Shares of Klaviyo, Inc. (KVYO) plummeted 11.7% on Wednesday, February 19th, following the company's mixed fourth-quarter earnings results and the announcement of a potential stock offering.

While Klaviyo reported stronger-than-expected revenue growth of 34% year-over-year to $270.16 million for Q4 2024, its adjusted earnings per share of $0.07 fell short of analyst estimates and declined from the prior year period. The revenue upside was driven by Klaviyo's continued strength in the mid-market and enterprise segments, as well as robust international growth.

However, the company's earnings disappointment and the revelation of plans to file for an offering of common stock by certain selling stockholders appeared to weigh heavily on investor sentiment. While details surrounding the potential offering were not disclosed, the prospect of additional share dilution likely contributed to the stock's steep sell-off on Wednesday.