LinkedIn's Impressive Revenue Growth

Thus far 2012 has been a great year for LinkedIn. Backed by solid first quarter results, the company avoided the turbulences that Facebook’s IPO disaster inflicted on many other internet companies. Analysts and investors appear to have little doubt about the future viability of LinkedIn’s business. Unlike many other internet companies, LinkedIn has no trouble converting its user growth into dollars. While others struggle to generate one decent revenue stream, LinkedIn has three ways of monetizing its service. The company earns money from recruitment services, advertising and subscriptions, accounting for 50, 30 and 20 percent of third quarter revenue.

With net earnings of $11.9 million on total revenue of $252 million, LinkedIn reported impressive third quarter earnings on November 1, putting the company on track to reach the $1 billion milestone in 2013. LinkedIn now has 187 million users, making it one of the largest social networking platform behind Facebook and Twitter. LinkedIn’s stock closed at $106.85 on November 1, up 67 percent since January.