LinkedIn Tops Q2 Expectations, Shares Surge

Shares of

jumped over 11 percent in after-hours trading after the company reported stronger-than-expected results for its second quarter. The Mountain View, California-based company posted a quarterly net loss of $68 million, of $0.53 per share, versus a year-ago loss of $1 million, or $0.01 per share. Non-GAAP net income rose to $0.55 per share from $0.51 per share. Its revenue climbed 33 percent year-over-year to $712 million, while revenue on a constant currency basis surged 38 percent. Analysts were expecting a profit of $0.30 per share on revenue of $679.78 million. The average estimate among 125 Estimize users was for earnings of $0.35 per share and revenue of $685.18 million. Talent Solutions revenue, inclusive of Learning & Development, climbed 38 percent year-over-year to $443 million in the quarter, while Marketing Solutions revenue gained 32 percent to $140 million. Premium Subscriptions revenue jumped 22 percent to $128 million. Cumulative members climbed 21 percent to 380 million, while unique visiting members increased 16 percent to an average of 97 million per month. Member page views also surged 37 percent. "LinkedIn continued to deliver increased member and customer value in the second quarter while delivering solid financial results," said Jeff Weiner, CEO of LinkedIn. "We continued to invest in our long-term strategic roadmap and began integrating the acquisition of lynda.com that closed during the quarter." LinkedIn expects Q3 adjusted earnings of $0.43 per share, on sales of $745 million to $750 million. Analysts projected earnings of $0.43 per share on revenue of $743.7 million. LinkedIn projects FY15 adjusted earnings of $2.19 per share on revenue of $2.94 billion. Analysts expected earnings of $1.93 per share on revenue of $2.91 billion. LinkedIn shares climbed 11.69 percent to $254.01 in the after-hours trading session.