Robinhood Markets Inc. (HOOD) experienced a sharp decline of 7.88% in after-hours trading on Tuesday, following the release of its fourth-quarter financial results.

The online trading platform reported quarterly earnings per share of $0.66, which beat the analyst consensus estimate. However, total revenue of $1.28 billion fell short of the expected $1.34 billion. Furthermore, adjusted EBITDA of $761 million missed the consensus estimate of $833.7 million. Key transaction-based revenues also disappointed, with options revenue coming in at $314 million versus a $332.1 million estimate and crypto revenue at $221 million against a $259.2 million forecast.

Despite achieving record quarterly revenue, the company's net income declined to $605 million from $916 million a year ago, partly due to a change in income tax provisions compared to a year-ago benefit. This combination of revenue and profitability metrics missing expectations, alongside a year-over-year drop in profit, led to negative investor sentiment and the stock's after-hours plunge.