LinkedIn 2Q Profit Beat Overshadows Lackluster Forecast
Driven by an uptick in subscriptions and higher engagement, LinkedIn (NASDAQ:LNKD) reported a top- and bottom-line second-quarter beat late Thursday, sending its shares sharply higher in extended trade.
The Mountain View, Calif.-based professional social network reported net income of $3.7 million, or 3 cents a share, compared with a year-earlier profit of $2.8 million, or 3 cents.
Excluding one-time items, LinkedIn said it earned 38 cents, topping average analyst estimates of 31 cents in a Thomson Reuters poll.
Revenue for the three-month period climbed 59% to $363.7 million from $228.2 million a year ago, beating the Street’s view of $354 million. The company, one of the very first next-generation tech giants to begin trading publicly, has long excelled in driving top-line growth despite troubles faced by its peers.
“Accelerated member growth and strong engagement drove record operating and financial results in the second quarter,” LinkedIn CEO Jeff Weiner said in a statement.
Premiums subscriptions jumped 38% year-over-year to $73 million, while revenue from talent and marketing solutions increased 69% and 36%, respectively.
The social network raised its full-year guidance, with revenue now between $1.45 billion and $1.47 billion, though that is still slightly below the Street’s view of $1.5 billion. It sees current-quarter revenue in the range of $367 million to $373 million, also below the consensus view of $384 million.
Shares of LinkedIn nevertheless rallied 4.5% after hours to $222 after an initial dip. They have risen more than 85% this year alone and are up about 106% from 12 months ago.