LinkedIn has announced solid second results amid an influx of new members and a surge in the sale of recruitment products.
Revenue for the social networking site jumped 59% as it reached $363.7m, a figure significantly higher than the forecasted $354m.
The social networking site is popular among business users and as such its bread and butter is currently its recruitment products, with digital marketing professionals using the services for head hunting and researching potential recruits. So popular are these products in fact, that figures were up 69% – with a total generated revenue of $205m.
LinkedIn chief financial officer, Steve Sordello, said: “We’re shifting focus away from one-off, larger custom deals to this more predictable, scalable model.”
The number of members on the social networking site soared by 37% on last year. There are now more than 238 million members on LinkedIn, a nine per cent rise since its first quarter figures.
Advertising sales grew by a similar percentage, 36%, generating a total of $85.6m and as the site continues to use sponsored ads and develop its mobile site, it is optimistic the revenue generated from advertising sales will continue to increase.
LinkedIn chief executive, Jeff Weiner, realised the importance of mobile to the development of his firm.
He said: “We have seen significant gains on the mobile side when compared versus desktop and that’s very consistent with what we’re seeing and hearing industry-wide.
“Content marketing within mobile has proven to be an effective form of marketing.”
LinkedIn has actually surpassed expectations for nine quarters in a row since it went public back in mid 2011, however the firm’s guidance for the third quarter, ranging between $367m and $373m, is below the consensus of $383m so only time will tell if the social networking site can continue the trend for a tenth consecutive quarter.
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