How LinkedIn Plans To Grow Its Biggest Business 1,100%

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LinkedIn management believes its Hiring Solutions suite of products has a lot of growth left in it: about 1,100% in the US.

Generating $121.6 million, or 53% of LinkedIn’s total revenues during Q2, the Hiring Solutions suite is already LinkedIn’s biggest business.

Hiring Sollutions grew 107% year-over-year during the quarter, and management believes there is more growth where that came from.

Capstone analyst Rory Maher met with LinkedIn management earlier this month and published a report on the meeting this morning.

In it, he says that LinkedIn management believes it can increase the number of US-based Hiring Solutions clients by 3X. Maher says management estimates it currently captures less than 10% of its existing clients’ recruiting budgets, and that it should be able to get that number to 50% in the long term. That would be a 4X spending increase per client. In the long term, that’s 1,100% growth.

What will LinkedIn offer clients to get them spending more of their budgets?

Maher says it’s all about data:

Preview Of Internal Products Highlight Value Of Data. We previewed a product the Company uses internally that analyses its employees’ backgrounds and from what companies most of its employees come from/leave to.  LinkedIn uses this for its own purposes, but we believe it highlights the untapped potential of Linkedin’s proprietary data.  In our opinion, there would be significant demand from companies for analytical tools like the one we saw to drive leads and evaluate performance.

Obviously, LinkedIn management has a lot of work to do to grow the company as much as it it’s planning (hoping). 

But don’t write off the optimism too quickly, or management’s willingness to share it.

One complaint from Facebook shareholders and potential shareholders is that management isn’t talking about how its business is going to grow leaps and bounds in the short, medium, or even long term. Investors suspect this is because Facebook doesn’t know yet. Here, LinkedIn is saying to its own investors that it knows where it wants to go.

Correction: An earlier version of this story said 12X growth is 1,200% growth. It’s not! It’s 1,100% growth, of course.

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