Will the selling stockholders' motives (e.g., liquidity, portfolio rebalancing) affect market perception of the company’s growth prospects?

The filing shows a pure secondary‑sale by existing shareholders, with the proceeds flowing to those sellers rather than to Klaviyo. From a fundamentals standpoint the offering does not dilute the company’s cash position or fund new growth projects, so the underlying business‑model outlook for the B2C‑CRM platform remains unchanged. However, markets tend to interpret large, insider‑driven sell‑downs as a signal of increased supply and often interpret the sellers’ motives—whether liquidity needs, portfolio rebalancing, or tax‑driven cash‑outs—as a proxy for confidence. Because the offering adds 6.5 m (plus a 30‑day option for another 0.975 m) shares to the market, the immediate perception will be down‑pressure on KVYO’s price and a modest risk‑adjusted discount on the secondary‑sale price. In practice, investors will ask: “If insiders can sell without hurting the balance sheet, why are they exiting?” – a question that typically depresses short‑term sentiment, regardless of whether the motivation is purely liquidity.

Trading implications:

- Short‑term: Expect a price dip on the announcement and on the first days of trading the new shares, especially if the offering price sits below the prevailing market level. Watch the 20‑day and 50‑day moving averages; a break below the 20‑day MA with falling volume could be an early entry point for a short trade or a defensive stop‑loss for existing long positions.

- Long‑term: If you believe the core growth story (e.g., expanding B2C CRM market share, strong ARR growth, and healthy margins) remains intact, the sell‑off could create a temporary valuation discount. Consider adding on pull‑backs if the stock finds support near its recent VWAP or 200‑day MA, with a tight stop under the nearest support level.

- Watch‑list: Monitor institutional buying (Form 13F) and any forward‑looking guidance from the company. If institutional demand absorbs the secondary volume, the price may stabilize quickly; if not, the added supply could keep the stock under pressure for several weeks. Use the price action to gauge whether the market is treating the secondary offering as a neutral liquidity event or a negative signal about growth prospects.