LinkedIn, the professional networking site has proven to Wall Street that it can deliver on promises. After a string of disappointing reports from other Internet and social media sites, LinkedIn’s Q2 report is a welcoming change.
LinkedIn had a strong revenue of $2.8 million on $228.2 million in the second quarter; thanks to growth from ads and the fees it charges for deeper access to its vast trove of professional profiles. Revenue was up 89 % over the same period a year ago.
“LinkedIn had a strong second quarter with all of our key operating and financial metrics showing solid performance,” CEO Jeff Weiner said in a statement. “Our on-going investment in product innovation drove healthy engagement as measured by unique visiting members and member page views, and our three revenue streams all experienced significant growth.”
LinkedIn said that 65 % of its revenue, slightly more than $147 million, came from the U.S. while revenue from international markets totalled $81.0 million, or 35 % of total sales during the second quarter of 2012.
LinkedIn, which went public more than a year ago, is among the best-performing amongst the newly traded companies, with its stock trading at more than twice the level of its IPO price at a time when Facebook is nearing half.
The results indicate that LinkedIn is playing as essential role in the employment market as more people look out to find jobs and network online to seek better opportunities. LinkedIn said it had 175 million members at the end of June, up 50 % from a year earlier. Most of the growth in the second quarter came from overseas as LinkedIn continued to expand outside of the U.S.
LinkedIn, like Facebook, is in the initial stages of making money from its mobile applications. The company also reported 131 million unique visitors, when counting visitors to SlideShare, for the month of June. On mobile, LinkedIn witnessed a rise of unique visitors by 68% and page views jumped by 60 %.
Based in Mountain View, Calif., LinkedIn continued to invest in its business during the quarter, hiring 414 employees to bring the total to more than 2,800 worldwide. Overall, marketing, development and other expenses increased 93 %to $215 million, from $111 million a year earlier.
The company began testing mobile monetization in June by displaying ads in its iPad application. LinkedIn’s mobile monetization strategy doesn’t just revolve around advertising. The company believes it can further monetize its money-making products on mobile and provide additional value to premium subscribers and hiring solutions customers.
The overwhelming Q2 result of LinkedIn was possible due to the iPad app launch followed by a Windows Phone app. LinkedIn even treated itself by acquiring presentation-sharing start up SlideShare. The company was also a victim a major security breach.
While LinkedIn and Facebook are both Internet companies, the comparison is inexact. LinkedIn is more business-focused and derives revenue from its subscriptions for premium services, while Facebook relies largely on advertising.
April 22, 2013, 5:55 am UTC
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