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The New York Stock Exchange welcomes executives and guests of Klaviyo, Inc. (NYSE: KVYO), on Weds, September 20, 2023, to celebrate its initial public offering. To honor the occasion, Andrew Bialecki, Co-Founder & Chief Executive Officer, and Ed Hallen, C

Klaviyo shares jumped 23% to $36.75 in their New York Stock Exchange debut Wednesday after the marketing automation company held the first notable IPO for a U.S. venture-backed software company since late 2021.

Klaviyo priced 19.2 million shares late Tuesday at $30 a piece, valuing the company at just over $9 billion on a fully diluted basis. Of those shares, 11.5 million were sold by the company, resulting in $345 million in cash added to the balance sheet. Klaviyo was valued at $9.5 billion in a private financing round in 2021.

The listing, under the ticker symbol “KVYO,” comes a day after grocery delivery company Instacart hit the Nasdaq and saw its stock close up 12% following an initial 40% pop. Instacart and Klaviyo are trying to crack open a tech IPO market that’s been virtually shuttered for 21 months. Chip designer Arm went public last week, but that company is based in the U.K. and controlled by Japan’s SoftBank.

The last venture-backed software companies to hold initial public offerings in the U.S. were HashiCorp and Samsara, which both debuted in December 2021, when the Nasdaq was near its peak and investors were paying a premium for growth stocks. Inflation spiked and interest rates rose in 2022, leading to a turn away from risk and the worst year for tech stocks since the 2008 financial crisis.

The Nasdaq has rebounded this year, but less mature and unprofitable businesses are still valued well below their levels from two years ago. Instacart closed Tuesday with a valuation of just over $11 billion, down from $39 billion at its height, and the stock fell 5% on its second day of trading.

Founded in 2012, Klaviyo helps companies store user data and build profiles to target them with marketing via email, text messages and other channels. It got its start in the e-commerce industry by primarily serving online businesses, though Klaviyo said it’s seeing growing demand from companies in other verticals like restaurants, travel, and events and entertainment.

In its prospectus, Klaviyo reported revenue growth of 51% in the latest quarter to $164.6 million. The company has swung to profitability, reporting net income of $10.9 million after losing $11.7 million a year earlier.

One of Klaviyo’s biggest backers and sources of business is Shopify. The e-commerce software vendor owns roughly 11% of Klaviyo’s shares, and invested $100 million in the company last year. As of the end of 2022, about 78% of Klaviyo’s annualized recurring revenue, or value of its existing paid subscriptions, was derived from customers who also use Shopify, the company said.

“We love working with the market-leading platforms,” said Klaviyo CEO Andrew Bialecki, in an interview with CNBC on Wednesday. “When we decided in the early days we were going to focus on retail businesses, consumer businesses first, we said who are the best platforms out there, the most innovative. Obviously Shopify was at the top of that list.”

Bialecki said Klaviyo lets those platforms deal with payment and back-office functions, and “we try to help with the customer experience on the front end.”

Klaviyo said it had more than 130,000 customers as of June 30, up from 105,000 customers a year ago.

— CNBC’s Annie Palmer contributed to this report

WATCH: Klaviyo follows Instacart in tech IPO down rounds

Klaviyo follows Instacart in tech IPOs with decreasing valuations

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Google agrees to pay Texas $1.4 billion data privacy settlement

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Google agrees to pay Texas .4 billion data privacy settlement

A Google corporate logo hangs above the entrance to the company’s office at St. John’s Terminal in New York City on March 11, 2025.

Gary Hershorn | Corbis News | Getty Images

Google agreed to pay nearly $1.4 billion to the state of Texas to settle allegations of violating the data privacy rights of state residents, Texas Attorney General Ken Paxton said Friday.

Paxton sued Google in 2022 for allegedly unlawfully tracking and collecting the private data of users.

The attorney general said the settlement, which covers allegations in two separate lawsuits against the search engine and app giant, dwarfed all past settlements by other states with Google for similar data privacy violations.

Google’s settlement comes nearly 10 months after Paxton obtained a $1.4 billion settlement for Texas from Meta, the parent company of Facebook and Instagram, to resolve claims of unauthorized use of biometric data by users of those popular social media platforms.

“In Texas, Big Tech is not above the law,” Paxton said in a statement on Friday.

“For years, Google secretly tracked people’s movements, private searches, and even their voiceprints and facial geometry through their products and services. I fought back and won,” said Paxton.

“This $1.375 billion settlement is a major win for Texans’ privacy and tells companies that they will pay for abusing our trust.”

Google spokesman Jose Castaneda said the company did not admit any wrongdoing or liability in the settlement, which involves allegations related to the Chrome browser’s incognito setting, disclosures related to location history on the Google Maps app, and biometric claims related to Google Photo.

