Thu, Apr. 28, 4:16 PM
- In addition to beating Q1 estimates, LinkedIn (NYSE:LNKD) is guiding for Q2 revenue of $885M-$890M and EPS of $0.74-$0.77 vs. a consensus of $886.1M and $0.71, and 2016 revenue of $3.65B-$3.7B and EPS of $3.30-$3.40 vs a consensus of $3.67B and $3.19.
- Hiring (jobs/recruiting) revenue rose 27% Y/Y to $502M, Marketing Solutions (ads) rose 29% to $154M, and Premium Subscriptions rose 22% to $149M. Learning (formerly Lynda.com) revenue totaled $55M.
- Hiring sales growth slowed a bit from Q4, but marketing and subscriptions growth improved. GAAP costs/expenses rose 42% Y/Y to $926.9M.
- Shares are up 11.5% after hours to $137.15. Expectations were low after LinkedIn was crushed in February due to the guidance accompany its Q4 report.
- LinkedIn's Q1 results, earnings release
Thu, Apr. 28, 4:10 PM
Wed, Apr. 27, 5:35 PM
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Thu, Apr. 21, 2:31 PM
- A rumor among traders that Microsoft could be looking to acquire LinkedIn (LNKD +2.8%) appears to be helping the beaten-up professional social networking leader rally on a quiet day for tech stocks. Volume is moderate - 2.3M shares vs. a 3-month daily average of 3.9M.
- Of note: Twitter has spiked on several occasions on similar kinds of rumors. In each case, the rumor didn't pan out.
- LinkedIn's Q1 report arrives on the afternoon of April 28. Shares are down 47% YTD, after getting crushed in February due to the weak guidance issued with a Q4 beat.
Thu, Apr. 14, 8:41 AM
- Evercore drops its price target on LinkedIn (NYSE:LNKD) to $135 from $155. Implied upside 19%.
- Firm says investment in infrastructure could increase costs as the company plays catch up to other social peers.
- Notes LNKD's user engagement is a fraction of other social experiences, while valuation is among the highest on the basis of user metrics and profitability. Technical and infrastructure capability is also arguably falling behind.
- Says frequent shifting direction of the products has left many ad agencies incrementally reluctant to increase spending.
- LNKD reports on April 28 post-market.
- Now read LinkedIn: Give It A Chance »
Sun, Mar. 27, 5:37 AM
- Noting LinkedIn's (NYSE:LNKD) plunge from $269 to $110, a past employee says the company has "forgotten the unique 'fuel'" that powers its machine: its members and their willingness to update their profiles.
- According to the post, 62.5% of LinkedIn's revenue depends on members keeping their profiles up to date. Instead, it has become a business-card proxy; even LinkedIn employees appear to be lax in updating their profiles.
- "Outside recruiters still use LinkedIn as part of their recruitment process, however in-house recruiters that I have talked to get better results with Indeed.com (owner: OTCPK:RCRRF). With Indeed.com, recruiters know a person is actively looking, the resume is actively updated, and there is much more detail when compared to a LinkedIn profile."
- Now read Lazarus Rising Or Icarus Falling? The GoPro And LinkedIn Question »
Wed, Mar. 16, 7:33 AM
- Morgan Stanley is the latest the throw in the towel on LinkedIn (NYSE:LNKD), downgrading to Hold from Overweight. The price target is cut to $125 from $190 (last night's close was $115.51).
- The team initiated coverage on the former high-flyer just over a year ago, with a price target then of $310.
- Shares -4.85% to $109.98 premarket.
Thu, Mar. 3, 2:39 AM
- How do you perk up employees after your firm's stock price falls off a cliff? LinkedIn (NYSE:LNKD) Chief Executive Jeff Weiner is declining his 2016 annual stock compensation (a reported $14M) in order to pass it on to workers at the professional social network.
- Up to Wednesday's close of $119.68, LinkedIn's stock had dropped nearly 38% since its disappointing Q4 results on Feb. 4.
- Weiner isn't the only one to employ the strategy. Back in October, Twitter CEO Jack Dorsey gave away $200M in stock to employees after steep layoffs and a battered stock price had taken their toll.
Mon, Feb. 22, 10:02 AM
- Goldman throws in the towel on its Conviction Buy rating for LinkedIn (LNKD flat), and downgrades to Buy. The new price target of $155 (from $200) still represents about 35% upside from the current price.
- Previously: LinkedIn -44.9% post-earnings; 10 downgrades arrive, growth prospects questioned (Feb. 5)
Mon, Feb. 8, 10:35 AM
- Andrew Left, head of Citron Research (much better known for its short positions than its long positions), has told CNBC he took a long position in LinkedIn (LNKD +2.7%) on Friday, after shares nosedived due to the professional social networking leader's soft Q1/2016 guidance.
