LinkedIn Corporation (
reported adjusted net earnings of 22 cents per share in the first
quarter of 2013, well above the Zacks Consensus Estimate of 5
Total revenue for the reported quarter was $324.7 million, up
72.3% from $188.5 million in the year-ago quarter. LinkedIn
witnessed strong performance across all its business segments.
Segment-wise, revenues from the
(previously named Hiring Solutions) products were $184.3 million,
up 80.0% from the year-ago quarter.
Revenues from the
were $74.8 million, up 56.0% from the year-ago quarter. This
segment contributed 23.0% to the revenues in the first quarter of
2013, as against 25.0% in the year-ago period.
recorded revenues of $65.6 million, up 73.0% from the year-ago
period. As a percentage of total revenue, the segment's
contribution remained unchanged at 20%, compared with the
In the U.S., LinkedIn generated revenues of $201.4 million,
approximately 62.0% of the total revenue in the reported quarter.
Revenues from international markets totaled $123.3 million, which
constituted around 38.0% of total revenue in the first quarter of
LinkedIn incurred higher R&D, sales & marketing and
administrative expenses of 74.7% of total revenue up from 73.1%
in the year-ago period. Moreover, the company reported operating
income of $23.6 million, up from the year-ago level of $10.6
Net profit on a GAAP basis, in the first quarter of 2013, was
$22.6 million or 20 cents versus a loss of $4.9 million or 4
cents in the first quarter of 2012. Excluding special items like
amortization of intangibles but including stock-based
compensation, non-GAAP earnings came at $24.9 million or 22 cents
per share compared with $6.1 million or 5 cents per in the year
Balance Sheet & Cash Flow
LinkedIn ended the quarter with cash and cash equivalents of
$264.9 million versus $270.4 million in the prior quarter.
Accounts receivable in the quarter was $212.6 million compared
with $203.6 million in the previous quarter. Total deferred
revenues in the quarter were $317.1 million, up from $257.7
million in the previous quarter.
Give the cash flow details
The company generated $103.9 million cash rom operation, up
from $63.2 million generated in the year ago quarter.
The company expects second-quarter 2013 revenues in the range
of $342.0 to $347.0. Whereas, adjusted EBITDA is expected to
range between $77.0 million to $79.0 million. Depreciation and
amortization is expected in the range of $30.0 million to $32.0
For full year 2013, total
evenue is expected to range between $1.43 billion and $1.46
billion. Adjusted EBITDA is expected between $330.0 million and
$345.0 million. Moreover, depreciation and amortization is
expected between $130.0 million to $135.0 million.
Upbeat results for the first quarter of fiscal 2013 keep us
optimistic on the stock. Reported earnings have also exceeded our
estimates. LinkedIn has benefited the most from its Talent
Solution and Premium Subscription businesses. The company, which
is a leader in the emerging online professional networking
segment, has gained popularity across the globe and grown
steadily over the recent past.
Although the operating cost of the company increased in the
reported quarter, LinkedIn was able to increase its operating
profitability. In the current scenario, the company is posed with
stiff competition in the professional networking space from
). Moreover, the emergence of companies like
ValueClick Inc. (
could change the scenario rapidly over the next few years.
LinkedIn has a Zacks Rank #3 (Hold).
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