Twitter delivered quarterly earnings and revenue that topped analysts' expectations on Tuesday. But light guidance sent shares tumbling in after hours.
The social media company posted third-quarter earnings of 10 cents per share on $569 million in revenue. Wall Street had expected the company to deliver quarterly earnings per share of 5 cents on $560 million in revenue, according to consensus estimates from Thomson Reuters.
Shares fell as much as 12 percent in extended-hours trade.
Average monthly active users (MAUs) — a key measure of growth for Twitter — came in at 307 million for the quarter, a gain of only 3 million from the previous quarter. The metric did not include users who sign up for the platform through text message. MAUs were up 8 percent year over year.
"We continued to see strong financial performance this quarter, as well as meaningful progress across our three areas of focus: ensuring more disciplined execution, simplifying our services and better communicating the value of our platform," CEO Jack Dorsey said in a statement.
"We've simplified our road map and organization around a few big bets across Twitter, Periscope and Vine that we believe represent our largest opportunities for growth."
On the conference call, Dorsey added, "You go to Twitter to say something to the world and you reach the world."