Company Update (NYSE:LNKD): LinkedIn Corp Reports 3Q:16 Financial Results

LNKDLinkedIn Corp (NYSE:LNKD) reported results for the third quarter of 2016. Detailed financial information on the quarter will be available within the company’s Form 10-Q filing with the SEC.

“In Q3, continued product investments across our platform drove another quarter of strong engagement and financial performance,” said Jeff Weiner, CEO of LinkedIn. “As we look forward, our combination with Microsoft creates the opportunity for us to dramatically increase the impact and scale with which we deliver value to our members and customers.”

During the quarter, LinkedIn’s platform continued to show strong engagement, powered by investments across mobile, messaging, content and jobs. Cumulative members grew 18% year-over-year to 467 million, and unique visiting members grew 6% to an average of 106 million members a month. Member page views grew 27% in the quarter, yielding 20% year-over-year growth in page views per unique visiting member. Mobile continues to grow at more than double the rate of overall member activity, surpassing 60% of all traffic to LinkedIn.

Total revenue increased 23% year-over-year to $960 million.

Talent Solutions revenue increased 24% year-over-year to $623 million.

  • Hiring contributed $556 million in revenue, up 21% year-over-year.
  • Learning & Development contributed $67 million in revenue.

Marketing Solutions revenue increased 26% year-over-year to $175 million.

  • Sponsored Content remained the primary driver of growth and is now approaching two-thirds of total Marketing Solutions revenue.

Premium Subscriptions revenue increased 17% year-over-year to $162 million.

  • Sales Navigator remained the faster growing component of Premium Subscriptions, across both the field and online channels.

GAAP net income attributable to common stockholders was $9 million. GAAP diluted EPS was $0.06, compared to $(0.36) last year.

Non-GAAP net income was $163 million, excluding $2.0 million of merger-related transaction costs. Non-GAAP diluted EPS was $1.18, compared to $0.78 last year.

Adjusted EBITDA was $304 million, or 32% of revenue.

“During the quarter, LinkedIn demonstrated strong top and bottom-line performance,” said Steve Sordello, CFO of LinkedIn. “Focused investments generated solid growth across our product lines as well as greater leverage across the business, resulting in record high levels of Adjusted EBITDA margin, non-GAAP EPS, and operating cash flow.”

As previously announced on June 11, 2016, LinkedIn entered into a merger agreement with Microsoft Corporation (“Microsoft”) under which Microsoft will acquireLinkedIn for $196.00 per share in an all-cash transaction valued at approximately $26.2 billion, inclusive of LinkedIn’s net cash. On August 19, 2016, LinkedIn stockholders voted to approve the merger agreement. LinkedIn continues to expect the transaction to close prior to the end of 2016.

In light of the pending merger, LinkedIn will not be updating its outlook for fiscal 2016 and will not be hosting a conference call for its third quarter 2016 business results. (Original Source)

Shares of LinkedIn closed today at $188.63, down $0.47 or 0.25%. LNKD has a 1-year high of $258.39 and a 1-year low of $98.25. The stock’s 50-day moving average is $191.84 and its 200-day moving average is $169.92.

On the ratings front, LinkedIn has been the subject of a number of recent research reports. In a report issued on September 21, CLSA analyst James Lee maintained a Buy rating on LNKD. Separately, on September 12, Deutsche Bank’s Brian Pitz reiterated a Hold rating on the stock and has a price target of $196.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, James Lee and Brian Pitz have a yearly average return of 16.8% and 7.2% respectively. Lee has a success rate of 79% and is ranked #256 out of 4188 analysts, while Pitz has a success rate of 66% and is ranked #75.

Overall, 8 research analysts have assigned a Hold rating and one research analyst has given a a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $196.00 which is 4% above where the stock opened today.

LinkedIn Corp. operates an online professional network on the Internet. Its proprietary platform enables members to create, manage and share their professional identities online, build and engage with their professional networks, access shared knowledge and insights, and find business opportunities. The company product line includes Talent Solutions, Marketing Solutions and Premium Subscriptions these three product lines are sold through two channels, an offline field sales organization which engages with both large and small enterprise customers, as well as an online, selfserve channel. 

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