LinkedIn, a business-oriented social networking service, has cut its full-year profit forecast, and even cited a slower growth at its hiring business.
Shares of LinkedIn fell by nearly 27% in after-hour trading on Thursday. LinkedIn’s weak view resulted from the changes that occurred in currency exchange rates, costs of its pending acquisition of Lynda.com and other items.
LinkedIn in the beginning of this month announced a deal of $1.5 billion, which was the largest deal in its history.
The company expects revenue contribution from Lynda to be delayed as it works its way to complete the integration.
Chief financial officer Steve Sordello said in a statement that he expected revenue contribution from the acquisition to normalize in the second half of 2016.
The company forecasted 2015 profit of $1.90 per share, excluding items, on revenue of about $2.90 billion. The networking site earlier forecasted earnings of $2.95 per share on revenue of $2.93 billion to $2.95 billion.
It was found that revenue growth from the company’s hiring business slowed to 36% for the first quarter ended March 31.
Mountain View, California-based LinkedIn reported a net loss attributable to shareholders of $42.5 million, or 34 cents per share, for the first quarter, compared with $13.4 million, or 11 cents per share, a year earlier.
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