LinkedIn (NYSE:LNKD) expects Q3 revenue of $543M-$547M and EPS of $0.44, above a consensus of $540.9M and $0.40. Full-year guidance is for revenue of $2.14B-$2.15B and EPS of $1.80, above a consensus of $2.13B and $1.64. The company has a history of guiding conservatively.
Marketing Solutions (ad sales, 20% of revenue) growth accelerated to 44% Y/Y in Q2 from 36% in Q1, and helped drive the Q2 beat. Growth had been pressured in prior quarters by a transition to sponsored news feed ads.
Talent Solutions (jobs, 60% of revenue) +49% vs. +50% in Q1. Subscriptions (20% of revenue) +44% vs. +46% in Q1. The U.S. was 60% of revenue, same as Q1.
Likely helping ad sales: Traffic to posts from publishers and "influencers" has more than doubled since February, when a new publishing platform was launched. LinkedIn, whose engagement is lighter than that of most other popular social networks, says the platform is now producing 30K+ long-form posts per week.
Total GAAP costs/expenses +46% Y/Y to $519.8M. Sales/marketing +51% to $184.5M, R&D +35% to $128.7M.