LinkedIn's Bleak Outlook Sends Shares Diving 25%

Shares of LinkedIn tumbled more than 25% in after-hours trade Thursday after the company gave a second-quarter and full-year earnings and revenue outlook way below Wall Street expectations. The company also widened its first-quarter loss, to $43 million, or 34 cents a share, compared with a year-earlier loss of $13.5 million, or 11 cents. Excluding one-time items, LinkedIn said it earned 57 cents a share, matching the consensus estimate on FactSet. Revenue came in at $637.7 million, versus $473 million a year ago, virtually in line with expectations. For the current quarter, the professional social network projected non-GAAP EPS of 28 cents, sharply below the 74 cents analysts were predicting. It is anticipating full-year adjusted earnings of $1.90, well below Wall Street's $3.05 estimate. LinkedIn blamed the weak outlook on changes in foreign exchange rates, which are plaguing most U.S. companies, as well as adjustments to its operations and the pending $1.5 billion acquisition of Lynda.com. Additionally, LinkedIn said a higher-than-usual number of transitions in its talent solutions business during the first quarter will defer customer spending throughout 2015.