Linkedin Case Study

Net Sales – totaled $4,485,000.00 for year 6, and grew +33.3% or $1,495,000.00 between years 6 to 7.

The company recorded revenues of $25,003 million during the financial year ended January 2011, an increase of 6.4% over Fiscal Year 2010. The operating

1. What set of assumptions underlie the $9 billion market valuation of LinkedIn as of the end of July 7, 2011. What is your assessment of those assumptions? Note that, based on the first seven weeks of trading for LinkedIn’s stocks, its estimated beta is 1.5.

Through their websites, many other companies are incorporating Social Media. Alone in 2010 there have been 2.5 million websites of companies that have incorporated themselves with Facebook. And now so many more companies are also choosing LinkedIn to employee the most brilliant people. The “fastest

The stock price went from $34 at the beginning of the 2010 fiscal year to $46 dollars in April largely

* Membership grew by an average of 30% each year, breaching 1,000 members in 1997, then 3,000 members in 2004.

As years progress, technology makes it possible for individuals, organization and companies the capability to create mobile apps and dynamic websites from home. These mobile apps and dynamic websites in turn simplify our lives in ways we could never imagine before. One of the most commonly used inventions, which can still be considered fairly new, are social networks. Social networks give people around the world the ability to communicate, stay in touch and meet new people online at the convenience of their own time. Many social networks were developed within the past few years but few if any target professionals only. LinkedIn gives a twist to social networking by focusing only on people in professional occupations that would like to

Sales took the most percentage of total revenue. The revenue of sales increased gradually from $ 214,934 (in thousands) in 2010 to $ 260,832 in 2012 while the figure of royalties reduced gradually from $ 873 in 2010 to $ 681 in 2012 (in thousands). The revenue of other income increased from $ 1,286 to $ 1,325 during this period and then the figure decreased dramatically to $ 533 in the financial year 2012. In addition, in the financial year 2012, a new resource of revenue called membership was developed with the figure of $54.

1. How does Facebook make money? What are the value drivers of its business? What is its comparative advantage relative to other social networking companies?

LinkedIn is a website specifically established for the professionals all around the world to network. The website allows people to search for business contacts, manage their professional identity, research firms, join industry groups and identify desired career opportunities. This website is also being leveraged by the brands and recruiters and many corporate profiles have been established on LinkedIn to recruit candidates and develop a pool of potential candidates through networking (Lewis, 2012).

controlled 37 percent of its market with revenue of about $1.2 million. Immediately after the

LinkedIn was started by Reid Hoffman in 2002. LinkedIn is about helping customers be more

This paper addresses LinkedIn Corporation. This article explains how Linked in business model works. It describes the form of business LinkedIn is, services it provides, its market position, how the business operates, channels of distribution, the company’s management and present and future company’s sources and uses of funds.

Their third line of business is marketing solutions, which brings in 26% of their revenue. This business segment has shown a 4% decrease from the prior year. Any organization can purchase packages for advertising space on LinkedIn.com, and can target those ads to specific groups. LinkedIn clients and members include: individuals from a wide range of industries, students, recent graduates, large corporations, small- and medium-sized businesses, educational institutions, government agencies, and non-profit organizations. (SEE APPENDIX B)

The company’s revenue grew up $74 million, as at 3.3%, in 2011 compared to the year 2010.