This SaaS Stock Raised Its 2026 Outlook. A Fund Just Exited a $39 Million Stake

On May 15, 2026, 12 West Capital Management disclosed in a U.S. Securities and Exchange Commission filing that it sold out its stake in Klaviyo (NYSE:KVYO), exiting 1,838,000 shares in a transaction estimated at $39.42 million based on quarterly average pricing.

What happened

According to a SEC filing dated May 15, 2026, 12 West Capital Management sold its entire holding of 1,838,000 shares in Klaviyo, with an estimated transaction value of $39.42 million based on the mean unadjusted close for the first quarter of 2026. The fund reported zero shares and zero dollar value in the position as of March 31, 2026. The quarter-end position value decreased by $59.68 million as a result of the exit, reflecting the previous period’s quarter-end position value.

What else to know

• Top holdings after the filing:
  • NYSE: SHAK: $110.02 million (18.6% of AUM)
  • NASDAQ: GDS: $103.81 million (17.5% of AUM)
  • NYSE: TBBB: $80.92 million (13.7% of AUM)
  • NYSE: RBLX: $53.73 million (9.1% of AUM)
  • NYSE: TOST: $33.08 million (5.6% of AUM)
• As of Friday, shares of Klaviyo were priced at $14.87, down about 55% over the past year and well underperforming the S&P 500, which is up about 28% in the same period.

Company overview

Company snapshot

• Klaviyo provides a software-as-a-service platform for marketing automation, including email, SMS, push notifications, product reviews, and a customer data platform.
• The firm serves individuals, small and medium enterprises, and companies in North America, Western Europe, Canada, the United Kingdom, Australia, and New Zealand.
• It was founded in 2012 and headquartered in Boston, Massachusetts.

Klaviyo, Inc. is a technology company specializing in marketing automation and customer data infrastructure for digital businesses. The company leverages a scalable SaaS model to deliver personalized messaging and analytics capabilities, enabling clients to optimize customer engagement and retention strategies. With a focus on ecommerce and data-driven marketing, Klaviyo differentiates itself through integrated tools that support targeted communication and actionable insights at scale.

What this transaction means for investors

Klaviyo shares have been crushed over the past year, but the business itself is still growing at a pace that some software companies would envy. Still, 12 West Capital decided to throw in the towel amid what may have just been too steep of losses, paired with an unclear timeline for a turnaround.

In its latest quarter, though, revenue climbed 28% year over year to $358 million, while the company swung from an operating loss a year ago to positive operating income and posted a record 16.4% non-GAAP operating margin. Management was confident enough to raise full-year revenue guidance to as much as $1.522 billion and authorize a $500 million share repurchase program.

Cofounder and co-CEO Andrew Bialecki said the company's autonomous AI strategy is beginning to "take hold," and pointed to stronger customer adoption across the platform. Klaviyo ended the quarter with more than 196,000 customers, while customers generating over $50,000 in annual recurring revenue grew 38% year over year. Net revenue retention, meanwhile, improved to 110%.

For long-term investors, the disconnect between stock performance and operating performance is the real story, and the risk is that growth slows. The opportunity, on the other hand, is that Klaviyo continues executing while sentiment remains depressed. If management can sustain growth and expand the firm’s margins, today's share price may eventually look more like a temporary setback than a verdict on the business.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends BBB Foods, Roblox, and Toast. The Motley Fool has a disclosure policy.