LinkedIn Corp (NYSE:LNKD) reported a surprising jump in its earnings for the second quarter, an indication that the professional network is performing well as it changes strategies in a number of divisions.
The company has been revamping its advertising segments and recruiting tools. LinkedIn wants people to spend more time on the site and use it as a social platform instead of just searching jobs and updating CV’s.
LNKD hopes that a shift toward sponsored updates will help in coping with the falling demand for traditional display ads. Few months back, the company slashed its outlook for the full year due to a stronger dollar and fading demand for display ads.
The professional network posted a loss of $67.7 million, or 53 cents per share for the quarter ended June, well above a loss of $1 million or a penny per share last year. However, adjusted earnings, excluding items, climbed to $71 million, or 55 cents per share in the second quarter, versus $63 million, or 51 cents per share one year ago. Analysts were looking for earnings of 30 cents per share.
Revenue for the quarter came in at $711.7 million, up 33 percent from the same period last year, and topped LNKD’s own forecast in the range of $670 million to $675 million. Analysts were expecting $680 million in revenue.
This was LinkedIn’s first quarterly profit report after acquiring Lynda.com for $1.5 billion in May. This is the company’s biggest acquisition so far and offers it a range of professional training services that LNKD hopes will help its members to stay longer on the professional network.
Looking forward, the company is now anticipating revenue of $2.94 billion for the full year, above its previous forecast of $2.9 billion. LNKD is expecting adjusted earnings of $2.19 per share for the full year, versus its earlier estimate of $1.90 per share.
