LinkedIn Announces Four Quarter and Full Year 05 Results

MOUNTAIN VIEW, Calif., February 4, 2016 - LinkedIn Corporation (NYSE: LNKD), the worlds largest professional network on the Internet, reported results for the fourth quarter and full year 2015. The transcript with prepared remarks is contained within this press release. In addition, a supplemental presentation will be made available on the investor relations section of the LinkedIn website at http://investors.linkedin.com.

Q4 was a strong quarter for LinkedIn, bringing to a close a successful year of growth and innovation against our long-term roadmap, said Jeff Weiner, CEO of LinkedIn. We enter 2016 with increased focus on core initiatives that will drive leverage across our portfolio of products.

During the quarter, LinkedIn made solid progress against its long-term product strategy to create value for members by connecting them to opportunity. We launched our reimagined flagship app in December, created a more streamlined experience for members to follow personalized and relevant content in the feed, and continued to scale the number of jobs on the platform to now more than six million open listings.

Revenue increased 34% year-over-year in the fourth quarter to $862 million and increased 35% in 2015 to $2,991 million.

Talent Solutions revenue (inclusive of Learning & Development) increased 45% year-over-year in the fourth quarter to $535 million and increased 41% year-over-year to $1,877 million in 2015.

Hiring revenue contributed $487 million and $1,770 million in the fourth quarter and 2015, respectively, which represents increases of 32% and 33% compared to the same periods last year. These increases were driven by strength in new account performance within field sales and continued strength in online subscriptions.

Learning & Development revenue contributed $49 million and $107 million in the fourth quarter and 2015, respectively.

Marketing Solutions revenue increased 20% year-over-year in the fourth quarter to $183 million and increased 28% to $581 million in 2015.

Sponsored Updates performance was the primary driver of growth, surpassing 50% of total Marketing Solutions revenue for the first time, while premium display faced secular-driven headwinds similar to prior quarters.

Premium Subscriptions revenue increased 19% year-over-year in the fourth quarter to $144 million and increased 22% year-over-year to $532 million in 2015.

Sales Navigator remained the faster growing component of Premium Subscriptions with continued improvement in customer satisfaction and product usage.

Adjusted EBITDA was $249 million in the fourth quarter, or 29% of revenue. Adjusted EBITDA was $780 million in 2015, or 26% of revenue.

GAAP net loss attributable to common stockholders was $8 million in the fourth quarter and $166 million in 2015. Non-GAAP net income was $126 million in the fourth quarter and $373 million in 2015.

GAAP diluted EPS was $(0.06) in the fourth quarter compared to $0.02 in the same period last year. GAAP diluted EPS was $(1.29) in 2015 compared to $(0.13) in 2014.

Non-GAAP diluted EPS was $0.94 in the fourth quarter compared to $0.61 in the same period last year. Non-GAAP diluted EPS was $2.84 in 2015 compared to $2.02 in 2014.

"LinkedIn delivered a strong end to 2015," said Steve Sordello, CFO of LinkedIn. "As we look towards 2016, our focus is on investing intelligently in our core member and customer value propositions to capture the large, addressable opportunity ahead of us."

Business Outlook

LinkedIn is providing guidance for the first quarter and full year 2016. Further details are in the transcript below and a supplemental presentation will be made available on the investor relations section of our website at http://investors.linkedin.com:

Q1 2016 Guidance: Revenue is expected to be approximately $820 million. Adjusted EBITDA is expected to be approximately $190 million. Non-GAAP EPS is expected to be approximately $0.55. The company expects depreciation of approximately $85 million, amortization of approximately $48 million, and stock-based compensation of approximately $153 million. The company also expects approximately 133 million GAAP fully-diluted weighted shares and 135 million non-GAAP fully-diluted weighted shares.

Full Year 2016 Guidance: Revenue is expected to range between $3.6 billion and $3.65 billion. Adjusted EBITDA is expected to be approximately $950 - 975 million. Non-GAAP EPS is expected to be approximately $3.05 - $3.20. The company expects depreciation of approximately $380 million, amortization of approximately $180 million, and stock-based compensation of approximately $630 million. The company also expects approximately 135 million GAAP fully-diluted weighted shares and 137 million non-GAAP fully-diluted weighted shares.

Quarterly Results Webcast and Conference Call

LinkedIn will host a webcast and conference call to discuss its fourth quarter 2015 financial results and business outlook today at 2:00 p.m. Pacific Time. Jeff Weiner and Steve Sordello will host the webcast, which can be viewed on the investor relations section of the LinkedIn website at http://investors.linkedin.com/. This call will contain forward-looking statements and other material information regarding the companys financial and operating results. Following completion of the call, a recorded replay of the webcast will be available on our website.

Upcoming Events

Management will participate in upcoming financial Q&A discussions at industry events on February 9th and 29th of 2016. LinkedIn will post a link to these events on its investor relations website, http://investors.linkedin.com/ for both the live and archived webcasts.

About LinkedIn

LinkedIn connects the worlds professionals to make them more productive and successful and transforms the ways companies hire, market, and sell. Our vision is to create economic opportunity for eve

LINK:	http://press.linkedin.com/site-resources/news-releases/2016/linkedin-a...
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