Dive Brief:

• Twitter forecast fourth-quarter revenue well below analysts' average estimates and reported slower user growth than expected, Reuters reported.
• The revised forecast came even as Twitter beat third-quarter profit and revenue estimates.
• This is Twitter's first earnings report since Jack Dorsey returned as its chief executive.

Dive Insight:

The company reduced fourth quarter forecast to between $695 million and $710 million, well below analyst estimates of $739.7 million. Executives gave no reason for lowering the forecast.

Analysts say slow user growth may be behind the change. Twitter had 320 million average active monthly users in the third quarter, missing analysts' expectations of 324 million.

Analysts say the company may need more time for a turnaround following Dorsey’s return.

"People that were making a huge bet on Dorsey shaking things up within five months of being there may be disappointed," said PureFunds CEO Andrew Chanin, a Twitter shareholder. "With a company like Twitter, there's a huge risk to making any big changes."

Since early October, Dorsey has implemented a number of changes, including the launch of Moments. Dorsey also laid off more than 300 employees; gave back a third of his stock to employees; and hired former Google executive Omid Kordestani as executive chairman.