LinkedIn posts $119.3m loss in second quarter
Published 05/08/2016 | 08:22
Professional network website LinkedIn posted its deepest loss as a public company after being hit by a tax related charge in its final quarterly update before it merges with Microsoft.
The company reported a loss of $119.3m for the three months to June 30, driven by a $101m charge relating to the company’s tax assets.
However, the firm grew its revenue to $933m in the quarter, 31pc up year-on-year thanks to an 18pc year-on-year increase in members. The company said it members had grown to 450 million – 18pc higher than at the same point last year. Page views from each visitor were up 21pc year-on-year, which LinkedIn said showed it was engaging better with its customers.
In June, the company agreed a $26.2bn merger with Microsoft, the biggest in the tech giant’s history. Jeff Weiner, LinkedIn’s chief executive, will remain in charge of the business.
LinkedIn, which was founded 14 years ago, has made consecutive annual losses and has suffered heavy falls in its share price.
Mr Weiner said: “Continued product innovation drove increased levels of engagement, and strengthened our enterprise offerings.
“We believe joining forces with Microsoft enables us to further accelerate and scale our ability to deliver value and create economic opportunity for every member of the global workforce.”
The company’s shares finished the day 0.13pc down, at 192.01p.