While placing focus on its mobile app, LinkedIn reports falling short by nearly $10 million of its forecast revenue.
Networking website LinkedIn has recently shifted focus to its mobile app, however with an apparent cost in revenue. The company’s projected income for this period was $359.7 million, however the actual revenue is going to fall somewhere in between $342-$347 million instead. One of the reasons for this may be the fact that LinkedIn does not have as established mobile advertising as it does standard desktop advertising. The remainder of the year is also forecasted to bring in less revenue than expected. This dip may be reversed with increased mobile advertising, however. Last month, LinkedIn redesigned its app for mobile devices. Taking a cue from Facebook (which is making revenue from mobile advertising), advertising on mobile applications will have to become a stronger point of focus for the company in order to make up for lost revenue.
Even though focusing on the mobile aspect of LinkedIn has cost the company money, it is still in a period of growth. Founded 10 years ago, LinkedIn has nearly 3,500 employees and 200 million active users. It makes its primary revenue from recruiters who utilize the service to find employees to fill positions. This talent-solutions department grew 80% within the first quarter. Last year, the company’s income quadrupled, with shares jumping from 4 cents to 20 cents. This blunts the fact that shares have dropped 10% recently, but LinkedIn’s future looks more positive with plans to boost its mobile advertising.
