LinkedIn misses revenue targets for first time

LinkedIn has posted disappointing quarterly revenues that missed estimates for the first time, as the business-based social network struggles to turn its growing user base into profits.

The professional-networking website also forecast sales that missed projections for the second quarter and cut its guidance for annual revenue, citing the strong U.S. dollar and slower-than-predicted growth.

Since its debut as a public company in 2011, LinkedIn has steadily surpassed estimates for sales until now.

The company also said it expected to make between $670m (£436m) and $675m in the three months to June, less than the $718m that had been expected.
It blamed the stronger US dollar and costs related to the purchase of the US online business Lynda.

LinkedIn announced it was buying the company for $1.5bn last month.

The disappointing forecasts came as the company reported that its net loss for the first quarter widened to $43m.

That compares to a loss of $13m for the first quarter of 2014.

However, revenue grew 35% in the period to $638m.

Chief executive Jeff Weiner described the quarter as “solid” and one in which the company “maintained steady growth”.