LinkedIn’s IPO was the first to get a lot of media attention; however the firm has silently become the social media network that has constantly surpassed the expectations of analysts.
On Thursday, the social media network accomplished another feat when it surpassed the expectations of Wall Street for its 4th-quarter financial results. The company’s shares, which reduced to $1.68, representing 1.3 percent, at $124.09, increased 10 percent to $136.60 during after hours trading. Now, the firm’s stock has tripled since its initial public offering price of $45 in 2011.
Jeff Weiner LinkedIn Chief Executive Officer stated during a conference meeting with analysts, “Last year was LinkdIn’s transformative year.”
Weiner revealed that new products helped to drive the firm’s growth to two hundred and two million members, the company’s increasing engagement with users plus its outstanding financial results.
Now, LinkedIn has surpassed Wall Street projections for the 7th consecutive quarter.
During the 4th quarter, the company was able to earn $11.5 million, which translates to 10c per share. That represented a 66 percent rise from $6.9m, or 6c, during the previous quarter. There was an 81percent increase in revenue to $304 million.
LinkedIn expects to earn approximately $1.41b – $1.44b this year. Analysts had projected that the company would earn $1.44b. LinkedIn stated it expected initial 1st-quarter revenue of $305m – $310m, which is more than projections of $301m.
“In characteristic LinkedIn manner, management disclosed stronger than anticipated 4th-quarter results,” said Youssef Squali Cantor Fitzgerald analyst.
He however observed that “this year guidance is mixed.”
LinkedIn, which is sometimes referred to as anti-Facebook, is making it where Facebook plus other social media networks have stumbled. It is not as big as Facebook, which has over a billion users from different parts of world, however advertising accounts for only 27 percent of Linkedln’s revenue. The remainder is gotten from tools the company sells to aid hire new workers, premium subscription services plus other income streams.