Company Update (NYSE:LNKD): LinkedIn Corp Reports Second Quarter 2016 Results

LinkedIn Corp (NYSE:LNKD), the world’s largest professional network on the Internet, today reported results for the second quarter of 2016.

On June 11, 2016, LinkedIn entered into a merger agreement with Microsoft Corporation (“Microsoft”) under which Microsoft will acquire LinkedIn for $196.00 per share in an all-cash transaction valued at approximately $26.2 billion, inclusive of LinkedIn’s net cash.

“In Q2, we demonstrated good momentum with our member and customers, and delivered strong financial results,” said Jeff Weiner, CEO of LinkedIn. “Continued product innovation drove increased levels of engagement, and strengthened our enterprise offerings. We believe joining forces with Microsoft enables us to further accelerate and scale our ability to deliver value and create economic opportunity for every member of the global workforce.”

In the quarter, our core member operating metrics reflected continued strength. Cumulative members grew 18% year-over-year to 450 million, unique visiting members grew 9% to an average of 106 million members a month, and member page views grew 32%. This yielded 21% year-over-year growth in page views per unique visiting member, continuing a pattern of strong engagement growth over the past several quarters.

Total revenue increased 31% year-over-year to $933 million.

Talent Solutions revenue increased 35% year-over-year to $597 million.

  • Hiring contributed $535 million in revenue, up 26% year-over-year.
  • Learning & Development contributed $62 million in revenue.

Marketing Solutions revenue increased 29% year-over-year to $181 million.

  • Sponsored Content surpassed 60% of total Marketing Solutions revenue and was the primary driver of growth, driven largely by increase in customer demand.

Premium Subscriptions revenue increased 21% year-over-year to $155 million.

  • Sales Navigator remained the faster growing component of Premium Subscriptions, with growth in the field channel continuing to outpace growth in individual online subscriptions.

GAAP net loss attributable to common stockholders was $119 million, primarily driven by a non-cash charge of $101 million as a result of recording a valuation allowance for a significant portion of our tax assets. GAAP diluted EPS was $(0.89), compared to last year’s performance of $(0.53).

Non-GAAP net income was $153 million, excluding $14 million of merger-related transaction costs. Non-GAAP diluted EPS was $1.13, compared to $0.55 last year.

Adjusted EBITDA was $292 million, or 31% of revenue.

“LinkedIn delivered another quarter of strong growth,” said Steve Sordello, CFO of LinkedIn. “We achieved record levels of operating cash flow, while continuing to invest heavily across our core member and customer value propositions.”

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 second quarter 2016 business results. (Original Source)

Shares of LinkedIn closed today at $192.01, down $0.19 or -0.10%. 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 $190.69 and its 200-day moving average is $145.85.

On the ratings front, LNKD has been the subject of a number of recent research reports. In a report issued on August 2, Jefferies Co. analyst Brian Fitzgerald reiterated a Hold rating on LNKD. Separately, on August 1, Cantor Fitzgerald’s Youssef Squali reiterated a Hold rating on the stock and has a price target of $220.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Brian Fitzgerald and Youssef Squali have a total average return of 11.4% and 14.4% respectively. Fitzgerald has a success rate of 68% and is ranked #193 out of 4003 analysts, while Squali has a success rate of 69.5% and is ranked #5.

The street is mostly Neutral on LNKD stock. Out of 22 analysts who cover the stock, 19 suggest a Hold rating , 2 suggest a Buy and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $195.55, which represents a slight upside potential from current levels.

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. It product lines include 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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