LinkedIn second quarter financial results beat expectations

LinkedIn has reported second quarter revenue of $121m and profit of $4.5m, up 120% and 4% respectively on the same period a year ago, beating market expectations.

LinkedIn has reported second quarter revenue of $121m and profit of $4.5m, up 120% and 4% respectively on the same period a year ago, beating market expectations.

Analysts predicted revenues of $104.7m and profits to dip to three cents a share, but instead the professional networking site delivered profits of seven cents a share for the quarter.

LinkedIn, which went public in May, has seen unique visitors increasing 83% to 81.8m a month and page views increasing 80% to 7.1 billion, according to the Financial Times.

But Steve Sordello, chief financial officer at LinkedIn, says the IPO contributed to the increase in visitors and the company does not expect to sustain the growth seen this past quarter.

Analysts ascribe much of LinkedIn's financial success to the fact that the bulk of its revenues come not from advertising, but selling recruiting tools and premium subscriptions to business.

Sales of recruiting tools alone accounted for 48% of total revenue for the second quarter, representing a 170% increase over the same quarter a year ago.

Premium subscription sales accounted for around 20% of revenue, up 60% on 2010. Advertising sales accounted for only a third of total revenue, up 111% on the same quarter a year ago.

LinkedIn plans to focus on mobile products in the coming year, increase the number of offices it has around the world and recruit an international sales team and top IT engineers.

Shares were valued at $45 for LinkedIn's IPO, but the company's shares closed at $95.50 on Thursday and rose 5% in after-hours trading.

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