The LinkedIn network has grown to 400 million members around the world. Image source: LinkedIn.
What: Shares of LinkedIn (LNKD.DL) popped 26.7% last month, according to S&P Capital IQ data. The online professional network delivered an outstanding third-quarter earnings report that came in well ahead of Wall Street's expectations on nearly every important metric.
So what: LinkedIn's third-quarter revenue surged 37% year over year to $780 million, significantly above analysts' estimates for $756 million. Strong performance across its business lines, including sales growth of 46%, 28%, and 21% in its talent solutions, marketing solutions, and premium subscriptions segments, respectively, helped to drive LinkedIn's revenue increase.
LinkedIn was also more profitable than Wall Street expected, with third-quarter adjusted earnings per share leaping 50% to $0.78. Analysts anticipated only $0.45 per share.
Even better, LinkedIn's management is optimistic that the good times will continue. The company is projecting fourth-quarter revenue of $845 million to $850 milliion, the midpoint of which was above the $846 million Wall Street had forecasted.
Now what: Now 400 million members strong, LinkedIn is without question the dominant global professional platform. The company's network effects are growing stronger by the day; each new professional who joins LinkedIn makes the platform more valuable to recruiters, which offers more job opportunities, which entices more professionals to join. It's a powerful virtuous cycle that should continue to fuel LinkedIn's growth -- and benefit both jobseekers and investors -- for years to come.
