LinkedIn revenue beats expectations

<p>The company’s revenue jumped by 33 per cent.</p>

Social networking site for professionals LinkedIn posted a better-than-expected revenue in the second quarter of the year. It rose 33 per cent to $711.7 million (£456 million), beating the company’s forecast for revenue of $670 million on strong growth in its business serving recruiters.

Excluding stock-based compensation and other items, earnings rose to $71 million, or 55 cents a share, from $63 million, or 51 cents a share.

New acquisition

The strong revenue comes after the company announced in April it would pay $1.5 billion for, a leader in the fast-growing market for career training videos – it's biggest acquisition to date. offers courses in a number of languages aimed at improving business, technology and creative skills. It has a large library of premium video content on various professional topics such as business skills across multiple languages.

"With the integration of and LinkedIn, users will realise their potential through the development of new skills, learning what skills are needed for the available jobs in their desired city," said Ryan Roslansky, LinkedIn's head of content.

The deal was designed to boost the business content Linkedin offers to its users, while supporting its hiring business. “We believe this could be one of LinkedIn’s most transformational initiatives as it has the potential to improve the member experience across the platform,” Chief Executive Jeff Weiner said in a statement.

The company said it has also been investing to improve its mobile presence and is developing new products for China.

LinkedIn shares down

LinkedIn shares seesawed in after-hours trading in New York yesterday (July 30th), soaring 10 per cent before quickly dropping 4.7 per cent to $216.49 as investors realised that it beat growth expectations because of the acquisition of, and not because of a recovery in its core business, according to the Wall Street Journal. Second-quarter revenue included a contribution of $18 million from

The company reported about 380 million members at the end of the quarter, a 30 million increase from the previous quarter.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.