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Business News/ Companies / LinkedIn slashes full-year profit forecast
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LinkedIn slashes full-year profit forecast

LinkedIn shares fell as much as 27% after the bell on Thursday

LinkedIn attributes slashed profit forecast to lower revenue growth at its hiring business and a delay in recognising the contribution of lynda.com, the online education company it has agreed to buy. Photo: BloombergPremium
LinkedIn attributes slashed profit forecast to lower revenue growth at its hiring business and a delay in recognising the contribution of lynda.com, the online education company it has agreed to buy. Photo: Bloomberg

Bengaluru: LinkedIn Corp. slashed its full-year profit forecast, citing slower revenue growth at its hiring business and a delay in recognising the contribution of lynda.com, the online education company it has agreed to buy.

Shares of LinkedIn fell as much as 27% after the bell on Thursday.

The professional social network operator agreed this month to buy lynda.com for about $1.5 billion and expects to close the acquisition in the second quarter.

The company expects revenue contribution from Lynda to be delayed as it works its way to complete the integration.

Chief financial officer Steve Sordello said he expected revenue contribution from the acquisition to “normalize" in the second half of 2016.

LinkedIn 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 the company’s hiring business slowed to 36% for the first quarter ended 31 March. The business, which the company calls Talent Solutions, accounted for about 62% of total revenue.

Mountain View, California-based LinkedIn 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

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Published: 01 May 2015, 09:36 AM IST
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