Jack Dorsey is well schooled in entrepreneurship, having founded both Twitter and Square. On Tuesday, he got a crash course on being a public company CEO.
The company reported financial results for the third quarter that beat revenue and earnings forecasts. But Twitter also issued weak guidance for the fourth quarter and reported that it’s user growth had fallen below already weak forecasts. The news sent shares plunging nearly 13%.
Revenue in the third quarter was $569.2 million for the period ended September 30, up 58% from $361 million in the same period a year earlier and slightly higher than the $559 million analysts’ expected.
The company posted a loss of $131.7 million, or 20 cents a share, compared with a year-earlier loss of $175.5 million, or 29 cents a share. Excluding certain expenses, Twitter said it would have earned $67 million, or 10 cents a share, topping forecasts of 5 cents a share on that basis.