Learnings from Earnings: LinkedIn’s Q1 Reporting

May 3rd, 2013 | by Jason Alba |

Check out this post: LinkedIn Stock Dips 10% On Slowing Growth, Even As It Beats Q1 Estimates On Sales of $324.7M; EPS $0.45

I don’t like the stock market. I don’t think it provides real feedback on how a company really does, so the 10% dip doesn’t concern me at all.

Having said that, here is what I got from that post:

  1. LinkedIn soared past the 200M mark and now has over 225M members.  This DOES NOT mean users, it means signups.  I’m guessing a lot (most?) of the new signups are outside of the U.S.
  2. LinkedIn will “earn” more than $1B this year. That is really cool.
  3. They are excited about new features but I’m afraid this will only be a push to get more upgrade money instead of more users and usefulness.
  4. Premium subscriptions for the quarter was $65.6M. I could be totally wrong but I think that means they have 1.1M upgrades.  Here is how I got there.  I am assuming most upgrades are at the bottom end: $20/month.  65.6M divided by 3 months in the quarter = $21.9M per month.  21.9M = $20 monthly upgrade price = about 1.1M people.  One flaw in this rough calculation is that don’t know if the $64.5M figure includes corporate and recruiter upgrades… regardless, 1.1M upgrades on 225M people is less than 1/2 percent, which is what I’ve always heard freemium models do.

That’s my simple takeaway from the TechCrunch post…

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