Liz Gannes

Recent Posts by Liz Gannes

LinkedIn Beats Expectations in Second Quarter After IPO, but Stock Falls

LinkedIn exceeded Wall Street expectations in its second quarter as a public company, though it still had a narrow net loss.

But investors didn’t seem satisfied, with the stock trading down 3 to 10 percent in after-hours trading. It’s a particularly important quarter because employees and other insiders can begin selling their shares starting later this month.

The professional network had $139.5 million in revenue in the third quarter of 2011, with a net loss of $1.6 million on a GAAP basis.

Analysts had projected a loss of $0.04 per share, but LinkedIn instead earned $0.02 per share.

A year ago, LinkedIn had revenue of $61.8 million and net income of $915,000.

It now has 131.2 million members, which is in line with previous growth, and the site gets 87.6 million visitors per month, according to comScore.

Hiring products, which account for more than half of LinkedIn’s revenue, brought in $71 million in the quarter, growth of 160 percent from the third quarter last year. Marketing and subscriptions grew too, but not as much.

LinkedIn shares have seen high levels of short selling recently.

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Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work