On Tuesday, Momo Inc. (NASDAQ:MOMO) reported third-quarter results that easily surpassed analyst expectations once again on both the top and bottom lines. This marked the sixth consecutive time that the company has surpassed expectations.

Momo is one of China’s leading mobile social networking platforms, reporting a revenue of $354.5 million- up 126% from a year ago- with earnings per share coming in at $0.45, topping estimates of $0.38.

However, as the market opened today, Momo shares dropped by nearly 20%. What in the world happened?

While earnings topped expectations, revenue guidance for the fourth-quarter did not as the Company stated that it expects revenues to be between $370- $385 million with the mid-point coming in at $377.5M. This was $3 million between the consensus of $380.5 M.

Indeed, because Momo has blown out estimates for more than a year now, the fact that the company suddenly issued guidance below the consensus was a big pause and concern for cautious investors. Momo will likely come out ahead as it always does, however, the initial reaction has sent shares tumbling.

Further, while looking at monthly active users, Miomo reported that users rose to $94.4M from 91.3M in the second quarter and from 77.4M a year ago. But, for the second consecutive quarter, live paying users remained stagnant at 4.1 million.

Right now, Momo looks stuck between a growth and a value play as questions arise as to whether Momo can sustain its current revenue pace with back-to-back quarters of stagnant live paying user growth. And because of this, many investors have exited today as they wait to see what next numbers look like next quarter to see if there is any improvement in this specific department.

Featured Image: twitter