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Klaviyo IPO: Marketing automation platform’s IPO hopes to raise $518.4M

Author: Christopher Wiesler

Klaviyo, one of the markets leading marketing automation and email platforms, is going public with its pricing rate projected to be released on the 19th of September. The shares are projected to be priced from $25 USD to $27USD with shareholders offering 19.2 million shares for purchasing. Klaviyo hopes to raise $518.4 million USD (if the price of the shares remains at $27). The firm is valued at $8.4 Billion USD on a fully diluted basis.

Klaviyo helps businesses automate hyper-targeted messages at scale, thus providing them with leading marketing automation technology, helping firms expand their customer reach and business size. Klaviyo utilizes machine learning (ML) and AI technology to achieve this. Klaviyo also has data analytics software to analyze a company’s marketing campaigns. A recent study showed that email marketing usually accounts for 20-30% of overall profit in direct-to-consumer businesses.

Klaviyo is one of the leading email marketing tools on the market. Klaviyo’s business has been thriving under the increase in demand and acknowledgement of AI technology and its use in businesses. This is represented by the growth in revenue from $290.6 million in 2021 by 62.4% to $472.7 million USD in 2022. For the first 2 quarters of 2023, the company’s revenue was $320.7 million USD, a 54% increase from the $208.3 million USD between January and June 2022. The increase in revenue is also due to the recovery of the Economy after the pandemic resulting in greater consumer confidence in the market, thus firms are spending more on research and expanding their business due to a more stable economy.

The company already has over 130,000 customers and a headcount of over 1500 employees. The stock is expected to be liked by investors due to the company’s consistently strong growth rate and the market’s shift towards a future where AI will be ever-more present in day-to-day tasks. Due to technology becoming continuously more prevalent, the company is expected to continue growing and expanding its business. The company will have the symbol KVYO and will be traded on the NYSE.

Key Takeaways:

  • Stock is Expected to be a popular IPO among stock investors due to its persistent growth

  • Each share will be priced between $25 and $27 USD

  • Klaviyo hopes to raise $518.4 million through the IPO

  • The company is valued at $8.4 billion USD on a fully diluted basis

  • The increasing revenue of the company and its IPO represents changing market conditions to a more automated and AI-dependent approach

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