Twitter reported third-quarter revenues of $569m, up 58pc year-on-year. However, signs of slowing user growth sent stock tumbling in after-hours trading.
Twitter’s strong financial performance exceeded Wall Street expectations. It showed a profit of 10 cents a share, double the five cents analysts had been expecting.
However, Twitter lowered revenue projections for Q4 from the $740m analysts had been anticipating to between $695m and $710m.
The lowered expectations spooked the markets and sent stock tumbling 12pc in after-hours trading.
Total monthly active users were 320m, up 11pc on last year and up 4m on the previous quarter.
Mobile users now represent 80pc of monthly active users.
Key technology developments included the launch of video auto-play on all devices, the expansion of self-service ads to 200 countries, as well as new creative formats and event targeting.
“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,” said Jack Dorsey, CEO of Twitter.
“We’ve simplified our roadmap and organisation around a few big bets across Twitter, Periscope, and Vine that we believe represent our largest opportunities for growth.”
LIVE on #Periscope: Twitter Q3'15 Earnings Conference Call https://t.co/WyISsbIRtQ
— TwitterIR (@TwitterIR) October 27, 2015
Twitter image by Anthony Correia via Shutterstock