* Non-GAAP second-quarter EPS 16 cents/share, in-line with
* Raises 2012 outlook
* Shares up 6 pct in after-hours trade
By Jennifer Saba
Aug 2 Professional networking site LinkedIn Corp
reported higher-than-expected revenue and raised its
full-year outlook as it pocketed more money from subscribers,
services aimed at businesses and advertising.
"Another fantastic quarter," said Rick Summer, analyst with
Morningstar. "This is a company that continues to execute quite
well with surprising visibility into demand."
Shares of the company rose about 6 percent in after-market
trade after closing at $93.51 on the New York Stock Exchange on
LinkedIn's results come as investors shed their holdings in
once white hot consumer Internet companies such as Facebook
, Groupon and Zynga.
Second-quarter revenue rose 89 percent to $228.2 million,
beating analysts' average forecast of $216.3 million, according
to Thomson Reuters I/B/E/S.
LinkedIn also raised its full-year revenue forecast to a
range of $915 million to $925 million from $880 million to $900
LinkedIn connects professionals seeking jobs and companies
looking for employees, setting it apart from other social media
"LinkedIn has a distinct value advantage. They own an
identity in the professional user," said Summer.
"They have different ways to monetize the user. That is a
distinct advantage to how investors are receiving the stock."
LinkedIn was one of the first prominent U.S. social
networking sites to execute an initial public offering that
smashed expectations - shares are trading at more than double
their IPO price of $45.
Conversely, Facebook Inc made its public debut - one
of the most highly anticipated in technology and Internet
circles in years - to dismal results. Facebook shares hit a low
of $19.91 on Thursday, losing almost half of their value since
the company's IPO at $38 in May.
LinkedIn and Facebook are often held up as illustrations of
a new breed of Internet companies that have been quickly
embraced by people for the ease of connecting to others.
But the similarities end there. Facebook largely depends on
advertising revenue and there are concerns that it cannot
maintain its blistering pace of growth. The company reported a
32 percent increase in revenue for the second quarter, compared
with the more than 100 percent growth it delivered at the same
time last year.
LinkedIn, though, is business-oriented and mines three
different veins of revenue: subscriptions to its premium
service, advertising and companies that use LinkedIn for hiring.
Revenue from its hiring solutions, which makes up more than
half of total revenue, rose 107 percent to $121.6 million.
The Mountain View, California-based company did hit one
hurdle in the quarter -- the theft of millions of its members'
passwords in June.
On a call with analysts, LinkedIn Chief Executive Jeff
Weiner pointed to the company's member growth to 175 million
users from about 161 million in the first quarter as proof the
security breach did not dent the LinkedIn's reputation.
The company did say it was taking steps to update its
security and will have an additional $2 million to $3 million in
expenses during the second half of the year.
LinkedIn posted net income of $2.8 million, compared with
$4.5 million for the same period a year ago.
Its non-GAAP earnings of 16 cents per share were in-line
with analysts' expectations.