LinkedIn’s launch into China and focus on new products resulted in a strong fourth quarter and solid year overall.
The professional social-networking service reported revenue for the fourth quarter of 2014 was $643 million, up 44% over the fourth quarter of 2013. Total revenue for the year reached $2.22 billion, up 45% the previous year’s $1.53 billion.
LinkedIn CEO Jeff Weiner described the year as marked by steady member growth and positive financial results.
The company made “significant progress against a number of multi-year, strategic initiatives including mobile, jobs, content, and global expansion,” he said in a news release.
Based in Mountain View, Calif., the company exceeded projections for the quarter, with profit at 61 cents a share. Analysts had estimated profits at 53 cents a share and revenue at $617 million.
Net income, however, fell as LinkedIn continued to invest in new areas, declining to $3.1 million for the quarter from $3.78 million a year earlier.
LinkedIn attributed strong financial results to several factors. LinkedIn expanded the scale and relevance of its job listings, reaching 3 million active job listings, or 10 times more than last year. LinkedIn also expanded its professional publishing platform to allow members to create more content on the site.
Increasing its global reach also significantly helped LinkedIn’s bottom line. Since its launch in China last year, LinkedIn has doubled its membership there to more than 8 million. About 70% of LinkedIn’s members are now from outside the United States.
LinkedIn’s three business segments all reported growth. Talent Solutions, a service in which recruiters and corporations pay LinkedIn for premium features to connect with potential candidates, totaled $369 million in revenue, up 41% from the fourth quarter of 2013. The service’s revenue represented 57% of total revenue for the quarter.
Revenue from Marketing Solutions, which provides tools to help companies market to other firms, rose 56% to $153 million, accounting 24% of total revenue. Revenue from premium subscriptions increased 38% to $121 million, accounting for 19% of total revenue.
LinkedIn was launched in 2003 and became publically traded on the New York Stock Exchange in 2011. Available in 23 languages, LinkedIn has more than 300 million members worldwide and employs about 6,800 people in 30 cities around the globe.
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