LinkedIn posted quarterly results on Thursday that, at least temporarily, deepened investor angst over social-media stocks. The world’s largest social network for professionals, which is an indispensable tool for recruiters, reported a 46% rise in first-quarter revenue, to $473.2 million, but a loss of $13.3 million. The news sent LinkedIn shares down 2% in after-hours trading, to $159.02.
LinkedIn pinned the loss to expansion in China and its acquisition of Bright in the first quarter. Excluding certain expenses, the company said it would have earned 38 cents per share — down from 45 cents in the same quarter a year ago. Analysts polled by Thomson Reuters expected $466.6 million in revenue and earnings of 34 cents per share.
Two divisions — LinkedIn’s recruiting business ($275.9 million) and its advertising operations ($101.8 million) — made up the lion’s share of revenue. For the year, LinkedIn raised its revenue projections to $2.06 billion to $2.08 billion, besting its previous estimated range of $2.02 billion to $2.05 billion.