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What: Shares of professional networker LinkedIn connected with gains today, up by 12% at the high, after the company posted strong second-quarter earnings.
So what: Revenue in the second quarter totaled $363.7 million, which led to non-GAAP earnings per share of $0.38. The company registered healthy beats on both counts, as the Street was forecasting sales of $354 million and adjusted earnings per share of just $0.31.
Now what: Total members grew 37% to 238 million, which the company attributed to product optimization. Premium subscription revenue soared 68% to $73 million, and talent solutions revenue similarly jumped 69% to $205.1 million. The company recently redesigned its mobile apps, which has led to increases in activity and engagement. Third-quarter sales should be in the range of $367 million to $373 million. LinkedIn has received a slew of analyst upgrades following the results, including from Cantor Fitzgerald, Evercore, and Goldman Sachs.
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The article Why LinkedIn Shares Connected With Gains originally appeared on Fool.com.Fool contributor Evan Niu, CFA, owns shares of LinkedIn. The Motley Fool recommends LinkedIn. The Motley Fool owns shares of LinkedIn. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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