Corporate networking site LinkedIn reported better-than-expected quarterly profit and revenue as more businesses used its services to hire staff.
Hiring Business Drives LinkedIn’s Revenue Beat
Talent Solutions accounted for 61 percent of total revenue.
The company’s hiring business has been thriving as employers find its services more helpful in assessing a candidate’s suitability for a role.
Strong growth in the hiring business and rapid expansion in international markets such as China are considered by analysts to be the main growth drivers for the company in the next few quarters.
Revenue at LinkedIn’s hiring business, called Talent Solutions, rose 45 percent in the third quarter, ended Sept. 30, representing 61 percent of total revenue.
The company had launched a Chinese language beta version of its main website in February to expand in the world’s largest Internet market by users, looking to replicate its success in the United States internationally.
LinkedIn, however, forecast on Thursday current-quarter results below expectations, sparking a brief selloff that sent the company’s shares down as much as 11 percent in extended trading.
But shares soon reversed to trade up thee percent at $209.12 as investors focused on the handy third-quarter beat.
LinkedIn’s net loss attributable to stockholders widened to $4.3 million, or three cents per share, in the quarter, from $3.4 million a year earlier. Excluding items, LinkedIn earned 52 cents per share.
Revenue rose 45 percent to $568.3 million.
Analysts on average had expected a profit of 47 cents per share on revenue of $557.6 million.
For the fourth quarter ending December, LinkedIn forecast adjusted earnings of about 49 cents per share and revenue of between $600 million and $605 million.
Analysts on average were expecting a profit of 52 cents per share on revenue of $611.6 million, according to Thomson Reuters I/B/E/S.
Up to Thursday’s close, the stock had fallen more than six percent this year.
(Reporting by Arathy S Nair and Lehar Maan in Bangalore; Editing by Maju Samuel and Saumyadeb Chakrabarty)
This article originally appeared on Recode.net.
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