Professional networking site, LinkedIn, has reported a net income of $2.3 million for the third quarter ended September 30, 2012, a significant improvement from $1.6 million loss during the corresponding quarter last year.
The company posted a total revenue of $252 million during the quarter, up 81% from $139.5 million during the corresponding quarter last year. The adjusted EBITDA stood at $56 million, or 22% of total revenues in Q3 2012, in comparison to $24.7 million for the third quarter of 2011, or 18% of total revenues in Q3 2011, while the GAAP earnings per share (EPS) was at $0.02 and the non-GAAP earnings per share was at $0.22.
– Talent Solutions: The revenue from talent solutions (previously called Hiring Solutions) stood at $138.4 million for the quarter, a 95% increase from $71 million revenues in the same quarter last year. Hiring solutions accounted for 55% of the company’s total revenues in the quarter, an increase from 51% in Q3 2011.
– Marketing Solutions: The revenue from Marketing Solutions stood at $64 million for the quarter, a 60% increase from $40.1 million revenues in the same quarter last year. Marketing solutions accounted for 25% of the company’s total revenues in the quarter, down from 29% in Q3 2011.
– Premium Subscriptions: The revenue from Premium Subscriptions stood at $49.6 million for the quarter, a 74% increase from $28.1 million revenues in the same quarter last year. Premium subscriptions accounted for 20% of the company’s total revenues in the quarter, as compared to 20% in Q3 2011.
– US vs International Revenues: Revenues from the United States stood at $162.4 million for the quarter, accounting for 64% of the company’s total revenues in Q3 2012 while the revenues from International markets stood at $89.7 million for the quarter, accounting for 36% of the company’s total revenue in Q3 2012.
– Revenues Across Geographies: Revenue from International markets include revenues from the Europe, the Middle East and Africa (EMEA) regions which reported $54.5 million revenue, up 9% QoQ and 89% YoY, the Asia-Pacific region (APAC) which reported $18 million revenue, up 13% QoQ and 108% YoY, and other Americas which reported $17.1 million revenue, up 14% QoQ and 117% YoY.
– Field sales v/s Direct Sales: Revenues from the field sales channel stood at $143.2 million for the quarter, accounting for 57% of the company’s total revenue in Q3 2012 while the revenues from the online direct sales channel stood at $108.9 million, accounting for of the company’s total revenue in Q3 2012.
– Corporate Solution Customers: LinkedIn has 13,784 corporate solution customers, up 14% from 12,053 customers in the previous quarter and up 87% YoY from 7,366 customers in Q3 2011.
Future Outlook: LinkedIn expects to register a revenue in the range of $270 million to $275 million and adjusted EBITDA in the range of $58 million to $60 million, for the fourth quarter of 2012. For the fiscal 2012, the company has revised its expected revenue range to $939 million to $944 million from prior range of $915 million to $925 million. The adjusted EBITDA has also been revised to $202 million to $204 million from the prior range of $185 million to $190 million.
– LinkedIn says it now has more than 187 million members, up 8% from 175 million members in the previous quarter and up 43% from 131 million members in Q3 2011. The company reported 110 million unique visitors and 8.9 billion page views for the quarter, as compared to 106 million uniques and 9.3 billion pageviews in the previous quarter and 88 million uniques and 7.6 billion pageviews in Q3 2011, according to comScore metrics.
– Released a simpler redesign of the homepage in a bid to deliver more social and relevant experience to its members. The company claims that its homepage traffic has increased by 60% since launch.
– Introduced Notifications, which alerts members of relevant activity on the portal. This includes likes, profile views, and accepting invitations among others. The company claims that it has recorded a record number of likes and shares and the comments have increased by four times since June, due to the introduction of Notifications along with the new homepage.
– Launched Endorsements, which allows members to endorse their colleagues for specific skills. The company claims that members have generated more than 200 million endorsements to their colleagues since its introduction in September. It also added that members editing their profiles have more than doubled year-on-year (YoY).
– Revamped Company Pages, which now enables companies to engage with audiences valuable to them. The company noted that it has rolled out the new Company pages to more than 2.6 million organizations with an active company profile on LinkedIn.
– Unveiled new Profile pages and made enhancements to its content ecosystem, including the ability to follow thought leaders on LinkedIn, and the ability for those leaders to publish longform content on the portal. The company claimed to have more than 150 thought leaders on the portal including the likes of Richard Branson, Deepak Chopra, President Barack Obama, and Governor Mitt Romney among others at launch. During the company’s conference call, LinkedIn CEO Jeff Weiner said that Richard Branson is now being followed by more than 700,000 members, with his first longform post generating 14,000 likes, 36,000 shares and 5,900 comments.
Notes from Concall:
– Site Metrics: LinkedIn CEO Jeff Weiner stated that LinkedIn along with SlideShare registered 143 million unique visitors in September 2012 and is currently the 25th most visited web property globally, citing comScore metrics. He also added that the company currently has 1.3 million third party publishers, which allow members to share content through the LinkedIn platform, up from 1 million publishers in the previous quarter.
– Member Signups: Weiner said that the LinkedIn is registering 2 member signups per second. Adding to this, Steve Sordello, LinkedIn CFO stated that India and Brazil are the two largest non-US markets for the company, although he didn’t reveal the exact member count in both the regions. For context, LinkedIn had touched the 15 million member mark in India in May 2012 and the 10 million member mark in Brazil in October 2012.
– Product Localization: Weiner said that product localization continues to be a strong driver of its member growth. He added that LinkedIn has added support for six new languages to its iPad app during the quarter and the desktop site is now available in 19 languages.
– Impact of International Markets: Weiner said that International markets accounted for 70% of the new member additions during the quarter and 63% of LinkedIn members are from international markets. The company is now operating in 26 cities globally, including the recently launched Dubai office, which was the company’s first office in the Middle East and North African region.
– Recruiter Platform Improvements: Weiner said that the company has released several improvements to its recruiter platform at its annual Talent Connect conference. It introduced Sponsored jobs which allows companies to promote job listings and LinkedIn Talent Brand Index which allows LinkedIn customers to measure, benchmark and improve their talent brands. The company also rebranded its Hiring Solutions product as Talent Solutions, in a bid to better reflect the product value to their customers as a product which goes beyond sourcing and hiring.
– Mobile Metrics & Monetization: Weiner said that an average of 25% of its unique visitors are now coming from the mobile platform, up from 13% an year ago. Speaking on the company’s plans to monetize this platform, Weiner stated that they have started showing job listings in their mobile apps and have started allowing members to sign up for premium subscriptions right from their mobile devices. He also mentioned that they are continuing to test display ads on its iPad app.
– Employees: Weiner stated that Linkedin currently has 3,100 employees across the world, up from 2,800 employees in the previous quarter.