared to a net loss of $24.6 million during the same period last year. The company generated approximately $321 million in revenue for the first half of this year, compared to around $208 million in the first six months of 2022.
Partnerships and Backers
Shopify, a leading e-commerce platform, plays a crucial role in Klaviyo’s success. Shopify owns approximately 11% of Klaviyo’s shares and invested $100 million in the company in August of last year. Klaviyo’s annualized recurring revenue heavily relies on customers who also use Shopify, accounting for about 77.5% of the total. Additionally, Klaviyo is the recommended email solution for members of Shopify Plus and has integrations with other popular e-commerce platforms, including BigCommerce, Adobe’s Magento, and Salesforce Commerce Cloud.
Customer Base
Klaviyo’s customer base has grown steadily, with over 130,000 customers as of June 30, compared to 105,000 customers a year ago.