Seeking Alpha

LinkedIn offers soft guidance, buys online jobs startup for $120M

  • Though LinkedIn (LNKD) once again beat estimates, the company is guiding for Q1 revenue of $455M-$460M and 2014 revenue of $2.02B-$2.05B, below consensus forecasts of $470.3M and $2.16B. Adjusted EBITDA is expected to total $106M-$108M in Q1, and to grow to $490M in 2014 from a 2013 level of $111.4M.
  • In tandem with its results, LinkedIn has announced it's acquiring Bright, provider of a job search engine/listing platform that leverages proprietary analytics technology to help employers find and screen candidates. The purchase price is $120M (73% stock, 27% cash).
  • LinkedIn says it will use Bright's "data-driven matching technology, machine-learning algorithms and domain expertise" to help build out its own "economic graph" of workers and job opportunities (previous).
  • LinkedIn's Talent Solutions (jobs) growth moderated a bit in Q4, rising 53% Y/Y vs. 62% in Q3. Likewise, subscription revenue growth fell to 48% vs. 61% in Q3. Ad sales, pressured in 2013 by the sponsored news feed ad transition, rose 38% vs. 36% in Q3.
  • Talent Solutions made up 55% of revenue, subscriptions 20%, ads 25%.
  • LNKD -11.3% AH. Q4 results, PR.

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Comments (6)
  • Mark Krieger
    , contributor
    Comments (4367) | Send Message
     
    ouch....sounds like mgmt is trying to sandbag so they can beat next time
    6 Feb 2014, 04:42 PM Reply Like
  • PeterScriabin
    , contributor
    Comments (252) | Send Message
     
    Once SBC and amortization of intangibles are included, there are essentially NO earnings ($0.03 this quarter). Even using non-GAAP, the current P/E is almost 150! Cannot understand the market valuation of this company.

     

    More fool me, I had covered a little of my short position before the PR - on the theory that if MWW did THAT well, then LNKD would surely bust one loose on revenues. Hmf, so much for Leigh Drogen's Estimizers!
    6 Feb 2014, 05:19 PM Reply Like
  • golongcheckdownmkt
    , contributor
    Comments (40) | Send Message
     
    Can I get a HARUMPFFF?
    6 Feb 2014, 05:55 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11520) | Send Message
     
    When will people realize that Linked-In revenue is an offshoot of simple brick and mortar recruiting. It is worth contending that their "system" is more about helping companies cross check and insuring they are hiring people already employed than people out of work or needing a job. You are better controlling your own destiny and staying off of recruiting sites that provide companies everything they aren't suppose to ask you (your salary, your age, your personal network, how many times you've been unemployed, how long it took you to graduate, if you have a good relationship with your professors/a good student aside from academics, etc.) Rather than you defining your life they do it for you. And then they force you to pay them for the opportunity to serve you up to employers ahead of all those who don't pay.

     

    It's not their platform, its the way online recruiting makes money that needs to be thoroughly examined. Recruiting is already unfair enough without them.
    7 Feb 2014, 01:49 AM Reply Like
  • ciolan
    , contributor
    Comments (193) | Send Message
     
    "helping companies cross check and insuring they are hiring people already employed than people out of work or needing a job"

     

    That sounds really harsh, maybe some need a job but are quite qualified for it, why wouldn't they be considered?
    7 Feb 2014, 05:06 AM Reply Like
  • Mark Krieger
    , contributor
    Comments (4367) | Send Message
     
    buy the dip? it was inevitable their growth rate would be trimmed since the law of bigger numbers is rearing its ugly head
    7 Feb 2014, 11:26 AM Reply Like
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