The 'Real Big Thing' In LinkedIn's Q2 Results

LinkedIn Corp LNKD reported second-quarter results on Thursday. The company blew out analysts' expectations of EPS of $0.30 on revenue $679.93 million by reporting EPS of $0.55 on revenue of $712 million.

Leigh Drogen, Estimize founder and CEO, was on CNBC to weigh in on the company's numbers.

Revenue Growth: The Real Big Thing

"I think last quarter freaked some people out," Drogen said. "They had negative 5 percent year-over-year negative growth in some of the different business lines that were very important. The company guided down big. Now they have a history of sandbagging their guidance, but certainly not this big and that took the stock way down."

"Now they ended up crushing the Wall Street consensus. The Estimize consensus of buy-side and independent analysts which is usually a bit more honest regarding the expectations was well above, but certainly not this far above. So, they definitely beat the numbers, but the real big thing was revenue growth."

He continued, "They're doing 32 percent revenue growth year-over-year which for a company at their size is still awesome. The fear with LinkedIn and the reason it's so volatile on earnings has always been the unknown total market that they have and if they continue to grow at this pace, they're going to continue to receive the multiple that they have."

Labor Market Impact

Drogen also highlighted how improvement in the labor market has impacted the company's numbers, saying, "The other reason they crushed this quarter was probably because of the labor market. They tend, although they're a secular growth story obviously, they tend to see a lag of about a quarter in what the labor market is doing and we're seeing some really good numbers out of the labor market the last couple weeks."