Klaviyo, a business focusing on marketing automation, is the latest tech company to attempt to go public, following in the footsteps of Instacart and Arm with their respective IPO filings. The firm initially entered the e-commerce field to help companies with customized email and text message advertising for customers. Shopify, a well-known Canadian e-commerce platform, is one of Klaviyo's main supporters and sources of revenue.
Klaviyo, a data and marketing automation firm, has declared its intention to list on the New York Stock Exchange under the symbol "KVYO". This comes after Instacart's long-awaited IPO filing, which was submitted on Friday, aiming to open an IPO window that has been largely shut since the end of 2021. At the time, HashiCorp and Samsara went public, however since then just a handful of venture-backed tech companies have followed suit. Arm, owned by Japan's SoftBank, filed for a Nasdaq listing on Monday.
Klaviyo specializes in storing user data and building profiles for sending targeted marketing through email, texts and more. It primarily serves online businesses, yet it is seeing a rising interest from other industries such as restaurants, travel and events and entertainment. In its prospectus, Klaviyo reported a net income of $15.2 million for the first six months of the year, as opposed to a net loss of $24.6 million over the equivalent time period in 2022. Its revenue was around $321 million for the first half of the year, in comparison to a figure of roughly $208 million for the first six months of 2022.
Shopify is one of Klaviyo's most influential backers and sources of business. The Canadian e-commerce giant owns almost 11% of Klaviyo's shares and invested $100 million in the company in August last year. As of the end of 2022, around 77.5% of Klaviyo's annual recurring revenue came from customers who also use Shopify. As a result of this, Klaviyo has a partnership with Shopify where it is the "recommended email solution" for those who are signed up for its Shopify Plus program. It is also well-integrated with other leading e-commerce platforms such as BigCommerce, Magento and Salesforce Commerce Cloud.
As of June 30, Klaviyo had more than 130,000 customers, a marked increase from the 105,000 clients it had a year prior.
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