Media

LinkedIn Guidance for Fiscal 2015 Trumps Mixed Guidance for First Quarter

linkedinLinkedIn Corp. (NYSE: LNKD) has now reported its fourth-quarter results. The social media and jobs services player for professionals reported quarterly earnings of $0.61 per share on a revenue gain of 44% to $643 million. Thomson Reuters had its consensus estimates at $0.53 in earnings per share (EPS) and $616.8 million in revenues. LinkedIn’s numbers for the same quarter a year ago were $0.39 EPS and $447.2 million in revenues.

The first question on top of major growth is whether this was good enough. As a reminder, analysts and investors were paying just over 85 times expected 2015 earnings per share ahead of this report.

Linked in did offer up guidance. Revenue for the first quarter was put in a range between $618 million and $622 million, versus a Thomson Reuters consensus estimate of $645.7 million. Adjusted EBITDA is expected to range between $152 million and $154 million. Non-GAAP EPS is expected to be approximately $0.53, versus a consensus of $0.55 in EPS.

For 2015, LinkedIn’s guidance is for revenue to be between $2.93 billion and $2.95 billion, versus $2.94 billion expected by Thomson Reuters. Adjusted EBITDA is expected to be approximately $785 million. Non-GAAP earnings are being put at $2.95 per share, above the $2.73 EPS estimate from Thomson Reuters.

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Highlights of revenue by unit were as follows:

  • Talent Solutions saw revenue up 41% to $369 million. It was 57% of total revenue in the fourth quarter of 2014, versus 58% a year earlier.
  • Marketing Solutions saw revenue rise 56% to $153 million, an increase of 56% compared to the fourth quarter of 2013. It was 24% of total revenue in the fourth quarter of 2014, versus 22% a year earlier.
  • Premium Subscriptions was up 38% to $121 million, representing 19% of total revenue, versus 20% a year ago.
  • Revenue from the United States was $388 million and was 60% of total fourth-quarter revenue.
  • Revenue from international markets was $255 million and was 40% of total fourth-quarter revenue.
  • Revenue from the field sales channel was $414 million, worth 64% of total revenue.
  • Revenue from the online channel was $230 million, worth 36% of total revenue.

Analysts had been positive on LinkedIn ahead of its earnings report. Goldman Sachs recently added the jobs and social media player to the prized Conviction Buy List with a $280 price target, and J.P. Morgan recently raised its price target up to $253.

LinkedIn shares were up by 2.5% to $237.97 in regular trading on Thursday. Its 52-week range is $136.02 to $243.25. The consensus price target from analysts ahead of earnings was roughly $254.

Shares of LinkedIn were indicated up 5% initially around $250 in the after-hours trading session after its earnings report. As a reminder, that is very close to the consensus analyst target price.

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