Sep 20, 2023 - Economy

Klaviyo goes public, setting stage for SaaS IPO rush

Dan Primack

Illustration of an 8-bit envelope with money coming out. — Illustration: Aïda Amer/Axios

Klaviyo, a Boston-based provider of e-commerce marketing automation SaaS, raised $576 million in its IPO.

Why it matters There are a lot more SaaS companies in the IPO pipeline than there are chip design, grocery delivery, or footwear companies.

"Klaviyo's IPO will be an ultimate yardstick for SaaS in 2023/2024," tweeted SaaSTR CEO Jason Lemkin. "Top growth, top margins, top founders, will cruise past $1B in ARR. Whatever multiple they end up trading at ... You are almost certainly worth less."

Details: Klaviyo sold 19.2m shares at $30 per share, giving it a fully diluted value of around $9 billion. It originally filed to sell shares at $25-$27, before raising the range to $27-$29.

It reports $15 million of net income on $321m of revenue for the first half of 2023, and will list on the NYSE under ticker symbol "KVYO."
Shareholders include Summit Partners (21.3% pre-IPO stake), Shopify (11.2%) and Accomplice (5.7%). The company's last private round came in July 2022 at a $9.5 billion post-money valuation.

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Klaviyo goes public, setting stage for SaaS IPO rush

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