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LinkedIn is crashing after weak earnings guidance

Feb 5, 2016, 02:39 IST

Nan Palmero/Flickr

LinkedIn shares plunged by as much as 21% in after-hours trading on Thursday after the company reported a quarterly loss, with weaker-than expected guidance.

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The social network for professionals said it expects first-quarter adjusted earnings-per-share of $0.55, but analysts had estimated $0.75 according to Bloomberg.

It projected full-year revenues at $3.6 billion to $3.65 billion, versus $3.9 billion expected.

LinkedIn reported revenues of $861.9 million for the fourth quarter, and its earnings loss was six cents a share, or $8.4 million.

It recorded year-over-year growth in revenues in its major business segments, including a 22% rise in premium subscriptions.

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The company said in its earnings release that the number of cumulative members grew 19% to 414 million, with mobile visits now making up 57% of all traffic. In December, it launched an improved version of its app.

Over the past year, LinkedIn shares have fallen about 37%.

Here's the drop in after-hours trading:

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