LinkedIn on Thursday revealed first-quarter figures, beating street estimates with revenue of $324.7 and 45 cents per share. Even with better than expected results, the 225 million member strong network’s shares fell roughly 11 percent after-hours because of weak forward-looking guidance. Wall Street estimates expected LinkedIn to hit a revenue of about $317 million during the quarter.
“Q1 was a strong quarter for LinkedIn with member engagement and financial results reaching records level,” said CEO Jeff Weiner. “We remained focused on delivering great products that increasingly make LinkedIn the essential daily resource for global professionals.”
To bolster its portfolio, LinkedIn acquired Pulse early last month, and has worked to improve the experience of its network with a new unified search. That’s allowed the professional social network to consistently beat street estimates since its initial public offering in May 2011. Compared to a year ago when LinkedIn revealed revenue of $188.5 million, it’s quite clear the company is on a healthy upward path.
LinkedIn said it expects revenue between $342 million and $347 million during the second-quarter, below analyst expectations of almost $360 million. As of closing today, LinkedIn’s shares fell to $186, down from $202 earlier in the day.