Recruitment Drives LinkedIn Revenue

Author(s): 
Adriana Reyneri
Revenues from its recruiting services and an increase in users drove an 89 percent year-over-year increase in revenues for the social media site LinkedIn, according to a second quarter report issued by the company yesterday.
Revenue was $228.2 million in the second quarter, up from $141 million for the same period last year, according to a company statement. More than 175 million members currently belong to LinkedIn, which the company describes as the world’s largest professional network on the Internet.
It’s probably no coincidence that compared to other high net worth investors, senior corporate executives are the biggest users of LinkedIn, according to the latest Millionaire Corner research. (Millionaire corner defines the high net worth as individuals from households with a net worth of $5 million to $25 million, not including primary residence.)
More than half the nation’s high net worth senior corporate executives uses LinkedIn and Facebook, an emerging recruiting tool, according to research conducted by Millionaire Corner in the second quarter of this year. High net worth business owners also maintain a robust social media presence. More than half uses Facebook and 20 percent uses the relative newcomer, Twitter, a useful recruiting tool despite its brevity, according to experts.
 “LinkedIn had a strong second quarter with all of our key operating and financial metrics showing solid performance,” Jeff Weiner, CEO of LinkedIn, said in a statement. “Our ongoing 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.”
Revenue from LinkedIn’s Hiring Solutions products more than doubled in the second quarter of 2012, up 107 percent to $121.6 million, the company said.  Hiring Solutions represents a greater share of the company’s revenue compared to the same period last year. According to LinkedIn, Hiring Solutions generated 53 percent of total revenue in the second quarter of 2012, compared to 48 percent in the second quarter of 2011.
 
The company’s Marketing Solutions products generated $63.1 million in revenue, up 64 percent compared to the second quarter of 2011.  Its share of total revenue fell to 28 percent, compared to 32 percent in the second quarter of 2011. Premium Subscriptions revenue totaled $43.5 million in the second quarter, up 82 percent year-over-year.  The service accounted for 19 percent of total revenue, down slightly from 20 percent in the second quarter of 2011.
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Source: http://www.millionairecorner.com/article/recruitment-drives-linkedin-revenue

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