LinkedIn Corp (LNKD): Coming of Age

LinkedIn has consistently been the beneficiary at the expense of recruiting platform and rival, Monster Worldwide, Inc. (NYSE:MWW). Even though, Monster has a partnership with Facebook, the company is still facing a secular decline. In Q4 2012, Monster’s revenues were down 10% year-over-year, and the company is still on the lookout for a buyer.

The LinkedIn’s subscription revenues are primarily driven by sales and marketing professionals trying to land new business. As a result, the segment as a whole is getting strong momentum with revenues growing 79% on a year-over-year basis to end $59.4 million.

As consumers are increasingly leaning towards mobile, LinkedIn is in a great position to capitalize. LinkedIn’s mobile footing is becoming increasingly stronger with almost 30% of job viewers now accessing LinkedIn from mobile devices. Almost 27% of unique members are coming from mobile-based devices which are up from 15% in Q4 2011. In addition, LinkedIn is working on rolling out promoted sponsor content on desktop and on mobile, which represents another great monetization opportunity.

In addition, LinkedIn’s marketing segment also performed well with revenues growth of 68% year-over-year. The increased number of ads portrayed on the platform was the key driver and represents a big opportunity for future monetization. Unlike other Internet companies, LinkedIn’s main revenue source is not from advertisements, and can aid in growing its top line in the future.

The company’s strategy going forward is to expand its membership base across the globe and increased monetization stemming from delivering great value to the corporate clients and customers alike. However, LinkedIn is still retains its position as a recruiting site as most of its revenues stem in from selling subscriptions to recruiters.

The company’s management is projecting a strong 2013 with a top-line growth of 45%-48%, which was great news for the stock. The strong growth prospects of LinkedIn going forward warrants a valuation premium on the firm. However, the company’s recent run up led to the stock price incorporating most of the valuation premium, which limits the near term upside.

The article LinkedIn Corp (LNKD): Coming of Age originally appeared on Fool.com and is written by Ishfaque Faruk.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.