Last week I wrote a post about how LinkedIn might be having an identity crisis. That was based purely on my own speculation and the rumor mill as I have never had an opportunity to receive a briefing from them regarding their vision.
My good friend Linda Brenner sent me an email this morning with a link to this article which I think spells it out pretty clearly.
The article was posted on Business Insider and here is the lead in:
Just before Thanksgiving -- i.e. when most of us weren't paying attention -- Linkedin published a new slideshow presentation for investors, updating them on the company's progress.
There were some interesting surprises:
- More than two people join Linkedin every second;
- more than 180,000 web publishers now use Linkedin's "Share" button;
- and the company intends to become the de facto replacement for that resume you keep updated on your desktop.
Click here for highlights from the rest of Linkedin's PowerPoint show»
You should definitely click through and check out the highlights from the slide deck. After looking it over, here are my observations.
- Clearly LinkedIn has demonstrated the ability to consistently grow revenue with 2011 Q3 revenues topping $139 million more than double from Q3 last year.
- I think it is safe to expect this growth to continue. I still think they are just getting started, and they have increased the Sales and Marketing staff from 493 to 705 since the IPO in Q1.
- Membership continues to grow at a good pace (2 per second is not bad), and the opportunity for growth is significant - particularly internationally.
- They definitively state the objective to corner the market on the professional resume. And even though there may be some exclusive aspects to their partnership with 4 of the big TM vendors, I am seeing "Login with LinkedIn Profile" everywhere. This will solidify existing members and ensure the continued growth.
- The most important piece for me is depicted on the slide below. Revenue from Hiring Solutions accounts for less than 1/2 of total revenue, with Marketing and Premium Membership making up about $220 million. It's good to see this diversification, while hiring solutions is an important component, the opportunity is so much more. I would personally like to see more features for premium membership that has nothing to do with jobs/careers.
While for me this is good news, the stock has certainly taken a beating lately, partly due to the perception of over valuation and part due to the exit of some early investors. But if anyone tries to tell you they know where all this is going, don't believe them.
This is about trail blazing and as long as you are in a hot market, all you have to do is make good decisions. LinkedIn is in the markets of Professional Talent, Information, and Knowledge Sharing - how much hotter can you get?