UPDATED 20:19 EST / JULY 30 2015

NEWS

LinkedIn strongly beats market forecasts with solid revenue growth in Q2

LinkedIn, Inc. surprised the market Thursday with its second quarter results strongly beating market forcecasts for the business-oriented social network site.

The company booked $712 million in revenue for the second quarter, an increase of 33 percent compared to the same quarter last year and equating to 55 cents a share; the market had been predicting revenue of $680 million and 30 cents a share.

The figures weren’t all positive with LinkedIn reporting a GAAP net loss $68 million however Non-GAAP net income came in at $71 million.

Corresponding to the overall increase in income, the company’s various division all reported solid growth, with Talent Solutions revenue coming in at $443 million, an increase of 38 percent compared to the same quarter last year; Marketing Solutions revenue was $140 million for the quarter, up 32 percent compared to the same quarter last year, and finally Premium Subscriptions revenue was $128 million, an increase of 22 percent compared to Q2 2014.

Users numbers and engagement continue to improve, with LinkedIn saying that it had seen a 60 percent increase in year-over-year feed engagement, along with search traffic growing meaningfully faster than overall member activity.

Members visiting jobs-related pages increased 40 percent year-over-year, while its recently launched Job Search app hit 3 million activations for the quarter, up from roughly 1 million during the first quarter. Jobs listed on the site grew to 4 million in the quarter, up from 1 million year-on-year.

LinkedIn also finalized its acquisition of learning site Lynda.com during the quarter.

“LinkedIn continued to deliver increased member and customer value in the second quarter while delivering solid financial results,” Chief Executive Officer Jeff Weiner said in a statement. “We continued to invest in our long-term strategic roadmap and began integrating the acquisition of lynda.com that closed during the quarter.”

Business guidance

LinkedIn again revised its forecasts going forward, although unlike last quarter they have revised them up this time, saying that it was expecting revenue between $745 million and $750 million in the third quarter with earnings at 42 cents per share, up from what the market had predicted would be $744.4 million or 42 cents per share.

For the full year 2015 the company said it was now expected revenue to be approximately $2.94 billion, or in a Non-GAAP earnings per share of approximately $2.19.

The market seem confused as to which way to go on LinkedIn stock, with the stock price surging as much as 14 percent in after hours trading, before ending down 1.99 percent at $227.39.

Image credit: smi23le/Flickr/CC by 2.0

 


A message from John Furrier, co-founder of SiliconANGLE:

Your vote of support is important to us and it helps us keep the content FREE.

One click below supports our mission to provide free, deep, and relevant content.  

Join our community on YouTube

Join the community that includes more than 15,000 #CubeAlumni experts, including Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many more luminaries and experts.

“TheCUBE is an important partner to the industry. You guys really are a part of our events and we really appreciate you coming and I know people appreciate the content you create as well” – Andy Jassy

THANK YOU