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View All NewsGlobal – LinkedIn shares plunge on weak forecast
LinkedIn, the online professional network, has seen its shares fall by 28% as the company projected lower than expected profits for the first quarter of 2016, citing weakness in its recruitment services business in markets outside North America.
The company reported a net loss of USD 8.4 million, or USD 0.06 per share, attributable to the company for the fourth quarter ended 31 December, as expenses surged. This compares to a profit of USD 3.0 billion which the company achieved in Q4 2014.
Putting a more positive perspective on the results, Jeff Weiner, CEO of LinkedIn, said, "Q4 was a strong quarter for LinkedIn, bringing to a close a successful year of growth and innovation against our long-term roadmap. We enter 2016 with increased focus on core initiatives that will help drive growth and scale across our portfolio."
Revenue increased 34% year-over-year in Q4 to USD 862 million providing the company with annual 2015 revenue of USD 2,991 million.
Hiring revenue contributed USD 487 million in the fourth quarter which represents an increase of 32% compared to the same period last year which the company attributed to strength in new account performance within field sales and continued strength in online subscriptions.
Linkedin’s revenue guidance for Q1 2016 of USD 820 million also missed analysts' expectations of USD 866.9 million, according to the Economic Times. LinkedIn forecast an adjusted profit of about USD 0.55 per share for the first quarter, way below the average analyst estimate of USD 0.74.
“We exited 2015 at approximately 30% year-over-year growth, and expect mid-20% growth in 2016,” Steve Sordello, CFO LinkedIn Corporation, said. “This outlook reflects continued pressure in EMEA and APAC given current global economic conditions.”
For the full results, click here.