LendingClub (LC) experienced a significant pre-market plunge of 20.92% on Wednesday, following the release of its fourth-quarter earnings report on Tuesday after the market close.

The fintech company reported Q4 earnings per share of $0.08, missing analysts' consensus estimate of $0.09 by 11.11%. While LendingClub's quarterly revenue of $217.2 million surpassed expectations of $206.43 million, the miss on earnings per share appears to have triggered a sharp sell-off in the stock's pre-market trading session.

The company's failure to meet earnings expectations raised concerns among investors about its profitability and future growth prospects, despite the better-than-expected revenue performance. Missing earnings estimates can often lead to a negative market reaction, as it raises questions about a company's ability to maintain and grow its bottom line.