Carvana Co.'s stock experienced a sharp after-hours plunge of 22.60% on Wednesday, following the release of its fourth-quarter financial results. The online used-car retailer reported after the market close.

The company posted revenue of $5.60 billion, which exceeded analyst estimates of $5.26 billion. Total revenue increased 58% year-over-year as Carvana sold 163,522 vehicles in the quarter, with vehicle sales up 43% on a year-over-year basis.

However, shares tumbled as Adjusted EBITDA came in at $511 million with an Adjusted EBITDA margin of 9.1%. This result missed analyst expectations, with consensus calls around $541 million. The sequential decline in Adjusted EBITDA and margins appears to have raised profitability concerns among investors, outweighing the strong top-line growth.