LinkedIn Announces Second Quarter 0 Financial Results

LinkedIn reports financial results for the second quarter ended June 30, 2013.

MOUNTAIN VIEW, Calif., August 1, 2013 -- LinkedIn Corporation (NYSE: LNKD), the worlds largest professional network on the Internet, with more than 238 million members, reported its financial results for the second quarter of 2013:

Revenue for the second quarter was $363.7 million, an increase of 59% compared to $228.2 million in the second quarter of 2012.

Net income for the second quarter was $3.7 million, compared to net income of $2.8 million for the second quarter of 2012. Non-GAAP net income for the second quarter was $44.5 million, compared to $18.1 million for the second 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 second quarter was $88.6 million, or 24% of revenue, compared to $50.4 million for the second quarter of 2012, or 22% of revenue.

GAAP diluted EPS for the second quarter was $0.03; Non-GAAP diluted EPS for the second quarter was $0.38.

Accelerated member growth and strong engagement drove record operating and financial results in the second quarter, said Jeff Weiner, CEO of LinkedIn. We are continuing to invest in driving scale across the LinkedIn platform in order to fully realize our long-term potential.

Second Quarter Financial Details and Operating Summary

Talent Solutions: Revenue from Talent Solutions products totaled $205.1 million, an increase of 69% compared to the second quarter of 2012. Talent Solutions revenue represented 56% of total revenue in the second quarter of 2013, compared to 53% in the second quarter of 2012.

Marketing Solutions: Revenue from Marketing Solutions products totaled $85.6 million, an increase of 36% compared to the second quarter of 2012. Marketing Solutions revenue represented 24% of total revenue in the second quarter of 2013, compared to 28% in the second quarter of 2012.

Premium Subscriptions: Revenue from Premium Subscriptions products totaled $73.0 million, an increase of 68% compared to the second quarter of 2012. Premium Subscriptions represented 20% of total revenue in the second quarter of 2013, compared to 19% in the second quarter of 2012.

Revenue from the U.S. totaled $224.3 million, and represented 62% of total revenue in the second quarter of 2013. Revenue from international markets totaled $139.4 million, and represented 38% of total revenue in the second quarter of 2013.

Revenue from the field sales channel totaled $209.2 million, and represented 58% of total revenue in the second quarter of 2013. Revenue from the online, direct sales channel totaled $154.4 million, and represented 42% of total revenue in the second quarter of 2013.

GAAP net income for the second quarter was $3.7 million, compared to net income of $2.8 million for the second quarter of 2012. Non-GAAP net income for the second quarter was $44.5 million, compared to $18.1 million in the second quarter of 2012.

Adjusted EBITDA for the second quarter was $88.6 million, or 24% of revenue, compared to $50.4 million for the second quarter of 2012, or 22% of revenue.

GAAP diluted EPS was $0.03 for the second quarter based on 116.6 million fully-diluted weighted shares outstanding compared to $0.03 for the second quarter of 2012 based on 112.3 million fully-diluted weighted shares outstanding. Non-GAAP diluted EPS was $0.38 for the second quarter based on 116.6 million fully-diluted weighted shares outstanding compared to $0.16 for the second quarter of 2012 based on 112.3 million fully-diluted weighted shares outstanding.

LinkedIn operated at a high level in the second quarter, evidenced by strong engagement, steady growth, and increasing levels of adjusted EBITDA and cash flow, said Steve Sordello, CFO of LinkedIn. We continue to make long-term investments against our operating priorities in order to add increased value for our members and customers.

For additional information, please see the Selected Company Metrics and Financials page on LinkedIns Investor Relations site.

Second Quarter Highlights and Strategic Announcements

In the second quarter of 2013:

LinkedIn membership grew to 238 million, as growth accelerated to 37% year-over-year. This strength was driven primarily by product optimization, and represents the first membership growth acceleration since the third quarter of 2011.

The Influencer Program added professional luminaries including Bill Gates, Japan's Prime Minister Shinzo Abe, Senator Elizabeth Warren, Jamie Dimon, and Burberry CEO Angela Ahrendts. LinkedIn's professional publishing platform contributed to homepage traffic more than doubling compared with last year.

LinkedIn revamped its mobile phone experience with the introduction of new iOS and Android apps. Mobile activity has increased, with mobile homepage engagement rising over 40%, and increasing levels of social actions, article views, and mobile profile edits when compared to the past version.

LinkedIn launched a new version of its flagship Recruiter platform for Talent Solutions customers resulting in increased customer engagement. LinkedIn also launched CheckIn, which enables student members to engage with recruiters at on-campus hiring events.

Business Outlook

LinkedIn is providing guidance for the third quarter and full year of 2013:

Q3 2013 Guidance: Revenue is expected to range between $367 million and $373 million. Adjusted EBITDA is expected to range between $81 million and $83 million. The company expects depreciation and amortization in the range of $38 million to $40 million, and stock-based compensation in the range of $49 million to $51 million.

Full Year 2013 Guidance: Revenue is revised upwards to range between $1.455 billion and $1.475 billion. Adjusted EBITDA is also revised upwards to range between $340 millio

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