As predicted across the board of analysts, LinkedIn on-line networking has beaten all expectations.
Thomson Reuters StarMine predictions:
Quarterly earnings per share (EPS) of 53 cents, revenues at $617.2 million.
Total revenue in 2014 of $2.19 billion, and an adjusted EPS of $1.94.
Actual earnings reported:
Quarterly revenues of $643 million, up 44%, and EPS of $0.61.
Total revenue in 2014 at $2.2 billion, up 45% year-over-year from $1.5 billion in 2013.
CEO Jeff Weiner explained the earnings success: "The fourth quarter capped another successful year for LinkedIn, which was marked by steady member growth and strong financial results." Adding, “We continued our transition from desktop to mobile, and also focused on initiatives in jobs, content, and global expansion.”
Expansion of users is important for LinkedIn and the company boast that 50% of the world’s professionals and students are on the platform. In fact, during Q4, cumulative members grew 25% to 347 million, unique visiting members grew 23% to an average of 93 million per month, and member pageviews grew 3%, well ahead of unique member growth.
LinkedIn also focused the last year on talent acquisition customers by improving the Recruiter app, acquiring Bright for job listing facility, and releasing a new Sales Navigator app for outbound sales customers, thereby pushing mobile up to 49% of unique member visits to LinkedIn. Market solutions and Premium subscriptions, plus expansion into China, added to the increase in revenue.
Steve Sordello, CFO, LinkedIn, laid out the LinkedIn forecast for next quarter, providing figures for revenue at between $618 and $622 million, 31% growth at the midpoint. And for the full year, the company expect revenue to range between $2.93 and 2.95 billion, a 33% annual growth rate at the midpoint.
Shares for LinkedIn rose 8% after-hours:
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