Facebook Profit Per Active User In Q4 2012: 5.8 Cents, LinkedIn – 7.1 CentsFebruary 8, 2013 8:33 am
‘Facebook profit’ and ‘LinkedIn profit’ are good numbers to compare and see how scale has an impact. These are obviously two different type of networks – one is a completely informal social network and the other is a professional social network. And for quite some time, it has been assumed that LinkedIn monetizes its users better than Facebook.
So the Q4 results gave us a good opportunity to compare these two networks purely from a monetization perspective – and here is what we spotted.
In Q4 2012, LinkedIn made a net profit of $11.5 million (Source) whereas Facebook made a net profit of $64 million (Source). That works out to a ‘profit per active user’ of 7.1 Cents fpr LinkedIn, and 5.8 Cents for Facebook.
Note: We have just used our brand new MBA curriculum to arrive at these conclusions. If we have missed something big, let us know in the comments.
We had always thought that LinkedIn was way more lucrative as a business than Facebook. We realized that while that statement is still true, Facebook is catching up, real fast. Of course, we had spotted some stats on Facebook’s rising ‘cost of revenue’ – but the fact remains, that while right now LinkedIn monetizes its active users better, Facebook is not far behind.
7.1 cents and 5.8 cents. Not much of a difference, you think? Wall Street looks at that, and says ‘An active LinkedIn user is 23 percent more profitable than an active Facebook user. There is a difference between working professionals and college kids’