LinkedIn Announces Second Quarter 04 Results

MOUNTAIN VIEW, Calif., July 31, 2014 - LinkedIn Corporation (NYSE: LNKD), the worlds largest professional network on the Internet, with over 300 million members, reported its quarterly results for the second quarter of 2014:

Revenue for the second quarter was $534 million, an increase of 47% compared to $364 million in the second quarter of 2013.

Net loss attributable to common stockholders for the second quarter was $1.0 million, compared to net income of $3.7 million for the second quarter of 2013. Non-GAAP net income for the second quarter was $63 million, compared to $44 million for the second quarter of 2013. 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 $145 million, or 27% of revenue, compared to $89 million for the second quarter of 2013, or 24% of revenue.

GAAP diluted EPS for the second quarter was $(0.01), compared to GAAP diluted EPS of $0.03 for the second quarter 2013; non-GAAP diluted EPS for the second quarter was $0.51, compared to non-GAAP diluted EPS of $0.38 for the second quarter of 2013.

LinkedIn delivered strong financial results in the second quarter while maintaining investment in our member and customer offerings, said Jeff Weiner, CEO of LinkedIn. We made significant progress against several key strategic priorities including increasing the scale of job opportunities on LinkedIn; expanding our professional publishing platform; and continuing the strategic shift towards content marketing through Sponsored Updates.

Second Quarter Operating Summary

Please note, in the second quarter of 2014, we reclassified recruitment media products from Marketing Solutions to Talent Solutions. Accordingly, prior period amounts have been recast to conform to the current period presentation. See our Selected Company Metrics and Financials table on the quarterly earnings section of the investor relations website for additional information.

Talent Solutions(1): Revenue from Talent Solutions products totaled $322 million, an increase of 49% compared to the second quarter of 2013. Talent Solutions revenue represented 60% of total revenue in the second quarter of 2014 and 2013.

Marketing Solutions(1): Revenue from Marketing Solutions products totaled $106 million, an increase of 44% compared to the second quarter of 2013. Marketing Solutions revenue represented 20% of total revenue in the second quarter of 2014 and 2013.

Premium Subscriptions: Revenue from Premium Subscriptions products totaled $105 million, an increase of 44% compared to the second quarter of 2013. Premium Subscriptions represented 20% of total revenue in the second quarter of 2014 and 2013.

(1) Recruitment media revenue was $18 million and $12 million in the second quarter of 2014 and 2013, respectively.

Revenue from the U.S. totaled $318 million, and represented 60% of total revenue in the second quarter of 2014. Revenue from international markets totaled $216 million, and represented 40% of total revenue in the second quarter of 2014.

Revenue from the field sales channel totaled $319 million, and represented 60% of total revenue in the second quarter of 2014. Revenue from the online, direct sales channel totaled $215 million, and represented 40% of total revenue in the second quarter of 2014.

Second Quarter Highlights and Strategic Announcements

In the second quarter of 2014:

LinkedIn launched Limited Listings to grow dramatically the number of job opportunities made available on LinkedIn for active job searchers. This initiative was accelerated by the Bright acquisition in February, and there are now one million jobs on LinkedIn.

LinkedIn continued to gain traction with its professional publishing platform, now generating over 30,000 weekly long-form posts after ramping posting capability to 15 million LinkedIn members. Since launching in February, traffic to publisher and Influencer posts has risen more than 100%.

LinkedIn added to its growing multi-app mobile portfolio with the launch of several new mobile experiences including: Connected; the LinkedIn Job Search App for iPhone; and a new SlideShare app for Android.

Additionally, this afternoon, LinkedIn announced the launch of the all-new Sales Navigator, enabling buyers to build relationships with the most relevant sales professionals through an enterprise focused SaaS product. Also, Last week LinkedIn announced the acquisition of Bizo with the goal of creating a comprehensive B2B marketing platform

LinkedIn achieved strong results across the business, said Steve Sordello, CFO of LinkedIn. The success of Sponsored Updates, scaling jobs, and the launch of the new Sales Navigator underscore the positive impact of recent strategic investments, and we will continue to invest aggressively in our member and customer platforms.

Business Outlook

LinkedIn is providing guidance for the third quarter and full year of 2014:

Q3 2014 Guidance: Revenue is expected to range between $543 million and $547 million. Adjusted EBITDA is expected to range between $134 million and $136 million. Non-GAAP EPS is expected to be approximately $0.44. The company expects depreciation of approximately $50 million, amortization of approximately $8.0 million, stock-based compensation of approximately $80 million, and 126 million fully-diluted weighted shares.

Full Year 2014 Guidance: Revenue is expected to range between $2.14 billion and $2.15 billion. Adjusted EBITDA is expected to range between $545 and $550 million. Non-GAAP EPS is expected to be approximately $1.80. The company expects depreciation of approximately $202 million, amortization of approximately $28 million, stock-based compensation of approximately $305 million, and 126 million fully-diluted weighted shares.

Quarterly Results Webcast and C

LINK:	http://press.linkedin.com//News-Releases/340/LinkedIn-Announces-Second...
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