Growth in hiring business drives LinkedIn revenue beat

Corporate networking site LinkedIn reported a higher-than-expected 44 percent jump in quarterly revenue as more businesses used its services to assess candidates for employment.The company’s shares rose 8 percent after the bell. LinkedIn’s hiring business has been thriving, clocking revenue growth of nearly 50 percent in each of the last three quarters, helped by rapid expansion in international markets such as China. “In the fourth-quarter, more than 75 percent of new members came to LinkedIn from outside the United States,” Chief Executive Jeff Weiner said on a post-earnings call. The company added 3,000 new customers to its hiring business in the quarter, Chief Financial Officer Steve Sordello said. Revenue in LinkedIn’s hiring business, called Talent Solutions, jumped 41 percent to $369.3 million in the fourth quarter ended Dec. 31, accounting for 57 percent of the company’s revenue. The company’s net income fell to $3.1 million, or 2 cents per share, in the fourth quarter, from $3.8 million, or 3 cents per share, a year earlier. Excluding items, the company earned 61 cents per share. Revenue rose to $643.4 million from $447.2 million. Analysts on average had expected a profit of 53 cents per share on revenue of $616.8 million, according to Thomson Reuters I/B/E/S. LinkedIn also forecast an adjusted profit of $2.95 per share for 2015, above the average analyst estimate of $2.73. LinkedIn’s shares were trading at $255.55 after closing at $237.97 on Thursday. Reuters