LinkedIn's profit outlook for 2015 tops estimates
New York
LINKEDIN Corp's push into China and new products geared to advertisers and salespeople are starting to pay off, with the professional-networking service issuing a profit forecast for 2015 that topped estimates.
Shares jumped 7.8 per cent after LinkedIn said annual profit, excluding certain items, will be US$2.95 a share, topping the average of US$2.74 of analysts' estimates compiled by Bloomberg. User growth was steady, climbing 25 per cent to 347 million members.
Jeff Weiner, LinkedIn's chief executive officer since 2009, is taking the Web company beyond its roots as a portal for recruiters and job seekers. He has added products to help businesses with their marketing campaigns and rolled out services for salespeople seeking new clients.
The number of users in China doubled to eight million. The measures helped to boost 2014 revenue by 45 per cent to US$2.22 billion, which LinkedIn said would expand to US$2.93 billion to US$2.95 this year.
"LinkedIn is one of the most compelling opportunities in the Internet space," said James Cakmak, an analyst at Monness, Crespi, Hardt & Co, who has a buy rating on the stock. "Expectations are continuing to climb."
LinkedIn shares, which climbed 13 per cent last year, rose to US$256.50 in extended trading. The company also exceeded projections for the fourth quarter, with profit excluding certain costs at 61 cents a share and revenue up 44 per cent at US$643.4 million. Analysts estimated 53 cents a share on sales of US$617.2 million.
Net income slumped as the company continued to invest in new areas, declining to US$3.1 million, or two cents a share, from US$3.78 million, or three cents, a year earlier.
All three of LinkedIn's business segments reported increased sales. Revenue from LinkedIn's core service that helps recruiters and companies find job candidates gained 41 per cent to US$369 million. Marketing Solutions, its tools for advertisers, rose 56 per cent to US$153 million. LinkedIn's premium subscription segment grew 38 per cent to US$121 million. Bloomberg
