LinkedIn beats on revenue, shares climb

Reuters News
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Posted: May 03, 2012 4:29 PM

(Reuters) - LinkedIn Corp reported better-than-expected revenue after it racked up strong growth from its services that help companies find and hire employees.

The professional networking site also announced on Thursday that it acquired content sharing company SlideShare for $118.75 million for a mix of cash and stock.

First quarter revenue at LinkedIn rose 101 percent to $188.5 million, besting analysts' average forecast of $178.58 million, according to Thomson Reuters I/B/E/S.

Shares of LinkedIn are up 8.7 percent in after-hours trading.

LinkedIn's performance is watched closely by investors as an indication of whether its business model works. The Mountain View, California company was one of the first prominent U.S. social networking sites to make its debut last May, whetting the appetites of those eagerly awaiting Facebook's impending IPO.

Net income rose to $5 million from $2.1 million in the same quarter a year ago.

(Reporting By Jennifer Saba; Editing by Bernard Orr)