The jump in revenue is on the back of new marketing services and features for brands, including better targeting and analytics.
During the recent launch of LinkedIn's Hong Kong office
, Arvind Rajan, vice-president and managing director of LinkedIn Asia-Pacific and Japan, highlighted LinkedIn's users as high-net-worth consumers who are highly desirable to marketers. “Because users view LinkedIn as a professional site, they are in a work-friendly frame of mind when they’re using it," Rajan said. "This makes them more receptive to approaches from B2B firms, and we’re increasingly finding that B2C brands targeting this consumer group are getting results."
LinkedIn's total revenue in the first quarter was US$188.5 million, more than double its revenue in the same period in 2011. This represents the network's seventh straight quarter of greater than 100 per cent growth on a year-on-year basis. Net income for the quarter also more than doubled year-on-year, to US$5 million from US$2.1 million.
"LinkedIn’s solid performance in the first quarter was built on the company’s momentum in 2011. We also saw strength across all key metrics from member signups and engagement to significant revenue growth across our three product lines," noted LinkedIn's CEO, Jeff Weiner
In addition to marketing solutions, LinkedIn's revenue streams are hiring solutions, which allows companies to post jobs, search for and engage with potential candidates; and premium subscriptions.
Hiring solutions, LinkedIn's strongest product offering, grew 121 per cent to US$102.6 million. This service represents more than half (54 per cent) of the company's total revenue, an increase from 49 per cent in 1Q2011.
Revenue from premium subscriptions products totaled US$37.9 million, an increase of 91 per cent compared to 1Q2011. This revenue stream represents 20 per cent of LinkedIn's revenue in the first quarter.