LinkedIn A Winner on Wall Street

The line between popular social players and outcasts is becoming more evident by each day, or earnings report. Late Thursday, LinkedIn (NYSE:LNKD) reported financial results that placed it in Wall Street’s winners circle.

The professional networking giant announced that revenue surged 88.5 percent to a record $228.2 million in the second quarter. Although net income fell to $2.8 million (3 cents per share), compared to $4.5 million a year earlier, adjusted net income of 16 cents per share topped the mean estimate of 6 cents per share. If LinkedIn’s guided tax rate is applied to the adjusted earnings, the results increase to about 19 cents per share.

“LinkedIn had a strong second quarter with all of our key operating and financial metrics showing solid performance,” said Jeff Weiner, chief executive officer. “Our ongoing investment in product innovation drove healthy engagement as measured by unique visiting members and member page views, and our three revenue streams all experienced significant growth.”

While recent concerns of growth have outcasted once social elites such as Facebook (NASDAQ:FB) and Zynga (NASDAQ:ZNGA), LinkedIn appears to be improving its resume. The company has three main revenue streams, all of which increased from last year. Hiring Solutions surged 107 percent to $122 million, as businesses continue to use the service to “engage prospective talent.” The unit also looks poised for growth as Microsoft (NASDAQ:MSFT) signed one of the largest deals in LinkedIn’s history to implement Hiring Solutions in its organization.

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Marketing Solutions revenue jumped 64 percent to $63 million. On the conference call, Weiner noted, “Citi (NYSE:C) partnered with LinkedIn to launch a branded LinkedIn group featuring special curated content and moderated discussions. In just three months, this group has materially outperformed expectations with more than 30,000 members.” Meanwhile, Premium Subscriptions revenue increased 82 percent to $44 million.

Shares of LinkedIn (NYSE:LNKD) closed more than 2 percent in the red on Thursday, but rebounded 7 percent after the financial results. Investors feared that weakness would be seen as Monster Worldwide (NYSE:MWW) posted disappointing second quarter results and lowered its outlook for the third quarter well below expectations. However, LinkedIn does not appear to be suffering a slowdown or losing users to competition. Cumulative membership increased 50 percent year-over-year to 174 million members. On average, LinkedIn adds approximately 2 member sign ups per second.

Looking forward, LinkedIn (NYSE:LNKD) improved its guidance. The company now expects revenues between $235 million and $240 million for the third quarter, representing a 68 percent to 72 percent year-over-year increase. Full year guidance was also increased to between $915 million and $925 million. On Friday, shares jumped 12 percent to climb over $100.

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