LinkedIn Buys Analytics Company Bright Media Corp. to Spur Growth
As growth slows across all three of LinkedIn’s businesses, the company is attempting to expand its revenue base by reaching overseas workers, adding mobile features, and making business acquisitions. Toward the latter, LinkedIn has announced that is has purchased Bright Media Corp., an analytics company that specializes in matching candidates with employers. The buying prices were about $120 million in cash and stocks.
Revenue for Q1 2014 is expected to increase by about 40 percent, down from 72 percent growth over the year. Membership also continues to climb but at a slower pace. Site membership rose 37 percent to 277 million up from 202 million one year ago when growth was at 39 percent. Talent solutions sales, LinkedIn’s primary business, rose 53 percent to $245.6 million, compared to a growth rate of 90 percent during the same period in 2013. Revenue growth in LinkedIn’s marketing solutions division fell from 68 percent to 36 percent over the year and premium subscriptions increased revenue by 48 percent, down from 79 percent during Q1 2013.
Internationally, LinkedIn’s sales rose 54 percent to $176.1 million accounting for 39 percent revenue, up 1 percent over the year. Primary international competitors include Viadeo in France and Xing in Germany. The company is expecting to establish a joint venture in China as a way to break open the Chinese market, which is a key piece in LinkedIn’s growth strategy for 2014 and beyond. The company already has four million members in the country where almost 20 percent of the world’s knowledge workers and students reside.