LinkedIn Corp Beats Earnings Estimates

Shares of LinkedIn surged in after-hours trading, climbing as much as 5.85% to $251 per share.

LinkedIn released the earnings results from its fourth quarter after closing bell tonight, posting non-GAAP earnings of 61 cents per share on revenue of $643 million, a 44% year over year increase. Analysts had been expecting the social network to post earnings of 53 cents per share on $617.4 million in revenue for the fourth quarter.

In the same quarter last year, LinkedIn posted earnings of 39 cents per share on $447.2 million in revenue.

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Key metrics from LinkedIn’s earnings report

LinkedIn reported GAAP earnings of 2 cents per share, a slight decline from last year’s 3 cents per share. Net income attributable to shareholders was $3 million, compared to $4 million in the same quarter a year ago. Adjusted EBITDA for the quarter was 28% of revenue or $179 million.

The social network reported Talent Solutions revenue of $369 million, a 41% year over year increase. Analysts had been expecting to see revenue of $366.4 million from the Talent Solutions segment. The Marketing segment saw revenue of $153 million, a 56% year over year increase. Analysts had wanted to see $131.8 million in revenue from Marketing. Premium Subscriptions revenue increased 38% to $121 million for the fourth quarter.

“The fourth quarter underscored a strong 2014 for LinkedIn, as we demonstrated growing organic engagement and solid performance across our three, diverse product lines,” LinkedIn Chief Financial Officer Steve Sordello said in a statement. “Entering 2015, we plan to continue investing in our long-term roadmap to further pursue our vision to build the world’s first economic graph.”

LinkedIn provides guidance

For the current quarter, LinkedIn management expects between $618 million and $622 million in revenue. They expect adjusted EBITDA of between $152 million and $154 million and non-GAAP earnings of about 53 cents per share.

For the full year, management expects to see between $2.93 billion and $2.95 billion in revenue and about $785 million in adjusted EBITDA. They project about $2.95 per share in earnings for the full year.