Shares of LinkedIn Corporation (LNKD) are up almost 20% this morning after the company blew through Wall Street’s expectations for its fourth quarter earnings. Net income was up 66% from the year-ago quarter to $11.5 million, on revenue of $303.6 million. That’s an increase of 81% compared to $167.7 million in the fourth quarter of 2011.
The company says its talent solutions accounted for 53% of total Q4 revenue, while marketing solutions accounted for 27% and premium subscriptions for 20%. “Continued investment in our talent and technology infrastructure drove momentum in both product and monetization, resulting in record revenue, profitability, and cash flow,” said Steve Sordello, CFO of LinkedIn.
LinkedIn also passed a membership milestone in the fourth quarter, surpassing the 200 million member mark. 27% of its unique visits currently come from mobile devices.
The company told investors yesterday that sponsored content is a promising area for future growth. LinkedIn believes it has the potential to deliver highly targeted sets of viewers to clients who want to promote content. Sponsored content would more likely take the form of reports, white papers, or survey results, as opposed to direct advertising.
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