Linkedn’s climb continued, with last week’s quarterly results showing accelerated member growth and engagement. Net income jumped 34 percent to $3.7 million. or 3 cents per share, up from $2.8 million a year before. Excluding one time charges, earnings would have been 38 cents per share, which beat analysts’ estimates of 31 cents per share on earnings of $354.3 million.
Linkedin introduced a number of new products, including “contacts,” an address book that users can access on their smartphones. Linkedin also expanded the profile tools recently, allowing users to add rich media — video, images, and presentations — to profiles. This is certainly one of the reasons that usage rates are up.
The revenue from Linkedin talent services climbed 69 percent over the past year, to $205.1 million, with marketing solutions up 36 percent to $85.6 million and subscription revenue up 68 percent to $73 million. LinkedIn’s efforts to increase its primacy at the center of the professional jobs market seem to be working well, as is its push to grow advertising and to charge for premium services.
One interesting fact that jumps out from other trends: The company is still seeing strong growth on desktop PCs. Perhaps that is related to the company’s efforts to become a media destination, with “luminaries” like Bill Gates and Japanese Prime Minister Shinzo Abe publishing there. Unique visitors rose 45 percent over the previous year, and page views were up 35 percent.
Linkedin has had an enviable run, with nine straight quarters of growth, but the company has revised its projections downward for the next quarter, to between $367 and $373 million, down from $383.9 million. Of course, it is not just Linkedin features that are fueling this growth but the demographics of social networks: The Pew Internet project reported today that 72 percent of U.S. adults are using social networking sites and that the fastest adoption is among older people. This is a rising sea, raising all boats.
It’s been some time since I have spent any real time at Linkedin, and I think I need to take a deeper look. Facebook’s recent numbers were also very positive, but they really reflected cracking the code on mobile. Here we see Linkedin motoring along, continuing to make serious money with an apparently world-beating business model. More to follow.