Professional networking site LinkedIn today posted 89 per cent rise in revenue to $228.2 million during the second quarter this year, while its net profit dipped 37.7 per cent.

Revenues for the April-June quarter of 2011 were $121 million.

The sharp rise in revenues is mainly on account of the higher inflow from recruitment services and its subscribers, LinkedIn said in a statement.

Net profit of the company slid, however, to $2.8 million in Q2 this year, compared to $4.5 million in the year-ago period, it said.

“LinkedIn had a strong second quarter with all of our key operating and financial metrics showing solid performance,” LinkedIn CEO Jeff Weiner said.

The better-than expected growth came amid investors turning cautious on leading Internet companies such as Facebook, Groupon and Zynga.

Revenue from all its three segments — hiring solutions, marketing solutions and premium subscriptions — rose during the quarter.

“Our ongoing investment in product innovation drove healthy engagement as measured by unique visiting members and member page views, and our three revenue streams all experienced significant growth,” Weiner added.

Revenue from hiring solutions products more than doubled to $121.6 million, as compared to the second quarter of 2011. Revenue from marketing solutions products increased 64 per cent to $ 63.1 million.

Revenue from premium subscriptions products totalled $43.5 million, an increase of 82 per cent compared to the second quarter of 2011 and represented 19 per cent of total revenue in the second quarter of 2012, LinkedIn said.

“Strong performance across our three product lines drove record levels of revenue and adjusted EBITDA,” LinkedIn CFO Steve Sordello said.

Revenue from the US was $147.3 million, 65 per cent of total in the second quarter of 2012, while revenue from international markets was $ 81 million.

“As we continue to invest aggressively in technology, product, and our businesses, we remain focused on achieving our long-term goals,” Sordello added.

The company has revised upwards the revenue guidance for the third quarter in the range of $235 million to $240 million.

Full-year guidance of LinkedIn now stands revised upwards in the range of $915 million to $925 million, from the earlier range of $880 million to $900 million.

Headquartered in the Silicon Valley, LinkedIn has more than 175 million members worldwide.

(This article was published on August 3, 2012)
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