LinkedIn Corp, the biggest professional-networking website, dropped 5.9% after reporting a third-quarter loss ad announcing a $500 million stock sale.
Although the company reported increases across all of its revenue streams and healthy membership growth, shares in LinkedIn dropped 5.9 percent in after-hours trading for $79.60.
For the third quarter, the company said revenue increased, year over year, to $139.5 million, above analyst’s estimated $127.35 million, according to Yahoo Finance. It also said membership grew to $131.2 million, up to 63% from the same quarter last year.
The news comes as LinkedIn filed a request with the U.S. Securities and Exchange Commissions to sell about $100 million of its shares, according to a company statement.
Also, during the recent third quarter LinkedIn saw unique visitors of about 87.6 million a month, which is a 64% boost from the number of the third quarter of last year, according to comScore data cited by the company. In addition, the company saw page views of 7.6 billion, which works out to a 51% percent jump when compared to the third quarter of 2010, the company said.
Steve Sordello, CFO of LinkedIn said in a press release that the company posted its eight straight quarter of accelerated revenue growth and achieved record engagement of the LinkedIn platform. He also added that LinkedIn delivered strong adjusted EBITDA and record levels of operating and free cash flow. The social site also plans to maintain a long-term perspective with investment in their key strategic areas.
Profit excluding some costs in the period was $6.6 million. LinkedIn forecast sales for the full year of $508 million to $512 million and earnings before interest, taxes, depreciation and amortization of $83 million to $85 million. Analysts are predicting revenue of $488.9 million.