In a recent note, Goldman analyst Heath Terry made bullish comments on LinkedIn, in part due to strong momentum with enterprise customers.
Specifically, says Terry:
Our checks, particularly at the enterprise level, suggest that LinkedIn is seeing strong adoption for its hiring solutions products, driven by high perceived value among recruiters. Users consistently cited LinkedIn as their most valuable tool in recruiting and the one tool they most expect their corporation to use more of in the future. Given that LinkedIn is generally priced at parity or below similar competitive solutions, we believe this value perception will drive both customer growth and pricing power over time and expect to see evidence of this in the current quarter.
So why the strong appeal?
Here are some key points from the report:
- Pricing for the ‘Recruiter’ product is $8,200, which is below similar products offered by the likes of OneWire, dice, and Monster.
- The Recruiter product has a strong string of new products and applications built on top of it.
- For example, the Talent Pipeline product (a free upgrade that was announced last October) allows for much better mass recruiting at scale.
- LinkedIn now has 9,200 corporate solutions customers.
- In terms of job slots pricing, LInkedIn is cheaper than Monster, eFInancial Careers, and CareerBuilder. It’s also very competitive in The Mideast and Asia-Pacific Regions.
- Meanwhile, the company’s more basic “Talent Finder” service holds strong appeal for companies looking for a more basic, stripped down package.
And ultimately, LinkedIn just dominates the category…
Photo: Goldman Sachs
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