Business

LinkedIn shares tumble 10% after decent Q1 earnings, poor guidance

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Business social network LinkedIn just posted its Q1 2013 earnings, and while the results trumped expectations, investors seem a bit spooked because it issued weak guidance.

LinkedIn’s shares are down more than 10 percent in after-hours trading. The price is sitting at about $179.70 as of this report.

Analysts expected the company to post earnings per share of $0.31 on revenue of $318 million. LinkedIn trumped that with Q1 revenue of $324.7 million, an increase of 72 percent versus the the first quarter of 2012. Non-GAAP earnings per share came in at $0.45.

Additionally, analysts thought that revenue guidance would come in at about $359 million for the next quarter, but the company expects less with a number between $342 million and $347 million. The company said:

Q2 2013 Guidance: Revenue is expected to range between $342 million and $347 million. Adjusted EBITDA is expected to range between $77 million and $79 million. The company expects depreciation and amortization to be between $30 million and $32 million, and stock-based compensation to be between $49 million and $51 million.

Full Year 2013 Guidance: Revenue is revised upward by $20 million to range between $1.430 billion and $1.460 billion. Adjusted EBITDA is revised upward by $15 million to range between $330 million and $345 million. The company expects depreciation and amortization to be between $130 million and $135 million, and stock-based compensation to be between $190 million and $195 million.

Photo via Jolie O’Dell/VentureBeat


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