May 1 2014, 4:26pm CDT | by Forbes
LinkedIn reported a 46% jump in first quarter revenue, to $473 million, but higher expenses hurt earnings, while the company’s latest update of its overall 2014 outlook fell slightly short of analysts’ hopes. The professional-network company’s shares slipped about 3% in after-hours trading, after having climbed 5% earlier in the day, before the announcement.
In the latest quarter, LinkedIn revenue totaled $473.2 million. The company had a $13.4 million net loss attributable to common shareholders, compared to $22.6 million of net income in the year-earlier quarter. LinkedIn said its earnings before interest, taxes, depreciation and amortization (Ebitda) totaled $116.7 million, or 25% of revenue, in the latest quarter, versus 26% in the year-earlier quarter.
LinkedIn said it expects revenue of $500 million to $505 million in the current, second quarter, with Ebitda of $118 million to $120 million. While those numbers represent continued brisk growth, they raise the possibility that LinkedIn may fall slightly short of Wall Street analysts’ expectations. Analysts surveyed by First Call have been predicting second quarter revenue of $505 million and Ebitda of $120 million.
For full-year 2014, LinkedIn now expects revenue of $2.06 billion to $2.08 billion, along with Ebitda of $505 million to $510 million. The First Call consensus has been for slightly stronger numbers: revenue of $2.11 billion and Ebitda of $514 million.
About an hour after LinkedIn’s results were released, shares were changing hand at $156.72 apiece. LinkedIn’s shares have skidded about 25% this year, amid concern that the company’s huge run-up last year was overdone. That compares with a 2% gain in the Standard & Poor’s 500-stock index.
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