LinkedIn (LNKD) Tops Q4 EPS by 16c; Issues Light Q1, FY16 Outlook
LinkedIn (NYSE: LNKD) reported Q4 EPS of $0.94, $0.16 better than the analyst estimate of $0.78. Revenue for the quarter came in at $862 million versus the consensus estimate of $857.59 million.
Talent Solutions revenue (inclusive of Learning & Development) increased 45% year-over-year in the fourth quarter to $535 million and increased 41% year-over-year to $1,877 million in 2015.
- Hiring revenue contributed $487 million and $1,770 million in the fourth quarter and 2015, respectively, which represents increases of 32% and 33% compared to the same periods last year. These increases were driven by strength in new account performance within field sales and continued strength in online subscriptions.
- Learning & Development revenue contributed $49 million and $107 million in the fourth quarter and 2015, respectively.
Marketing Solutions revenue increased 20% year-over-year in the fourth quarter to $183 million and increased 28% to $581 million in 2015.
- Sponsored Updates performance was the primary driver of growth, surpassing 50% of total Marketing Solutions revenue for the first time, while premium display faced secular-driven headwinds similar to prior quarters.
Premium Subscriptions revenue increased 19% year-over-year in the fourth quarter to $144 million and increased 22% year-over-year to $532 million in 2015.
- Sales Navigator remained the faster growing component of Premium Subscriptions with continued improvement in customer satisfaction and product usage.
GUIDANCE:
LinkedIn sees Q1 2016 revenue of $820 million, versus the consensus of $866.9 million. EPS is expected to be about $0.55, versus $0.74 expected.
LinkedIn sees FY2016 revenue of $3.60-3.65 billion, versus the consensus of $3.91 billion. EPS is epected to be about $3.05 - $3.20, with the consensus at $3.67.
For earnings history and earnings-related data on LinkedIn (LNKD) click here.