The Twenty Minute VC (20VC)Klaviyo vs Shopify: Why third-party SaaS tools might be doomed
“It made it made sense because 80% of Klaviyo's revenue is off Shopify, but it's higher gross margin and growing as faster quickly.”
market cap. Okay. And that's with fintech gross margins. That's not with 80% gross margins. Right? So it's it's just super expensive, but, but for a while, they traded almost the same, Klaviyo and Shopify. Right? It made it made sense because 80% of Klaviyo's revenue is off Shopify, but it's higher gross margin and growing as faster quickly. Like, you could argue for it for a discount. Right? But it was interesting. Then they started to diverge. And now I think the markets have said Shopify is gonna going to absorb everything. I don't think Salesforce will, but but I do think, that is there's a line. Is there any room to build third party agents for SMBs? May maybe not. Maybe you have to build the whole platform. Probably true, at least today. Has HubSpot hit the floor, or is that further to fall?
About this clip
Analysis of why Klaviyo and Shopify initially traded at similar valuations despite different margins, and how market dynamics are shifting toward platform consolidation. The discussion explores whether there's still room for third-party agents serving SMBs or if companies need to build complete platforms to survive.
Why this clip
Provides concrete valuation analysis of major SaaS companies while highlighting a key strategic question about platform vs. third-party tool business models.
What they said next
AI SDR tool goes from $0 to $2M monthly revenue in 12 months
33:55 - 58s · market insight
More from this episode
From the blog
Want clips like this for your podcast?
We find your top 5-8 clips, write the hooks, and deliver ready-to-post content. First 2 episodes are free.
Get 2 Episodes Clipped Free