Business networking website, LinkedIn (NYSE: LNKD) reported higher-than-expected revenue on Thursday as its total sales more than doubled thanks to rising revenues from its new job posting services.
Following the earnings announcement, shares rallied, gaining 4% in afterhours trading.
The Company said that revenues for the fiscal second quarter stood at $228.2mn while earnings per share came at 16 cents. Analysts polled by Thomson Reuters forecasted sales of $226mn for the period. The earnings were line with projections.
LinkedIn has three different business segments; and revenue from all three of those units soared for the quarter. However, the major part of revenue generation (more than half of total revenue)came from sales of job postings.
For the period, revenues from advertisements jumped 64% even as paid subscription sales skyrocketed 82%.
Meanwhile, the company has also upwardly revised its full-year revenue guidance in the range of $915mn to $925mn, up from earlier estimations of $880mn to $900mn.
Commenting over theft of 6 million passwords in June, LinkedIn executives, in a conference call said that the company has started to reinforce its efforts for ensuring password safety.
LinkedIn is also focusing hard on mobile platforms as more and more users are registering themselves through smartphones. According to LinkedIn executive, more than 15% of the new registrations came from mobile phones in the second quarter against 10% in the first quarter.
Compared to other social networking companies such as Facebook(NASDAQ: FB) and Zynga(NASDAQ: ZNGA), LinkedIn has performed exceedingly well at the Wall Street. While Facebook shares have been hammered losing 45% from its IPO price, Zynga and Groupon(NASDAQ: GRPN) have traded near all-time lows, lately.
On the other hand, LinkedIn stocks gained 45%, year-to-date.
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