LinkedIn, the social network for professionals, beat expectations on both earnings and revenue, pushing shares up as much as 15 per cent in after hours trading in New York.
The Silicon Valley company’s first quarter earnings and improved guidance were welcomed by investors after the stock has struggled since the start of the year, falling 45 per cent, writes Hannah Kuchler in San Francisco.
LinkedIn reported adjusted earnings per share of 74 cents, almost 20 per cent higher than the average analyst estimate of 62 cents per share. The company made a net loss of $46m on a reported basis, slightly wider than the $43m it lost in the same quarter last year.
Revenue also came in higher than the consensus forecast at $861m, up 35 per cent year-on-year, compared with the average estimate of $828m.
Jeff Weiner, LinkedIn chief executive, said a new mobile experience was leading members to increase activity on LinkedIn “helping drive strong levels of engagement across the platform”.
LinkedIn also pleased the market by guiding it to expect revenue slightly above the consensus in the second quarter, and to the higher end of the average estimates for the full year.