LinkedIn 3Q results sail past expectations

Nov 01, 2012 by Barbara Ortutay

LinkedIn Corp. outpaced Wall Street's expectations with its third-quarter results, solidifying its status as an investor favorite at a time when other Internet companies have fallen from grace.

The professional networking company booked a profit in the third quarter, reversing a loss in the same period a year ago as revenue grew at a faster pace than analysts expected. Its stock climbed $6.40, or 6 percent, to $113.25 in after-hours trading, after closing down 8 cents to $106.85 at the end of regular trading.

Embraced by investors, LinkedIn has been an exception among Internet companies that have gone public in recent years. Others, such as Facebook Inc., online deals site Groupon Inc. and game company Zynga Inc. are all trading well below their initial public offering price. LinkedIn's stock price, meanwhile, has more than doubled since its May 2011 IPO .

LinkedIn said Thursday that it earned $2.3 million, or 2 cents per share, in the July-September period. That's up from a loss of $1.9 million, or 2 cents per share, a year ago.

Adjusted earnings were $25.1 million, or 22 cents per share, in the latest quarter, double what analysts expected.

Revenue grew 81 percent to $252 million from $139.5 million. Analysts surveyed by FactSet expected revenue of $244.6 million. The company gets about two-thirds of revenue from the various fees it charges to mine the profiles and other data on its website, the rest come from advertising. It saw increases in all areas.

"The last few months mark the most significant period of product development in the company's history," said CEO Jeff Weiner in a statement. "This accelerated pace of innovation is fundamental to our goal of driving greater engagement on the LinkedIn platform."

The company has been rolling out new features and more applications for smartphones and tablets. The additions are designed to get users to visit its site—and stick around longer— even when they are not looking for a job.

For the current quarter, LinkedIn is forecasting revenue of $270 million to $275 million, which brackets analysts' expectations of $272.9 million.

Explore further: EU Parliament votes to break up Google

not rated yet
add to favorites email to friend print save as pdf

Related Stories

CenturyLink 3Q net income falls as expenses rise

Nov 02, 2011

(AP) -- Phone company CenturyLink Inc. says its third-quarter net income fell as rising operating expenses related to its April acquisition of larger phone company Qwest overshadowed increased revenue.

Activision 3Q earnings soar, 2011 outlook raised

Nov 08, 2011

(AP) -- Activision Blizzard Inc. said Tuesday that its third-quarter net income nearly tripled thanks to strong demand for its video games. The company also raised its full-year outlook on the heels of Tuesday's launch of ...

Rackspace 1Q profit rises

May 03, 2010

(AP) -- Rackspace Hosting Inc. said Monday that its first-quarter profit rose as managed hosting revenue climbed.

Game sales strong for EA but outlook hurts shares

May 11, 2010

(AP) -- Video game publisher Electronic Arts Inc. said Tuesday that strong sales of games such as "Battlefield: Bad Company" and "Mass Effect 2" gave the company a quarterly profit above expectations. But its outlook fell ...

Recommended for you

EU Parliament votes to break up Google

Nov 27, 2014

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

Nov 27, 2014

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

Nov 26, 2014

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.