Xing SE (XETRA), the leading business network in Germany, Austria, and Switzerland (DACH), posted 28 percent growth in Q2 FY2018, driven by a record level of paying members and the strong performance of recruitment products. It also changed up its leadership in the b-2-c segment and acquired freelancer startup Asap.Industries.
In financial results released yesterday, the company reported revenue growth of 28 percent y-on-y in Q2, to €56.6 million ($65.6 million U.S.). EBITDA rose by 18 percent to €18.6 million ($21.6 million U.S.) — up from €16.1 million in the previous period.
“The first half of 2018 has been fantastic for Xing,” CEO Thomas Vollmoeller (LinkedIn profile) said in the results presentation yesterday.
Xing E-Recruiting, the subsidiary selling recruiting products to companies, outpaced the b-to-c segment in revenue for the first time. Revenue rose 42 percent y-on-y to €26.1 million (€18.3 million).
The number of Xing E-Recruiting subscription customers increased by 32 percent y-on-y to 9,248 in Q2. Total corporate customers in DACH now amount to 20,400 — a 17 percent increase over the previous period. Vollmoeller said the number of subscribers to Xing 360°, the bundled package, is “in the three digits.”
On the b-to-c front, the company’s networking and job search products for job-seekers grew revenue 18 percent y-on-y to €24.8 million. Moreover, the number of paying users broke the one million mark for the first time in April, although overall signups have slowed down. The company posted 416,000 new members in Q2 FY2018 compared to 451,000 in Q2 FY2017.
Xing also announced the appointment of Patrick Alberts (Xing profile) to head up its b-to-c segment in the wake of Timm Richter’s departure. Richter (LinkedIn profile) left to start his own company. Alberts’ official title is chief product officer. He joined the company in 2012 and was the senior VP of its premium membership business segment prior to this role.
In other big news, the company announced it bought German startup Asap.Industries for an undisclosed sum in June. Founded in August 2017, the business operates a b-to-b freelancer recruiting and management platform called “asapOS”. By joining forces with Asap.Industries, Xing will support freelancers and help companies make matches more easily, Vollmoeller said yesterday.
He explained the product is expected to be rolled out to Xing business customers by mid-August. It will cost around €300 per month per license.
Meanwhile, the professional networking site’s main rival LinkedIn says it’s experiencing stronger growth in DACH than ever before. Last week it announced (in German) that it had reached 12 million members in the region at the end of June — six months after hitting the 11 million member mark. In March, Xing boasted it takes on an average of one million new users every six months.
LinkedIn opened a second office in Germany in March and has also launched an aggressive marketing campaign in DACH since then.