LinkedIn’s revenue from Talent Solutions is growing at a faster rate than Premium Subscriptions and Marketing Solutions, according to quarterly earnings.
Talent Solutions — which are hiring tools that LinkedIn sells to recruiters — accounted for 48% (or $US58.6 million) of the company’s total revenue in the second quarter of 2011. In the second quarter of 2013, Talent Solutions brought in 56% (or $US205.1 million) of total revenue.
For comparison, Marketing Solutions — which includes ad space sold by LinkedIn — accounted for 32% (or $US38.6 million) of total revenue two years ago, but just 23.5% (or $US85.6 million) today.
LinkedIn stated in one of its investor presentations that the addressable market size for worldwide talent acquisition and staffing services is $US27 billion. Keep in mind, this number includes revenues from recruitment agencies, but if LinkedIn’s Talent Solutions become ubiquitous in that industry, it gives you a sense of the demand for social media-based recruiting tools.
Revenue generated from Premium Subscriptions has grown steadily, but has not fluctuated from its 20% stake in total revenue.
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