LinkedIn Corp (LNKD) Growth To Be Driven By Students And China

Updated on

LinkedIn Corp (NYSE:LNKD)’s U.S. growth has started saturating. In Q4, 2013, the U.S. market accounted for 61% of its total revenue, down from 62% in the same period a year ago. So, the professional networking giant is looking for new growth avenues. LinkedIn CEO Jeff Weiner revealed the company’s strategic objectives at the Morgan Stanley 2014 Technology, Media and Telecom Conference. Morgan Stanley analyst Scott Devitt has an Overweight rating on the stock.

LinkedIn goes to China with local flavor

Weiner said that LinkedIn is adding rich media capabilities to user profiles. It will turn their profiles into living resumes by enabling users to index their coursework, content, and professional certifications along with their skills, background and relationships. LinkedIn is expanding its network to China. The company launched a Simplified Chinese version of its website under the name “Lingying” last week. The world’s most populous nation is estimated to have more than 140 million professionals, representing a great opportunity for the California-based company. However, dealing with China’s censorship and regulatory issues will not be a cakewalk. The Arora Report said yesterday that LinkedIn can easily generate about 15% of its annual revenue from China.

Meanwhile, Weiner said LinkedIn Corp (NYSE:LNKD)’s improved offering for students represents even bigger opportunity that China. The company estimates that it can attract about 180 million students in the future. LinkedIn’s four key knowledge assets, Pulse, SlideShare, Groups and Influencers, reach more than 80 million unique users every month. Jeff Weiner plans to open up publishing this year. That will boost content sharing and help increase user engagement.

Bright acquisition to help LinkedIn’s Talent Solutions revenues

LinkedIn Corp (NYSE:LNKD)’s Talent Solutions business has grown rapidly over the past few quarters. In Q4, 2013, Talent Solutions revenues soared a whopping 53% to $245.6 million. The acquisition of Bright will help it penetrate deeper into its customers’ hiring activity. Bright would help LinkedIn match right members to the right opportunities at the right time. As user engagement continues to grow, its Marketing Solutions customers can use Sponsored Updates to reach more readers.


For the next decade, Jeff Weiner said LinkedIn Corp (NYSE:LNKD) aims to create economic opportunities for every member of the international workforce.

LinkedIn Corp (NYSE:LNKD) shares rose 0.77% on Tuesday to close at $203.


Leave a Comment