Twitter reported quarterly results that exceeded Wall Street expectations Wednesday, but shares still slumped sharply as the company reported weak user growth.
The company's shares tumbled more than 10 percent in extended-hours trading. What is Twitter stock doing now? (Click here to get the latest quotes.)
The microblogging company posted earnings of 2 cents a share, excluding one-time items, on sales of $243 million, easily topping expectations for loss of 2 cents a share on revenue of $218 million, according to a consensus estimate from Thomson Reuters.
In addition, the company handed in current-quarter revenue of between $230 million and $240 million, versus expectations for $215 million.
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But the company said it averaged 241 million monthly users, up just 3.8 percent from the previous quarter—the lowest rate since Twitter began disclosing its user figures. Twitter's user numbers grew at 10 percent, 7 percent, and 6 percent during the first three quarters of the year, respectively.
And timeline views dropped sharply from 159 billion to 148 billion in the quarter, signaling that users were refreshing their Twitter accounts less often.