$3.36M worth of Klaviyo shares sold by Summit Partners to Investing.com

Summit Partners, a significant shareholder in Klaviyo Inc. (NYSE: ), has completed the sale of a substantial number of shares in the software company. The recent transaction involved the sale of 107,205 shares at a price of $31.33 each, for a total value of approximately $3.36 million. This move by the private equity and venture capital firm reflects a notable turnaround in its investment in Klaviyo.

The shares sold were Series A common stock, which resulted from an automatic conversion into Series B common stock upon execution of the sale. As detailed in the footnotes to the report, the Series B common stock is convertible at any time at the option of the holder and will automatically convert into Series A common stock under certain conditions, such as a specified date after the company’s initial public offering . or in different transfer scenarios.

Summit Partners holds a significant interest in Klaviyo through various entities, all of which are managed or indirectly influenced by the investment committee of Summit Partners LP. Committee members, including Peter Y. Chung, Scott C. Collins and Peter L. Rottier, may be deemed to have voting and dispositive power over the securities. However, they have relinquished beneficial ownership of the shares except for their pecuniary interest.

Shares held following the transaction by the various Summit entities total 46,541,339 Series B shares, indicating a continued substantial interest in the performance and growth of Klaviyo.

Investors often monitor such transactions closely because they can signal significant shareholder confidence levels in the company’s future prospects. The sale by Summit Partners comes amid Klaviyo’s continued efforts to strengthen its position in the prepackaged software industry.

For more details regarding the transaction, investors can refer to the SEC filing’s footnotes, which provide additional context and clarification regarding the nature of the ownership and relationships between the various Summit entities.

Adam Hennessey, acting as attorney for Summit Partners and related entities, signed the transactions on September 16, 2024, affirming the accuracy and completion of the reported sales.

In other recent news, Klaviyo Inc. performed strongly in its financial results, beating expectations in Q2 with revenue growth of $10 million and a notable 65% year-over-year increase in operating profit. These robust results led to an increase in the price target from $30.00 to $34.00 by Piper Sandler, which maintained an overweight rating on the company’s stock. In addition, Klaviyo’s growth accelerated to 35%, attributed to factors such as increased net new customers and increased demand in France and the UK.

In response to these developments, several financial firms, including KeyBanc Capital Markets and Barclays, upgraded Klaviyo’s stock rating to Overweight, reflecting confidence in the company’s growth trajectory. TD Cowen also maintained a Buy rating with a $34.00 price target based on promising trends in the sector.

In terms of governance, shareholders elected Andrew Bialecki, Ping Li and Tony Weisman as Class I directors during a recent annual meeting. Deloitte & Touche LLP has been ratified as the company’s independent auditor for the fiscal year ending December 31, 2024.

In strategic developments, Klaviyo announced a collaboration with TikTok to integrate its customer segmentation tools with the social media platform. This move is aimed at streamlining ad targeting and improving relationships with potential buyers. The company also expanded into SMS in nine countries and introduced new features such as multi-account management systems.

InvestingPro Insights

As Klaviyo, Inc. (NYSE:KVYO) navigates the dynamic landscape of the prepackaged software industry, real-time data and expert analysis become vital for investors evaluating the company’s financial health and market position. With Summit Partners reducing its stake, understanding Klaviyo’s financials is crucial.

InvestingPro data reveals robust revenue growth for Klaviyo, with growth of 38.38% over the trailing twelve months through Q2 2024. This is complemented by a substantial gross profit margin of 75.42%, indicating efficient management and a strong market demand for Klaviyo offerings. Despite these positive indicators, the company has an adjusted operating income margin of -46.28%, reflecting current operational challenges.

InvestingPro Tips suggests a mixed financial outlook for Klaviyo. On the plus side, the company has more cash than debt on its balance sheet, and analysts have revised their earnings upward for the coming period, highlighting the potential for improved financial performance. Additionally, Klaviyo’s liquid assets exceed its short-term liabilities, providing financial flexibility. However, it is important to note that the company has not been profitable over the past twelve months, trading at a high earnings valuation multiple and a high Price/Book multiple of 8.79.

Despite these challenges, the company’s stock has shown resilience with a strong return over the past three months, boasting a total price return of 34.19%. Analysts predict that Klaviyo will be profitable this year, which could be a contributing factor to the recent big price increase over the past six months.

For investors intrigued by this information, there are additional InvestingPro Tips available that can be explored for a deeper analysis of Klaviyo’s financial position and future prospects. Visit https://www.investing.com/pro/KVYO for more tips and exclusive data points to inform your investment decisions.

This article was generated with support from AI and reviewed by an editor. For more information, see T&C.