Twitter on Tuesday posted mixed quarterly results and disappointing sales guidance, even though its user base grew more than expected.

The social media company said it expects third-quarter revenue of $590 million to $610 million, well below analyst expectations for $678 million, according to a Thomson Reuters consensus estimate.



Twitter said in a statement that both its second-quarter performance and third-quarter outlook reflect "a continuation of the trends discussed last quarter with less overall advertiser demand than expected." It also said its "brand business remains strong in absolute terms, but there are some new challenges that we're now tackling head-on."

@TwitterIR: Our brand business remains strong in absolute terms, but there are some new challenges that we're now tackling head-on. #TWTR

The company posted second-quarter adjusted earnings of 13 cents a share on revenue of $602 million. Wall Street expected it to post earnings of 10 cents a share on revenue of $607 million, according to a Thomson Reuters consensus estimate. Profit per share was up from 7 cents a year earlier, and revenue rose 20 percent.



Average monthly active users came in at 313 million, slightly higher than analyst estimates for about 312.1 million MAUs, according to StreetAccount.

The company's shares dropped more than 10 percent in after-hours trading Tuesday.

