LinkedIn (LNKD) Tops Q3 EPS by 33c; Issues Strong FY15 Outlook

(Updated - October 29, 2015 4:04 PM EDT)

LinkedIn (NYSE: LNKD) reported Q3 EPS of $0.78, $0.33 better than the analyst estimate of $0.45. Revenue came in at $780 million versus the consensus of $755.64 million.

Marketing Solutions revenue grew 28% year-over-year to $140 million.

• Sponsored Updates performance once again exceeded 100% year-over-year growth, partially offset by expected premium display headwinds.

Premium Subscriptions revenue improved 21% year-over-year to $138 million.

• Sales Navigator continued to gain traction with large enterprises and saw improvements in customers' satisfaction.

Guidance:

• Q4 2015 Guidance: Revenue is expected to range between $845 million and $850 million. Adjusted EBITDA is expected to be approximately $210 million. Non-GAAP EPS is expected to be approximately $0.74. The company expects depreciation of approximately $78 million, amortization of approximately $47 million, and stock-based compensation of approximately $135 million. The company also expects approximately 132 million GAAP fully-diluted weighted shares and 134 million non-GAAP fully-diluted weighted shares. (The Street sees revenue of $845.9 million and EPS of $0.67.)
• Full Year 2015 Guidance: Revenue is expected to range between $2.975 billion and $2.980 billion. Adjusted EBITDA is expected to be approximately $740 million. Non-GAAP EPS is expected to be approximately $2.63. The company expects depreciation of approximately $281 million, amortization of approximately $135 million, and stock-based compensation of approximately $510 million. The company also expects approximately 129 million GAAP fully-diluted weighted shares and 131 million non-GAAP fully-diluted weighted shares. (The Street sees revenue of $2.95 billion and EPS of $2.25.)

For earnings history and earnings-related data on LinkedIn (LNKD) click here.

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