Professional networking platform LinkedIn has been hit with a first-quarter loss of $US13.4m due to rising costs.
The loss hit LinkedIn’s stocks with a drop of 3.6% experienced in the hours after the numbers came out as investor’s frown-lines deepen over the higher costs and slowing revenue growth.
However, LinkedIn did generate $473m in the quarter, an increase of 46% compared to the first quarter of 2013.
Advertising is one of LinkedIn’s smallest revenue buckets, with marketing services accounting for 22%. Premium subscriptions account for 20% while recruitment is the largest driver, accounting for 58%.
Sponsored Updates accounted for 20% of the total ad sales, up from 13% in the fourth quarter.
LinkedIn’s membership grew 36% year-on-year and now stands at 300 million.
Warwick Business School Professor of Practice Mark Skilton said LinkedIn seems to be “treating the mobile trend as just another channel”.
"Its product development strategy is to continue to diversify from its social network base with the launch of a professional publishing platform and further data analytics to drive member behaviour,” Skilton said.
"Comparing this to the successes of Facebook, Snapchat and YouTube, who have paid specific attention to a strong mobile user interface design linked to their business monetization model, LinkedIn seems to be seeking to be a business repository of knowledge to retain its membership, but it’s not clear yet how this could leverage its community groups and career development to build further potential revenue.
"But LinkedIn has surpassed 300 million members, and its unique online social network with employment market services has created a high-margin business not reliant on advertising revenue means it is still a highly profitable stock option for investors long-term."
Please login with linkedin to comment
Verizon Media’s talent program has come to an end for the third year, closing with a hybrid pitch-off event for Musicians Making A Difference (MMAD). The Verizon Media Academy class of 2021, made up of 44 emerging leaders from across Australia and New Zealand media, advertising and marketing industry, were given just one hour to […]
Social purpose organisation UnLtd’s Big Games competition has raised a combined $85,000 for children and young people at risk. Running over five weeks, the competition involved 32 teams from across the advertising, marketing and media industries battling it out virtually for a chance to qualify for the Rocket League final. The tournament culminated in a […]
Stan has announced that the Stan Original Film Transfusion commenced filming in Sydney earlier this week and will premiere on Stan in 2022. Transfusion is a taut, muscular thriller starring Sam Worthington (Avatar) as Ryan Logan, a former Special Forces operative, who is battling to cope with life after the loss of his wife and is thrust […]
According to a decade of data collected by iStock, Australian brands turned to imagery depicting outdated gender stereotypes during the pandemic. Tracking the keyword ‘women’, iStock by Getty Images found that in 2020, ANZ brands and businesses reverted to gender stereotypes. Images of mothers home-schooling were used at almost twice the rate of images of […]
Schwartz Media is congratulating Maddison Connaughton on her three years as editor of The Saturday Paper. Connaughton has decided to finish up her editorship this month. “It’s been an honour to edit the paper,” Connaughton said. “The Saturday Paper is one of the brightest voices in Australian media and I have been happy to see […]
Research from EdBbirdie using Spotify data has identified the most popular songs to study to. After analysing thousands of studying and homework playlists on Spotify, American singer Olivia Rodrigo’s ‘drivers license’ came out as top song to study to. It featured on 48 study playlists, while other top songs included ‘Ophelia’ by The Lumineers, ‘Falling’ […]
Dayna Stewart is the Business Director – Digital Marketing, Media & Creative Services at The Nudge Group. Here, she discusses the challenges that come with building a successful marketing team when working remotely. Before COVID-19 changed the way businesses work, most marketing teams spent their days together in a meeting room collaborating on the next […]
The line-up for the 2021 iHeartRadio Music Festival has been announced as the legendary event returns live in Las Vegas in September. This year, the epic two-day lineup for the iHeartRadio Music Festival main stage will feature performances by Billie Eilish, Cheap Trick, Coldplay, Dua Lipa, Florida Georgia Line, Journey, Khalid, Lil Baby, Maroon 5, Nelly, […]
Shop! ANZ is calling on shopper and retail marketing professionals from all retail related disciplines to participate in the first ANZ Shopper and Retail Marketing Industry Survey in four years. This important research provides a guide of where the retail marketing industry in Australia and New Zealand has come from and what is anticipated to […]