LinkedIn Earnings Bode Well for Hiring and Social Media
LinkedIn’s fourth quarterresults flew past Wall Street estimates as companies paid LinkedIn more for recruiting services, sending the stock higher after-hours. (Track LinkedIn after hours action here.)
The company’s earnings came in at 12 cents a share, up from 5 cents a year ago and nearly double the 7 cents expected. Revenue also more than doubled from the year ago quarter, coming in at $167.7 million.
The jobs market looks good: LinkedIn’s revenue from “hiring solutions,” aka recruiting, grew 136 percent in the past year to $84.9 million. These numbers reflect the strong jobs numbers we saw reported last week. But it also speaks to the fact that LinkedIn is stealing market share from Monster Worldwide and Dice Holdings.
LinkedIn is always careful to distinguish itself from Facebook – it’s the “pre-eminent professional network on the web.” But strong marketing revenue bodes well for other social media companies like Facebook as brands open up to social media messaging to reach consumers. The company’s revenue from ‘marketing solutions products’ grew 77 percent over the year-ago quarter.
And in more good news for social media, LinkedIn’s guidance for 2012 is much stronger than Wall Street expected. The company expects between $840 and $860 million in full-year revenue, while Wall Street expected just $828 million.
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