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Professional networking group LinkedIn Corp. (LNKD:NYQ) beat market expectations for the seventh time in a row after the firm posted record quarterly profits and a promising outlook for the future.
Fourth-quarter net income, excluding certain items, was double than expected at $40.2 million, compared to $13.3 million a year earlier. Total revenue jumped +81% to $303.6 million, also higher than projected by analysts.
The rise in profits was helped by more recruiters and jobseekers signing up to the professional social networking site. LinkedIn has more than 202 million users, a +39% gain compared to the previous year. Although most members use free services, the firm generates sales from premium subscriptions, recruitment services and advertisements.
Most of the firm’s sales are generated from its Talent Solutions business which offers staffing solutions to recruiters. Revenue in this segment totalled $161.0 million, an increase of 90% from a year ago. Analysts said the unit was growing at a high speed.
“2012 was a transformative year for LinkedIn,” said LinkedIn CEO Jeff Weiner. “The products we delivered throughout the year drove member engagement and financial results to record levels in the fourth quarter.” The firm is expecting 2013 revenues of up to $1.44 billion.