LinkedIn reports 46% jump in Q1 revenue
LinkedIn, the professional social network, has reported a 46% jumped in first quarter revenue at $473 million. However, LinkedIn hit higher expenses and this hurt the earnings. LinkedIn’s revenue totaled $473.2 million in the latest quarter. LinkedIn saw a $13.4 million net loss attributable to common shareholders, compared to $22.6 million of net income in the year-earlier quarter. LinkedIn said its earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $116.7 million (25% of revenue) in the latest quarter compared to 26% in the year-earlier quarter.
LinkedIn is expecting revenues of $500 million to $505 million in the current quarter with an EBITDA of $118 million to $120 million. Analysts are predicting second quarter revenue of $505 million and EBITDA of $120 million. For the entire year, LinkedIn is expecting revenues of $2.06 billion to $2.08 billion along with EBITDA of $505 million to $510 million.
LinkedIn generates revenue from three sources: talent solutions, marketing subscriptions, and premium subscriptions. The fastest growing area was talent solutions with the latest quarter’s revenue rising 50% to $275.9 million. LinkedIn now has 25,000 recruiter accounts. LinkedIn CFO Steve Sordello said that the company remains committed to achieving a 30% EBITDA profit margin, which would be slightly up from the current 25% margin.