LinkedIn posts 1Q loss as expenses rise

May 1 2014, 5:20pm CDT | by

SAN FRANCISCO (AP) — LinkedIn suffered a first-quarter loss as the online professional networking service ramped up its investments in projects aimed at attracting more users on the lookout for better jobs and career advice.

Despite the setback, the results announced Thursday surpassed the analyst projections that sway investors. LinkedIn has cleared Wall Street's financial hurdles in all 12 of its quarters as a public company.

Nevertheless, LinkedIn Corp. has fallen out of favor with investors amid concerns about the company's rising expenses and slowing revenue growth.

LinkedIn's stock slipped $5.83, or 3.6 percent, to $155.39 in Thursday's extended trading after the latest numbers came out. The shares are about 40 percent below their all-time high reached last September.

The Mountain View, California, company lost $13.4 million, or 11 cents per share, during the first three months of the year. It marks LinkedIn's largest quarterly loss since going public in May 2011. It earned $22.6 million, or 20 cents per share, at the same time last year.

If not for the costs of employee stock compensation and certain other expenses, LinkedIn said it would have earned 38 cents per share. That figure topped the average analyst estimate of 34 cents per share among analysts surveyed by FactSet.

Revenue rose 46 percent from last year to $473.2 million — about $7 million above analyst predictions.

LinkedIn is plowing more money into hiring employees and developing services designed to persuade people to open accounts and then make frequent visits to the company's website so it can sell more advertising.

Some of those efforts appeared to pay off in the first quarter. LinkedIn added another 19 million accounts during the period to end March with 296 million users. Total pages views — a telling indication of users' interest in an online service — reached 11.5 billion during the quarter, up from 11.1 billion at the same time last year. The page-view volume, also exceeded the final three months of last year, an encouraging sign after user engagement had waned in the previous two quarters.

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/31" rel="author">Associated Press</a>
The Associated Press (AP) is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers.

 

blog comments powered by Disqus

Latest stories

China's central bank to inject liquidity if necessary
Beijing, Nov 21 (IANS) China's central bank said Friday that it would inject liquidity into the country's banking system if necessary.
 
 
Mangalyaan among Time magazine's 25 best innovations of 2014
New York, Nov 21 (IANS) India's Mars mission Mangalyaan, developed by the Indian Space Research Organisation (ISRO), has been listed among 25 best innovations of 2014 by Time magazine.
 
 
Amazon Black Friday 2014 Sale has Started
Amazon Black Friday 2014 Sale has Started
The Amazon Black Friday 2014 sale is officially here. Earlier than ever Amazon offers Black Friday 2014 deals.
 
 
New factor in liver cancer progression discovered
Vienna, Nov 21 (IANS) Researchers from the Medical University of Vienna in Austria have discovered a new factor in the development and progression of the most common type of liver cancer, hepatocellular carcinoma (HCC), the university has said.
 
 
 

Latest from the Network

How to have healthier grocery shopping
London, Nov 21 (IANS) The grocery store can be a tricky place and even the most knowledgeable shoppers can end up putting mistakes in their cart. But with a few tricks up your sleeve, it's not all that tough to make...
Read more on Celebrity Balla
 
Japanese 'Black Widow' received $8.47 mn from dead partners
Tokyo, Nov 21 (IANS/EFE) A 67-year-old Japanese woman is suspected of having poisoned her husband and possibly six other partners, from whom she inherited around $8.47 million, investigation sources said Friday....
Read more on Politics Balla
 
Five terrorists arrested in Kabul
Kabul, Nov 21 (IANS) Five terrorists have been detained in Afghanistan's capital Kabul, a media report said Friday. "Five would-be suicide bombers have captured by the personnel of National Directorate of Security (...
Read more on Politics Balla
 
45 killed in Boko Haram attack in Nigeria
Lagos, Nov 21 (IANS/EFE) Members of the armed terrorist group Boko Haram have killed at least 45 people in a village near Mafa city in the northern Nigerian state of Borno, media reported citing municipal sources and...
Read more on Politics Balla
 
China's central bank to inject liquidity if necessary
Beijing, Nov 21 (IANS) China's central bank said Friday that it would inject liquidity into the country's banking system if necessary. "At present, the overall liquidity in the banking system is abundant," the People'...
Read more on Business Balla
 
IS executes six Syrians
Beirut, Nov 21 (IANS/EFE) The Islamic State (IS) Sunni radical group has executed six Syrians in the northern province of al-Raqaa after charging them with belonging to rebel factions, the Syrian Observatory for Human...
Read more on Politics Balla
 
Mangalyaan among Time magazine's 25 best innovations of 2014
New York, Nov 21 (IANS) India's Mars mission Mangalyaan, developed by the Indian Space Research Organisation (ISRO), has been listed among 25 best innovations of 2014 by Time magazine. "Nobody gets Mars right on the...
Read more on Ad Balla
 
Penelope Cruz to star in Zoolander 2
Penelope Cruz is to star in 'Zoolander 2'. The 'Pirates of the Caribbean: On Stranger Tides' actress will star alongside Ben Stiller in the upcoming comedy sequel, Deadline reports. Stiller will reprise his role as the...
Read more on Movie Balla
 
Andrew Garfield set to work with Mel Gibson
Andrew Garfield is set to star in war drama 'Hacksaw Ridge', which Mel Gibson is in line to direct. The 31-year-old actor is in talks to take on the role of Desmond T. Doss, a real life US Army medic who served in World...
Read more on Movie Balla
 
Ed Sheeran's Primark pants
Ed Sheeran buys his underwear from Primark. The 23-year-old singer still purchases his pants from the budget high street store, despite being worth millions, because according to him, they are ''only meant to keep your...
Read more on Celebrity Balla