LinkedIn SHOCK: Social-for-Suits ISN'T a flash in the pan
Ads? They're OK, but there are other ways to make money
LinkedIn has once again proved that a social network can make money, just as long as it's got more than one way for the cash to roll in.
The network for professionals topped analysts' expectations for profit and revenue in the third quarter of 2012 as its advertising business continued to do very well and its job listings unit leapt forward.
LinkedIn made a big splash early on, but unlike firms such as Zynga and Facebook, the website has lived up to its early promise. It has repeatedly performed better than pundits expected since its IPO in May last year.
As well as connecting professionals, and showing them ads, the network gets a tidy bundle of cash from premium subscriptions, and just over half of its revenue comes from its recruitment business, which encourages companies to use the site to offer jobs and hire people.
LinkedIn said its revenue for the third quarter was $252m, up 81 per cent from the same quarter last year, while net income was $2.3m compared to a net loss of $1.6m the year before. The biggest boost to revenue came from its talent division, which nearly doubled its take from last year.
The company now expects its full-year revenues to be higher, landing somewhere between $939m and $944m instead of the $915m and $925m it previously forecast. ®