LinkedIn posts a loss but its revenues jump 126pc

 
City A.M. Reporter
PROFESSIONAL networking company LinkedIn last night posted a third-quarter net loss but raised its full-year outlook after it posted a 126 per cent rise in third-quarter revenue.

LinkedIn, in its first update since going public in May, said it now expects to report adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) for the year in a range of $83m to $85m (£51.8m to £53m) and revenue of $508m to $512m.

It had previously forecast Ebitda of between $65m and $70m.

The company, started in the living room of ex-PayPal executive Reid Hoffman in 2002 and officially launched in May 2003, makes money by selling premium subscriptions to its members and by helping companies with hiring and marketing.

LinkedIn’s third-quarter revenue was $139.5m, above Wall Street expectations of $127.6m.

Its net loss was $1.6m, or $0.02 per share, compared with $4m a year earlier. Wall Street had expected a loss of $0.04 per share.

LinkedIn also announced a sale of up to $500m of common stock, of which the company planned to sell $100m and shareholders to sell the rest, but raised concerns that it would dilute its shares.

“The third quarter was another solid quarter and we continue to be excited about the long-term opportunity of LinkedIn,” the firm said on its Twitter feed after the results.

LinkedIn’s performance is closely watched as a sign of how other Internet companies will do.

It said its members list has grown to 131.2m, an increase of 63 per cent from the third quarter of 2010.

But its shares tumbled 9.2 per cent in after-hours trading, having closed the day up 3.55 per cent.