Tags: LNKD | LinkedIn | earnings | revenue

LinkedIn Sales Forecast Tops Estimates as Growth Steps Take Hold

Thursday, 31 Jul 2014 04:27 PM

LinkedIn Corp. gave a revenue forecast that topped estimates as the largest professional-networking website rolls out a new sales product and expands overseas to reignite growth.

Revenue will be $543 million to $547 million in the current period, the Mountain View, California-based company said in a statement today, topping analysts’ average projection for $541.5 million, according to data compiled by Bloomberg.

Chief Executive Officer Jeff Weiner has been branching out from recruiting and subscriptions, seeking to offer services for salespeople looking for new clients. He’s also investing in original content and new smartphone applications.

“They’re still in the early innings of capturing a longer-term opportunity,” said James Cakmak, an analyst at Telsey Advisory Group. “A suite of products improving the user experience and improving analytics will drive long-term value.”

The shares of LinkedIn gained as much as 13 percent in extended trading, after declining 3.6 percent to $180.64 at the close in New York. The company’s stock, which gained 89 percent last year, has slumped 17 percent this year.

Revenue in the second quarter rose 47 percent to $533.9 million, beating analysts’ average estimate for $511 million. LinkedIn reported a net loss of $1.03 million, compared with net income of $3.73 million a year earlier.

LinkedIn has been expanding into new categories of business and last week said it agreed to buy Bizo Inc., a business-marketing startup, for $175 million.

LinkedIn Product

Separately, the company unveiled a new website today for salespeople called Sales Navigator, which uses LinkedIn data to find potential customers. The product, which costs $1,200 a year for enterprises, helps marketers manage their connections, drawing on their relationships within their professional network.

By making a separate product, LinkedIn can tailor the experience more to the sales job and charge more for it, like it did in for recruiters, Mike Derizen, LinkedIn’s vice president of sales solutions, said in an interview.

“Salespeople have recognized that LinkedIn is not just a place to find a job, far from it,” Derizen said. “It’s a place to grow and build relationships.”

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LinkedIn Corp. gave a revenue forecast that topped estimates as the largest professional- networking website rolls out a new sales product and expands overseas to reignite growth.
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2014-27-31
Thursday, 31 Jul 2014 04:27 PM
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