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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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik