Shares in the business-oriented social network site LinkedIn (NYSE:TWTR) have fallen sharply recently after it reported first quarter earnings this week. The company said it expects to make between $670 and $675 in the three months to June, less than the $718 expected.
LinkedIn lowers revenue forecast for Q2
LinkedIn blamed the strong US dollar, as well as costs that it incurred related to the purchase of the online business Lynda. LinkedIn announced last month it would buy the US company for $1.5 billion.
The company’s Chief Financial Officer, Steve Sordello, said he expected revenue from the purchase to normalise in the latter half of 2016. But LinkedIn’s stock fell 25% to around $188.20 on Friday during extended trading.
The forecasts have disappointed, and came as the company reported its net loss for Q1 increased to $43 million, compared with a loss of $13 million for the same quarter a year ago. It’s not all bad news, however, as the company managed to grow revenue by 35% in the period to $638 million.
As a result, Chief Executive Jeff Weiner said the quarter was “solid” and one in which the company had “maintained steady growth”.
As of April 2015, LinkedIn is in third place of US social networking sites, with 255 million visitors that month (statistics courtesy of Statista.com).
Larry Banks is a keen follower of technology and finance. He has worked for a variety of online publications, writing about a diverse range of topics including mobile networks, patents, and Internet video delivery technologies.