LinkedIn 4th Quarter Revenue Doubles, Stock Soars

February 13th, 2012 at 2:08 pm
 


It seems that the recent success of LinkedIn going public is not a onetime thing. It may just be a start to a path of steady successes ahead. This may be more evident as the professional networking site reports a more than expected 4th quarter as it reports revenues that have more than doubled from the same period last year.

LinkedIn reported that it has made 4th quarter revenue of $167.7 million for the quarter ending December 31, 2011. The earnings amounted to more than double the previous earnings of the same quarter last year, which stood at $81.7 million in 2010. This translates to a 105 percent increase in terms of revenue numbers from that of the same period last year. Net income for the quarter was $6.9 million, which amounts to 6 cents per share, beating analysts’ estimates of only 1 cent per share.

LinkedIn is proving itself to be the premier online professional networking site today. Currently having around 145 members on its professional network, more and more companies are increasingly looking into LinkedIn for recruitment. In fact, a majority of LinkedIn’s revenue comes from its Hiring Solutions products, which includes the fees it collects from companies and recruiting services for broader access into the professional data of its members. Other means of revenue for the company comes from advertising and premium subscriptions.

LinkedIn is expecting more improvements going into the fiscal year 2012. The company has projected earnings for the 1st quarter of 2012 within the range of $170 million to $175 million. It projects a full year earnings total for 2012 to be somewhere between $840 million to $860 million.  LinkedIn seems to be in the right path so far. Going public may actually be just one of its recent successes as it now tries to make the company more profitable for its new public stockholders.

 

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