LinkedIn’s earnings today beat analyst expectations in dramatic fashion, sending the stock up as much as 14 percent in extended trading after it released its second-quarter results.
The company reported earnings of 55 cents per share and revenue of $712 million. Analysts estimated that the company would bring in 30 cents per share on $680.3 million in revenue.
However, the company said it now expects $90 million from Lynda.com for the full year versus the original guidance of $40 million, impacted by “an earlier than expected close, a lower than anticipated deferred revenue write-down, and moderate over-performance in the early-going.”
LinkedIn’s expectations for 2015 were $2.94 billion in revenue and earnings of $2.19 per share, the company said. Analysts were expecting $2.91 billion in revenue for the company’s 2015 guidance.
During the earnings call, the stock fell more than 7 percent, during comments about the incremental impact of the company’s core profitability related to the guidance change for Lynda.com.
In the second quarter of 2015, the company said it had 380 million members generating 35 billion pageviews. Its revenue was up 33 percent year-over-year from $534 million in the second quarter last year. Of that, $443 million came from its talent solutions products, making up 62 percent of the company’s quarterly revenue.
Its premium subscriptions business generated $128 million in revenue this quarter, compared to $122 million in revenue in the last quarter, a rise of just 5 percent. Marketing solutions revenue rose about 32 percent from $106 million in the second quarter last year to $140 million in Q2 this year.
The company said it was expecting revenue between $745 million and $750 million in the third quarter, along with earnings of 42 cents per share. Analysts expected guidance of 42 cents per share on revenue of $744.4 million for the third quarter.
LinkedIn said engagement in its news feed grew 60 percent year-over-year and closed its acquisition of Lynda.com.
The company has been actively building new areas of its business to help it grow beyond its usual premium subscriptions and recruiting services. Most recently, it acquired Lynda.com, an online education site, for $1.5 billion.
Earlier this month, LinkedIn started adding paid tools for marketers focused on lead generation in SlideShare, the company’s first paid product within the service. It acquired SlideShare for $119 million in 2012.
We’re updating this story as we get more information.