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Wall Street Darling LinkedIn Beats Estimates Again, Revenue Booms 59% To $363M, Now At 238M Members
My LinkedIn network, visualized
Image by For Inspiration Only
I have so many connections on LinkedIn it became almost unusable and started becoming a repository of business contacts. This visualization, though mesmerizing to me at first and to others as well, is interesting though the groups are spread around time, location, profession and education.
The top and left is more related to my design expertise, the lower right is more my personal life.
Also the edges are filled with people I barely know. Then again in the center it is often the same.
LinkedIn continues to be on of the few companies that can do no wrong on Wall Street, continuing to beat estimates and display growth curves that consistently move up and to the right. Amazon would perhaps be one of the few other exceptions, as Jeff Bezosâ short-term-loss-for-long-term-gain continues to confound the status quo.
The professional network announced its second quarter earnings results on Thursday, and it was another good one, as the company grew to 238 million members and saw revenue increase to 59 percent to $ 363.7 million from $ 228.2 million in Q2 2012. Meanwhile, net income also jumped to $ 3.7 million from $ 2.8 million in Q2 last year, while non-GAAP net income was $ 44.5 million, compared to $ 18.1 million in 2012.
âAccelerated member growth and strong engagement drove record operating and financial results in the second quarter,â LinkedIn CEO Jeff Weiner said in todayâs statement. âWe are continuing to invest in driving scale across the LinkedIn platform in order to fully realize our long-term potential.â
To build that scale and to follow through with its ongoing plans to build out the go-to professional content network, LinkedInâs investments have included those like the $ 90 million acquisition of Pulse and startups like Maybe to dig deeper into mobile.
LinkedInâs adjusted EBITDA for the second quarter was $ 88.6 million (24 percent of revenue) compared to $ 50.4 million for Q2 2012, and GAAP diluted EPS for the second quarter was $ 0.03, while non-GAAP diluted EPS for Q2 was $ 0.38.
Meanwhile, as most of LinkedInâs class of tech IPOs continue to struggle (namely Zynga and Groupon), the company has put together a string of victories. While some questioned its ability to diversify its revenue streams, Linked has been seeing continuing growth in each of its three revenue buckets. This quarter, as per usual, talent solutions took the cake, representing the biggest slice of LinkedInâs business, as revenue from its talent solutions products hit $ 205.1 million, up 69 percent compared to Q2 2012.
Talent solutionsâ share of revenue grew slightly to 56 percent of total revenue, up from 53 percent last year. Marketing solutions, on the other hand, came in at $ 85.6 million, an increase of 36 percent when compared to last year and premium subscriptions hit $ 73 million, representing an increase of 68 percent over Q2 2012, and 20 percent of total revenue.
Other highlights from the quarter included the addition of some big names to its growing âInfluencer Programâ or roster of Super Awesome Motivational Bloggers, as I like to call them, including Bill Gates, Senator Elizabeth Warren, Jamie Dimon, the Burberry CEO, Japanâs Prime Minister. These new influencers helped LinkedIn âmore than doubleâ its homepage traffic over the last year.
The company also ârevamped its mobile phone experienceâ with new iOS and Android apps, saying in its report that âmobile activity has increased, with mobile homepage engagement rising over 40%, and increasing levels of social actions, article views, and mobile profile edits when compared to the past version.â
The company also released a new version of its flagship Recruiter platform for Talent Solutions customers and also launched CheckIn, which âenables student members to engage with recruiters at on-campus hiring events.â