• Officers sold large batches of stock after 2Q earnings beat
• Summit Partners has also been selling down its position
• SaaS firm keeps options open for opportunistic acquisitions

Klaviyo [NYSE:KVYO] has no plans for a follow-on equity raise despite it being a year since its initial public offering, CEO Andrew Bialecki and CFO Amanda Whalen said.

With nearly USD 795m of cash and equivalents on its balance sheet, the marketing automation software firm is well capitalized and sees no need for a dilutive offering, they said on the sidelines of this month’s Goldman Sachs Communacopia + Technology Conference in San Francisco.

In its S-1, filed at the time of IPO, Klaviyo said it expected to issue additional capital stock in the future that would result in shareholder dilution. The company also stated in the S-1 that it might raise capital through equity financings in the future.

Although there are no plans for a primary raise yet, a non-dilutive secondary follow-on offering is possible should large stockholders want to cash in their shares, according to Whalen, who unloaded more than USD 2.4m of her own stock after Klaviyo beat 2Q expectations in August and boosted its full-year outlook.

The software-as-a-service firm’s president, chief legal officer, chief product officer and chief technology officer also sold stock in recent weeks, after Klaviyo’s stock soared more than 40% in the wake of the 2Q earnings beat.

The share sales were part of a pre-arranged trading plan, known as Rule 10b5-1, according to regulatory paperwork the officers filed with the US Securities and Exchange Commission.

There are no records to indicate Bialecki, the company’s largest shareholder, sold his stock. The S-1 filed in August 2023 showed Bialecki owned 38% of the company’s shares leading up to its IPO.

Klaviyo’s second largest shareholder heading into the IPO was Boston-based private equity firm Summit Partners, which owned 23% at the time. The firm sold multiple tranches of stock over the last several weeks collectively valued at more than USD 60m, according to a Mergermarket tally of SEC filing data.

Summit Partners also sold a batch of Klaviyo’s shares at the IPO in September 2023. At that time, the private equity firm made more than seven times its money with its investment, according to a report from Fortune.

Messages left for Summit Partners Managing Director Michael Medici, who sits on Klaviyo’s board, were not returned. A message left for the firm’s spokesperson also went unanswered.

Other notable shareholders include Shopify [NYSE:SHOP], which owned about 11% of Klaviyo before the IPO, venture capital firm Accomplice, which owned 5.7%, and Accel Partner Ping Li with 2.8%.

According to Dealogic data, lock-up agreements preventing Klaviyo’s pre-IPO shareholders from selling down stock post-IPO expired in March 2024.

Klaviyo raised USD 345m in its IPO, which was one of the few venture-backed software listings in the US last year. It priced its shares at USD 30, giving it a USD 9.2bn valuation, slightly down from the USD 9.5bn valuation it received in a private funding round in 2021. After a 9% pop on its first day of trading, the share price gradually declined, reaching a nadir of USD 21 over the summer.

The Boston-based company had a market capitalization of USD 9.2bn during Thursday trading.

Goldman Sachs, Morgan Stanley and Citi underwrote Klaviyo’s IPO.

Founded in 2012, Klaviyo provides businesses of all sizes with technology to store user data and develop profiles so they may execute targeted marketing campaigns via email, text messages and other channels.

In the fall of 2022, Klaviyo acquired Napkin Technologies, a platform designed to provide developers an easy and secure way to write and deploy code. Terms of the transaction were not disclosed.

At the Goldman Sachs event, Bialecki told this news service that Klaviyo is not actively looking for acquisitions, but it keeps “all options open” and may opportunistically purchase complementary assets, businesses, products, services and technologies. “We are default builders,” he noted.