LinkedIn reports financial results for the first quarter ended March 31, 2013.MOUNTAIN VIEW, Calif., May 2, 2013 -- LinkedIn Corporation (NYSE: LNKD), the worlds largest professional network on the Internet, with more than 225 million members, reported its financial results for the first quarter of 2013:
Revenue for the first quarter was $324.7 million, an increase of 72% compared to $188.5 million in the first quarter of 2012.
Net income for the first quarter was $22.6 million, compared to net income of $5.0 million for the first quarter of 2012. Non-GAAP net income for the first quarter was $52.4 million, compared to $16.9 million for the first quarter of 2012. Non-GAAP measures exclude tax-affected stock-based compensation expense and tax-affected amortization of acquired intangible assets.
Adjusted EBITDA for the first quarter was $83.4 million, or 26% of revenue, compared to $38.1 million for the first quarter of 2012, or 20% of revenue.
GAAP diluted EPS for the first quarter was $0.20; Non-GAAP diluted EPS for the first quarter was $0.45.
Q1 was a strong quarter for LinkedIn with member engagement and financial results reaching record levels, said Jeff Weiner, CEO of LinkedIn. We remained focused on delivering great products that increasingly make LinkedIn the essential daily resource for global professionals.
First Quarter Financial Details and Operating Summary
Talent Solutions: Revenue from Talent Solutions products totaled $184.3 million, an increase of 80% compared to the first quarter of 2012. Talent Solutions revenue represented 57% of total revenue in the first quarter of 2013, compared to 54% in the first quarter of 2012.
Marketing Solutions: Revenue from Marketing Solutions products totaled $74.8 million, an increase of 56% compared to the first quarter of 2012. Marketing Solutions revenue represented 23% of total revenue in the first quarter of 2013, compared to 25% in the first quarter of 2012.
Premium Subscriptions: Revenue from Premium Subscriptions products totaled $65.6 million, an increase of 73% compared to the first quarter of 2012. Premium Subscriptions represented 20% of total revenue in the first quarter of 2013, consistent with the first quarter of 2012.
Revenue from the U.S. totaled $201.4 million, and represented 62% of total revenue in the first quarter of 2013. Revenue from international markets totaled $123.3 million, and represented 38% of total revenue in the first quarter of 2013.
Revenue from the field sales channel totaled $184.0 million, and represented 57% of total revenue in the first quarter of 2013. Revenue from the online, direct sales channel totaled $140.7 million, and represented 43% of total revenue in the first quarter of 2013.
GAAP net income for the first quarter was $22.6 million, compared to net income of $5.0 million for the first quarter of 2012. Non-GAAP net income for the first quarter was $52.4 million, compared to $16.9 million in the first quarter of 2012.
Adjusted EBITDA for the first quarter was $83.4 million, or 26% of revenue, compared to $38.1 million for the first quarter of 2012, or 20% of revenue.
GAAP diluted EPS was $0.20 based on 115.4 million fully-diluted weighted shares outstanding compared to $0.04 for the first quarter of 2012 based on 111.3 million fully-diluted weighted shares outstanding. Non-GAAP diluted EPS was $0.45 based on 115.4 million fully-diluted weighted shares outstanding compared to $0.15 for the first quarter of 2012 based on 111.3 million fully-diluted weighted shares outstanding.
Our continued focus on our operating priorities yielded strong results in the first quarter, resulting in record levels of revenue, profitability, and cash flow, said Steve Sordello, CFO of LinkedIn. We remain encouraged by the diversity of our business and size of our market opportunities, and we will continue to invest aggressively to realize LinkedIns long-term potential.
For additional information, please see the Selected Company Metrics and Financials page on LinkedIns Investor Relations site.
First Quarter Highlights and Strategic Announcements
In the first quarter of 2013, LinkedIn:
Grew its member base to 218 million, and witnessed strong member growth through the quarter due to optimization initiatives. As a result, new sign ups increased to greater than two per second.
Introduced a new version of search, which streamlines the experience and unifies results across multiple types of content including people, companies, and jobs. Early use indicates members have responded with increased search utilization.
Improved its content offering for professionals by adding a number of Influencers including Mayor Bloomberg, Meg Whitman, Jack Welch, Jeff Immelt, and Martha Stewart. LinkedIn continues to take steps to become the definitive professional publishing platform.
Additionally, LinkedIn launched several new products since the quarter end including a new version of its smartphone applications; Contacts, a new contact management system on the web and iOS mobile devices; as well products that enhance LinkedIns content ecosystem including the ability for member to include rich media in LinkedIn profiles, and content channels to follow 20 different professional topics on LinkedIn. In April, the company also launched a redesigned version of Recruiter, its flagship Talent Solutions product platform.
Business Outlook
LinkedIn is providing guidance for the second quarter and full year of 2013:
Q2 2013 Guidance: Revenue is expected to range between $342 million and $347 million. Adjusted EBITDA is expected to range between $77 million and $79 million. The company expects depreciation and amortization to be between $30 million and $32 million, and stock-based compensation to be between $49 million and $51 million.
Full Year 2013 Guidance: Revenue i
