At over ten times its last twelve months’ (LTM) revenue, Klaviyo leads the valuation race. Its $8.31 billion valuation puts it in the same zip code as Twilio’s $9.55 billion. Along with Braze, Klaviyo proves that responsible growth continues to drive valuations. Responsible growth includes net dollar retention above 100%, low or manageable debt loads, and a self-sustaining customer base that doesn’t rely on new customers to preserve revenue levels.
Disclaimer: This is not stock advice. Everything about the messaging business interests me, including asset pricing. Use your judgment to invest your money.
Responsible growth values the repeat customer. Take Braze for instance. If 96% of your revenue comes from subscriptions and your net revenue retention (NRR or NDR) exceeds 100%, it shows an efficiency in customer retention that doesn’t require reinvesting every incremental dollar just to maintain the current book of business. Responsible growth, then, is also about GTM efficiency.
This is a good place to wrap up the Q2 earnings coverage. In about ten weeks, we’ll see how Q3 went. Sign up to get play-by-play updates delivered to your inbox.