Bugs in Twitter's advertising technology dragged on revenue, overshadowing a surprisingly strong quarter of user growth.
The issue caught Wall Street off guard Thursday and shares plunged 19%, among the company's largest single-day losses since going public six years ago.
The San Francisco company said it's addressing those issues, but that they will likely weigh on its advertising business in the near term. It lowered its outlook for the fourth-quarter and for the year.
The problems shifted the attention of industry analysts away positive trends in usage on Twitter, which would typically imply strong revenue growth ahead.
The number of people using Twitter daily in the most recent quarter jumped 17% to 145 million compared with the same period last year, and increased by 6 million from just the previous quarter.
That is 3 million more users than industry analysts had expected, according to a survey by FactSet.More