LinkedIn Shares Jump on 2Q Beat
Corporate networking site LinkedIn Corp (NYSE:LNKD) forecast better-than-expected adjusted profit and revenue in the current quarter, helped by a rapid rise in its hiring business.
Shares of the company rose as much as 15 percent to $208 in extended trading.
The company forecast adjusted earnings of about 44 cents per share and revenue of between $543 million and $547 million for the third quarter ending September 30.
Analysts on average were expecting a profit of 40 cents per share on revenue of $540.86 million, according to Thomson Reuters I/B/E/S.
With more than 300 million members, LinkedIn is approaching saturation point among U.S. white-collar workers so is turning to new businesses such as helping employers find staff and mobile advertising.
LinkedIn's hiring business revenues lept 49 percent in the second quarter.
Though, nearly half of LinkedIn's 300 million members now access the website through mobile devices, LinkedIn does not break out its revenue contribution from mobile.
Facebook Inc's (NASDAQ:FB) mobile advertising accounted for almost two-thirds of advertising revenue in the latest quarter. At Twitter (NYSE:TWTR), mobile ads made up 81 percent.
LinkedIn posted a net loss attributable to common shareholders of $1.0 million, or 1 cent per share, compared with a net profit of $3.7 million, or 3 cents per share, a year earlier.
Excluding items, LinkedIn earned 51 cents per share.
Revenue rose to $533.9 million in the quarter ended June 30 from $363.7 million a year earlier.
Analysts on average had expected a profit of 39 cents per share on revenue of $510.98 million.
LinkedIn shares closed at $180.64 on the New York Stock Exchange on Thursday.
(Reporting By Subrat Patnaik and Supantha Mukherjee; Editing by Rodney Joyce)