It has been estimated that LinkedIn will raise over $1 billion revenue in year 2013, during the release of its Q1 results for the year. However, it seems that the business focused social platform has decided to cross this mark even before completing this year.
As disclosed in its recent earnings release, leaving behind the analysts estimates of $360 million and its own estimated range of $342 to $347 million, Linkedin has earned a revenue of $ 363.7 million for Q2, 2013. It is an increase of 59% as compared to $228.2 million in the similar quarter last year and a hike of 12% over $324.7 million in Q1 2013. Net income was $3.7 million, compared to net income of $2.8 million for Q2, 2012.
As per Jeff Weiner, CEO of LinkedIn, accelerated member growth and strong engagement were the factors which played a major role in the increased performance of the quarter. LinkedIn membership grew to 238 million, with 37% Y-o-Y growth which is driven primarily by product optimization, and represents the first membership growth acceleration since the third quarter of 2011.
“We are continuing to invest in driving scale across the LinkedIn platform in order to fully realize our long-term potential”, said Jeff.
In the company’s three lines of businesses, the revenues have also increased significantly, as shown in the table below. As compared to similar quarter last year, there has been a revenue increase of 69% in Talent solutions products, 36% in Market solutions and 68% in Premium subscriptions.
The LinkedIn’s United States market reported a revenue of $224.3 million, representing 62% of total revenue in the second quarter of 2013. Although, majority of the Linkedin network is based out of US, just like previous quarters, revenue from international markets totaled $139.4 million, and represented 38% of total revenue.
In the second quarter of 2013, Linkedin also introduced new iOS and Android apps, marking a rise of over 40% in mobile activity with mobile homepage engagement when compared to the previous version. It also launched a new version of its flagship Recruiter platform for Talent Solutions customers resulting in increased customer engagement and the CheckIn app, which enables student members to engage with recruiters at on-campus hiring events.
For Q3, 2013 LinkedIn expects revenue to range between $367 million and $373 million which is below FactSet consensus at $384 million. The full year revenue guidance is revised to over $1.455 billion.
The world’s largest professional network on the Internet, LinkedIn today connects executives from every Fortune 500 company, having a diversified business model with revenue coming from Talent Solutions, Marketing Solutions and Premium Subscriptions products. It is currently having 143 million monthly unique visitors of its own and 189 million uniques including its SlideShare unit.