Linkedin, self-defined as ‘the largest professional network on the Internet’, surpassed projected numbers for fiscal Q4 yesterday, with revenue of $447.2 million and earnings of $0.39 per share. But in the after hours trading, the company’s revenue forecast of just over $2 billion fell below expectations, and is now trading at $208 per share, down from over $220 yesterday, and way down from 2013’s high of over $250.
The slowing growth of the company, and other slowing growth stories — like Twitter’s announcement this week — also have contributed to the concerns about Linkedin’s prospects.
In related new, Linkedin announced the acquisition of Bright, a data and algorithms technology that ‘brings together job seekers and employers. Parker Barille, VP of Product at Linkedin, said this on the Linkedin website,
At LinkedIn, we’ve invested a lot of time and energy into developing products like “Jobs You May Be Interested In” and LinkedIn Recruiter that use data to match members with the right opportunities and employers with the right prospects at scale. And that’s why Bright is such a great fit. Its incredibly talented team takes the same data-driven approach to connecting people and employers, and has built a powerful matching technology that will help accelerate our efforts on multiple fronts.
Ultimately though, our vision is to create economic opportunity for every member of the global workforce — all three billion of them. Doing so will require increasing the volume of job opportunities available on LinkedIn. As we add more job listings over the next several years, Bright’s powerful matching technology will be integral to ensuring that the prospects we suggest to employers and opportunities we surface for prospects are increasingly relevant.
Obviously, Linkedin is looking to increased growth and snapping up possible competitors like Bright can counter defection at the very least. It seems that Linkedin is mostly after the technology, since they aren’t taking on all the company’s employees, and shutting down the technology:
‘Several’ to me sounds like 3 or 4, and not management. We’ll have to see where the technology shows up at Linkedin.