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LinkedIn bleeds at net level
MUMBAI: LinkedIn, the largest global professional network, has seen its revenues surge 46 per cent to$473.2 million in the first quarter ended 31 March 2014.
However, the good news ends at topline. Because high revenue does not guarantee a fat bottom line, as was found out by the company.
The company reported net loss of $13.4 million, compared to net income of $22.6 million in the same quarter the previous year.
On an adjusted basis, net income declined to $47.3 million from $52.4 million last year.
LinkedIn said its adjusted EBITDA for Q1 was $116.7 million or 25 per cent of the revenue, compared to $83.4 million or 26 per cent of the revenue in the prior year.
“The first quarter was strong for LinkedIn in terms of our member engagement and financial results,” said Jeff Weiner, CEO of LinkedIn. “We made significant progress against several strategic priorities including expanding internationally with our China launch, extending our shift to content marketing, and furthering our goal to make LinkedIn the definitive professional publishing platform by giving members the ability to publish long-form content,” he added.
LinkedIn’s revenue from the talent solutions products in first quarter rose 50 per cent to $275.9 million, while the marketing solutions products revenues increased 36 per cent to $101.8 million.
It witnessed growth in its premium subscriptions as the revenues from this segment increased 46 per cent to $95.5 million.
About 60 per cent of the total revenues are generated from the US markets. International markets contribute the rest.
During the first quarter, LinkedIn opened its professional publishing platform, which enables its members to publish long-form content.
“Strong first quarter financial results were driven by sustained investment, resulting in healthy member trends and balanced growth across our three diverse product lines,” said Steve Sordello, CFO of LinkedIn.
LinkedIn, founded in 2003, is a professional network with over 300 million members worldwide. As of February this year, LinkedIn has more than 24 million members in India. This accounts for almost half (48 per cent) of LinkedIn’s Asia Pacific (APAC) member base of more than 50 million.
The company is headquartered in Silicon Valley and has offices across the globe, including in India.