LinkedIn handily beat analyst expectations today with revenue of $780 million and earnings of 78 cents per share. Analysts were expecting earnings of 45 cents per share on about $756 million in revenue.
LinkedIn shares promptly spiked as much as 8 percent in extended trading. In total, the company’s revenue grew 37 percent year-over-year, up from around $568 million in the third quarter last year.
The company’s Talent Solutions division was its fastest growing segment, up 46 percent year-over-year to $502 million in revenue. Marketing solutions grew 28 percent to $140 million in revenue, while subscription revenue grew 21 percent year-over-year to $138 million to round out the rest of the company’s revenue report.
LinkedIn’s domestic growth continues at a healthy clip, up to $484 million in revenue from $343 million in the third quarter last year, up 41 percent. Its international segment is still not quite as large as its domestic business, but was still up from $225 million to $295 million, a jump of 31 percent. Basically, its domestic business is performing stronger than its international business — which is not all that surprising given the big presence and brand it has in the U.S.
So, as expected, the company’s recruiting segment continues to be one of its fastest-growing. LinkedIn has basically become the go-to service for what are effectively a more modern form of resumes, making it a gold mine for recruiters seeking new talent.
So it’s not all that surprising that recruiting and the company’s Talent Solutions division is one of its most important — and getting a lot of attention. The company has two new launches coming up — its referrals product in November, and a new revamped Recruiter platform coming early next year. Both those products are geared toward better automating the process, and eliminating redundant tasks, of searching for new recruits.
LinkedIn is one of those stocks that tends to jump wildly on earnings reports. So today’s huge spike isn’t necessarily that much of a surprise. On the year, LinkedIn has been about flat. In recent months it’s recovered a bit, now down only 5 percent for the year to date, but it’s down from a high of around $270 per share, currently trading as high as around $237 after the company reported its earnings.
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We’re updating this post as more information comes in.