The job market has become more challenging than ever. With tens of thousands of new graduates joining the search each year, they must find a way to distinguish themselves to employers. A professional way to show what you know, what you have done, who you know, and network with other professionals is to create a LinkedIn Corp (NYSE:LNKD) account. I believe the challenge of standing out will propel LinkedIn to all-time highs.
The overview
LinkedIn Corp (NYSE:LNKD) is the world’s largest professional network with 202 million members in more than 200 countries. There are over 20 million college students and recent graduates with accounts, and this is the largest growing demographic for the company. A key statistic to note is that 86 of the Fortune 100 companies use LinkedIn Corp (NYSE:LNKD)’s corporate talent solutions service, making it the most valuable segment of the company. I believe LinkedIn Corp (NYSE:LNKD) has the potential to reach 500 million members and provide services to all Fortune 500 companies by 2020.
Earnings blowout
The fourth quarter and full year 2012 reports were remarkable for LinkedIn Corp (NYSE:LNKD). Take a look at the key statistics compared to 2011:
4th Quarter:
Revenue increased 81% to $303.6 million
Earnings per share increased 192% to $0.35
Net income increased 66.7% to $11.5 million
Full Year:
Revenue increased 86% to $972.3 million
Earnings per share increased 216% to $0.89
Revenue stream
LinkedIn Corp (NYSE:LNKD) has a diverse revenue stream and each is experiencing strong growth. Here is the fourth quarter distribution:
Earnings on the rise
Over the next several years, LinkedIn is expected to experience the most impressive earnings growth of the companies I follow. Analysts were some way off with last year’s estimates, and I think these numbers are too low as well. Take a look at the expectations through 2015:
Social competitor
The largest social network in the world, with over 1 billion active users, belongs to Facebook Inc (NASDAQ:FB). Facebook Inc (NASDAQ:FB)’s mission is to connect the world socially, rather than professionally. It is experiencing high-growth too, but not on the level of LinkedIn. Here’s a summary of Facebook Inc (NASDAQ:FB)’s fourth-quarter report released in January:
Revenue increased 40% to $1.585 billion
Advertising revenue increased 41% to $1.33 billion
Solutions competition
Monster
Monster tried to combat LinkedIn’s growing presence by starting its own professional network called BeKnown. BeKnown is connected directly through Facebook like BranchOut, making it easier for users to begin their profiles and connect with existing friends.
The drawback is that LinkedIn dominates the market, and Facebook Inc (NASDAQ:FB) named BranchOut as its top professional networking application. As a result, BeKnown comes in third place at best. Personally, I do not want to try and catch the falling knife that is Monster Worldwide (NYSE:MWW).
The Foolish bottom line
Professional networking and job searching is a growing market, and LinkedIn is in a great position to continue its domination. A company does not obtain 202 million members throughout the world without creating a reputation for excellence.
As a college student, I have had academic advisors and career services advisors ask if I have a LinkedIn account, and been told to make sure that I update it regularly. This shows that colleges know its importance and will continue to promote the network. I think LinkedIn is a great value at current levels and should be bought on any weakness.
The article Linked and Loaded for Growth originally appeared on Fool.com is written by Joseph Solitro.
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