LinkedIn just reportedfourth quarter 2011 earnings and revenue that beat Street estimates. The stock is up 5.19% to $80.40 in after-hours trading.
Net income was $6.9 million, or 6 cents per share, compared to analysts’ estimates of 1 cent, according to FactSet. Non-GAAP net income was $13.3 million or 12 cents per share, versus analysts’ expectations of 6 cents according to FactSet.
Revenue came in at $167.7 million, up 105% compared to $81.7 million in the the year-ago period. Analysts had expected $160 million. Adjusted EBITDA for the quarter was $34.4 million, up from $16.3 million in the year-ago period.LinkedIn previously provided fourth quarter 2011 guidance of revenue of $154 million to $158 million, with EBITDA of $19 million to $21 million.
For the full-year 2011, LinkedIn posted revenue of $522.2 million, which beat estimates of $514 million, according to FactSet.
For guidance, LinkedIn expects revenue of $170 to $175 million in the first quarter of 2012 and revenue of $840 to $860 million for 2012.
In terms of revenue mix, hiring solutions did the best and generated $84.9 million in the quarter, up 136% from a year ago. Hiring products makes up 50% of LinkedIn’s revenue, up from 44% a year ago. Marketing solutions generated $49.5 million, up 77% from a year ago, and dropped slightly to 30% of total revenue from 34% a year ago. Premium subscriptions generated $33.3 million, up 87% from a year ago, making up 20% of total revenue, compared to 22% a year ago.
In its previous earnings report for the third quarter, 2011, LinkedIn beat analysts’ estimates, with non-GAAP earnings per share of 6 cents, beating First Call’s estimate of 1 cent. GAAP EPS in the third quarter was a loss of 2 cents and revenue of $139.5 million. Revenue was 139.5 million, up 126% from $61.8 million in the year-ago period.
Update: Notes from LinkedIn CEO Jeff Weiner’s call with analysts:
- LinkedIn ended 2011 with more than 9,200 corporate customers, up 139% year-over-year.
- Mobile is Linkedin’s fastest growing service, with mobile page views up more than 300% year-over-year. And 15% of member visits come from mobile. Mobile products don’t cannibalize web activity, but is accretive, Weiner said.
- The company is testing mobile advertising and marketing solutions, though no details are out yet.
- In January, LinkedIn started testing Talent Pipeline, which was announced in October 2011, the company’s new recruiter product.
- LinkedIn plans to refresh its major “pillar products” soon or this year.
- More than 60 million members joined in 2011.
- International: The company has 60% of members outside of the U.S.
- New college grads and students are the company’s fastest growing demographics.
2/09/2012 @ 4:20PM January 23, 2012 by D.H. Kass – IT Channel Planet