LinkedIn Slips To Loss, But Tops Street; Guides Q4 Below View

(RTTNews) - Professional social network giant LinkedIn Corp. (LNKD), Tuesday posted a loss for the third quarter, hurt largely by higher stock-based compensation expenses notwithstanding a 56 percent surge in revenues. Nonetheless, both earnings and revenue for the quarter topped Wall Street expectations.

However, LinkedIn's revenue outlook for the fourth quarter were below analysts' current expectations. At the same time, the company once again raised its full year 2013 revenue forecast.

Commenting on the results, Chief Executive Jeff Weiner said, "Increased member growth and engagement helped drive strong financial results in the third quarter."

LinkedIn said its membership crossed 259 million members, up 38 percent year over year. The company also recorded strong revenue growth across all its three division-- talent solutions, marketing solutions and premium subscriptions.

Mountain View, California-based LinkedIn reported third-quarter loss of $3.4 million or $0.03 per share, compared to net income of $2.3 million or $0.02 per share last year.

Adjusted earnings for the quarter rose to $46.8 million or $0.39 per share from $25.1 million or $0.22 per share last year. On average, 32 analysts polled by Thomson Reuters expected earnings of $0.32 per share. Analysts' estimates typically exclude special items.

LinkedIn's revenue for the third quarter jumped 56 percent to $393.0 million from $252.0 million last year. Thirty analysts had a consensus revenue estimate of $385.41 million for the quarter.

Revenues from talent solutions products jumped 62 percent, while marketing solutions products surged 38 percent and premium subscriptions products climbed 61 percent.

Total costs and expenses rose to $388.3 million from $246.0 million a year ago. Stock-based compensation costs rose to $54.4 million from $26.8 million last year.

Looking forward, the company expects fourth quarter revenue to range between $415 million and $420 million. Analysts currently expect revenues of $438.08 million.

The company lifted its full year revenue guidance to about $1.5 billion, from a prior estimate of $1.455 billion to $1.475 billion. Analysts currently expect revenues of $1.51 billion for the full year.

LNKD closed Monday's trading at $247.14, up $4.14 or 1.70%, on the Nasdaq. The stock, however, slipped $9.03 or 3.65%, in the after hours trade.