(Updates from 12:30 a.m. ET with closing information.)
The professional networking site reported earnings of 38 cents on $363.7 million in revenue, a 59% increase from the same period last year. Analysts surveyed by Thomson Reuters expected revenues of $354 billion and a net profit of 31 cents per share. Membership grew 37% to 238 million and total page views grew 25% to 11.7 billion from the second quarter 2012.
"Accelerated member growth and strong engagement drove record operating and financial results in the second quarter," CEO Jeff Weiner said in a statement. "We are continuing to invest in driving scale across the LinkedIn platform in order to fully realize our long-term potential."Since its IPO in 2011, LinkedIn has beat analysts' expectation in every quarter.
ValueClick (VCLK) shares plunged 17.09% to $20.81 following weak second-quarter earnings and third quarter guidance. The digital marketing company's revenues rose just 4% from $154 million in the same period the year before to $159.8 million, below analysts' expectation of $166 million. The California-based company expects third-quarter revenues between $164 million and $168 million, with EPS between 39 and 40 cents. Analysts, in contrast, expected revenue of $180 million and EPS or 43 cents. CEO John Giuliani attempted to reassure shareholders that ValueClick's subpar results were just a temporary setback. "Despite some top line weakness in the quarter from our insertion order-driven display business, we made great progress on our integration initiatives," he said in a statement. "In addition, our significant affiliate marketing client wins during Q2 represent a great addition to our roster of direct, strategic relationships with major advertisers and provide us with an even stronger base for sustainable, profitable growth in the years to come."
Shares of Dell (DELL) rose 5.29% to $13.64 following news Friday that the long-awaited buyout was more likely. The computer company's board announced that they had reached a new definitive merger agreement with founder Michael Dell and his partner in the deal, private equity firm Silver Lake Partners. Under the proposed deal, Dell would pay $13.75 per share, a ten cent increase from his previous offer, along with a special dividend of 13 cents and a guaranteed third quarter dividend of eight cents. These additions add $350 million to the $24 billion value of the buyout. In exchange, the board agreed to Dell's stipulation that the rules of the vote be changed such that abstentions do not count as no votes. That change makes a victory for Dell much more likely. The new shareholder vote is scheduled for September. News of the deal came less than half an hour before a shareholder meeting in which shareholders were expected to reject the buyout, which would have ended Dell's hopes to regain control of the company for the first time since it went public 25 years ago.
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