(Reuters) - Professional networking site LinkedIn Corp reported better-than-expected revenue and raised its full year guidance as it pocketed more money from its hiring services.
'Another fantastic quarter,' said Rick Summer, analyst with Morningstar. 'This is a company that continues to execute quite well with surprising visibility into demand.'
Shares of the company rose about 6 percent in after-market trade after closing at $93.51 on the New York stock exchange Thursday.
LinkedIn's results come as investors shed their holdings in once white hot consumer Internet companies like Facebook, Groupon and Zynga.
The company said second quarter revenue rose 89 percent to $228.2 million, beating analysts' average forecast of $216.3 million, according to Thomson Reuters I/B/E/S.
LinkedIn also raised its full-year revenue forecast to a range of $915 million to $925 million from $880 million to $900 million.
LinkedIn connects professionals seeking jobs and companies looking for employees. It makes money selling premium subscriptions and advertising as well as helping companies with hiring.
'LinkedIn has a distinct value advantage. They own an identity in the professional user,' said Summer.
'They have different ways to monetize the user. That is a distinct advantage to how investors are receiving the stock.'
LinkedIn was one of the first prominent U.S. social networking sites to make an initial public offering that smashed expectations - shares are still trading more than double its IPO price of $45.
Conversely, Facebook Inc made its public debut - one of the most highly anticipated in technology and Internet circles in years - to dismal results. Facebook shares hit a low of $19.91 on Thursday, losing almost half of its value since its IPO at $38 in May.
LinkedIn and Facebook are often held up as illustrations of a new breed of Internet companies that have been quickly embraced by people for the ease of connecting to others.
But the similarities end there. Facebook largely depends on advertising revenue and there are concerns that it cannot keep up with its blistering growth pace. In the second quarter, the company reported a 32 percent rise in revenue compared to the more than 100 percent growth it delivered at the same time last year.
LinkedIn, though, is more business-oriented and depends on three different veins for its revenue: subscriptions to its premium service, companies looking for LinkedIn's hiring solutions, and advertising.
Revenue from its hiring solutions, which caters to companies looking for employees and makes up over half of total revenue, rose 107 percent to $121.6 million.
Even advertising revenue from its marketing solutions increased 64 percent.
Net income was $2.8 million compared with $4.5 million for the same period a year ago.
Non-GAAP earnings per share of 16 cents was in-line with analysts' expectations.
(Reporting By Jennifer Saba; Editing by Bernard Orr)
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