The shares of Klaviyo (NYSE:KVYO), a marketing tech company, start trading today. The initial public offering (IPO) of KVYO stock is getting a great deal of attention following the recent successful debuts of Arm (NASDAQ:ARM) and Instacart (NASDAQ:CART). As a result of the latter IPOs, many market observers are saying that the IPO market is heating back up.
Here are seven more things to know about the Klaviyo IPO and the company itself:
- The Klaviyo IPO was priced at $30 a share last night.
- Based on that price, the company’s market capitalization is roughly $9.2 billion.
- Initially, the company expected the stock to be priced at only $25-$27 per share.
- “Klaviyo developed a marketing automation platform.”
- Before the Klaviyo IPO, founder and CEO Andrew Bialecki owned 38% of the firm.
- Shopify (NASDAQ:SHOP) also owns a significant amount of KVYO stock.
- Institutional investors BlackRock (NYSE:BLK) and AllianceBernstein will purchase as much as $100 million each of KVYO stock.
KVYO Stock: More About Klaviyo
Launched in 2012, the company’s tools use data to help firms enhance marketing content by making it more “personalized” and by ensuring that their messages are well-timed. Klaviyo has more than 130,000 customers.
The company obtains customers primarily through its presence on Shopify’s platform. In the first six months of this year, the firm’s top line jumped 54% versus the same period a year earlier, while its gross profit soared 64.4% year-over-year and it generated an operating profit of $7.9 million.
However, its operating margin was a rather low 2.5%. But that was up a great deal from -11.6% in the first half of 2022. The company’s operations generated a cash flow of $57 million in the first half of 2023.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
