LinkedIn 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 per cent after the bell. 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 “normalise” 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 per cent for the
first quarter ended March 31st. The business, which the company calls Talent Solutions, accounted for about 62 per cent 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.
0 comments:
Post a Comment