LinkedIn, “the world’s largest professional network on the internet,” reported second quarter earnings that surpassed analyst’s estimates with shares up seven percent, said the network in a conference call yesterday.
The professional social networking site, founded in 2002, announced a 32 percent increase in profit from the second quarter in 2012.
According to LinkedIn’s investor relations site, sales went up to $363.7 million in the second quarter, an increase of 59% from $228.2 million last year.
Non-GAAP income was $44.5 million, compared to $18.1 million for the second quarter of 2012. According to LinkedIn website, non-GAAP measures exclude tax-affected stock-based compensation and amortization of acquired intangible assets.
After analysts estimated 31 cents per share with revenue of $354 million, the company reached $0.38 per share with $363.7 million in revenue, which is also up from last year’s share price and revenue.
Revenue from the United States was $224.3 million which made up 62 percent of the total revenue while the company reported revenue for international markets to be $139.4 million, 38 percent of total revenue.
The third quarter guidance for revenue is expected to be between $367 million and $373 million while the Full year revenue is expected to be between $1.455 billion and $1.475 billion, according to LinkedIn.
“LinkedIn operated at a high level in the second quarter, evidenced by strong engagement, steady growth, and increasing levels of adjusted EBITDA and cash flow,” said Steve Sordello, CFO of LinkedIn, “We continue to make long-term investments against our operating priorities in order to add increased value for our members and customers.”
LinkedIn recently produced a new version of the recruiter platform for Talent Solutions customers resulting in increased customer engagement, according to the site. They also added CheckIn which helps students to communicate with recruiters at on-campus hiring events.
The production of new business tools has increased sales. LinkedIn’s recruiting business, Talent Solutions, increased 69 percent to $205.1 million and makes up 56 percent of total revenue. Marketing solutions, which includes advertising climbed 36 percent to $85.6 million while sales in Premium Subscriptions products grew 68 percent from 2012 to $73 million, said LinkedIn.
LinkedIn introduced new iOs and Android apps, increasing the overall mobile activity to 40 percent.
With 238 million members the company’s users has grown 37 percent every year.
The site said this was the first membership growth since 2011 and that the increase was due to the creation of the new recruitment and advertising products.
“Accelerated member growth and strong engagement drove record operating and financial results in the second quarter,” said Jeff Weiner, CEO of LinkedIn, “We are continuing to invest in driving scale across the LinkedIn platform in order to fully realize our long-term potential.”
According to Wall Street Journal, the company noticed more engagement on their website as well with page views that climbed to 11.7 billion, up 25 percent from a year ago.
While shares have risen 122 percent over past year, quarterly sales continue to grow an average of 50 percent.
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