LinkedIn Stock Dips 10% On Q2 Forecast Of Slowing Growth, Even As It Beats Q1 Estimates On Sales of $324.7M; EPS $0.45

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LinkedIn Stock Dips 10% On Q2 Forecast Of Slowing Growth, Even As It Beats Q1 Estimates On Sales of $324.7M; EPS $0.45 (Original)

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LinkedIn has just reported Q1 earnings of $324.7 million, up 72% year-on-year, and non-GAAP earnings per share of $0.45, both soundly beating analysts’ estimates (via First Call) of $317 million and EPS of $0.31; as well as LinkedIn’s own guidance from last quarter, when it said it expected between $305 million and $310 million in revenues. Shares of the work-focused social network, however, are down nearly 11% in after-hours trading on news that next quarter won’t be quite as rosy.

First Call had estimated revenues of Q2 of $359 million, but today LinkedIn issued guidance that it expects sales of between $342 million and $347 million. That’s up between 50% and 52% on the same quarter a year ago, and is a sign of how growth is slowing.

The company says it now has 225 million users, up from 200 million last quarter. Judging by some of the product launches in the last few weeks it may have been that LinkedIn is laying the groundwork for how it will better monetize the users it has longer term as other revenue streams and customer acquisition decelerate. The new launches have included upgraded, more media-enhanced profiles; a Contacts update to add in more “personal assistant” life organizing features; new iPhone and Android apps; an expanded search engine; @mentions in status updates; Klout-style endorsements; and a Recruiter homepage redesign for the site’s most dedicated user vertical.

More to come. Refresh for updates.


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