The world’s largest professional network on the Internet, LinkedIn Corporation yesterday declared its third quarter financial results for 2013. The network that has more than 259 million members reported that the company has witnessed an increase in revenue by 56 percent to $393.0 million compared to $252.0 million in the third quarter of 2012.
The company which saw revenue increase of 59 percent to $363.7 million from $228.2 million in Q2 2012 also reported that Net loss for the third quarter was $3.4 million, compared to net income of $2.3 million for the third quarter of 2012. Non-GAAP net income for the third quarter was $46.8 million, compared to $25.1 million for the third quarter of 2012.
The other financial details of Q3 2013
1. Revenue from Marketing Solutions products totaled $88.5 million, an increase of 38% compared to the third quarter of 2012. Marketing Solutions revenue represented 23% of total revenue in the third quarter of 2013, compared to 25% in the third quarter of 2012.
2. Revenue from Premium Subscriptions products totaled $79.8 million, an increase of 61% compared to the third quarter of 2012. Premium Subscriptions represented 20% of total revenue in the third quarter of 2013 and 2012.
3. Revenue from Talent Solutions products totaled $224.7 million, an increase of 62% compared to the third quarter of 2012. Talent Solutions revenue represented 57% of total revenue in the third quarter of 2013, compared to 55% in the third quarter of 2012.
4. Revenue from the U.S. totaled $245.3 million, and represented 62% of total revenue in the third quarter of 2013. Revenue from international markets totaled $147.7 million, and represented 38% of total revenue in the third quarter of 2013.
User growth and mobile push
In the third quarter LinkedIn which surpassed 259 million members indicated increased growth to 38% year-over-year, and members engaged at record levels across desktop and mobile devices. The recently launched University Pages found a great response with over 1,500 University Pages created in more than 60 countries.
The recent mobile push by the network also is a part of the third quarter highlights. Recently the company had shared that mobile accounted for 38% of unique visiting members. In some markets, it has eclipsed 50% and members who use LinkedIn on mobile and desktop are 2.5 times more active than those that use desktop only.
To make the mobile push more strong, the company introduced LinkedIn Intro an integration adding LinkedIn and Rapportive info to the iOS Mail app, and iPad app. Right now Intro works with Gmail, Yahoo Mail, Aol Mail, iCloud, and Google Apps. It also completely reinvented the iPad app with a fresh, new visual design, a personalized experience, and new functionality like search, jobs, channels, and influencers that shine on the tablet.
At the same time, it made Pulse – the news aggregation and news reading app which LinkedIn had acquired for an approx $90 million in the second quarter of 2013 – as the “content brand” for LinkedIn.
LinkedIn definitely had a strong quarter but its lower-than-expected stated expectations for its year-end quarter have unnerved investors. For the fourth quarter LinkedIn reported revenue guidance of $415 million to $420 million. Investors had forecasted a figure of around $20 million more. It would be interesting to see how LinkedIn fares in the fourth quarter at a time when the investors are expecting the company to perform better.
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