LinkedIn slashes full-year profit forecast
CALIFORNIA – LinkedIn Corp cut its full-year forecast as revenue growth in its hiring business slows, sending shares of the professional social network operator down 26 percent after the bell.
LinkedIn on Thursday forecast 2015 profit of $1.90 per share, excluding items, on revenue of about $2.90 billion. It had earlier forecast earnings of $2.95 per share on revenue of $2.93 billion to $2.95 billion.
Revenue growth from LinkedIn’s hiring business slowed to 36 percent for the first quarter ended March 31. The business, which the company calls Talent Solutions, accounted for about 62 percent of total revenue.
BGC Partners analyst Colin Gillis said he also expected a “negative drag” from the closure of LinkedIn’s acquisition of lynda.com, a privately held online education company.
LinkedIn agreed this month to buy lynda.com for about $1.5 billion and expects to close the acquisition in the second quarter.
The Mountain View, California-based company reported a net loss attributable to shareholders of $42.5 million, or 34 cents per share, for the first quarter, compared with $13.4 million, or 11 cents per share, a year earlier.
Revenue rose to $637.7 million from $473.2 million.
Excluding items, the company earned 57 cents per share.
The company’s shares closed at $252.13 on the New York Stock Exchange. – REUTERS