LinkedIn had strong revenue in the second quarter thanks to growth from ads and the fees it charges for deeper access to its vast trove of professional profiles.
Although net income fell because the company is spending more to grow, revenue increased faster than expected. The company also raised its forecast for the full year.
LinkedIn`s stock rose more than 7 percent after the results came out Thursday, a reprieve after tepid news from other newly public Internet companies -- namely Facebook and Zynga. LinkedIn, which went public more than a year ago, is among the best-performing of the newly traded companies, with its stock trading at more than twice the level of its IPO price at a time when Facebook is nearing half.
The results indicate that LinkedIn is playing a greater role in the employment market as millions more people look to find jobs and network online if they do have jobs. LinkedIn said it had 174 million members at the end of June, up 50 percent from a year earlier. Most of the growth in the second quarter came from overseas as LinkedIn continued to expand outside of the U.S.
LinkedIn gets more than two-thirds of its revenue from fees it charges companies, recruiting services and anyone who wants broader access to the profiles and other data on its site. The rest comes from advertising.
LinkedIn, like Facebook, is at the beginning stages of making money from its mobile applications. CEO Jeff Weiner said in a conference call with analysts that LinkedIn launched its first mobile ad test at the end of June, when large corporations such as Shell started running advertisements on LinkedIn`s iPad application. He called the early signs "positive."
LinkedIn Corp. earned $2.8 million, or 3 cents per share, in the second quarter. That`s down 38 percent from $4.5 million,...
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