LinkedIn posts strong results but gives conservative forecast

 
City A.M. Reporter
LINKEDIN posted better-than-expected third quarter revenue of $393m (£245m) yesterday, a 56 per cent jump from a year ago.

However, the business connections network issued a conservative revenue forecast for the fourth quarter and the rest of the fiscal year.

Shares slid 1.3 per cent to $244 in after hours trading.

The company said it expected between $415m and $420m in sales for the final three months, lower than the $438m predicted by analysts. Its full-year revenue estimates also fell slightly short of Wall Street expectations.

LinkedIn’s valuation – it is trading at roughly 158 times forward earnings, compared with Facebook’s 70 times and Google’s 23 – has heightened scrutiny on whether the company can maintain its growth.

LinkedIn said its monthly users rose to 259m during the quarter, a 38 per cent rise from a year ago.