Earnings per share in LinkedIn™ beat expectations, seeing 52 cents per share as opposed to the average analysts’ forecast of 47 cents.
After hours trading pushed LinkedIn™ shares up 2% following quarterly earnings, despite losses of $4.3m.
Revenue: $568m, 45 percent higher than the third quarter of 2013, was also higher than the consensus forecast of $558m.
Social media giants such as Twitter and Facebook have also released earnings this week, but rather than relying on digital advertising as these do, LinkedIn™ gains the majority of its revenue from subscriptions sold to recruiters.
Recruitment revenue continued to grow in the quarter, representing 61 per cent of the total compared with 60 per cent for the same period in 2013.
Whilst Twitter and Facebook released strong earnings, they saw shares drop due to announcements in huge investment plans and disappointing growth. LinkedIn™ however, has made losses of $4.3m in the third quarter due to the cost of stock-based compensation and amortisation due to acquisitions.
Jeff Weiner, LinkedIn™ chief executive, was upbeat on “significant progress” from the year’s investments, having launched their Sales Navigator product and made one of the largest contracts in LinkedIn’s history to provide it to SAP, the software giant. They have also developed new geographical and demographic markets, specifically reaching into China. Membership has grown steadily and now stands at 332 million.
Other financial highlights:
Full-year revenue forecast was towards the lower end of analysts’ estimates, predicting revenue of $2.175bn to $2.8bn for 2014, compared with a consensus forecast of $2.8bn
Full-year guidance for earnings per share was slightly higher than expected at $1.89
The group’s stock has risen 31 percent in the last three months
LinkedIn™ stock was down initially as much as 7 per cent on the earnings report but recovered to $207, up 2 per cent, within an hour of the announcement.
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