LinkedIn (LNKD) Tops Q2 EPS by 25c
(Updated - July 31, 2015 8:45 AM EDT)
LinkedIn (NYSE: LNKD) reported Q2 EPS of $0.55, $0.25 better than the analyst estimate of $0.30. Revenue for the quarter grew 33% to $712 million versus the consensus estimate of $679.8 million. Revenue on a constant currency basis was up 38% from last year. Adjusted EBITDA was $163 million, or 23% of revenue.
The company highlighted:
- Talent Solutions revenue (inclusive of Learning & Development) was $443 million, an increase of 38% compared to the same quarter last year.
- Marketing Solutions revenue was $140 million, an increase of 32% compared to the same quarter last year.
- Premium Subscriptions revenue was $128 million, an increase of 22% compared to the same quarter last year.
“LinkedIn continued to deliver increased member and customer value in the second quarter while delivering solid financial results,” said Jeff Weiner, CEO of LinkedIn. “We continued to invest in our long-term strategic roadmap and began integrating the acquisition of lynda.com that closed during the quarter.”
LinkedIn sees Q3 revenue between $745 million and $750 million, versus the consensus of $743.68 million. The company sees EPS of $0.43, versus the consensus of $0.43.
LinkedIn sees FY15 revenue of approximately $2.94 billion, versus the consensus of $2.91 billion. The company sees FY EPS of $2.19 versus the consensus of $1.93.
Analysts on Wall Street were not too impressed with the numbers and one firm downgraded the stock following the release. Evercore ISI analyst Ken Sena cut the stock from Buy to Hold and cut his price target to $220 from $250. Sena said full year guidance needs to come down. He notes an accounting benefit pertaining to the company’s Lynda acquisition helped boost result above the high-end of the company’s guidance range. When the accounting impact is stripped away, back half is being guided down, he said.
For earnings history and earnings-related data on LinkedIn (LNKD) click here.