Carvana Co. (CVNA) stock plummeted 9.4% in pre-market trading on Thursday, despite reporting better-than-expected fourth-quarter results and achieving record annual profit for 2024. The online used-car retailer's strong performance was overshadowed by its plans to raise $1 billion through a stock offering and an "at-the-market offering" program, raising concerns about potential equity dilution.

For the fourth quarter, Carvana posted revenue of $3.55 billion, surpassing analyst estimates of $3.34 billion and representing a 46.3% year-over-year increase. The company's adjusted EBITDA of $359 million also exceeded expectations of $330 million, with a margin of 10.1%.

The company achieved a remarkable milestone in 2024, reporting record net income of $404 million, marking it as the most profitable public automotive retailer in the U.S. based on adjusted EBITDA margin. Carvana's retail unit sales grew by 33% year-over-year, significantly outpacing the industry.

However, despite these impressive results, investors were rattled by Carvana's announcement of a $1 billion stock offering and an amendment to its "at-the-market offering" program. The potential equity dilution raised concerns and weighed heavily on the stock's performance in the pre-market session.