Then again, LinkedIn continues to post strong results, as seen with its latest quarterly report. Revenues rose by 81% to $252 million and earnings came to 22 cents a share. The Street consensus was for revenues of $244.6 million and earnings of 11 cents. And LinkedIn has upped its guidance for the full year to between $939 million and $944 million, up from the prior forecast of $915 million to $925 million.
The main driver continues to be the hiring solutions business, which allows for high-end recruiting of employees. The division saw revenues almost double to $138.4 million. Revenues from premium subscriptions and marketing solutions climbed by 74% and 60%, respectively.
To keep up the momentum, LinkedIn has continued to invest heavily in its product development. The company has launched updates to its mobile apps, redesigned the website and has introduced new features like user endorsements and notifications. These efforts should be helpful in boosting traffic. Keep in mind that there are more than 187 million active users.
But it’s worth noting that LinkedIn’s valuation is still rich, coming to about 900 times earnings. In other words, it may be tough for the stock price to tack on more gains, even though the company continues to grow at a rapid clip.
Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.