Global Expansion Helps LinkedIn Surprise Street: CEO
LinkedIn is "in the very early stages of a large opportunity" to expand membership in the U.S. and around the world as uncertainty over getting and keeping a job continues.
Chief Executive Jeff Weiner told CNBC Friday the company will be able to do this by building on the publicity of its May initial public offering and offering new and expanded products and services in more countries.
LinkedIn surprised analysts by posting a quarterly profit, excluding items, of 4 cents a share. The Street was expecting a 3 cent loss. Revenue, particularly revenue from helping companies hire employees, surged. Weiner said membership was up 61 percent to 115.8 million from the second quarter of last year.
That number will increase, Weiner said: "We believe there are as many as 640 million professionals in the world and a workforce of 3.3 billion people. We’re going to continue to take full advantage of that."
Weiner called Friday's better-than-expected U.S. job report "encouraging" and "a step in the right direction, but there is so much more we need to do as a country." At the same time, he said, the last Job Openings and Labor Turnover Survey from the government showed that as many as three million jobs are available in the U.S.
"Job listings on LinkedIn have roughly tripled over the last year," he said. "We want to serve as a platform to provide those opportunities for people."
The company makes money through what he called hiring solutions, marketing solutions and premium products. The bulk of that business is from the U.S., but India is the company's second-largest market with more than 10 million members. Brazil is LinkedIn's fastest-growing country.
Weiner said 58 percent of membership is from overseas "yet 32 percent of our revenue is comprised of those international markets. So a big part of our investment…is expanding sales and marketing offices around the world."