LinkedIn shares boom after earnings crush, then fall back to earth

Advertisement

jeff weiner

AP

LinkedIn just reported its Q2 earnings, beating expectations on both the top and bottom line.

Advertisement
  • EPS: $0.55 vs analyst estimates of $0.33
  • Revenue: $712 million vs analyst estimates of $679.80 million. That's an 33% growth year-over-year.

The stock initially jumped more than 14% after-hours.

After the intial excitement, the stock settled, then dropped, and hovers at -1.2% before the earnings call.

Complimentary Tech Event
Transform talent with learning that works
Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More

Of LinkedIn's Q2 revenue, 62% came from its "talent solutions" products, which help recruiters find the right candidates, 20% came from marketing solutions, and 18% came from its premium profile subscriptions.

The company said the network saw a 60% year-over-year increase in engagement, thanks to improvements to its desktop and app experiences.

Advertisement

People published more than 1 million long-form posts and its new Job Search app saw 2 million new "activations," hitting 3 million in Q2.

LinkedIn says it also started integrating lynda.com, the online learning company it acquired for $1.5 billion in April.

Almost 70% of LinkedIn's more than 380 million members are from outside the United States, with 10 million from China alone, which is a big leap from the 4 million Chinese members it counted last February.

Although revenue beat expectations, it only increased 33% year-over-year, as growth continues to decelerate each quarter:

LNKD

LinkedIn

Advertisement

NOW WATCH: How to use Google Maps when you have no phone service