We've Seen This Before: LinkedIn Tumbles as 2014 Forecast Misses Forecast

 

NEW YORK (TheStreet) -- LinkedIn (LNKD) was tumbling in aftermarket trading as the professional services website forecast revenue for 2014 that fell short of analyst estimates.

The Mountain View, Cal.-based company said revenue for the year is likely to total $2.05 billion, less than the $2.16 billion average analyst estimate, according to Thomson Reuters. First-quarter sales guidance for $455 million to $460 million missed consensus by as much as $10 million.

Shares were falling 8% to $205.51 in extended trading, despite the fact company beat expectations in the fourth quarter.

LinkedIn, which has a history of low-balling forecasts which it habitually beats, posted net income of 39 cents a share in the fourth-quarter, edging a consensus analyst estimate of 38 cents a share.

Quarterly revenue jumped nearly 50% year-over-year to $447.2 million, led by increased demand for its Talent Solutions, a premium-fee recruitment package, which represented more than half total sales. The service's revenue totaled $245.6 million, a 53% year-over-year increase though less than the third quarter's 62% jump.

A diversified revenue stream has allowed the company to hedge its bets. Advertising revenue, a quarter of total income, jumped 36% to $113.5 million, while premium subscriptions pulled in one-fifth of sales, 48% higher than the year earlier.

In a move to diversify further, LinkedIn announced its acquisition of Bright, a jobs search engine which uses patented analytics technology to match employers with suitable candidates.

"By leveraging Bright's data-driven matching technology, machine-learning algorithms and domain expertise, we can accelerate our efforts and build out the Economic Graph," said SVP of products and user experience Deep Nishar.

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