Contact Us
Make My Homepage

LinkedIn Posts Q1 Loss, Stresses Long Term

LinkedIn began the year with its largest quarterly loss since going public 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.

Despite the setback, the first-quarter results announced Thursday surpassed the analyst projections that sway investors. LinkedIn has cleared Wall Street’s financial hurdles in all 12 of its quarters as a public company, a stretch dating back to May 2011.

Nevertheless, LinkedIn Corp. has fallen out of favor with investors amid concerns about the company’s rising expenses and slowing revenue growth. Management issued a forecast indicating those trends will extend into the current quarter ending in June.

LinkedIn Corp., the professional networking Web site, displays its logo outside of headquarters in Mountain View, Calif. (AP Photo/Paul Sakuma, File)

LinkedIn’s stock shed $7.02, or 4.4 percent, to $154.20 in Thursday’s extended trading. The shares are about 40 percent below their all-time high of $257.56 reached last September. LinkedIn’s stock nearly doubled in value last year, enabling CEO Jeff Weiner to reap a nearly $170 million windfall by exercising some of the stock options he has accumulated since joining the company in 2008.

Despite the stock-price drop, LinkedIn remains intent on investing in projects aimed at connecting more workers with employers and recruiters.

“Given the opportunities we have in front of us, we’re really investing here for the long haul,” LinkedIn Chief Financial Officer Steve Sordello said during a Thursday conference call with analysts.

The Mountain View-based company is plowing more money into mobile applications, hiring employees and developing services designed to attract more users and more frequent visits to the company’s website to help sell more advertising. Most of LinkedIn’s revenue still comes from fees that employers and recruiters pay to gain greater access to the profiles posted on the networking service.

Some of LinkedIn’s efforts appeared to pay off in the first quarter. Another 19 million accounts were set up, and LinkedIn ended March with 296 million users.

Total pages views – a telling indication of users’ interest in an online service – reached 11.5 billion during the quarter, up from 11.1 billion at the same time last year. The page-view volume also exceeded the final three months of last year, an encouraging sign after user engagement had waned in the final half of last year.

LinkedIn lost $13.4 million, or 11 cents per share, during the first three months of the year. That contrasted with earnings of $22.6 million, or 20 cents per share, at the same time in 2013.

If not for the costs of employee stock compensation and certain other expenses, LinkedIn said it would have earned 38 cents per share. Analysts polled by FactSet predicted 34 cents per share.

Revenue rose 46 percent to $473.2 million, about $7 million above analyst predictions.

© 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use.

Best of NJ 101.5

Recommended For You

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to using your original account information.

*Please note that your prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for New Jersey Insiders quickly by connecting your Facebook account. It's just as secure and no password to remember!

Sign up to have exclusive New Jersey Insiders contests, events, coupons, presales, and much more delivered to you for FREE.