By Dow Jones Business News, October 29, 2013, 05:05:00 PM EDT
LinkedIn Corp. rode continued growth in its core recruiting business as the professional-networking service extended
its string of strong financial results.
Revenue increased 56% to $393 million as the company has reported revenue growth of greater than 50% every period
since its 2011 initial public offering.
LinkedIn's membership grew 38% to surpass 259 million, signaling to investors that the company's expansion can
LinkedIn's success is built on its three income streams -- enterprise recruiting tools, advertising and premium
subscriptions. That diversity separates LinkedIn from other social media companies that rely predominantly on ad sales
Sales at the company's core recruiting-tools business, which accounts for roughly 60% of its revenue, increased 62%
from a year earlier to $224.7 million. Meanwhile its marketing-solutions business, which includes advertising, jumped
38% to $88.5 million. Sales in premium subscriptions grew 61% to $79.8 million.
The advertising results reflect a July change by LinkedIn to begin offering "sponsored updates" in its users' news
feeds. That advertising method has proven to be successful for companies like Facebook (FB) and Twitter, especially on
their mobile platforms.
LinkedIn reported a net loss of $3.4 million, or three cents a share, compared with a prior-year profit of $2.3
million, or two cents a share. Excluding stock-based compensation and other items, adjusted profit totaled 39 cents in
the latest quarter, higher than analysts' projections of 31 cents.
Shares of LinkedIn have risen 125% over the past 12 months, remaining over $200 per share since August. The stock
currently trades at roughly 75 times estimates for 2013 earnings before interest, taxes and amortization.
LinkedIn added it expects fourth-quarter sales of between $415 million and $420 million and adjusted earnings before
interest, taxes, depreciation and amortization of between $98 million and $100 million.
For the full year, it lifted its forecast to sales of about $1.5 billion and adjusted Ebitda to about $364 million.
Shares fell 1.7% to $243 in after-hours trading.
--John Kell contributed to this report
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