LinkedIn growth shows higher revenue in the third quarter but earnings are decelerating ahead of its pending Microsoft merger…
LinkedIn growth shows duality with its latest, third-quarter earnings report. The Mountain View, California, professional networking site reported $960 million in sales, representing a 23 percent gain. However, this is down from a previously reported 37 percent earlier this year.
LinkedIn Growth Strong but Decreasing Revenue in its Latest Earnings Report
LinkedIn not only posted weaker revenue, the company acknowledged its earnings will continue to slide. The reason for its downward trajectory is due to peaking sales and membership rolls, which are unlikely to remain on-par with their previous pace.
“The growth continues to decelerate at a quick rate. Execution hasn’t been what they may have wanted and Microsoft can help invigorate that,” UBS analyst Brent Thill told the Wall Street Journal
In early September, the company experienced bad publicity over allegations of its search engine results bias. LinkedIn introduced a few improvements in the same month. It debuted Sponsored Updates conversion tracking tools, launched a completely redesigned publishing platform, and released new features to encourage more member usage.
Currently, LinkedIn boasts 467 million members, up 18 percent from last year. The site generated 106 million unique members one month in the third-quarter, an increase of 6 percent. Additionally, member page views rose 27 percent.
In June, software behemoth Microsoft Corporation announced its plans to buy the professional networking platform for $26.2 billion. The deal cleared in the United States, Canada, and Brazil but remains under review in Europe. The acquisition will expectedly close at the end of this year.
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