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LinkedIn (LNKD) Jeffrey Weiner on Q1 2016 Results - Earnings Call Transcript

Q1 2016 Earnings Call

April 28, 2016 5:00 pm ET


Matt Sonefeldt - Vice President, Investor Relations

Jeffrey Weiner - Chief Executive Officer & Director

Steven J. Sordello - Chief Financial Officer & Senior Vice President


Daniel Salmon - BMO Capital Markets (United States)

Scott Devitt - Stifel Financial Corp.

Tom White - Macquarie Capital (NYSE:USA), Inc.

Yoni Yadgaran - Credit Suisse Securities (USA) LLC (Broker)

Youssef Squali - Cantor Fitzgerald Securities

Kunal Madhukar - SunTrust Robinson Humphrey, Inc.

Eric J. Sheridan - UBS Securities LLC

Peter C. Stabler - Wells Fargo Securities LLC

Mark A. May - Citigroup Global Markets, Inc. (Broker)

Heath Terry - Goldman Sachs & Co.


Ladies and gentlemen, welcome to the LinkedIn First Quarter 2016 Earnings Conference Call. As a reminder, this conference is being recorded and will be available for replay from the Investor Relations section of LinkedIn's website following this call. I will now turn the call over to Matt Sonefeldt. Thank you, sir. You may now begin.

Matt Sonefeldt - Vice President, Investor Relations

Good afternoon. Welcome to LinkedIn's first quarter of 2016 results call. Joining me today to discuss our results are CEO, Jeff Weiner and CFO, Steve Sordello.

Before we begin, I would like to remind you that during the course of this call, management will make forward-looking statements which are subject to various risks and uncertainties. These include statements relating to expected member growth and engagement, our product offerings including mobile and our product deployment process, the results of our R&D efforts, revenue including revenue growth rates in our three product lines, Talent Solutions, Marketing Solutions, and Premium Subscriptions, adjusted EBITDA, depreciation and amortization, stock-based compensation, share dilution, taxes, free cash flow and CapEx, the product mix between online and field sales, churn rate and expenses. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. A discussion of risks and uncertainties related to our business is contained in our filings with the Securities and Exchange Commission, in particular, the section entitled Risk Factors in our Quarterly and Annual Reports, and we refer you to these filings.

Also, I would like to remind you that during the course of this call, we may discuss some non-GAAP measures in talking about the company's performance. Reconciliations to the most directly comparable GAAP financial measures are provided in the tables in our earnings release. This call is also being broadcast on the web and is available through the Investor Relations section of the LinkedIn website.

With that, I will turn the call over to our CEO, Jeff Weiner.

Jeffrey Weiner - Chief Executive Officer & Director

Thank you, Matt, and welcome to today's conference call. I'll start by summarizing the operating results for the first quarter of 2016 and I'll recap some of the key milestones as we continue to execute on our strategy.

Q1 was a strong start to the year as LinkedIn once again delivered results that exceeded our plan. I want to highlight three key themes from the quarter. First, engagement materially strengthened across our member platform, driven by our new Flagship experience. Second, our core monetization products, Recruiter and Sponsored Updates showed continued growth while our emerging strategic investments such as Sales Navigator and Learning & Development continued to show progress. And third, we saw significant improvements in our ability to increase ROI across the business.

For Q1, overall revenues grew 35% to $861 million. We delivered adjusted EBITDA of $222 million and non-GAAP EPS of $0.74. In the quarter, cumulative members grew 19% to 433 million, our strongest net add quarter since the beginning of 2014. Our core operating metrics saw accelerated growth. Unique visiting members grew 9% to an average of 106 million members a month, and member page views grew 34%. Page views per unique visiting member hit an all-time high in Q1 with 23% year-over-year growth.