Tim Post/The Associated Press
LinkedIn Corp. shares plunged 25 per cent after the company forecast revenue that missed analysts' estimates, citing the strong dollar and slower than expected growth.
"This is an extraordinary miss for a company that has by and large avoided any major blow-ups since going public," said Paul Sweeney, an analyst with Bloomberg Intelligence.
Revenue slowed in the company's main business serving recruiters as many accounts were given to new sales representatives at the beginning of the year, causing some customer loss, according to the company's prepared statement to investors Thursday. First-quarter growth was also affected by currency-exchange rates, as LinkedIn drew 39 per cent of its revenue from outside the U.S.
LinkedIn chief executive officer Jeff Weiner has been expanding the company beyond its foundation as a portal for recruiters and job hunters, building tools that use the site's user data for marketing and sales.
Second-quarter revenue will be $670-million to $675-million, the company said in a statement. Analysts had predicted $718.3-million, according to data compiled by Bloomberg.
First-quarter earnings excluding some items were $73-million, or 57 cents a share, for the most recent quarter, compared with an average of 57 cents a share projected by analysts. Revenue rose 35 per cent to $638-million. Analysts had projected $637.8-million.
The company's shares fell in extended trading, after dropping 2 per cent to close at $252. The stock had gained 9.7 per cent this year.
The site, based in Mountain View, California, continues to expand its services, moving into professional education with an agreement this month to acquire Lynda.com Inc. for $1.5-billion.