LinkedIn posts 3Q loss, but raises outlooks
Professional networking site LinkedIn has reported a third-quarter net loss of US$1.6 million, marking its first quarterly loss since it went public in May. The company, however, has raised its full-year outlook as its third-quarter revenue spikes up 126 percent to US$139.5 million, from US$61.8 million in the same quarter 2010.
While it suffered a net loss of US$1.6 million for the third quarter, compared to a net income of US$4 million for the third quarter of 2010, LinkedIn's revenue earnings reflected accelerated growth for the eighth consecutive quarter, the company said in a statement Thursday.
It added that its members grew to 131.2 million, an increase of 63 percent from the third quarter of last year.
CEO Jeff Weiner said: "LinkedIn had a strong third quarter, with significant, broad-based growth across all of our revenue streams, member engagement metrics, geographies and sales channels. Our results underscore the long-term strength of our global platform and our business model."
The company, which went public on May 19, also raised its outlook for the fourth quarter and overall year. It noted that revenue for the fourth quarter 2011 was expected to be between $154 million and US$158 million, while the full year was projected to be in the range of US$508 million to US$512 million.
"LinkedIn plans to maintain a long-term perspective with investment in our key strategic areas," CFO Steve Sordello said.
The company opened its Singapore office in May, shortly after it went public, to expand its presence in the Asia-Pacific region. It also has offices in India and Australia, and opened its Tokyo office last month.
LinkedIn's first quarterly loss as a publicly-traded company will likely be closely watched, given that other social media companies such as daily deals giant Groupon, and social games developer Zynga, are also in line for their much-hyped initial public offerings (IPOs). Groupon, which is set to go public this Friday, saw its share price increase from its expected US$16 to US$18 range to hit US$20 each, and is reportedly oversubscribed.