Castaneda said Google does not have to make any changes to products in connection with the settlement and that all of the policy changes that the company made in connection with the allegations were previously announced or implemented.

“This settles a raft of old claims, many of which have already been resolved elsewhere, concerning product policies we have long since changed,” Castaneda said.

“We are pleased to put them behind us, and we will continue to build robust privacy controls into our services.”

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Virtual chronic care company Omada Health files for IPO

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Virtual chronic care company Omada Health files for IPO

Omada Health smart devices in use.

Courtesy: Omada Health

Virtual care company Omada Health filed for an IPO on Friday, the latest digital health company that’s signaled its intent to hit the public markets despite a turbulent economy.

Founded in 2012, Omada offers virtual care programs to support patients with chronic conditions like prediabetes, diabetes and hypertension. The company describes its approach as a “between-visit care model” that is complementary to the broader health-care ecosystem, according to its prospectus.

Revenue increased 57% in the first quarter to $55 million, up from $35.1 million during the same period last year, the filing said. The San Francisco-based company generated $169.8 million in revenue during 2024, up 38% from $122.8 million the previous year.

Omada’s net loss narrowed to $9.4 million during its first quarter from $19 million during the same period last year. It reported a net loss of $47.1 million in 2024, compared to a $67.5 million net loss during 2023.

The IPO market has been largely dormant across the tech sector for the past three years, and within digital health, it’s been almost completely dead. After President Donald Trump announced a sweeping tariff policy that plunged U.S. markets into turmoil last month, taking a company public is an even riskier endeavor. Online lender Klarna delayed its long-anticipated IPO, as did ticket marketplace StubHub.

But Omada Health isn’t the first digital health company to file for its public market debut this year. Virtual physical therapy startup Hinge Health filed its prospectus in March, and provided an update with its first-quarter earnings on Monday, a signal to investors that it’s looking to forge ahead.

Omada contracts with employers, and the company said it works with more than 2,000 customers and supports 679,000 members as of March 31. More than 156 million Americans suffer from at least one chronic condition, so there is a significant market opportunity, according to the company’s filing.

In 2022, Omada announced a $192 million funding round that pushed its valuation above $1 billion. U.S. Venture Partners, Andreessen Horowitz and Fidelity’s FMR LLC are the largest outside shareholders in the company, each owning between 9% and 10% of the stock.

“To our prospective shareholders, thank you for learning more about Omada. I invite you join our journey,” Omada co-founder and CEO Sean Duffy said in the filing. “In front of us is a unique chance to build a promising and successful business while truly changing lives.”

WATCH: The IPO market is likely to pick up near Labor Day, says FirstMark’s Rick Heitzmann

The IPO market is likely to pick up near Labor Day, says FirstMark's Rick Heitzmann

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Google would need to shift up to 2,000 employees for antitrust remedies, search head says

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Google would need to shift up to 2,000 employees for antitrust remedies, search head says

Liz Reid, vice president, search, Google speaks during an event in New Delhi on December 19, 2022.

Sajjad Hussain | AFP | Getty Images

Testimony in Google‘s antitrust search remedies trial that wrapped hearings Friday shows how the company is calculating possible changes proposed by the Department of Justice.

Google head of search Liz Reid testified in court Tuesday that the company would need to divert between 1,000 and 2,000 employees, roughly 20% of Google’s search organization, to carry out some of the proposed remedies, a source with knowledge of the proceedings confirmed.

The testimony comes during the final days of the remedies trial, which will determine what penalties should be taken against Google after a judge last year ruled the company has held an illegal monopoly in its core market of internet search.

The DOJ, which filed the original antitrust suit and proposed remedies, asked the judge to force Google to share its data used for generating search results, such as click data. It also asked for the company to remove the use of “compelled syndication,” which refers to the practice of making certain deals with companies to ensure its search engine remains the default choice in browsers and smartphones. 

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Google pays Apple billions of dollars per year to be the default search engine on iPhones. It’s lucrative for Apple and a valuable way for Google to get more search volume and users.

Apple’s SVP of Services Eddy Cue testified Wednesday that Apple chooses to feature Google because it’s “the best search engine.”

The DOJ also proposed the company divest its Chrome browser but that was not included in Reid’s initial calculation, the source confirmed.

Reid on Tuesday said Google’s proprietary “Knowledge Graph” database, which it uses to surface search results, contains more than 500 billion facts, according to the source, and that Google has invested more than $20 billion in engineering costs and content acquisition over more than a decade.

“People ask Google questions they wouldn’t ask anyone else,” she said, according to the source.

Reid echoed Google’s argument that sharing its data would create privacy risks, the source confirmed.

Closing arguments for the search remedies trial will take place May 29th and 30th, followed by the judge’s decision expected in August.

The company faces a separate remedies trial for its advertising tech business, which is scheduled to begin Sept. 22.

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