LinkedIn sweeps past Q2 targets as revenue climbs 59 percent

Summary:UPDATED: LinkedIn's CEO opened up about the social network's mobile and digital publishing strategies when speaking with analysts.

LinkedIn led the way for tech industry earnings after the bell on Thursday with what its CEO described as "record" quarter for his company.

The professional social network reported a second quarter net income of $3.7 million, or three cents per share (statement). Non-GAAP earnings rang up to 38 cents per share on a revenue of $363.7 million -- up by 59 percent on an annual basis.

Wall Street was looking for earnings of 31 cents per share with $353.86 million in revenue.

LinkedIn membership grew to 238 million, up 37 percent year-over-year. The Mountain View, Calif.-based company declared this was the first acceleration for membership growth since the third quarter of 2011.

CEO Jeff Weiner reflected on the quarter in prepared remarks:

Accelerated member growth and strong engagement drove record operating and financial results in the second quarter. We are continuing to invest in driving scale across the LinkedIn platform in order to fully realize our long-term potential.

For the third quarter, Wall Street expects LinkedIn to deliver $383.79 million in revenue with non-GAAP earnings of 32 cents per share.

LinkedIn didn't quite meet the bar set by analysts, offering instead a Q3 revenue range of $367 million to $373 million.

For the year, LinkedIn is projecting revenue to fall between $1.455 billion and $1.475 billion.

Here is a closer look at LinkedIn's Q2 revenue by department:

  • Talent Solutions: Accounted for 56 percent of total revenue with $205.1 million, up 69 percent annually.
  • Marketing Solutions: Accounted for 24 percent of total revenue with $85.6 million, an increase of 36 percent annually.
  • Premium Subscriptions: Accounted for 20 percent of total revenue with $73.0 million, up 68 percent annually.

The majority of LinkedIn's revenue continues to stem from the United States with $224.3 million, or  62% of the whole pie.

International revenue rang up to $139.4 million, which represented 38 percent of total revenue during the second quarter of 2013.

UPDATE: LinkedIn has been making a big push into digital publishing through revisions to both its desktop and mobile channels as well as through some strategic acquisitions. ( See: Pulse .)

Without going into a lot of specifics as far as numbers go (especially on mobile) Weiner fielded questions about all of the above.

Here's more:

We have seen significant gauges on the mobile side when compared versus desktop, and that is very consistent with what we are seeing and hearing industry-wide. Content marketing within mobile is an effective form of market solutions, so we are excited about the prospects there. It is still very early days, and as you know with regard to projecting the value of a given marketplace, it comes down to liquidity and scale. But we like what we see in terms of the start that we are off to.

I would remind you, we opened it up for field sales customers last week, and we opened it up for self-serve customers only two days ago. But thus far, the signs are encouraging. With regard to SlideShare, we've been very focused on the integration of the acquisition, and we are very pleased with the results we've seen thus far to date on this front. According to the most recent [report], results they were up. And so we will continue to focus on SlideShare as part of LinkedIn as the publishing platform for professionals, and we will address monetization with our strategy for content marketing more broadly.

Topics: Social Enterprise, Apps, Mobility, Tech Industry, Web development

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.