LinkedIn beats in Q1 earnings, sends stock up 7%

The company's revenue was 4% higher than expectations, while EPS beat by 23%

Shares of LinkedIn are up over 7 percent in after-hours trading Thursday, after the company posted better-than-expected first-quarter earnings.

In the earnings report, LinkedIn posted non-GAAP earnings per share of 74 cents, 23 percent higher than the $0.60 analysts had been expecting, on revenue of $861 million, up 35 percent from the same quarter a year ago, and 4 percent higher than the expected $828 million. 

The company gained 3.39 percent, or $4.03 a share, to end regular trading at $122.94.

Net loss for the quarter was $46 million, compared to net loss of $43 million for the first quarter of 2015. Non-GAAP net income for the first quarter was $99 million, compared to $73 million a year ago.

Q1 was the first full quarter for LinkedIn's mobile flagship experience, and the company said that "Members are engaging at record levels with the more relevant and comprehensive feed."

During the quarter, viral actions increased more than 80 percent, daily shares were up nearly 40 percent, and traffic to third-party publishers grew more than 150 percent. 

“LinkedIn delivered strong financial results and growth across our core product lines,” Jeff Weiner, CEO of LinkedIn, said in a statement. “As a result of our new mobile experience, members are increasing their activity on LinkedIn, helping drive strong levels of engagement across the platform."

Talent Solutions took in $558 million, up 41 percent year to year. This sector represented 65 percent of the company's quarterly revenue. That broke down to $502 million coming from hiring revenue, a 27 percent year-to-year increase; and $55 million coming from Learning & Development.

Revenue from Marketing Solutions was $154 million during the quarter, an increase of 29 percent year to year. It accounted for 20% of total revenue. Premium Subscriptions brought in $149 million, an increase of 22 percent from a year ago.

A total of $526.4 million, or 61 percent,  of LinkedIn’s revenue, came from the U.S., while $334 million, or 39 percent, came from international markets

The company is expecting Q3 2014 to see revenue between $885 million and $890 million, with adjusted EBITDA expected to range between$225 million and $230.

For the full year 2016, revenue is expected to range between $3.65 billion and $3.70 billion. Adjusted EBITDA is expected to range between $985 million and $1.005 billion.

(Image source: forbes.com)