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LinkedIn Reports a Loss in Q3 Even as Revenue Growth Accelerates (LNKD)

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Linkedin CorporationProfessional networking site LinkedIn Corporation (NYSE: LNKD) reported a loss in its third quarter even as the company’s revenue growth accelerated. This is the first time LinkedIn has a posted a quarterly loss since going public earlier this year.

LinkedIn’s third-quarter loss was, however, not as bad as analysts had expected. For the third quarter, LinkedIn reported a loss of $1.6 million, or $0.02 per share, compared with earnings of $4 million, or $0.02 per share reported for the same period in the previous year. The company incurred a loss as it invested in an expansion targeted at changing the way people look for jobs. Excluding these costs, the company reported earnings of $0.06 per share.


LinkedIn’s revenue for the third quarter came in at $139 million. The company’s third-quarter revenue more than doubled over the previous year and also came in ahead of Street estimates.

However, the better than expected results have not impressed investors as the company’s shares have been hammered in after-hours trading. At last check, LinkedIn shares were down 8.47% to $80.09 in after-hour trading today. The stock had closed 3.55% higher at $87.50 in regular trading.

LinkedIn’s increased spending yielded results in the third quarter as the company added 15.4 million more accounts. Attracting more members is crucial for the Mountain View, California-based company as more members make the company’s service more compelling to recruiters and advertisers.

Jeff Weiner, CEO of LinkedIn, said that the company had a strong third quarter, with significant, broad-based growth across all of its revenue streams, member engagements metrics, geographies, and sales channels. Weiner said that the company’s results underscore the long-term strength of its global platform and its business model.

For the fourth quarter, LinkedIn expected revenue to come in between $154 million and $158 million.

 

edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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