LinkedIn 2Q net income falls, revenue soars
LinkedIn's net income fell in the latest quarter as the professional networking site spent more money to grow its business. But revenue grew faster than expected, and the company raised its forecast for the year.
LinkedIn's stock increased after the results came out Thursday, a reprieve after tepid news from other newly public Internet companies — namely Facebook and Zynga. LinkedIn, which went public more than a year ago, is among the best-performing stocks of the bunch.
LinkedIn Corp. earned $2.8 million, or 3 cents per share, in the second quarter. That's down 38 percent from $4.5 million, or 4 cents per share, a year earlier.
Adjusted earnings, which exclude stock compensation expenses and other items, were $18.1 million, or 16 cents per share, matching analysts' expectations. Last year, LinkedIn had adjusted earnings of $10.8 million, or 10 cents per share.
Revenue increased 89 percent to $228 million, from $121 million. Analysts had expected lower revenue of $216 million, according to FactSet.
LinkedIn gets more than two-thirds of its revenue from fees it charges companies, recruiting services and other people who want broader access to the profiles and other data on its site. The rest comes from advertising.
Marketing, development and other expenses increased 93 percent to $215 million, from $111 million.
LinkedIn expects revenue of $235 million to $240 million for the current quarter. Analysts had expected $236 million.
The company raised its full-year guidance. It now expects revenue of $915 million to $925 million, up from the prior range of $880 million to $900 million. Analysts had expected $907 million.
LinkedIn's stock climbed $3.84, or 4.1 percent, to $97.35 in after-hours trading. The stock had closed down $2.13, or 2.2 percent, to $93.51.