Sometimes, beating expectations just isn't enough. Shares of Credo Technology Group Holding Ltd. (CRDO) took a dive in Monday's extended session, even after the company reported third-quarter results that came in above what Wall Street was looking for.

Here's the financial scorecard: Credo posted adjusted earnings of $1.07 per share. That comfortably beat the consensus estimate of 95 cents, according to market data. On the top line, revenue came in at $407.01 million, which also edged out the Street's forecast of $400.23 million.

CEO Bill Brennan called it a record quarter, and the growth numbers back that up. "In the third quarter, Credo once again delivered record results with revenue of $407 million, an increase of more than 50% sequentially and 200% year over year," he said.

Looking ahead, the company expects fourth-quarter revenue to land between $425 million and $435 million. That range sits above the analyst consensus estimate of $422.61 million.

So, with beats on both earnings and revenue, plus forward guidance that's above expectations, why did the stock drop? That's the question investors were left with. According to market data, Credo's stock fell 8.16% to $104.90 in after-hours trading following the report's release.