LinkedIn posts solid revenue, profit

Business networking site LinkedIn has posted its first update since going public in May, providing reassurance to traders who still remember the burst of the dot-com bubble.

Revenues rose 120% and profits rose 5% as the number of subscribers reached 120 million.

Analysts report concern among investors that sites like LinkedIn and Facebook have huge membership bases but no solid way to make money. LinkedIn earns the majority of its money by selling recruitment tools, although advertising and premium paid subscriptions are also in the mix.

When LinkedIn first went public its share price immediately doubled from US$45 to over US$90. The price increased from US$95.50 to around US$99 following the latest announcement.