Saturday, February 9, 2013
LinkedIn Stock Jumps 10% After Q4 Revenue Tops $300 Million
LinkedIn proved once again why it is Wall Street's favorite social media stock.
The company reported revenue of $304 million for the December quarter, a whopping 81% increase from the same quarter the year before and well ahead of Wall Street's consensus estimate for revenue of $278 million.
Much of the revenue growth came from a strong increase in sales of LinkedIn's talent solutions products for recruiters and businesses. Revenue from this segment nearly doubled from the year-ago quarter to $161 million. Revenue from premium subscription products also increased by nearly 80% to just under $60 million for the quarter.
All of this helped LinkedIn to come close to having its first billion-dollar year. The company reported revenue of $972.3 million for 2012, compared to $522 million in 2011.
While other Internet companies like Facebook and Twitter rushed to put revenue-generation strategies in place in 2012, LinkedIn showed steady growth from the business model it already had in place of providing job hunters, recruiters and businesses with premium paid tools.
LinkedIn's stock shot up by as much as 11% in after hours trading following the earnings report.
By Seth Fiegermenn
Image courtesy of Flickr, nan palmero