- Klaviyo's shares soar 23% in a notable NYSE debut, valuing the company around $9 billion.
- The tech IPO scene shows signs of revival, following a nearly two-year lull.
- Established in 2012, Klaviyo specializes in data-driven marketing and has a significant partnership with Shopify.
In a standout moment on the New York Stock Exchange, shares of Klaviyo soared by 23%, settling at $36.75, marking one of the most significant Initial Public Offerings (IPOs) from a U.S. software firm since 2021. Setting the price at $30 per share, Klaviyo's valuation danced around the $9 billion mark. This move saw the company pocket a cool $345 million. Interestingly, they were valued at a slightly higher $9.5 billion in a private funding venture last year.
On the eve of their listing, Instacart, a grocery delivery tycoon, graced the Nasdaq, watching its stocks elevate by 12% after an exciting 40% initial surge. Both these companies are vying to rejuvenate a tech IPO scene that has been dormant for almost two years. This is noteworthy considering that the last major U.S. software IPOs took place in late 2021 amidst an environment of peak investor enthusiasm, before an inflation surge and interest rate hikes made 2022 a challenging year for tech stocks.
The once high-flying Nasdaq has found its wings again this year. However, newer and yet-to-be-profitable businesses still linger below their former glory. Take Instacart, for instance. Its valuation has nose-dived from a staggering $39 billion to a humbler $11 billion.
Digging deeper into Klaviyo, the company, established in 2012, specializes in aiding businesses to fine-tune their marketing strategies using data-driven insights. Originating in the e-commerce domain, Klaviyo has been expanding its client base to other sectors such as dining, travel, and entertainment. Financially speaking, the company witnessed a 51% revenue uptick in the recent quarter and has now sailed into the profitable territory. The company's tight-knit relationship with e-commerce leader Shopify is notable, with Shopify investing heavily and accounting for a significant chunk of Klaviyo's revenue.
When asked about this partnership, Klaviyo's CEO, Andrew Bialecki, gushed about their collaborative efforts. He praised Shopify as a market leader and emphasized Klaviyo's role in enhancing customer experiences.
WOM Money Picks
Be a part of the winning team | 81% Success Rate.