A 10-year-old ecommerce technology company that provides email marketing, social media and text messaging services is going public. Klaviyo Inc. has yet to say how many shares it intends to sell or at what price. It also hasn’t said how it will use the net proceeds, according to the company’s registration information with the Securities and Exchange Commission.
Klaviyo is a platform that automates ecommerce SMS and email marketing. It has more than 130,000 customers.
But in 2022, Klaviyo generated $472.7 million in total revenue. That’s up 62.4% from $290.6 million in 2021. Net loss in 2022 was $49.1 million. That compares with a $79.4 million loss in 2021. For the first six months of 2023, revenue grew to $320.7 million. That’s a 54% increase from $208.3 million between January and June 2022.
“Our rapid revenue growth has been driven by increases in our customer count, growth of existing customers, our expansion into international markets, our sales to mid-market businesses, and the cross-selling of our SMS offering alongside our data platform and email offering,” the company says in its IPO papers.”
Using artificial intelligence and advanced analytics to accumulate customer information and insights for marketing campaigns and delivered on a subscription as a service (SaaS) platform is how the company builds and retains business, Klaviyo says.
“We assembled over 6.9 billion consumer profiles across our customer base,” the company says in its IPO papers. “In the 12-month period ended June 30, 2023, we processed over 695 billion events, which are data on how consumers engage across channels, such as opening an email, browsing a website, or placing an order. As we add more customers and more anonymized data on our platform, we can better refine our predictive models of consumer behavior. These network effects also enable us to continually refine our guided software recommendations to drive more impactful campaigns and specific actions.”
Klaviyo’s business is tied in great measure to ecommerce platform provider Shopify. In July, the two companies signed a strategic business agreement. Shopify became one of the biggest financial backers of Klaviyo with a $100 million investment, according to the company filing.
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