LinkedIn reports revenue jump in first financials since IPO
LinkedIn has reported strong revenue and profit increases in the second quarter, in its first financials since it became the first major social network to be publicly listed.
Revenue was up 120% year on year to $121m (£74m) in the three months to June. Profit was up to $4.5m (£2.8m), compared to $4.3m (£2.6m) in the previous year.
Hiring Solutions, LinkedIn’s biggest earning division, which allows companies to place job ads and contact potential candidates, increased revenue by 170% year on year to $58.6m (£35.9m).
Marketing Solutions, which allows brands to place display ads on the site and set up their own company pages, accounted for 32% of LinkedIn’s total revenue. Revenue increased 111% year on year to $38.6m (£23.7m) in the quarter.
Revenue from Premium Subscriptions to the site totaled $23.9m (£14.7m) in the period, up 60% year on year.
Overall, global memberships – free and paid for – grew to 115.8 million in the quarter, up 61% on 2010. By contrast, Facebook, which is also said to be mooting an IPO, has more than 750 million members.
LinkedIn went public in May, reported to value the company at about $3.3bn (£2.03bn), a valuation that some analysts said was “lofty” at the time. The strong results – and unexpected profit – are likely to be a relief to investors, who had been warned they were investing in the web’s second “dot com bubble” and could potentially lose their cash.
Jeff Weiner, LinkedIn’s CEO, says: “Going forward, we plan to continue to invest in our team, technology, and products in order to increase the value we deliver to members and realise the full potential of the LinkedIn platform.”
Weiner warned that the LinkedIn will not be profitable for the full-year as the company invests in expansion and launching new products.
