) reported adjusted net earnings of 13 cents per share in the
fourth quarter of 2012, well above the Zacks Consensus Estimate
of 1 cent.
Total revenues in the reported quarter were $303.6 million, up
81.0% from $167.7 million in the year-ago quarter. Strong
performance in all of its segments drove the upside in revenues.
Segment-wise, revenue from the
(previously named Hiring Solutions) products was $161.0 million,
up 90.0% from the year-ago quarter.
Revenue from the
was $83.2 million, up 27.0% from the year-ago quarter. This
segment contributed 27.0% to the revenues in the fourth quarter
of 2012, as against 30.0% in the year-ago period.
recorded revenue of $59.4 million, up 79.0% from the year-ago
period. As a percentage of total revenues, the segment's
contribution remained unchanged at 20%, compared with the
In the U.S., the company generated revenue of $189.0 million,
approximately 62.0% of the total revenues in the quarter under
review. Revenue from international markets totaled $114.6
million, approximately 38.0% of total revenues in the fourth
quarter of 2012.
The company witnessed higher R&D, sales & marketing
and administrative expenses, down to 23.0% of total revenues from
31.7% in the year-ago period. G&A expense, as a percentage of
total revenues, declined to 13.2% versus 14.6% last year.
Moreover, the company reported operating income of $26.7 million,
up from the year-ago level of $10.0 million.
Net profit on a GAAP basis, in the fourth quarter of 2012, was
$11.5 million or 10 cents versus a loss of $6.9 million or 6
cents in the fourth quarter of 2011. Excluding special items like
amortization of intangibles but including stock-based
compensation, non-GAAP earnings came at $14.3 million or 13 cents
LinkedIn ended the quarter with cash and cash equivalents of
$270.4 million versus $676.6 million in the prior quarter.
Accounts receivable in the quarter was $203.6 million compared
with $156.4 million in the previous quarter. Total deferred
revenues in the quarter were $257.7 million, up from $209.0
million in the previous quarter.
The company expects first-quarter 2013 revenues in the range
of $305.0-$310.0. Whereas, adjusted EBITDA is expected to range
between $67.0 million and $69.0 million. Depreciation and
amortization is expected in the range of $25.0 million to $27.0
For full year 2013, total
evenues are expected to range between $1.41 billion and $1.44
billion. Adjusted EBITDA is expected between $315 million and
$330 million. Moreover, depreciation and amortization is expected
between $130.0 million to $135.0 million.
Upbeat results for the fourth quarter of fiscal 2012 keep us
optimistic on the stock. Reported earnings have also exceeded our
estimates. LinkedIn, a leader in the emerging online professional
networking segment, has gained popularity across the globe and
has grown steadily over the recent past.
The Talent Solutions and Premium Subscription segments were
particularly strong. Moreover, the cost-control measures aided
Linkedln currently carries a Zacks Rank #3 (Hold). In the
current scenario, the company does not face intense competition
in the professional networking space. However, the emergence of
) could change the scenario rapidly over the next few years.
Though we remain on the sidelines for Linkedln, other stocks
in the technology space like
), carrying a Zacks Rank #2 (Buy), and
), carrying a Zacks Rank #1 (Strong Buy), are worth
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