LinkedIn Corp (NYSE:LNKD) reported its fourth-quarter of fiscal 2015 (4QFY15) earnings after the market closed last night. The earnings pleased the investors, but the guidance for the next quarter was not up to the expectations. Due to this, the stock plunged nearly 30% in the after-hours trade.
Moreover, the company also talked about its recent acquisitions. This included the acquisition of Connectifier, which is believed to enhance the operations of LinkedIn. The financial terms of the deal have not been made public.
The management stated in the earnings report: “The acquisition of Connectifier, announced this afternoon, will further strengthen our core products and accelerate our product roadmap, leveraging powerful machine learning-based searching and matching technology to help recruiters and hiring managers find the perfect talent fit.”
Founded in 2012 by ex-Google employees, Ben McCann and John Jersin, Connectifier is a technology recruiting startup business. According to its website, it is the “best solution for discovering, qualifying, and connecting with candidates among all recruiting technologies.” The startup developed search technology that extracts information on the basis of artificial intelligence (AI).
With over 400 million candidates in its database, 40% of the Fortune 100 companies use Connectifier as their go-to recruiting solution. Its strong client portfolio includes Facebook Inc (NASDAQ:FB), salesforce.com, Inc. (NYSE:CRM), Netflix, Inc. (NASDAQ:NFLX), and eBay Inc (NASDAQ:EBAY) to name a few.
Connectifier collected $6 million funding last year. Some of its investors include K5 Ventures, Okapi Venture Capital, and Goldcrest Investments.
According to the blog post by Mr. Jersin, the startup’s R&D team will relocate to San Francisco Bay Area to make an impact on LinkedIn’s Talent Solutions division in the future.
He further commented that the company’s existing products will remain in their current situation while Connectifier smoothly integrates into LinkedIn.
Talent Solutions, contributing the major chunk of the top line, is the core segment of LinkedIn. For the reported quarter, it had a revenue of $535 million, up 45% quarter-over-quarter (QoQ). Revenues for the fiscal 2015 (FY15) stood at $1.88 billion, an increase of 41% year-over-year (YoY). As can be seen below, this side of the business has seen solid revenue growth over the past 12 quarters.
The department remains at the heart of LinkedIn and saw quite a few upgrades last year. It launched the first complete overhauled version of its flagship product LinkedIn Recruiter in 2015. This was the first time in seven years that the company tweaked its flagship product. The latest version is thought to be more “intuitive and relevant” for recruiters. Alongside this, LinkedIn Referrals was also introduced, which was another variation in the Talent Solutions domain. A combination of Recruiter and Referrals would help the recruiter locate talent passively within their LinkedIn network.
For 2016, the corporation plans to roll-out the latest Recruiter and Referrals for the current customer base. The long-term plan includes simplifying these services for professionals to get the most out of them.
Now, with Connectifier under its belt, the business-oriented social networking service will be able to further innovate in its Talent Solutions department.