Xing continues to ride a wave of unabated growth, following on strong earnings in H1 of FY2016. The company released its third quarter interim report yesterday, and it was all good news for the business network, which still occupies a dominant – if weakening – position in the DACH market (Germany, Austria and Switzerland) over LinkedIn, its closest rival.

Courtesy of XING AG

Courtesy of XING AG

Total revenue grew by 24 percent in Q3 of FY2016 to €37.8 million, from €30.5 million in Q3 of FY2015. There was growth in every segment, in terms of quarter-to-quarter, year-on-year and 9-months revenue comparisons.

But what really drove the train was, once again, the b-to-b e-recruiting segment. Here, revenue jumped by 39 percent from €10 million in Q3 of FY2015 to €13.9 million in the corresponding quarter of this year. In the first nine months of the year, this segment grew 34 percent from the same period last year.

Even more impressive: EBIDTA of the division e-recruiting rose 48 percent in the first nine months this year from the same period last year.

The b-to-c segment didn’t do badly either. Year-on-year revenue increased by 14 percent to €19.9 million, from €17.4 million in Q3 of FY2015. Xing’s smallest business segment – b-to-b advertising and events – also grew 14 percent.

Group EBITDA rose to €12.9 million from €9.3 million and the EBITDA margin climbed to 34 percent from 31 percent. Net profit increased to €6.4 million from €4.6 million.

Xing set another record for member growth. The number of members jumped by 1.7 million to 10.9 million in the first nine months of FY2016, up from 9.2 million at end of the same period in FY2015 and its highest figure ever. That keeps it ahead of LinkedIn, which reported 9+ million DACH users in its latest figures just recently. But, the gap between the two is getting ever smaller.

As for Xing’s paid subscribers, the number ticked up again in Q3, although modestly. A net 11,000 premium members were added in Q3, bringing the total to 925,000 at end-September.

B-to-c subscriptions are still Xing’s largest source of revenue (€57.1 million in Q3), but growth is flattening, hence the ramp-up of the b-to-b businesses. These are contributing an increasingly large share to Xing’s revenue (€48.4 million in Q3).

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