You know how there is always one person who carries an umbrella even though it’s sunny? An hour later when the weather changes and it’s pouring with rain, everyone is soaking wet and that person is strolling around calmly under their umbrella.
Linkedin Corporation (NYSE:LNKD) announced Q2 earnings on August 2 and things were generally looking up. The good news is the company has outdone expectations and even adjusted its projected figures for the full year. The market responded and LNKD stock went up $15 on Friday.
A portion of LNKD’s success can probably be attributed to the personal performance of CEO Jeff Weiner. The man seems to have steered the company into the calm waters of affluence since the IPO and it appears nothing is impeding his continued success at the helm. That $7.5 million compensation looks well-earned for once.
The overall solid position of LNKD may also be due to the steadying situation on the jobs market, as well as company performance.
The company is reporting satisfying growth figures:
- revenue for Q2 up 89% against the same period in 2011
- hiring solutions revenue up 107%
- projections for full year sales adjusted about 20 million above Wall Street estimations
Expenses grew significantly, chewing through most of LNKD’s revenue but that is to be expected with significant investments in growth. The company had almost doubled its employees in March 2012 compared to 2012 and is branching out in new directions, with mobile user numbers growing.
If there is something worrying about Linkedin, it would be whether or not they can keep up with the pace they set for themselves. Year-over-year sales growth is slowing down, as well as the growth in Linkedin’s largest income branch – hiring solutions. The 107% reported are still a slide down over previous quarter figures of 136% and 121%. The company would need to fully capitalize on its expenses in growth to sustain a development that is slowly declining.
While Facebook and Zynga are scurrying around, wet through, there is this one guy who is still whistling a tune and walking around under their umbrella. All they need to make sure, though, is the rain doesn’t turn into hail.
