LinkedIn Beats Expectations in Second Quarter After IPO, but Stock Falls
LinkedIn exceeded Wall Street expectations in its second quarter as a public company, though it still had a narrow net loss.
But investors didn’t seem satisfied, with the stock trading down 3 to 10 percent in after-hours trading. It’s a particularly important quarter because employees and other insiders can begin selling their shares starting later this month.
Analysts had projected a loss of $0.04 per share, but LinkedIn instead earned $0.02 per share.
A year ago, LinkedIn had revenue of $61.8 million and net income of $915,000.
It now has 131.2 million members, which is in line with previous growth, and the site gets 87.6 million visitors per month, according to comScore.
Hiring products, which account for more than half of LinkedIn’s revenue, brought in $71 million in the quarter, growth of 160 percent from the third quarter last year. Marketing and subscriptions grew too, but not as much.
LinkedIn shares have seen high levels of short selling recently.