LinkedIn 2014 revenue forecast misses Wall Street estimate

San Francisco: LinkedIn Corp delivered a revenue forecast that fell short of Wall Street expectations, sending its stock down about 8 percent in after-hours trading on Thursday.

The social network geared towards professionals posted a better than expected 47 percent jump in fourth-quarter revenue and announced the $120 million cash and stock acquisition of online job search service Bright on Thursday.

But LinkedIn’s revenue guidance for the first quarter and for the full 2014 year both missed analysts’ expectations.

LinkedIn said 2014 revenue will range between $2.02 billion and $2.05 billion, compared to the average analyst expectation of $2.16 billion, according to Thomson Reuters I/B/E/S.

For the first quarter, the company’s forecasted revenue range of $455 million to $460 million was below the $470 million expected by analysts.

LinkedIn has beaten top-line targets every quarter since the company went public in 2011. Its priority is now finding ways to make money out of the company’s mobile applications through features such as “sponsored updates”.

Mobile users accounted for 38 percent of total users in the third quarter, compared to a mere 8 percent in early 2011.

Shares of LinkedIn were down 8 percent at $205.51.

Reuters