Sands Capital Management, LLC - Technology Innovators on Klaviyo
Thesis
Klaviyo delivered a headline beat and raise, but investors focused on a smaller revenue beat and slightly lower second-quarter margin guidance. Sands views the selloff as disproportionate to the underlying business performance. The company continues to grow revenue strongly, has limited exposure to seat-based software disruption, and should expand margins over time. Additional upside can come from international growth, expansion beyond ecommerce, and cross-selling text messaging and customer-service products.
“We maintain conviction, supported by Klaviyo’s opportunity to extend share gains, expand internationally and outside of ecommerce, and cross-sell its text-messaging and customer service platforms.”
Key risks
- Near-term execution and margin pressure
- Fragile valuation sentiment across software stocks