- George Zimmerman will not be charged in domestic dispute
- Russian officials press bilateral U.S. trade deal
- Selfies at Funerals blog creator retires after Obama flub: ‘Our work here is done’
- New Obama adviser Podesta is against Keystone but will steer clear of pipeline deliberations
- 40 Australian adults, children found in ‘one of the worst accounts of incest ever made public’
- Venezuela’s Maduro calls on student ‘price vigilantes’ to hit the streets, report businesses
- Atheists smug as Hindus join Satanists to demand display at Oklahoma Statehouse
- Bow before Valkyrie, NASA’s ‘superhero robot’ entry in DARPA challenge
- 10-year-old Pennsylvania boy suspended for pretend bow-and-arrow shooting
- Tea partiers turn on Capitol Hill budget deal
LinkedIn’s 4Q gets rave reviews from investors
SAN FRANCISCO (AP) - Online professional-networking service LinkedIn's fourth-quarter performance added another line to its sterling resume as a public company.
The results announced Thursday extended LinkedIn Corp.'s uninterrupted streak of exceeding analysts' projections for both earnings and revenue. It marked the seventh consecutive quarter since LinkedIn's May 2011 IPO that the company has pulled that off, to the delight of investors.
The run of pleasant surprises is one of the reasons that LinkedIn's stock has tripled from its initial public offering price of $45. The shares surged $11.71, or 9.4 percent, to $135.80 in extended trading after the numbers came out.
Besides a 66 percent increase in earnings from the previous year, the latest quarter was highlighted by an influx of 15 million accounts to propel LinkedIn's total membership beyond 200 million. Visitors to LinkedIn's website also viewed 67 percent more pages than the previous year, an indication that the company's efforts to add more business news and career tips from top business executives are paying off.
Wall Street's embrace of LinkedIn contrasts with the cold response given to other Internet services that have gone public during the past few years. Most of them are trading below their IPO prices. The most notable is Facebook Inc., whose stock is worth about 25 percent less than it was when it made its market debut in May.
Although both run websites devoted to connecting people with common interests, LinkedIn and Facebook are targeting different audiences. Facebook focuses mostly on letting friends and family share good times and swap stories, while LinkedIn concentrates on helping people advance their careers and helping companies fill jobs.
Facebook, which is based in Menlo Park, is the larger of the two services, with more than 1 billion active users and $5.1 billion in revenue last year. LinkedIn, which is based in Mountain View, Calif., has 202 million accountholders and revenue of $972 million in 2012.
But LinkedIn is growing more quickly, partly because it's less dependent on advertising than Facebook and most Internet services. In the fourth quarter, advertising accounted for 27 percent of LinkedIn's revenue. The remainder comes from various tools that it sells to help recruit workers and glean more insights from the information that its users post on its website.
Reflecting its belief that the member data are becoming increasingly valuable, LinkedIn said Thursday that it intends to raise some prices this year. Setting up a member profile remains free. The price increase reflects the additional information that the company has accumulated as its membership has more than doubled in less than two years, according to Steve Sordello, LinkedIn's chief financial officer. The company provided no specifics on the increases.
LinkedIn earned $11.5 million, or 10 cents per share, during the final three months of last year. That compared to $6.9 million, or 6 cents per share, a year earlier.
If not for the costs of employee stock compensation and certain other charges, LinkedIn said it would have earned 35 cents per share. That was far above the average estimates of 19 cents per share among analysts surveyed by FactSet.
Revenue soared 81 percent from the previous year to $304 million _ about $24 million above analyst forecasts.
LinkedIn's revenue outlook for the current quarter and all of 2013 were roughly in line with analyst estimates, setting the stage for the company to clear those financial hurdles once again.
Management's forecast for annual revenue of $1.4 billion this year appears conservative, given that it would translate into an increase of about 45 percent from last year. In 2012, LinkedIn's annual revenue rose 86 percent.
"We are trying to utilize a prudent approach to year-over-year growth," Sordello told analysts during an analyst conference call.
By Donald Lambro
Growth spikes are little more than trend-free anomalies
- Tea partiers turn on Capitol Hill budget deal
- Rand Paul: Budget deal 'shameful,' 'huge mistake'
- Leon Panetta named as source of 'Zero Dark Thirty' scriptwriters information
- Teen thugs in D.C. run wild -- even while wearing GPS ankle bracelets
- CARSON: Why did the founders give us the Second Amendment?
- U.S. pilot scares off Iranians with 'Top Gun'-worthy stunt: 'You really ought to go home'
- Obama's antics at Nelson Mandela tribute: Jovial conversation, handshake with Raul Castro
- American bourbon now better than Scottish whisky: U.K.-born expert
- Obama takes 'selfie' at Mandela's funeral service
- Robert Griffin III surprised at being benched by Mike Shanahan
Independent voices from the The Washington Times Communities
Brazen, leading-edge, “call it like it is” columns and reporting from Ohio native, radio host and writer, Sara Marie Brenner.
A libertarian look at breaking news and political trends by author Tom Mullen.
Uncensored exploration of issues concerning current events, civil liberties, American political advocacy, and the political and social issues facing military veterans.
An objective, analysis-based perspective of D.C. sports as seen through the eyes of lifelong D.C. sports enthusiast, John Heibel.
Extraordinary day at Redskins Park
White House pets gone wild!
Let it snow