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LinkedIn Earnings vs. Facebook, Where the Tail Wags the Dog

It was not that long ago that LinkedIn Corporation (NYSE: LNKD) saw its shares tank after earnings. Now we are seeing a solid reaction — and one might wonder if this is a chasing of Facebook Inc. (NASDAQ: FB) after the social media giant blew out earnings expectations on Wednesday. The two companies may be categorized the same, but the reality is that they are quite different in reality. LinkedIn is considered the social network for professionals, while Facebook is for everything else.

LinkedIn posted a net loss on a GAAP basis of $46 million, but its non-GAAP net operating income was $99 million. This translated to a comparable jump in earnings to $0.74 per share. That is against $0.57 per share last year. Total revenue increased 35% to $861 million. The Thomson First Call estimates were only $0.60 EPS and $828.5 million in revenues.

Shares were indicated up higher, but investors should keep in mind that there were many moving parts to this report with an overlap seen here. LinkedIn’s Talent Solutions revenue increased 41% to $558 million. Its Hiring revenue segment revenues grew 27% to $502 million. Marketing Solutions revenue increased 29% to $154 million, and its Premium Subscriptions revenue rose 22% to $149 million. LinkedIn’s...