New S-1 dropped today for a coming IPO.
See Jamin Ball’s breakdown:
Klaviyo is a customer data platform (CDP) to help automate marketing.
LTM Rev of $585M +57%
gross margin 75%
FCF margin 8%
130k custs, ACV $5k
subs priced on cust models not users, so ties well w customer success
I saw this and am paying close attention. I have a small position in Braze, which appears to be a competitor, but almost all of the metrics for Klaviyo on Jamin’s charts look better. (Actually my position is up to 9% now, but in terms of cost basis, it’s almost the lowest.)
Braze management gets significantly higher Glassdoor scores, but both have significant complaints in recent reviews.
This is a write-up on Braze competition from April, including Klaviyo. It sounds from this like Klaviyo is not as broad of a platform.
My Braze position is up almost 40% since I bought in May, and took a dip after hours–perhaps in response to this release. So I’m watching.
I would be cautious and really would like to know where their market share is coming from and is it going to continue to grow. I do consulting on Salesforce.com and do part of my work leading a team in the marketing automation space around it. Salesforce has their own CDP now (Genie/Customer Data Cloud from Dreamforce 2022). Microsoft has their own. Every time we go into a big company, they already have a CDP and always a different one. Treasure Data, Klaviyo, datal warehouses/lakes, etc. It just feels like there is a ton of competition and growing competition with no great differentiators other than platform alignment. That being said, once sold, no one want to change their CDP to another. Maybe they are trying to do an IPO now to get out before Salesforce and Microsoft start dominating the game? If the numbers keep growing, great. Maybe the TAM keeps expanding rapidly and there is room for everyone. I would say I would consider investing them if they are the #1 or #2 in the space but nothing less.