Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

LinkedIn posts 2Q loss but stock soars after stronger-than-expected results

FILE - In this May 8, 2014 file photo, people walk outside of LinkedIn headquarters on in Mountain View , Calif. LinkedIn Corp. reports quarterly financial results on Thursday, July 31, 2014. (AP Photo/Marcio Jose Sanchez, File)

Enlarge Image

FILE - In this May 8, 2014 file photo, people walk outside of LinkedIn headquarters on in Mountain View , Calif. LinkedIn Corp. reports quarterly financial results on Thursday, July 31, 2014. (AP Photo/Marcio Jose Sanchez, File)

NEW YORK, N.Y. - Shares of LinkedIn Corp. jumped Thursday after the professional networking service reported a second-quarter loss but still topped analysts' expectations.

The results come on the heels of better-than-expected quarterly reports from Twitter Inc. and Facebook Inc. that whetted investor appetite for social media companies in recent weeks.

LinkedIn posted a loss of $1 million, or 1 cent per share, compared with a profit of $3.7 million, or 3 cents per share, in the same quarter a year earlier.

Excluding stock option expenses and amortization costs, earnings came to 51 cents per share in the latest quarter, up from 38 cents per share a year ago. Analysts, on average, were expecting adjusted earnings of 39 cents per share, according to a survey by Zacks Investment Research.

Revenue climbed 47 per cent to $533.9 million from $363.7 million in the same quarter a year ago. Analysts expected $511.8 million.

LinkedIn has more than 300 million members worldwide. Revenue from the U.S. was $317.8 million, accounting for 60 per cent of the total. Unlike Twitter and Facebook, which make most of their money from advertising, LinkedIn relies mainly on its "talent solutions" business for revenue, charging businesses and headhunters that use its site to find job candidates. This segment accounted for 60 per cent of the quarter's revenue, while advertising and premium subscription revenue took in 20 per cent each.

For the current quarter, the Mountain View, California-based company is forecasting adjusted earnings of 44 cents per share and revenue of $543 million to $547 million. Analysts are expecting earnings of 40 cents per share and revenue of $540.9 million, according to a poll by FactSet.

LinkedIn's stock jumped $15.95, or 8.8 per cent, to $196.59 in extended trading after the results came out. As of Thursday's closing price, LinkedIn shares have declined 17 per cent, to $180.64 since the beginning of the year. The stock has declined $32.36, or 11 per cent, in the last 12 months.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
The First World War at 100
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates