LinkedIn Earnings Push Stock Down More Than 25 Percent | Re/code
LinkedIn hit Wall Street’s financial expectations Thursday, but lowered its revenue guidance for next quarter as investors sent the stock down more than 25 percent during after-hours trading.
LinkedIn reported 57 cents per share on $638 million in revenue for the first quarter of 2015. That’s a revenue jump of more than 35 percent over the same quarter last year.
Those numbers were good enough to beat Wall Street’s expectations. Analysts were looking for a profit of 56 cents per share on revenue of $636 million for the quarter.
But LinkedIn also adjusted its Q2 revenue projections. It’s now expecting $670 to 675 million in revenue next quarter. Early analyst estimates were looking for $718 million.
LinkedIn’s has pointed to a few factors for its revised numbers, including foreign exchange rates. The U.S. dollar is much stronger than it was a year ago, and this has impacted lots of financial earnings in the past few weeks, including Facebook’s. The company also pointed to “the impact from the pending lynda.com acquisition” as another factor.
LinkedIn bought Lynda.com earlier this month for $1.5 billion, LinkedIn’s largest acquisition by a wide margin. The company says it expects generate $20 to $25 million in revenue from lynda.com this year, but that it also plans to test different integration and “cross-selling” models between the two products, which is what will cut into next quarter’s revenues.
Stock is down more than 25 percent as of 1:30 p.m. PT.
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LinkedIn Earnings Push Stock Down More Than 25 Percent | Re/code
