LinkedIn Surprise Profit Bodes well for Google+

on August 04 2011 6:34 PM

Business focused social media network Linked In posted profits ahead of projections, likely easing fears that the company was overhyped after its hot IPO this year.

The company earned $4.5 million, or 4 cents per share during its second quarter, beating out projections calling for a loss of 4 cents per share on $104.5 million in revenue.

"In the second quarter, we saw record levels of members, unique visitors, and page views, while revenue growth further accelerated," said Jeff Weiner, CEO of LinkedIn. "Going forward, we plan to continue to invest in our team, technology, and products in order to increase the value we deliver to members and realize the full potential of the LinkedIn platform."

The results injected enthusiasm into the stock, sending shares up by $7.46, or nearly 8 percent to $102.98 in extended trading on the New York Stock Exchange.

The results mark the first time the company has reported since going public in May this year. The company shares immediately doubled from their IPO price of $45 and have hovered around there ever since.

It's also the most money the company has made in any three-period so far in its 8-year history.

Competitors

Currently LinkedIn is the broadest most recognized network for business. It increased the number of members by  61 percent to 116 million during the second quarter, showing a healthy demand for business social networking.

But the news could also bode well for competitors looking to enter the space that LinkedIn has already proven.

Google+, the search-giant's social network, has seen a meteoric rise, garnering over 10 million users just two weeks into its inception. But it also hinted that it will created an offshoot of the service geared specifically for professionals, saying its service would be "amazing" for business.

It created such a buzz that the social-network king, Facebook, made its own announcement of a professional based product of its own, shortly after.

"Facebook for Business" teaches companies how to use the site's "powerful marketing tools" to create a Facebook Page, build relationships with members of the Facebook community, and use Facebook Ads and Sponsored Stories.

While not necessarily being new as businesses already use Facebook, the announcement instead highlighted how businesses could further take advantage of Facebook.

 

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