LinkedIn's bombshell IPO in May left a lot of investment analysts scratching their heads. On one hand, the company's steller reception at the stock market seemed too good to be true. Surely it was the sign of a new tech bubble floating on the fantastic, unfounded dreams of social media's profit potential. On the other hand, the revenue figures looked pretty good. Based Thursday's earnings report, the first that LinkedIn has released since going public, those figures look really good -- revenue has doubled, profits are up -- and critics are rethinking that bubble talk.
The social network for professionals saw a 120 percent jump in revenue from $54.9 million last year to $121 million this year. Profits rose to $4.5 million, a small jump from last year's $4.3 million. Traffic to the site also grew with a hearty 83 percent increase in unique visitors. LinkedIn's CEO Jeff Weiner says he plans to keep growing. "Going forward, we plan to continue to invest in our team, technology, and products in order to increase the value we deliver to members and realize the full potential of the LinkedIn platform," said Weiner.
LinkedIn makes money a little differently than other social media sites. There are basically three revenue streams: Hiring Solutions, Marketing Solutions and Premium Subscriptions. All three of these products thrive at time when lots of people are looking for work and even more so when companies are hiring and willing to pay for help with the process.