Professional networking site, LinkedIn, has reported a net income of $2.8 million for the second quarter ended June 30, 2012, a 37.8% decline from $4.5 million during the corresponding quarter last year.

The company posted a total revenue of $228.2 million during the quarter, up 89% from $121 million during the corresponding quarter last year. The adjusted EBITDA stood at $50.4 million, or 22% of total revenues in Q2 2012, in comparison to $26.3 million for the second quarter of 2011, or 22% of total revenues in Q2 2011, while the GAAP earnings per share (EPS) was at 0.03 and the non-GAAP earnings per share was at 0.16.


Hiring Solutions: The revenue from hiring solutions stood at $121.6 million, a 107% increase from the same quarter last year. Hiring solutions accounted for 53% of the company’s total revenues in the quarter, an increase from 48% in Q2 2011.

Marketing Solutions: The revenue from Marketing Solutions stood at $63.1 million, a 64% increase from the same quarter last year. Marketing solutions accounted for 28% of the company’s total revenues in the quarter, a minor dip from to 32% in Q2 2011.

Premium Subscriptions: The revenue from Premium Subscriptions stood at $43.5 million, a 82% increase from the same quarter last year. Premium subscriptions accounted for 19% of the company’s total revenues in the quarter, down from 20% in Q2 2011.

US vs International Revenues: Revenues from the United States stood at $147.3 million, accounting for 65% of the company’s total revenues in the quarter while the revenues from International markets stood at $81 million, accounting for 35% of the company’s total revenue in the quarter.

Revenues Across Geographies: Revenue from International markets include revenues from the Europe, the Middle East and Africa (EMEA) regions which reported $50.1 million revenue, up 17% QoQ and 94% YoY, the Asia-Pacific region (APAC) which reported $15.9 million revenue, up 24% QoQ and 152% YoY, and other Americas which reported $15 million revenue, up 25% QoQ and 145% YoY.

Field sales v/s Direct Sales: Revenues from the field sales channel stood at $129.4 million, accounting for 57% of the company’s total revenue in the quarter while the revenues from the online direct sales channel stood at $98.8 million, accounting for 43% of the company’s total revenue in the quarter.

Future Outlook: LinkedIn expect to register a revenue in the range of $235 million to $240 million and adjusted EBITDA in the range of $42 million to $45 million, for the third quarter of 2012. For the fiscal 2012, the company has revised its expected revenue range to $915 million to $925 million from prior range of $880 million to $900 million. The adjusted EBITDA has also been revised to $185 million to $190 million from the prior range of $170 million to $175 million.

Operational Highlights

– LinkedIn says it now has more than 175 million members, up from 161 million members in the previous quarter and 116 million members in Q2 2011. The company reported 106 million unique visitors and 9.3 billion page views for the quarter, as compared to 103 million uniques and 9.4 billion pageviews in the previous quarter and 82 million uniques and 7.1 billion pageviews in Q2 2011, according to comScore metrics. During the company’s conference call, LinkedIn CEO Jeff Weiner said that 62% of LinkedIn members are from International markets.

Launched a native iPad app during the quarter. The company says that the app was positively received, and claims that more than half of the page views on the app are being generated by content-focused products like LinkedIn updates, news and groups.

– Redesigned its flagship social news product LinkedIn Today with deeper integration into the homepage. The company claims that the engagement on LinkedIn Today has increased by 150% since the launch of these new features. Earlier this month, the company also rolled out a redesigned homepage with a new look and feel and a richer update stream. Weiner said that this launch has resulted in positive impact on a number of their key engagement metrics and the shares originating on LinkedIn such as status updates are now at all time high, although he didn’t reveal any specific figures.

Released Targeted Status Updates and Follower statistics to all organizations on LinkedIn with active Company profiles. LinkedIn claims to have more than two million organizations on the portal.

– Completed the rollout of talent pipeline to all LinkedIn Recruiter customers and the company says that its recruiter customers have already added more than one million prospective customers into the talent pipeline.

– LinkedIn acquired the professional content presentation platform SlideShare for $118.75 million in May 2012. This transaction included a combination of around 45% cash and 55% stock. LinkedIn stated that the company registered 131 million unique visitors including SlideShare in June, which indicates that SlideShare registered 25 million unique visitors in June.

– LinkedIn also suffered a data breach with around 6.5 million hashed and encrypted user account passwords stolen by hackers and published on an unauthorized website. However, the company took several steps including resetting the passwords of comprised accounts, putting an enhanced security measure in place by hashing and salting their current password databases among others, to remedy the situation. It also noted that no member information was published in the leak.

– LinkedIn announced a one-click integration for the next release of Microsoft Office and is currently working in collaboration with Microsoft to launch a new LinkedIn for Outlook application for the new Office app store.

– Twitter ended its partnership with LinkedIn, following which users will no longer be able to share their tweets on their profiles automatically.

– LinkedIn is now operating in 25 cities around the world and offers its products in 18 global languages.

Notes from Concall:

– Mobile Metrics: LinkedIn CEO Weiner stated that 23% of its unique visitors are now coming from mobile apps, up from 10% an year ago. If mobile visits to the website are also considered, this number increases to 27%. He also added that 15% of new member registrations are now coming on mobile, up from around 10% in the previous quarter.

– On Mobile Monetization: Weiner said that the company is also currently in the early stages of testing various forms of monetization on the mobile platform and they intend to develop revenue opportunities across its product range including hiring, marketing and premium subscriptions. It launched its first mobile monetization test in June, when it partnered with blue chip brands including Shell to run display ads on its iPad app. While he didn’t disclose any specific figures for the test, Weiner said that the early indications are positive.

– Publishers and Third Party Developers: Weiner said that more than 1 million unique publishers are using LinkedIn Share button to enable readers to share content through the LinkedIn Platform. He also added that more than 75,000 third-party developers are currently using LinkedIn APIs to build services, an increase from 60,000 in February.

– Partnerships: In the Hiring solution segment, Microsoft has signed a multi-year renewal deal with LinkedIn to get access to the latter’s Hiring Solutions product portfolio, including listings for all their open jobs. In the Marketing Solution segment, Citi has partnered with LinkedIn to launch a branded LinkedIn group featuring special curated content and moderated discussions. Weiner said that the group has 30,000 members within three months of its launch and it currently has one the highest engagement rates across any LinkedIn group.

– Employees: Weiner said that LinkedIn added 414 employees during the quarter and it currently has 2800 employees across the world. Going forward, they intends to hire more employees, specifically in R&D and sales division.

– Steve Sordello, LinkedIn SVP and CFO, stated that LinkedIn currently has 12,053 corporate solutions customers, up nearly 100% from last year. Also the open jobs listings was the highest in the past three quarters and registered 100% growth.

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