Social Networking provider for professionals, LinkedIn, has beaten expectations with its first quarter results. The company announced adjusted earnings of 74 cents per share, leading to a 5 percent jump in stock value in after-hours trading.
In more absolute terms, that adds up to almost $861 million — Significantly above the analyst-expected value of $828 million.While on the basis of yearly comparisons, the revenue means a 35 percent year-over-year increase.
The company has surprised everyone in the past as well. In 2015, it successively gave EPS of 0.55, 0.78 and 0.94 as opposed to expectations of 0.30, 0.46 and 0.78. However, today’s report is particularly significant, considering that LinkedIn’s previous report had brought company shares down by 30 percent.
Commenting on the development, CEO Jeff Weiner said,
As a result of our new mobile experience, members are increasing their activity on LinkedIn, helping drive strong levels of engagement across the platform.
And that actually is true. Activity on LinkedIn is increasing and it has almost become a norm among professionals and job seekers in India, to have a profile on the website. The company generates most of its revenue from selling access to information about its users to recruiters and sales professionals. This year was no exception and company’s talent solutions recruiter product marked a revenue increase of 41 percent year-over-year to $558 million.
Premium subscription saw a jump this year as well, bringing in 22 percent more sales to the website. The number of members on the website have also increased to 433 million from 2015’s 400 million.
However, the company still has a long way to go before it can re-reach it’s lost zenith. Linkedin’s shares are still down by 53 percent as compared to the past financial year and closed at $122.94 with a market cap of around $16 billion on Thursday. In the last quarter of 2015, its shares had a value of $192.28 each, with a market cap of $25 billion.