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LinkedIn Blows Out Earnings Expectations

LinkedIn Corporation (NYSE: LNKD) is still considered to be the social media winner for business, and its shares traded higher after beating earnings expectations. While the net loss was listed as -$67.7 million after all items and charges on a net basis, the operating earnings per share (EPS) came in at $0.55 on a non-GAAP basis. Revenue grew to $711.7 million.

Thomson Reuters had its consensus estimates at $0.30 EPS and $679.8 million. The beat looks handy here, and the acquisition of Lynda.com is still gaining steam and was just started on integration in the quarter.

Guidance for LinkedIn’s third quarter was between $745 million and $750 million in revenue (versus $743.7 million expected); and non-GAAP earnings were put at roughly $0.43 EPS (versus $0.43 expected). Adjusted EBITDA is expected to be approximately $146 million to 148 million.

Full 2015 guidance is for revenue of approximately $2.94 billion versus the consensus of $2.91 billion. Non-GAAP EPS is expected to be approximately $2.19 in 2015, versus a consensus estimate of $1.93 EPS. Adjusted EBITDA is expected to be approximately $665 million.

Additional data for the second quarter was as follows:

  • Talent Solutions revenue (inclusive of Learning & Development) was $443 million, up 38% from a year ago.
  • Marketing Solutions revenue was $140 million, up 32% from a year ago.
  • Premium Subscriptions revenue was $128 million, up 22% from a year ago.
  • This also included record levels of operating and free cash flow.

LinkedIn shares closed down 2.1% at $227.15 ahead of earnings, and the after-hours reaction in the first 15 minutes since the close was up 10% at $249.00 or so on well over 700,000 shares in the after-hours alone. LinkedIn has a 52-week range of $178.76 to $276.18 and a consensus analyst price target of $254.22.

By Jon C. Ogg