Linkedln Beats 4Q Ests, Revs Jump - Analyst Blog
11 Février 2013 - 5:25PM
Zacks
LinkedIn Corporation (LNKD) reported adjusted
net earnings of 13 cents per share in the fourth quarter of 2012,
well above the Zacks Consensus Estimate of 1 cent.
Revenues
Total revenues in the reported quarter were $303.6 million, up
81.0% from $167.7 million in the year-ago quarter. Strong
performance in all of its segments drove the upside in revenues.
Segment-wise, revenue from the Talent Solutions
(previously named Hiring Solutions) products was $161.0 million, up
90.0% from the year-ago quarter.
Revenue from the Marketing Solutions was $83.2
million, up 27.0% from the year-ago quarter. This segment
contributed 27.0% to the revenues in the fourth quarter of 2012, as
against 30.0% in the year-ago period.
Premium Subscriptions recorded revenue of $59.4
million, up 79.0% from the year-ago period. As a percentage of
total revenues, the segment’s contribution remained unchanged at
20%, compared with the year-ago period.
In the U.S., the company generated revenue of $189.0 million,
approximately 62.0% of the total revenues in the quarter under
review. Revenue from international markets totaled $114.6 million,
approximately 38.0% of total revenues in the fourth quarter of
2012.
Operating Results
The company witnessed higher R&D, sales & marketing and
administrative expenses, down to 23.0% of total revenues from 31.7%
in the year-ago period. G&A expense, as a percentage of total
revenues, declined to 13.2% versus 14.6% last year. Moreover, the
company reported operating income of $26.7 million, up from the
year-ago level of $10.0 million.
Net profit on a GAAP basis, in the fourth quarter of 2012, was
$11.5 million or 10 cents versus a loss of $6.9 million or 6 cents
in the fourth quarter of 2011. Excluding special items like
amortization of intangibles but including stock-based compensation,
non-GAAP earnings came at $14.3 million or 13 cents per share.
Balance Sheet
LinkedIn ended the quarter with cash and cash equivalents of
$270.4 million versus $676.6 million in the prior quarter. Accounts
receivable in the quarter was $203.6 million compared with $156.4
million in the previous quarter. Total deferred revenues in the
quarter were $257.7 million, up from $209.0 million in the previous
quarter.
Guidance
The company expects first-quarter 2013 revenues in the range of
$305.0–$310.0. Whereas, adjusted EBITDA is expected to range
between $67.0 million and $69.0 million. Depreciation and
amortization is expected in the range of $25.0 million to $27.0
million.
For full year 2013, total revenues are expected
to range between $1.41 billion and $1.44 billion. Adjusted EBITDA
is expected between $315 million and $330 million. Moreover,
depreciation and amortization is expected between $130.0 million to
$135.0 million.
Conclusion
Upbeat results for the fourth quarter of fiscal 2012 keep us
optimistic on the stock. Reported earnings have also exceeded our
estimates. LinkedIn, a leader in the emerging online professional
networking segment, has gained popularity across the globe and has
grown steadily over the recent past.
The Talent Solutions and Premium Subscription segments were
particularly strong. Moreover, the cost-control measures aided
bottom-line improvement.
Linkedln currently carries a Zacks Rank #3 (Hold). In the
current scenario, the company does not face intense competition in
the professional networking space. However, the emergence of
companies like ValueClick Inc. (VCLK) could change
the scenario rapidly over the next few years.
Though we remain on the sidelines for Linkedln, other stocks in
the technology space like CA Inc. (CA), carrying a
Zacks Rank #2 (Buy), and Symantec Inc. (SYMC),
carrying a Zacks Rank #1 (Strong Buy), are worth considering.
CA INC (CA): Free Stock Analysis Report
LINKEDIN CORP-A (LNKD): Free Stock Analysis Report
SYMANTEC CORP (SYMC): Free Stock Analysis Report
VALUECLICK INC (VCLK): Free Stock Analysis Report
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