LinkedIn crushed it in the fourth quarter, with revenues up 34pc to $862m. However, a lower-than-expected prediction on revenues for 2016 than analysts had hoped for has led to shares in the professional social network struggling overnight.
For the full year 2015, LinkedIn reported revenues were up 35pc to $2.9bn.
Despite the latest quarter surpassing analyst expectations, it is a more conservative outlook for 2016 that has spooked analysts. LinkedIn forecast 2016 revenues to come in at $3.6bn, but this is lower than the $3.9bn analysts were expecting and so LinkedIn shares are being pummelled over something that hasn’t happened yet.
LinkedIn reported that revenues from its Talent Solutions group increased 45pc year-over-year to $535m, including its Learning and Development operations.
Marketing Solutions revenue increased 20pc in the year to $183m.
Revenues from premium subscriptions were up 19pc to $144m.
LinkedIn acquires Connectifier to bring machine learning to talent search
“Q4 was a strong quarter for LinkedIn, bringing to a close a successful year of growth and innovation against our long-term roadmap,” said Jeff Weiner, CEO of LinkedIn.
“We enter 2016 with increased focus on core initiatives that will help drive growth and scale across our portfolio.”
In related news, LinkedIn has acquired Connectifier, a start-up that helps recruiters find talent, for an undisclosed sum.
“The acquisition of Connectifier, announced this afternoon, will further strengthen our core products and accelerate our product roadmap, leveraging powerful machine-learning-based searching and matching technology to help recruiters and hiring managers find the perfect talent fit,” Weiner said.
LinkedIn image via Shutterstock
Get your early bird tickets now!