NEW YORK, N.Y. – LinkedIn Corp. posted a loss for the third quarter on Tuesday, but the results were stronger than expected as the professional networking service boosted its user base and increased its revenue.
Such results have become routine for the company. LinkedIn has surpassed Wall Street’s expectations in all of its quarters as a publicly traded company and this one was no exception. But its outlook was below estimates and its shares fell in extended trading.
LinkedIn booked a loss of $3.4 million, or 3 cents per share, in the July-September period. It had earned $2.3 million, or 2 cents per share, in the same period a year earlier. Adjusted earnings were 39 cents per share in the latest quarter, beating analysts’ expectations by 7 cents.
Revenue rose 56 per cent, to $393 million from $252 million. Analysts predicted $384.8 million, according to FactSet.
For the current quarter, LinkedIn forecast revenue $415 million and $420 million, which is below Wall Street’s expectations of $438.9 million. That said, LinkedIn typically lowballs its forecast.
The company raised its sales guidance for the year to about $1.5 billion, still slightly below analysts’ estimates of $1.51 billion.
Shares of the Mountain View, Calif.-based company fell $9.29, or 3.8 per cent, to $237.85 in after-hours trading. The stock had closed up $4.14, or 1.7 per cent, at $247.14.