Yesterday, Twitter also reported better than expected 2015 third quarter financial results.
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Twitter said that the number of average active monthly in Q3 was 320 million, up from 316 million in Q2, but still below what analysts expected of 324 million.
But Twitter did manage to beat its financial guidance, with revenue clocking in at $569 million – a 58% increase over past year.
There was no particular reason by the executives on a conference call for lowering the forecast.
Twitter shares fell to $27.38 after market hours after closing at $31.34 on the New York Stock Exchange.
It said its net loss narrowed to $131.7m, or 20 cents per share, in the quarter ended September 30 from $175.5m, or 29 cents per share, a year earlier.
Dorsey also has signaled his resolve to make Twitter profitable by laying off 336 employees, or 8 per cent of the company’s workforce, earlier this month.
According to The Guardian, Twitter is going to try ancient, forgotten ways to try and find new users – it plans on running TV ads during the World Series, starting tonight.
The company reported diluted earnings per share of 10 cents, versus the 5 cent estimate that analysts had predicted.
Worse yet, Twitter said it expects fourth-quarter revenue to reach between $695 million and $710 million, which is considerably lower than analysts’ estimates of almost $740 million.
Mr Dorsey himself admitted that the site was still too confusing shortly after taking over, and Twitter has already started tweaking the appearance of the site in order to improve user engagement.
This happens to be Twitter’s very first earnings statement ever since Jack Dorsey came back at the beginning of October as its permanent chief executive.
“Twitter faces declining expectations and easing comps as it approaches 2016, which should be a flawless backdrop for a product-focused founder to look like a saviour”, Stifel, which raised its rating on the stock, said in a note.
The messaging platform, which has not yet turned a profit, has struggled to expand its user base above 300 million, lagging rival networks such as Instagram and well behind the much larger Facebook.
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The most prominent effort to grab more regular users, Moments, curated feeds for live events launched this month.
