MOUNTAIN VIEW, Calif., October 30, 2014 - LinkedIn Corporation (NYSE: LNKD), the worlds largest professional network on the Internet, with more than 300 million members, reported its quarterly results for the third quarter of 2014:Revenue for the third quarter was $568 million, an increase of 45% compared to $393 million in the third quarter of 2013.
Net loss attributable to common stockholders for the third quarter was $(4.3) million, compared to net loss of $(3.4) million for the third quarter of 2013. Non-GAAP net income for the third quarter was $66 million, compared to $47 million for the third 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 third quarter was $151 million, or 27% of revenue, compared to $93 million for the third quarter of 2013, or 24% of revenue.
GAAP diluted EPS for the third quarter was $(0.03), compared to GAAP diluted EPS of $(0.03) for the third quarter 2013; non-GAAP diluted EPS for the third quarter was $0.52, compared to non-GAAP diluted EPS of $0.39 for the third quarter of 2013.
LinkedIn made significant progress against several long-term strategic investments we began this year, said Jeff Weiner, CEO of LinkedIn. During the third quarter, we took meaningful steps in increasing the scale and relevance of job listings, growing the professional publishing platform, and expanding our member network in new geographies and demographics.
Third Quarter Operating Summary
Talent Solutions: Revenue from Talent Solutions products totaled $345 million, an increase of 45% compared to the third quarter of 2013. Talent Solutions revenue represented 61% of total revenue in the third quarter of 2014, compared to 60% of total revenue in the third quarter of 2013.
Marketing Solutions: Revenue from Marketing Solutions products totaled $109 million, an increase of 45% compared to the third quarter of 2013. Marketing Solutions revenue represented 19% of total revenue in the third quarter of 2014 and 2013.
Premium Subscriptions: Revenue from Premium Subscriptions products totaled $114 million, an increase of 43% compared to the third quarter of 2013. Premium Subscriptions represented 20% of total revenue in the third quarter of 2014 and 2013.
Revenue from the U.S. totaled $343 million, and represented 60% of total revenue in the third quarter of 2014. Revenue from international markets totaled $225 million, and represented 40% of total revenue in the third quarter of 2014.
Revenue from the field sales channel totaled $342 million, and represented 60% of total revenue in the third quarter of 2014. Revenue from the online, direct sales channel totaled $227 million, and represented 40% of total revenue in the third quarter of 2014.
Third Quarter Highlights and Strategic Announcements
In the third quarter of 2014:
LinkedIn increased the scale and relevance of job listings by expanding Limited Listings offerings to a broad base of US and global companies. Jobs seekers now have access to nearly two million job listings on LinkedIn, driving strong momentum for the Job Search mobile app.
LinkedIn officially launched the all new Sales Navigator to empower sales professionals to establish and grow relationships with prospects and customers. This new stand-alone product experience allows sales professionals to stay updated about key accounts, focus on the right people, and build trusted relationships.
LinkedIn announced the acquisition of Bizo, accelerating the ability to develop an end-to-end B2B marketing platform. Building on the success of Sponsored Updates, Bizos team and technology will expand LinkedIns ability to leverage current content marketing products and offer a wider range of solutions to meet our customers marketing objectives.
LinkedIn demonstrated strength in the third quarter, leveraging the scale created by our member network to deliver growth across all three product lines, said Steve Sordello, CFO of LinkedIn. We continue to make aggressive investments in our member and customer platforms in order to realize our long-term potential.
Business Outlook
LinkedIn is providing guidance for the fourth quarter and full year of 2014:
Q4 2014 Guidance: Revenue is expected to range between $600 million and $605 million. Adjusted EBITDA is expected to range between $153 million and $155 million. Non-GAAP EPS is expected to be approximately $0.49. The company expects depreciation of approximately $59 million, amortization of approximately $12 million, stock-based compensation of approximately $96 million, and 127 million fully-diluted weighted shares.
Full Year 2014 Guidance: Revenue is expected to range between $2.175 billion and $2.180 billion. Adjusted EBITDA is expected to range between $566 and $568 million. Non-GAAP EPS is expected to be approximately $1.89. The company expects depreciation of approximately $203 million, amortization of approximately $34 million, stock-based compensation of approximately $321 million, and 126 million fully-diluted weighted shares.
Quarterly Results Webcast and Conference Call
LinkedIn will host a webcast and conference call to discuss its third quarter 2014 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 the website.
Upcoming Events
Management will participate in upcoming financial Q&A discussions at industry events on November 18th and December 2nd, 2014.
