LinkedIn projects sales for year will top estimates

LinkedIn Corp. forecast year-end revenue that topped analysts’ projections, a sign that a revamped sales force and expansion into education and business services are helping to boost revenue.

Sales for the year will be about $2.98 billion (U.S.), topping the $2.95 billion-average analysts’ estimate. LinkedIn’s third-quarter profit, excluding certain items, was 78 cents a share, the company reported Thursday in a statement, compared with analysts’ average estimate of 45 cents.

The company’s earnings were fuelled by stronger demand for its recruiting services, while marketing and sales products performed well, Jeff Weiner, LinkedIn’s chief executive officer, said in the statement.

LinkedIn has been taking steps to overcome a slowdown in its core professional-networking business, reorganizing its sales force and expanding into new areas, such as tools to manage sales relationships and take online courses.

The company acquired the education website Lynda.com for $1.5 billion earlier this year.

The quarter was “all good across all metrics,” said Rob Sanderson, an analyst at MKM Partners. “This should quiet the primary bear concern after two disappointing quarters.”

Third-quarter sales rose 37 per cent to $779.6 million, compared with the $756.4-million analyst estimate. The company’s loss widened to $41 million, or 31 cents a share, from $4.26 million, or three cents, a year earlier, the Mountain View, Calif.-based company said. Analysts had expected a loss of $93.3 million. The online jobs site reported 396 million users, up from 380 million in the second quarter. The company said it passed 400 million users last week.