The commercial subscribe business of LinkedIn has contributed seven percent to the total income
Article by Yaly
Beijing time May 18 news, according to foreign media reports, as one of the first to market social media company, LinkedIn Corp. The value of commercial software maker is closer to Salesforce. Com Inc., while still relatively far from Facebook.
LinkedIn seven into income from the commercial subscription business (tencent technology figure captions)
The personage inside course of the social networking site LinkedIn and total Twitter, Facebook and the comparison rely mainly on advertising revenue profit. But LinkedIn 70% of the income but from commercial subscription business, from profit model point of view, that a little closer to Salesforce. SuccessFactors Inc. And com, NetSuite Inc. Business software maker. Venture Capital firms are main Partners having partneryou Brian Jacobs (Brian Jacobs) says, profit model and rapid growth mode makes LinkedIn than other commercial software manufacturers more appreciation potential.
Along with market demand for LinkedIn stock rise, this company in the near future in IPO twice already raised prices interval. On Tuesday, LinkedIn just IPO shares from a share to interval to to rise to per share. According to the latest shares the highest valuation calculated, LinkedIn will reach .25 billion, and its city pin rate (stock market capitalization rates) with annual sales also reached 11.3. At present the Salesforce. Com and Facebook respectively municipal pin rate with 13.8 8.3. City pin rate is lower, explain this company stock investment value is bigger.
Jacobs says: ?LinkedIn realized in business software and consumer software field. Once a product wins by millions of consumers, so the company stock is also under continuous boost.? SuccessFactors Salesforce and having is one of the early investors.
Software subscription service
Recently, represented by Facebook IPO social media companies have postponed to government regulation scope in areas other than the further growth of seeking corporate value. But in the upcoming IPO LinkedIn previously also several times of financing postponed its IPO pace, so some investors began eagerly seeking to buy the company stock.
However, in its LinkedIn several said in a statement released, the company?s most income from the ?software as a service? (software ? as ? a ? service, SaaS) business model, and non-traditional social media company survival advertising model. According to the American market research institutions, the statistics show that by aol software sales this year is expected to reach .7 billion year-on-year increase of 16%.
U.S. Tugboat wind is cast institutions Ventures founder Dave Walton (Dave Whorton) said: ?will LinkedIn as enterprise SaaS service provider of investors tend to hold the company shares. These investors to LinkedIn current and future development more forward-looking force.? SuccessFactors Tugboat Ventures is also one of the early investors.
Salesforce, NetSuite and include SuccessFactors SaaS service providers, including through the Internet to user sales subscription services. Salesforce is America?s biggest consumption management software provider. SuccessFactors basically provide online human resources management software, and NetSuite provides online financial software.
Social network enterprise valuations higher
Because of potential source of income mainly from hundreds of millions of users of online advertising market, so large such as Facebook and Twitter such social networking enterprise in the private equity market has higher valuations. At present, as the world?s largest social networking site, Facebook secondary market in private equity market SharesPost on has reached billion, and micro bo service provider valuations of Twitter has reached billion too.
LinkedIn Thursday will be listed for trading on the New York stock exchange transaction code for ?, LNKD ?. And its main trading operators, including Morgan Stanley, bank of America and jpmorgan chase the three investment institutions.
Create personal data on free started
LinkedIn users can on the site found work, hiring employees and mining industry professionals. Users can create personal data on LinkedIn for free, but the company since 2005 launched for users pay subscription services. Such paid service allows recruiters have access to more job seekers for business people, and provides the mutual communication ways.
In the first quarter of the year, the revenue for LinkedIn 9390 million us dollars, including nearly half the income from the company launched recruitment solutions business has a 30% from advertising business. Its first-quarter net profit rose 14 percent year-on-year to more 8.
Headquarters in palo alto, California, Ning Inc. The social networking site CEO Jason ? Rosenthal (Jason Rosenthal) says: ?in the near future, in the company of IPO LinkedIn is the most let investors expect one of the company. The company has established a revenue of 0 million for the main business of, and its business profitability and growth are maintained a very high level. So the market to give its high valuations also is not surprising.?
Analysts remains in question
However, some analysts or LinkedIn be questioned on. Assets research firm the analysts Ryan ? partneryou Wedge Ryan Hunter hunt (in this month 16 days writing the report says, even after 30 billion dollars on LinkedIn also exist the valuations of moisture.
Hunter says, LinkedIn high-quality subscription business and conflict between advertising business. In order to meet the demand, the company subscriber for advanced users may want to reduce the advertising, which will no doubt reducing its advertising revenue. And Facebook to the fierce competition in its bring could be forced to cancel LinkedIn and user collection of additional charges.
Hunt wrote. ?Facebook user interactivity to LinkedIn users far above. Once in his platform to Facebook for users to manage their exclusive and social networks more convenient way, so we expect market capitalisation of LinkedIn will quickly shrink.?
In the IPO process, LinkedIn will release 784 million shares, most financing 4.057 billion dollars. The money is to be mainly used for enterprise general expenses, such as operating funds, sales and marketing funds, general and administrative expenses, etc. In addition, the money also may be used for acquisitions or invest in new technology.
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