LinkedIn bucks week's downward trend among social media

July 30, 2015 byBarbara Ortutay
LinkedIn bucks week's downward trend among social media
In this Nov. 6, 2014, file photo, LinkedIn CEO Jeff Weiner speaks during the company's second annual "Bring In Your Parents Day," at LinkedIn headquarters in Mountain View, Calif. LinkedIn reports quarterly financial results on Thursday, July 30, 2015. (AP Photo/Marcio Jose Sanchez, File)

It hasn't been a good week for social media companies, not even for the usually reliable professional networking service LinkedIn Corp.

LinkedIn's adjusted earnings of 55 cents per share were well above the 30 cents that analysts polled by FactSet had expected for the April-June quarter. Revenue grew 33 percent to $712 million, also above analysts' expectations of $680 million.

After a brief surge, its stock price fell after the results came out.

Net loss was $67.7 million, or 53 cents per share, which is wider than last year's loss of $1 million, or 1 cent per share. The company had warned in April that earnings would be dampened by costs related to its purchase of Lynda.com, an online learning company. LinkedIn closed that deal in the second quarter. On Thursday, CEO Jeff Weiner said the deal "could be one of LinkedIn's most transformational initiatives as it has the potential to improve the member experience across the platform."

LinkedIn had 380 million members at the end of the quarter, up 21 percent from a year earlier. The company said traffic from mobile devices represents more than half of all traffic to LinkedIn.

On Tuesday, Twitter disappointed investors when it reported a 15 percent increase in monthly active users, to 316 million. Facebook, meanwhile, has nearly 1.5 billion monthly users, but its high-flying stock also took a hit as investors sought to take profits and might have had some concerns about the company's soaring spending.

Shares of Mountain View, California-based LinkedIn fell $4.15, or 1.8 percent, to $223 in after-hours trading. The stock fluctuated widely after the results came out as investors digested the earnings report.

Colin Gillis, an analyst at BGC Financial, noted that while LinkedIn's stock is roughly unchanged since the start of the year, this masks the "the wild gyrations" that have taken place in its price. He said "investing in LinkedIn requires a tolerance to volatility, with the stock moving over 10 (percent) on each of the last four earnings."

Explore further: LinkedIn reports 3Q loss but sales climb

Related Stories

LinkedIn reports 3Q loss but sales climb

October 30, 2014

LinkedIn Corp. posted a third-quarter loss on Thursday, but its results were better than expected as revenue grew sharply, sending shares of the online professional networking service higher in extended trading.

LinkedIn's 4Q tops analyst views, stock surges to new high

February 5, 2015

(AP)—LinkedIn maintained its perfect record of pleasant surprises as the online professional networking service expanded its reach during the fourth quarter and added more tools to help connect salespeople with potential ...

LinkedIn posts 1Q loss as expenses rise

May 1, 2014

LinkedIn suffered a first-quarter loss as the online professional networking service ramped up its investments in projects aimed at attracting more users on the lookout for better jobs and career advice.

LinkedIn 3Q results sail past expectations

November 1, 2012

LinkedIn Corp. outpaced Wall Street's expectations with its third-quarter results, solidifying its status as an investor favorite at a time when other Internet companies have fallen from grace.

Recommended for you

Can China keep it's climate promises?

March 26, 2019

China can easily meet its Paris climate pledge to peak its greenhouse gas emissions by 2030, but sourcing 20 percent of its energy needs from renewables and nuclear power by that date may be considerably harder, researchers ...

In the Tree of Life, youth has its advantages

March 26, 2019

It's a question that has captivated naturalists for centuries: Why have some groups of organisms enjoyed incredibly diversity—like fish, birds, insects—while others have contained only a few species—like humans.

Cellular microRNA detection with miRacles

March 26, 2019

MicroRNAs (miRNAs) are short noncoding regulatory RNAs that can repress gene expression post-transcriptionally and are therefore increasingly used as biomarkers of disease. Detecting miRNAs can be arduous and expensive as ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.