LinkedIn (NYSE:LNKD) Inc. has been a powerful force in the technology sector since its IPO, proving that it can monetize efficiently and maintain a loyal customer base. LinkedIn provides a networking solution for the professional side of people's lives, drawing a sharp contrast to the friends-and-family centered Facebook (NASDAQ:FB). LinkedIn has proved quarter after quarter that it is a relevant, even disruptive, social network that people continue to rely on and even pay money for.
On February 7th 2013 LinkedIn released its latest earnings report, yet again beating Wall Street estimates for several metrics.
- Revenue for Q4 2012 reached $303.6 million, increasing 81% from Q4 2011
- LinkedIn posted a profit of $11.5 million; $.10 earnings per share. This is a 66.6% increase from $6.9 million ($.06 EPS) one year prior
One of the most important numbers from the report is the growth of premium subscriptions. LinkedIn allows you to pay a fee in order to receive more ways to connect with people on the social network, as well as being able to check who looked at your profile. Revenue from premium subscriptions increased 79%, maintaining a steady 20% of the total revenue for the firm. LinkedIn also hit 202 million subscribers by the end of the year; a 39% gain from 2011.