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Hiring business drives LinkedIn revenue beat
[SAN FRANCISCO] Corporate networking site LinkedIn Corp reported a higher-than-expected 44 percent jump in quarterly revenue as more business used its services to assess candidates for employment.
The company's shares were up 6 per cent in extended trading.
LinkedIn's hiring business has been thriving, clocking revenue growth of nearly 50 per cent in each of the past three quarters, helped by rapid expansion in international markets such as China.
Revenue in LinkedIn's hiring business, called Talent Solutions, jumped 41 per cent to US$369.3 million in the fourth quarter ended Dec 31, accounting for 57 per cent of the company's revenue.
The company's net income fell to US$3.1 million, or 2 cents per share, in the fourth quarter, from US$3.8 million, or 3 cents per share, a year earlier.
Excluding items, the company earned 61 cents per share.
Revenue rose to US$643.4 million from US$447.2 million.
Analysts on average had expected a profit of 53 cents per share on revenue of US$616.8 million, according to Thomson Reuters I/B/E/S.
LinkedIn also forecast an adjusted profit of US$2.95 per share for 2015, above the average analyst estimate of US$2.73.
The company's shares closed at US$237.97 on Thursday.