Feeds

LinkedIn shows webtastic social media firms how it's done

Actual profits

Build a business case: developing custom apps

LinkedIn stuck its tongue out at all its social media rivals with better-than-expected revenue and a tidy profit for the second quarter.

While web firms like Facebook, Groupon and Zynga have seen their stocks tumble amid mounting losses and growing concern over how they will continue to grow revenue, LinkedIn's net profit of $2.8m and its higher revenue forecast for the year have pushed shares up 8 per cent in pre-market trading.

Revenue at the professional network grew 89 per cent from the same quarter last year to $228.2m, more than the average analyst forecast tallied by Thomson Reuters I/B/E/S of $216.3m. LinkedIn now thinks it will have full year revenue of between $915m and $925m instead of $880m to $900m.

LinkedIn's ways of making money from its users are more diverse from the social networks like Facebook. The business network runs subscription services and has proven popular with professionals who want to make contacts and look for jobs. Hiring Solutions, the jobs unit at the network, bagged just under half of the revenue for the firm.

LinkedIn's IPO was the one that set the bar for social networks going public, bursting onto the market in 2011 with a $45 a share offering that almost immediately doubled. While there have been peaks and troughs since that, the shares have never gone gotten close to the opening price, $63 has been the lowest they've sunk.

The hotly anticipated Facebook IPO a year later saw the shares open slightly higher than the asking price of $38, briefly hitting $45 before sliding under the initial offering. Since then, the network's stocks have continued to suffer, making the idea that the Nasdaq's tech issues on the day were entirely to blame for the fall a bit unlikely.

Facebook's first-ever earnings report in July didn't make investors feel any better either. Although revenue grew a healthy 32 per cent from the previous quarter, it showed a slowdown from growth of 100 per cent in that quarter from 2010. The social network also failed to make a profit, posting a loss of $157m, and the shares are currently trading at around $20. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.