LinkedIn's Irish unit posts loss despite trebling revenue to $166m
Revenues at the main Irish unit of the world's largest online professional network, LinkedIn, increased more than three-fold last year to $166.6m (€137.8m).
New figures show that in spite of the sharp increase in revenues from $43m to $166.6m, Linkedin Ireland Ltd's pre-tax losses increased by 60pc from $4.8m to $7.7m in the 12 months to the end of December last.
In 2010, the California company established its international headquarters in Dublin and in March of last year announced the creation of a further 100 jobs in addition to the 70 existing jobs in Ireland.
LinkedIn has more than 160 million members in over 200 countries and the Dublin-based company has the non-exclusive licence to operate the LinkedIn business worldwide, excluding the US.
In returns just filed with the Companies Office, the directors' report states: "We generate revenue from enterprises and professional organisations by selling our hiring solutions and marketing solutions off-line through our field sales organisation or online on our website."
The revenues from the Irish unit accounted for 31pc of LinkedIn's worldwide revenues of $522.2m last year.
According to the directors' report, "turnover is expected to continue to grow throughout 2012 and the company will continue to expand its operations in Ireland to support that growth".
The accounts show that the company's cost of sales increased from $19.6m to $73m, with its administrative costs increasing to $97.5m from $28m in the prior period of November 11, 2009 to December 31, 2010.
The company had a shareholders' deficit of $2.2m at the end of December last after accumulated losses of $12.6m and a capital contribution of $10.3m were taken into account.
The figures show that the company spent $875,054 on lease rentals for buildings during the year.
The figures also show that the numbers employed by LinkedIn increased from 11 to 95 last year with 24 engaged in management and administration and 71 in sales, marketing and customer support.
As a result of the increase in staff, the company's employments costs increased from $1.28m to $10m.
Directors' remuneration increased last year from $160,789 to $228,768 and directors' loss of office totalling $78,348, with the returns showing that Kevin Eyres resigned as director on March 25 last.
The loss also takes into account non-cash depreciation costs of $414,143.
The company owns LinkedIn subsidiaries in the UK, Canada, Australia, France, Holland and India and all of the companies are engaged in sales and marketing.
Accounts for a second LinkedIn Irish subsidiary, LinkedIn Technology Ltd, show that it has made a pre-tax loss of $3m after its revenues increased from $10.7m to $41.6m
The company derives its income from royalty payments from LinkedIn Ireland Ltd and the directors state that "turnover is expected to grow in 2012 as the royalty income receivable from LinkedIn Ireland Ltd will increase with the expected increase in LinkedIn Ireland Ltd's turnover".
The company was founded in California in 2002 by Reid Hoffman. More than 60pc of its members now come from outside the US.
LinkedIn is currently available in 17 languages and the firm employs 2,447 worldwide.
In May of last year, LinkedIn's shares opened on the New York Stock Exchange, giving the company a market value of $9bn, with the value now currently at $10.6bn.