The stock price of LinkedIn Corp (NYSE:LNKD) declined more than 4% to $154.10 per share during the extended-hours trading after the professional social network company reported losses for the first quarter as the company increased its investments in different initiatives to boost its membership.
During the quarter, LinkedIn Corp (NYSE:LNKD) recorded $13.4 million losses or $0.11 losses per share. During the same period a year ago, the company delivered $22.6 million net income of $0.20 per share. Excluding special items, the company said should have earned $0.38 per share compared with the $0.34 earnings per share estimated by analysts surveyed by FactSet.
Jeff Weiner, CEO of LinkedIn Corp (NYSE:LNKD) said, “The first quarter was strong for LinkedIn in terms of our member engagement and financial results. We made significant progress against several strategic priorities including expanding internationally with our China launch, extending our shift to content marketing, and furthering our goal to make LinkedIn the definitive.”
According to the company, its revenue from Talent Solutions increased 50% to $275.9 million while its revenue from Marketing Solution rose 36% to $101.8 million. LinkedIn Corp (NYSE:LNKD) generated $95.5 million from Premium Subscription, an increase of 46%.
The company said its revenue in the United States was $284.9 million and $188.3 million in international markets. Its field sales channel generated $197.9 million.
During the quarter, LinkedIn Corp (NYSE:LNKD) introduced a beta version of its platform in Simplified Chinese, launched its professional publishing platform, and released a new version of Who’s Viewed Your Profile, an analytics dashboard that helps its members to build their professional brands and manage their professional identities.
For the second quarter, LinkedIn Corp (NYSE:LNKD) forecasted that it will be able to deliver revenue in the range of $500 million to $505 million and adjusted EBITDA of around $118 million to $120 million.
The company estimated that it will achieve around $2.06 billion to $2.08 billion revenue and adjusted EBITDA in the range of $505 million to $510 million for the full year 2014.
