I have written many times before about how LinkedIn has about the best social media business model I know. Rather than advertising or search, it is based on corporate subscriptions paid by ‘recruiters’. The data they pay for is provided enthusiastically – and for free – by everyone who might just possibly desire a new job. Ie most people of working age and now numbering some 200m.
Tonight LinkedIn’s Q4 figures blew the market away. Revenues were up 81% (yoy) at $303.6m with profits (yep, they make real profits too!) up 67% at $11.5m.
All this led to a 10% surge in LinkedIn’s share price after hours. LinkedIn IPOed in May 11 at $45. Tonight they were trading at $136.7.
Just shows what you can do by connecting the latest social media technology with a well-established business model (subscriptions are as old as the hills), a good product and a ready market