) soared today, rising more than 21 percent after the company
fourth quarter results
. Revenue climbed 81 percent to $303.6 million versus $167.7
million during the year-ago period. Net income rose to $11.5
million versus $6.9 million for the fourth quarter of 2011.
Non-GAAP net income was $40.2 million -- again, much higher than
the $13.3 million posted one year ago.
Investors were very excited, to say the least. While many are
hesitant to invest in Facebook (NASDAQ:
), LinkedIn immediately jumped upon the company's earnings
Up until now, LinkedIn was still performing well, rising more
than 10 percent this year. The firm closed 2012 with gains of 79
Facebook has not been nearly as lucky. While the social media
giant is up more than two percent year-to-date, it is still 25
percent lower than the price it debuted at last May.
"2012 was a transformative year for LinkedIn," Jeff Weiner,
CEO of LinkedIn, said in a
. "We exited 2011 having successfully revamped our underlying
development infrastructure. Based on that investment, we said
that 2012 would be a year of accelerated product innovation, and
it was. The products we delivered throughout the year drove
member engagement and financial results to record levels in the
LinkedIn said that it expects to earn between $305 million and
$310 million during the first quarter of 2013. Adjusted EBITDA is
expected to be between $67 million and $69 million, while
depreciation and amortization should fall within the range of $25
million to $27 million. Stock-based compensation is anticipated
to be somewhere in the area of $32 million to $34 million.
The company's full-year 2013 guidance shows even greater
levels of growth. LinkedIn currently estimates that it will earn
between $1.41 billion and $1.44 billion this year.
Several analysts, including JPMorgan, Bank of America, Piper
Jaffray and Wedbush,
raised their Price Targets
after hearing the news.
In the weeks prior to LinkedIn's earnings, JG Capital
initiated coverage on the stock but
expressed some concerns
. "While we love LNKD's business, we are concerned with very high
expectations coming into the results on Feb 7th," the firm wrote
in its report on January 24.
Sterne Agee was a
as well, writing, "We are positive on the company's fundamentals
but believe the current stock price already reflects this
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Gain access to more investing ideas, tools & education.
Get Started on Marketfy, the first ever curated
& verified Marketplace for everything trading.