Linkedin share price shoots up as earnings and revenue for the first quarter beat expectations
LinkedIn's share price shot up by over 15 per cent in after hours trading, as the company beat expectations in its results for the first quarter.
The professional networking website posted revenue of $861m (£589m), well ahead of its own expectation for the three months of the year, and marking a 35 per cent increase compared to the same period of last year.
Meanwhile, adjusted earnings per share (EPS) was $0.74, up on $0.57 reported last year.
Analysts had expected the group to report EPS of about £0.60 on $828m in revenue, according to a consensus estimate from Thomson Reuters.
And LinkedIn's stock was hammered after it cut guidance for first quarter earnings earlier this year. The company said it expected to hit revenue of $820m, well below the consensus estimate of $866.9m. It also expected adjusted EPS of about $0.55.
The first quarter saw premium subscriptions revenue rise by 22 per cent year-on-year, to hit $149m.
Looking ahead to the next quarter, LinkedIn expects revenue to range from between $885m and $890m, while revenue for the year is expected to come in at $3.65bn-$3.7bn.
“LinkedIn delivered strong financial results and growth across our core product lines,” said Jeff Weiner, LinkedIn's chief executive. “As a result of our new mobile experience, members are increasing their activity on LinkedIn, helping drive strong levels of engagement across the platform."