Skip to content

Not every social media company is struggling to define it’s strategy

November 2, 2012

Today’s chart shows LinkedIn’s revenue growth since 2009.

Thus far 2012 has been a great year for LinkedIn. Backed by solid first quarter results, the company avoided the turbulences that Facebook’s IPO disaster inflicted on many other internet companies. Analysts and investors appear to have little doubt about the future viability of LinkedIn’s business. Unlike many other internet companies, LinkedIn has no trouble converting its user growth into dollars. While others struggle to generate one decent revenue stream, LinkedIn has three ways of monetizing its service. The company earns money from recruitment services, advertising and subscriptions, accounting for 50, 30 and 20 percent of third quarter revenue. 

With net earnings of $11.9 million on total revenue of $252 million, LinkedIn reported impressive third quarter earnings yesterday, putting the company on track to reach the $1 billion milestone in 2013.

LinkedIn’s stock closed at $106.85 yesterday, up 67 percent since January.




From → business, Strategy

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s