LinkedIn Beats In Q4 With Revenue Of $447.2M, But Growth Concerns Dampen After Hours Trading
by Alex Wilhelm ( @alex)
TechCrunch
February 6, 2014
Today, following the close of regular trading, LinkedIn reported its fourth-quarter financial performance, including revenue of $447.2 million and non-GAAP earnings per share of $0.39 . Analysts had expected the company to report non-GAAP profit of $0.38 per share on revenue of $437.84 million.
In regular trading, LinkedIn was broadly higher, besting the market and gaining more than 4 percent. In after-hours trading, LinkedIn is sharply lower. The company has previously forecasted that its revenue for the period would land between $415 million to $420 million.
In the sequentially preceding quarter, LinkedIn had revenue of $393 million, and earnings per share of $0.39 (non-GAAP).
LinkedIn reported that it now has 277 million members. In its own release, LinkedIn called the results “solid.”
The company’s Talent Solutions division has revenue of $245.6 million in the quarter. Its Marketing Solution group had revenue of $113.5 million. And, finally, its Premium Subscription business took in revenue of $88.1 million in the period.
Why is LinkedIn down so far in after-hours trading? It appears that the company’s current-year revenue forecast of $2.02 billion to $2.05 billion is under street expectations, inviting growth concerns. The company’s decline mirrors yesterday’s disastrous Twitter report, in which the company also beat on both revenue and earnings per share guidance, but long-term growth concerns buffeted the stock. It appears that LinkedIn will decline less than Twitter, but the loss is steep.
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