Shares of Strategic Education (STRA) plummeted 5.11% in Wednesday's trading session, following the release of the company's second-quarter earnings report. Despite reporting year-over-year growth in both revenue and earnings, the educational services provider failed to meet analysts' expectations on the top line, leading to a significant sell-off.

Strategic Education reported Q2 revenue of $321.5 million, representing a 2.9% increase from the same period last year. However, this figure fell short of the $322.8 million expected by analysts polled by FactSet. The company's adjusted earnings per share came in at $1.54, surpassing the previous year's $1.33 and beating the analyst consensus of $1.43. Despite the earnings beat, investors seemed to focus on the revenue miss and potential concerns about future growth prospects.

The company's performance was driven primarily by growth in its Education Technology Services segment, which includes Enterprise Partnerships, Sophia Learning, and Workforce Edge. Strategic Education also reported an increase in adjusted EBITDA to $68.3 million from $63.3 million in the previous year. However, the market's negative reaction suggests that investors may have been anticipating stronger overall results or have concerns about the company's ability to maintain its growth trajectory in the face of challenges in the education sector.