by Burke Speaker | February 7, 2014 9:11 am
LinkedIn stock (LNKD) is down 6% pre-market after the online business resume and networking site reported a weaker revenue outlook than analysts expected.
LNKD now forecasts the year’s revenue at between $2.02 billion and $2.05 billion. That’s a ways below the average analyst expectation of $2.16 billion, according to Thomson Reuters I/B/E/S.
In addition, for Q1, LNKD’s sales is set to between $455 million to $460 million, below the $470 million average set by analysts.
While the news of its less-than-great revenue outlook seemed bleak, the company isn’t exactly having a sudden decline in investor confidence.
LNKD yesterday announced it would pay $120 million in cash and stock for Bright, the online job search site, which it hopes to broaden its user base and improve with search functionality.
It’s also important to remember that LinkedIn has exceeded its targets every quarter since going public in 2011. And additionally, its user base continues to grow, despite its growth slowing somewhat.
LinkedIn’s membership climbed 7 percent to 277 million worldwide, from 259 million at the end of the third quarter. But that pace slackened slightly from 9 percent in each of the two previous quarters.
Mobile users now account for 41 percent of its members, from 38 percent in the third quarter and a mere 8 percent in early 2011.
LinkedIn stock is up 80% from a year ago.
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