LinkedIn Profit Tops View, Lifts Outlook; Shares Surge 11%

(RTTNews) - LinkedIn Corp. (LNKD) on Thursday reported a better-than-expected profit for the third quarter, as revenues jumped 37 percent driven by growth across all segments.

Shares of the online professional network surged a near 11 percent in the extended session after it lifted its full-year financial outlook that is expected to trump Street estimates.

The Mountain View, California-based company's third-quarter loss rose to $40.5 million or $0.31 per share from $4.3 million or $0.03 per share last year.

Excluding one-time items, the company's adjusted earnings for the quarter rose to $0.78 per share from $0.52 per share a year ago. On average, 42 analysts polled by Thomson Reuters estimated earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.

LinkedIn, which generates revenues from job recruitment, premium subscriptions and advertising, said revenues for the third quarter jumped to $779.6 million from $568.3 million last year. Thirty-nine analysts had a consensus revenue estimate of $755.6 million for the quarter.

The company recorded strong revenue growth across all its three product categories. Revenues from talent solutions products jumped 46 percent to $502 million, while marketing solutions rose 28 percent to $140 million and revenue from premium subscriptions increased 21 percent to $138 million.

Second quarter cumulative members grew 20 percent to 396 million, while unique visiting members grew 11 percent to an average of 100 million per month.

For the full year 2015, the company now expects revenues of about $2.63 per share and revenues of $2.975 billion to $2.980 billion. Analysts currently estimates earnings of $0.67 per share and revenues of $2.95 billion.

For the fourth quarter, the company expects adjusted earnings of about $0.74 per share and revenues of $845 million to $850 million. Analysts currently estimates earnings of $0.67 per share and revenues of $845.9 million.

LNKD closed Thursday's trading at $217.00, up $3.79 or 1.78%, on the Nasdaq. The stock further rose to $25.25 or 11.64% in the after-hours trading.