The most significant event for the recruitment industry for 2011 so far has undoubtedly been the announcement by LinkedIn that they intend to ‘go public’ at some stage this year. They did not set a date for the listing or a target price for their shares but they did reveal a lot of very interesting information when they registered their S-1 Statement with the United States’ Securities and Exchange Commission (SEC) in late January.
Registered users as at 31 Dec 2009
55.1 million, total
Registered users as at 31 Dec 2010
40 million (USA), 50 million other
Revenue for 12 months of 2009
Revenue for first 9 months of 2010
2010 Revenue breakdown
41% (3,900 companies)
32% (33,000 customers)
Fastest growing revenue line
revenue 12 mths 2009
revenue 9 mths 2010
Post-tax profit for 12 mths 2009
USD$3.4 million LOSS
Post-tax profit for first 9 mths 2010
USD $10.1 million
Cash on hand as at 30 Sep 2010
To save you going through the prospectus, I have provided an edited version of what I believe to be the most interesting parts of the S-1 Statement. I have bolded in red the areas of particular interest to agency recruiters.
Our mission is to connect the world’s professionals to make them more productive and successful. We will continue to concentrate on opportunities we believe are in the best interests of our members. Our long-term approach enables us to invest, innovate and pioneer in unexplored segments of our industry to increase the value proposition of our proprietary platform and extensive data.
Our solutions are designed to enable professionals to achieve higher levels of performance and professional success and enable enterprises and professional organizations to find and connect with the world’s best talent.
We believe we are transforming the way people work by connecting talent with opportunity at massive scale. Our goal is to provide a global platform capable of mapping every professional’s experience, skills and other relevant professional data to his or her professional graph, including connections with colleagues and business contacts .
We provide the following key benefits to our members :
We enable members to build their professional networks by linking their professional profiles with those of others to whom they are directly and indirectly connected, creating an ever-expanding professional graph.
In addition, enterprises and professional organizations also utilise our solutions to receive numerous benefits, such as attracting new talent and more fully understanding, retaining and engaging with their employees and other professionals.
We provide the following key benefits to enterprises and professional organisations:
Our extensive hiring solutions allow enterprises and professional organizations to leverage the insights from our platform to source and develop a pipeline of active and passive talent, including the ability to automate talent matching, post jobs, engage and educate candidates, streamline applications and validate information.
We believe our solutions are both more cost-effective and more efficient than traditional recruiting approaches, such as hiring third-party search firms, to identify and screen candidates.
Through our marketing solutions, enterprises and professional organizations are able to create, promote and control their corporate identity and enhance their brand awareness.
Our proprietary platform is designed to leverage viral actions, social media, trusted recommendations and our rich user-generated data to efficiently connect members, enterprises and professional organizations to relevant products and services.
Our marketing solutions provide advertisers with the ability to target audiences based on our members’ profile information, including title, function, company name, company size, industry and geography .
In addition, our detailed advertising campaign reports provide advertisers with insights to further maximize the return on their advertising budget.
Our Competitive Strengths We believe the following strengths provide us competitive advantages in realising the potential of our opportunity:
- Exclusive Focus on Professionals
- Large and Growing Global Member Base
- Business Model with Powerful Network Effects
- Robust and Trusted Source of Relevant Professional Data
- Large Customer Base
- Proprietary Technology Platform
Our Strategy Our mission is to connect the world’s professionals to make them more productive and successful. The key elements of our strategy are:
- Foster Viral Member Growth
- Serve as the Professional Profile of Record
- Be the Essential Source of Professional Insights
- Work Wherever Our Members Work
- Increase Monetisation While Creating Value for Our Members
- Expand Our International Presence
So there you have it; LinkedIn’s ideal future laid bare.
In one sentence, I would summarise it as: Overtake agency recruiters as the preferred way for professionals to network with their peers, expand their professional knowledge and be presented with a greater number of well-matched job opportunities.
Are you scared or excited? Is this a threat or opportunity for you?