Klaviyo Lifts IPO Price Ahead of Shares Trading Tomorrow
Key takeaways
- Klaviyo has priced its IPO at $27 to $29, upping the stakes for the debut
- The company achieved a 51% rise in revenue for the quarter compared to last year
- Instacart has also raised the price of its market debut
Marketing automation firm Klaviyo has upped the price of its IPO debut just hours before trading. It’s a bold move that gives the company a top-line valuation of $9 billion — and perhaps is a vote of confidence in the IPO’s success tomorrow.
That would make sense, given Klaviyo’s strong financials and the broader IPO market performing well so far as more prominent companies have tested the debut waters. Now, it’s just a question of whether Klaviyo can live up to its hype. Here’s everything you need to know about the Klaviyo IPO and what has been happening in the debut market lately.
What’s happening with the Klaviyo IPO?
Klaviyo, founded in 2012, helps companies with data storage and analytics so that brands can send out personalized marketing emails and other messages to customers. With over 100,000 clients across 80 countries, the marketing automation company’s strong financials from last month have set expectations high for the debut.
Klaviyo’s earnings, revealed in the IPO filing, showed a big jump in revenue growth and profitability in its latest quarter. The company reported $164.6 million for the latest quarter, a 51% increase from last year. Klaviyo has also gone from reporting a loss of $25 million on revenue of $208 million last year to net income of $15 million on revenue of $321 million.
Perhaps that’s part of the reason why Klaviyo’s IPO is nearly 20 times oversubscribed — and it’s capitalizing on the popularity. The company decided to up the stakes of its IPO, which is set to launch tomorrow, to between $27 and $29 a share. Before, the pricing was between $25 and $27.
The new price tag gives Klaviyo an anticipated valuation of $9 billion. If it achieves the top-end price, Klaviyo is set to raise roughly $557 million from the debut.
Have there been any other IPOs lately?
The semiconductor company Arm’s IPO was by far and away the biggest market debut the U.S. has seen since 2021’s Rivian IPO. After pricing its debut more modestly than expected at $51 a share, the price jumped 25% on the first day of trading, leaving Arm with a valuation of almost $60 billion. That soon climbed when Arm stock hit highs of $69 the following day, but the share price has since retreated to $55.10.
Grocery delivery app Instacart is also going for an IPO and has taken a similar approach to Klaviyo by pricing its shares lower and building upwards. Instacart’s IPO is now set to be priced at $30 a piece, the top end of its valuation. Instacart will be worth $9.9 billion if it achieves that price — but it’s a far cry from its $39 billion valuation in 2021.
And finally, comfy sandal maker Birkenstock has also filed for an IPO. A market debut could put the German company’s value at $8 billion.
The bottom line
Klaviyo’s IPO, while not in the same league as Arm last week, is still on track to set the IPO market alight and give further confidence to the idea that the deals drought is recovering again. With a strong balance sheet and investor interest under its belt, there’s no reason why Klaviyo’s market debut shouldn’t succeed.
