LinkedIn Announces ird Quarter 05 Results

MOUNTAIN VIEW, Calif., October 29, 2015 - LinkedIn Corporation (NYSE: LNKD), the worlds largest professional network on the Internet reported its results for the third quarter of 2015. The transcript with prepared remarks is contained within this release. In addition, a supplemental presentation will be made available on the investor relations section of the LinkedIn website at http://investors.linkedin.com.

LinkedIn delivered strong results in the third quarter, and recently announced several products focused on delivering increased member and customer value, said Jeff Weiner, CEO of LinkedIn. Our commitment to investing in our long-term roadmap continues to lay the foundation for future growth of the company.

LinkedIn added a number of enhancements across our member value propositions during the quarter, including replacing the email inbox with a new messaging experience, expanding the publishing platform to include German, French, and Portuguese languages and developing the next generation of LinkedIns mobile flagship experience.

Total revenue increased 37% year-over-year to $780 million, which includes $41 million in revenue from lynda.com.

Talent Solutions revenue increased 46% year-over-year to $502 million.

Hiring contributed $461 million in revenue, up 34% year-over-year, driven by continued operational improvement from our field sales organization and strong online growth.

Learning & Development contributed $41 million in revenue, in its first full quarter of contribution post acquisition.

Marketing Solutions revenue grew 28% year-over-year to $140 million.

Sponsored Updates performance once again exceeded 100% year-over-year growth, partially offset by expected premium display headwinds.

Premium Subscriptions revenue improved 21% year-over-year to $138 million.

Sales Navigator continued to gain traction with large enterprises and saw improvements in customers satisfaction.

Adjusted EBITDA was $208 million, or 27% of revenue which is consistent with last year. GAAP net loss attributable to common stockholders was $41 million and non-GAAP net income was $103 million.

GAAP diluted EPS was $(0.31), below last years performance of $(0.03). Non-GAAP diluted EPS improved to $0.78 compared to $0.52 last year.

"LinkedIn achieved strong performance across all three product lines during the quarter," said Steve Sordello, CFO of LinkedIn. "We remain focused on pursuing long-term investments to achieve future growth and increased profitability."

Business Outlook

LinkedIn is providing guidance for the fourth quarter and full year 2015. Further details can be found in the transcript below and the supplemental presentation, which will be made available on the investor relations section of the LinkedIn website at http://investors.linkedin.com:

Q4 2015 Guidance: Revenue is expected to range between $845 million and $850 million. Adjusted EBITDA is expected to be approximately $210 million. Non-GAAP EPS is expected to be approximately $0.74. The company expects depreciation of approximately $78 million, amortization of approximately $47 million, and stock-based compensation of approximately $135 million. The company also expects approximately 132 million GAAP fully-diluted weighted shares and 134 million non-GAAP fully-diluted weighted shares.

Full Year 2015 Guidance: Revenue is expected to range between $2.975 billion and $2.980 billion. Adjusted EBITDA is expected to be approximately $740 million. Non-GAAP EPS is expected to be approximately $2.63. The company expects depreciation of approximately $281 million, amortization of approximately $135 million, and stock-based compensation of approximately $510 million. The company also expects approximately 129 million GAAP fully-diluted weighted shares and 131 million non-GAAP fully-diluted weighted shares.

Prepared Remarks Jeff Weiner, CEO LinkedIn Corporation

Q3 was a strong quarter for LinkedIn. Our member-facing product pipeline has never been stronger, and recent roll-outs are driving continued positive engagement trends. In terms of our business lines, Talent Solutions performed well, while Marketing Solutions remained stable. We also made good progress in Sales Solutions and lynda.com, our more nascent opportunities, which are future growth drivers for the company.

For Q3, overall revenues grew 37% to $780 million. We delivered adjusted EBITDA of $208 million, and non-GAAP EPS of $0.78 cents.

Q3 cumulative members grew 20% to 396 million, and last week reached the 400 million member milestone. Unique visiting members grew 11% to an average of 100 million per month, and member page views grew 33%. This has yielded 20% year over year growth in page views per unique visiting member, continuing a pattern of accelerated growth throughout 2015. This is in part a result of placing more emphasis on quality engagement for our members and less on transactional engagement generated by emails. Mobile continues to grow at double the rate of overall member activity, and now represents 55% of all traffic to LinkedIn.

LinkedIns value proposition is simple - connect to opportunity. For our members, this means three things: connect to your professional world, stay informed through professional news and knowledge, and get hired and build your career. In 2015, we made substantial progress on delivering these value propositions. Here are a few highlights of the progress weve made since our last earnings call.

We continued to expand the LinkedIn network globally. Since our last call, China has continued to accelerate the absolute number of signups, and now has more than 13 million members, up more than 3x since early 2014 when we launched our local language version. Though still early, we are also seeing strong sign-ups and engagement for Chitu, our first professional networking app designed specifically for the Chinese mark

LINK:	http://press.linkedin.com/site-resources/news-releases/2015/linkedin-a...
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