LinkedIn Revenue Up; Company Says Rate Increase Coming

Job board rev q3 2014The LinkedIn revenue juggernaut rolled on over the summer, growing by 45 percent, with recruitment accounting for the largest share of the $568 million the company brought in from July through the end of September.

Reporting its third quarter financial results after the U.S. markets closed this afternoon, LinkedIn said it earned 52 cents a share after excluding stock-based compensation. The consensus of Wall Street analysts was the adjusted earnings would be 39 cents a share. LinkedIn also beat its $557.49 million revenue forecast.

Taking into account the cost of the shares it gives employees as part of their compensation, LinkedIn lost $4.3 million, almost a million more than it reported in the third quarter 2013.

The company’s stock rose modestly in after-hours trading, after closing up on the day to $202.90.

LinkedIn also upped its forecast for the current quarter, predicting revenue between $600 million and $605 million, which works out to between $2.175 billion and $2.180 billion for the full year.

Recruitment revenue was $344.6 million, which is 61 percent of the company’s total revenue. For the same quarter last year, recruitment revenue was $237.7 million. By comparison, Monster brought in $393 million in the first half of this year. (Monster will report its third-quarter numbers next week.)

Talent solutions customers can expect a rate increase next year, which LinkedIn executives said would be in the “mid-single digits in most geographies.” CEO Jeff Weiner and CFO Steve Sardello said customers were being notified today of the increase.

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The company doesn’t expect to lose any significant number of customers as a result of the price increase, which will take effect for new customers and renewals after the first of the year.

Dice, the only other publicly held careers publisher to report so far, also showed increases in revenue and earnings per share.

Privately held CareerBuilder voluntarily reports only its North American revenue. However, a company official said CareerBuilder has discontinued releasing CareerBuilder Network revenue, which included revenue from CareerBuilder products sold by newspapers. These sales were previously included in the revenue number the company provided.

According to the official, “CareerBuilder Q3 North America revenue was $166M, up 5% from Q3’13, up 2% from Q2’14.”

John Zappe is the editor of and a contributing editor of John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.