CHART OF THE DAY: A Tale Of Two Social Networks

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LinkedIn reported earnings last night, and one thing that jumps out is its revenue growth rate, which is sky-high compared to Facebook.

As you can see here, LinkedIn’s year over year revenue growth rate is 89%. Facebook, on the other hand, is 32%. LinkedIn’s absolute revenue is much smaller. We’ve also plotted it below.

LinkedIn is reporting stronger growth than Facebook because it’s not as ad dependent as Facebook. LinkedIn has subscriptions, advertising, and job listings. Those three revenue streams help its growth.

It’s also growing at a greater clip because LinkedIn is coming into its own now. While LinkedIn is an older site than Facebook, it’s taken longer to mature. It seems to have figured out a great business model.

Facebook investors, the one’s still hanging onto the stock, are betting that Facebook will figure out a better business model in the long run too.

chart of the day, linkedin vs facebook revenue, july 2012

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