LinkedIn shares drop despite good growth this quarter

It was reported that LinkedIn had a better revenue growth in this quarter compared to the second quarter of 2014. They have experienced a gross 33 per cent increase in their revenue ($712 million) compared to the same quarter in 2014.

But still, the share prices fall because the investors aren’t happy with its full-year revenue outlook.

The increase in revenue was from different sources. The business serving recruiters was increased by 38 per cent, marketing solutions revenue went up 32 per cent, and the revenue from premium subscription rose by 22 per cent.

The professional social network also experienced a loss of $68 million for the accounting of increased total costs of $792 million. After excluding all the one-time items, the investors could see the net income for the quarter was $71 million.

Some good news for the company was that they acquired Lynda.com and added them to their platform.

The full-year revenue expectations of the company is to have a $40 million revenue growth, that means $2.94 billion, compared to their previous year revenue, which was 2.90 billion. The $40 million growth will still be below expectations according to analysts. Also, Lynda.com will be contributing almost $90 million to that yearly revenue.

On 30 July, LinkedIn’s shares fell down by 2.09 per cent reaching $227.15. It fell further 4.84 per cent after hours.

The CEO of LinkedIn, Jeff Weiner, says, “LinkedIn continued to deliver increased member and customer value in the second quarter while delivering solid financial results.”