LinkedIn Q1 Earnings Beat Estimates, Stock Dips 4%

What's This?

This Tuesday, May 7, 2013, photo, shows LinkedIn's Mountain View, Calif., headquarters.

Image: Noah Berger/Associated Press

By Seth Fiegerman2014-05-01 20:19:20 UTC

LinkedIn reported better than expected earnings on Thursday, but guidance for the upcoming quarter and full year came in at the low end of estimates.

The professional social network reported earnings of $0.38 per share on revenue of $473.2 million for the first three months of this year, compared to Wall Street estimates for earnings of $0.34 per share on revenue of $466.6 million.

However, the company projected that it would generate between $500 million and $505 million in the upcoming quarter and between $2.06 billion to $2.08 billion in revenue for the full year, slightly below analyst estimates for $505 million and $2.11 billion, respectively. The stock initially ticked down by as much as 4% in after hours trading.

LinkedIn now has more than 300 million members, up from 277 million the previous quarter and 225 million members the same quarter a year earlier. The company announced hitting the 300 million member milestone last month.

The company's stock surged to a high of more than $250 a share late last year, but it has declined by about 30% in the year to date amid broader investor pullback from the tech sector where a number of high-profile companies have particularly high valuations.

LNKD Chart