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Written by
Tina Teng
MARKET ANALYST
20 Sep 2023, 04:15
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After witnessing the successful IPOs of Arm and Instacart, the marketing firm, Klaviyo, priced the IPO at $30 and is set to start trading under the Symbol of KVYO on the New York Stock Exchange when the US markets open tonight. Here is everything you need to know about the third largest listing this year.
Klaviyo is based in Boston and was founded in 2012. It is a marketing automation platform provider, specialising in email marketing and SMS marketing. Klaviyo priced the IPO at $30 earlier today, higher than the indicated price range of between $27 and $29. The company is selling 19.2 million shares and raising $576 million, implying a fully diluted value of $9.2 billion.
BlackRock and Alliance Bernstein LP are the major institutional investors of Klaviyo and booked $100 million worth of the IPO shares. Klaviyo’s co-founder and CEO, Andrew Bialecki, will control 39% of the voting rights, followed by the investment group, Summit, owning 21%. Goldman Sachs, Morgan Stanley, and Citigroup Inc. are the managers of the offering.
According to the SEC filing, Klaviyo ‘s revenue rose to $585.1 million for the 12 months ended 30 June 2023, up 56.5% from a year ago. The business turned profitable in the first six months of 2023, with a net income of $15. 17 billion, compared with a loss of $24.57 billion in the same period last year. However, it is still at a loss of $9.5 million for the full fiscal year 2023. The free cash flow experienced a substantial increase, reaching $53.42 billion during the six months ending on June 30, 2023., compared with a negative $38.05 billion from a year ago.
Klaviyo’s critical partner is Shopify, with approximately 77.5% of its revenue derived from the eCommerce platform. Salesforce Commerce Could and Square are among the other partners but only account for a small percentage. Shopify is also one of the biggest investors, together with Summit and Accomplice.
The P/E ratio analysis is not applicable here since the business is still in loss in the full-year result. Its net income per share attributable to common stockholders was $0.06 in the first six months ended on 30 June, compared to a loss of $0.11 per share in the same period last year.
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