LinkedIn Posts 3Q Loss, Revenue Growth Accelerates
While not as severe as analysts anticipated, LinkedIn posted a 3Q loss but the companies growth still accelerates. LinkedIn Corp. absorbed a loss of $1.6 million (2 cents per share) from July–September as the company invested in more money to expand its business.
After LinkedIn shares were priced at $45 in the initial public offering, they quickly doubled. Investors’ rabid response sparked a debate about whether another investment bubble is forming around rapidly growing Internet companies, similar to what happened in the late 1990s when a dot-com boom set the stage for a costly meltdown.
Unlike the Internet startups of the 1990s, LinkedIn had been consistently generating profits.
The increasing spending that triggered the third-quarter loss appeared to yield dividends.
Besides producing impressive revenue growth, LinkedIn added 15.4 million more accounts in the quarter to end September with 131.2 million members. That may have been a slight letdown for investors, though, because LinkedIn Jeff Weiner had indicated the company was on a pace that would result in 132 million members at the end of the quarter.