As expected, LinkedIn Corp (NYSE:LNKD) came out ahead of expectations with its second quarter results. Shares of LinkedIn rose 4.5% during the regular trading day on anticipation that the social network would deliver in a big way.
However, shares started to fall initially after the report, losing just 1% before beginning to rise, climbing as much as 4 percent in after-hours trade.
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LinkedIn’s latest results
The social network reported second quarter earnings of 38 cents per share on $364 million in revenue—a 59% increase over revenue from the same quarter a year ago. Analysts were expecting the company to report earnings of 31 cents per share on revenue of $353.9 million.
LinkedIn breaks down revenue by division
In today’s earnings release, LinkedIn Corp (NYSE:LNKD) highlighted its three major strategies for monetization. It reported $205.1 million from its Talent Solutions division. That’s a 69% increase over the same quarter a year ago. Talent Solutions made up 56% of the company’s total second quarter revenue, compared with 53% in the same quarter a year ago.
For Marketing Solutions, LinkedIn Corp (NYSE:LNKD) reported $85.6 million in revenue, a 36% increase over the same quarter a year ago. Marketing solutions made up 24% of the company’s total revenue during the second quarter, compared to 28% in the second quarter of last year.
LinkedIn reported that Premium Subscriptions revenue was $73 million for the quarter, a 68% increase over the same quarter a year ago. Premium Subscriptions made up 20% of the company’s total revenue, compared to 19% in the same quarter a year ago.
LinkedIn’s other updates
The social network reported that membership climbed to 238 million users during the quarter while growth accelerated to 37% year over year. The company attributed this strength to product optimization and said that this was the first membership growth acceleration since the third quarter of 2011.
The company also revamped its mobile experience by releasing new apps for Android and iOS. Mobile activity rose to make up more than 40% of home page engagement.
LinkedIn provides guidance
For the third quarter, LinkedIn Corp (NYSE:LNKD) guided for revenue of between $367 million and $373 million. That’s compared to expectations that the company will report $383 million in revenue for the third quarter of the year. For the full year, the company raised its guidance to between $1.455 billion and $1.475 billion. For the full year, the company raised its guidance to between $1.455 billion and $1.475 billion.