NEW YORK (TheStreet) -- LinkedIn (LNKD - Get Report) connections proved to be in high demand and helped boost the company's profits over the last quarter. LinkedIn's earnings beat Street estimates after its second quarter saw strong user growth, increased professional engagement and launch of new products leading to enthusiastic investors and a surging stock price.
Despite a controversy earlier in the quarter, LinkedIn faced a privacy rights lawsuit in June due to the company hacking its customers' external e-mail accounts, LinkedIn's business model proved to be strong. The company reported that the number of members increased 32% year over year.
The 300 million and growing user base supported revenue growth throughout the quarter. The site's provided recruiting tool, Talent Solutions, saw revenue increase to $322 million up 49% compared to second quarter 2013. LinkedIn's Premium Subscriptions, which helps users connect to careers and LinkedIn companies find talent among other career advantages, increased 44% year over year to $105.2 Million.
LinkedIn's revenue for the second quarter was $534 million beating analysts expectations of $511 million. The Santa Monica, Calif.-based company saw an increase of 47% compared to $364 million in its second quarter of 2013. LinkedIn reported earnings of 51 cents per share above analysts' estimates by 12 cents a share and up from 38 cents a share in the second quarter 2013.
In an official statement released Jul. 31 with LinkedIn's second quarter report, Company CEO, Jeff Weiner attributed the leading professional network's profit growth to strategic moves in providing connections and subscription-based career assistance to LinkedIn's active online professionals.
"LinkedIn delivered strong financial results in the second quarter while maintaining investment in our member and customer offerings," said Weiner. "We made significant progress against several key strategic priorities including increasing the scale of job opportunities on LinkedIn; expanding our professional publishing platform; and continuing the strategic shift towards content marketing through Sponsored Updates."
LinkedIn profiting off of professionals searching to advance their careers saw success when integrating Sales Navigator, a new enterprise product tool for social hiring, into its network. Analysts were optimistic about the future for the latest update of Sales Navigator, which saw a bump in price from $700 a year to $1,200.
Investors responded with enthusiasm with shares rising as much as 13% after the results on Thursday. Shares were rising 9.97% to 198.65 on Friday.
Proving investors' previous concerns about revenue wrong, LinkedIn forecasts revenue ranging between $2.14 billion and $2.15 billion for the full year.
Here is what analysts have to say about LinkedIn's results: