LinkedIn, a social networking site for business professionals, has posted a net loss for the third-quarter of 2013, but boasted an increase in revenue and users.
The news wasn’t bad for the company, as it actually surpassed analysts’ expectations.
According to its blog, LinkedIn experienced a 56 percent increase in revenue for the third quarter of 2013, finishing with a revenue of $393 million, as opposed to $252 million this time last year.
The company’s net loss for the July to September period was $3.4 million, or three cents a share, compared with earnings of $2.3 million, or two cents a share, in the same period a year ago. It’s net income was $46.8 million, equalling 39 cents a share – seven cents more than analysts predicted.
“Increased member growth and engagement helped drive strong financial results in the third quarter,” says the company.
It’s forecasting a revenue range for the current quarter between $415 million and $420 million, while analysts say it will be closer to $438.9 million. It’s not uncommon for LinkedIn to purposely underestimate itself, says news agency the Times Colonist.
A huge chunk of LinkedIn’s revenue and gains came from its advertising, according to the report. Ads accounted for $88.5 million – or 23 percent – of the revenue, up a whopping 38 percent over last year. The company’s remain revenue was generated from subscriptions to premium accounts and fees paid by “headhunters and job seekers” for access to profiles and data within the site.
Megan Abraham is a staff writer for SiteProNews.
This artcicle was taken from: sitepronews.com