- Left: "Only buy stocks that you are willing to buy lower. That is the lesson. I am happy (with the drop) ... There are great companies that I couldn't own for years because of their price, and now I finally have a chance to be an investor. LinkedIn is one of them."
- LinkedIn is higher in spite of a 2% Nasdaq drop. Shares are still down 42% from last Thursday's close.
- Prior LinkedIn coverage
- Prior Citron Research coverage
Fri, Feb. 5, 2:26 PM
- Atlantic Equities, BMO, Cowen, JPMorgan, Mizuho, Monness Crespi, Raymond James, RBC, SunTrust, and Susquehanna have downgraded LinkedIn (NYSE:LNKD) to neutral ratings after the company offered weak Q1/2016 guidance with its Q4 beat, and suggested several factors related to hiring solutions, online ad, and subscription growth were to blame. Shares have crashed to levels last seen in 2012.
- Raymond James' Justin Patterson, who previously had a Strong Buy rating: "While guidance likely contains some conservatism, LinkedIn’s now provided cautious guidance for three of the past four quarters and earnings quality is poor (i.e. [stock compensation[ now represents >60% of EBITDA, with revenue growth decelerating). Thus, we believe the after-hours reaction is warranted and that LNKD shares are likely range-bound until growth reaccelerates, guidance volatility subsides, and earnings quality improves."
- Citi's Mark May (Neutral): "While 4Q15 results could be characterized as mixed, three of the last four quarters have now included ‘issues’ ... Even considering mgmt’s history of conservatism, guidance implies a meaningful deceleration in revenue growth to the 20-30% range from 35-40% recently, as well as 30% incremental margins for 2016, below the 32% incremental margins in 4Q15."
- Pac Crest's Evan Wilson (Overweight rating): "LinkedIn has rarely given investors a reason to own the stock in 1H and it has happened again ... we think its outlook will most likely end up being conservative as it usually is. We think for its data alone, LinkedIn is a worthy acquisition for any number of enterprise software companies at this valuation." Wilson is, however, critical of LinkedIn's decision to shutter its standalone Lead Accelerator B2B ad product. "Now Sales Navigator really is LinkedIn's only big near-term opportunity to materially increase the monetization of its data set. Ugh."
- BMO's Dan Salmon: "[W]e came away from 4Q results with less confidence in our long-term thesis. Moreover, while US employment trends are still relatively strong, an uncertain air surrounding near-term hiring appeared to develop toward year-end ... Looking more closely at the long-term product roadmap, the path to engaging new groups of power users (B2B marketers, salespeople) has been bumpier than expected."
- Stifel's Scott Devitt (Buy, $220 target) is still a believer. "Investors may question its strategy, but LinkedIn is narrowing its focus on high value, high impact initiatives and jettisoning those investments that do not provide acceptable returns. Although its marketing business will likely face distractions this year, we think LinkedIn’s talent, sales, and learning & development businesses are poised for a strong year."
- As is Needham's Kerry Rice (Buy, $200 target): "[W]e believe our estimates could prove conservative due to: 1) LNKD’s core products remain healthy; 2) LNKD continues to have a strong product pipeline, including Lynda and Sales Solutions, the full potential of which we believe is yet to be realized; and 3) management continues to stay focused in terms of both execution and resource allocation."
- Prior LinkedIn coverage
Fri, Feb. 5, 12:40 PM
Fri, Feb. 5, 9:17 AM
Thu, Feb. 4, 5:39 PM
Thu, Feb. 4, 5:30 PM
- While discussing its 2016 guidance, LinkedIn (NYSE:LNKD) says it expects its field sales hiring solutions business to see mid-20% growth in 2016, after exiting 2015 at 30% growth. The outlook is said to reflect "continued pressure in EMEA and APAC given current global economic conditions," and single-digit growth for self-serve products. It also doesn't assume "meaningful contribution" from LinkedIn's Referrals and new Recruiter products.
- Also: For its Marketing Solutions (ad) business, LinkedIn is shuttering its Lead Accelerator product as a standalone offering, and incorporating its technology into the Sponsored Updates ad product. The move is expected to have a short-term revenue impact. Nonetheless, LinkedIn forecasts Marketing Solutions will "accelerate in 2016."
- Meanwhile, spending will stay aggressive: Capex will equal a high-teens % of 2016 revenue, and aggressive investments will be made for LinkedIn's Sales Solutions and Learning & Development (formerly Lynda.com) platforms.
Q4 sales/traffic details: Talent Solutions revenue (62% of total) +45% Y/Y to $535M - hiring revenue +32% to $487M, Learning & Development revenue totaled $49M. Over 3K corporate solutions accounts were added, raising the total above 42K (+29% Y/Y); LinkedIn won't disclose this metric going forward. The add-on/renewal rate "decreased moderately" Y/Y.
Marketing Solutions +20% to $183M, with Sponsored Updates surpassing 50% of segment revenue and display ad sales dropping by a high-30s % amid ongoing "secular-driven headwinds." Premium Subscriptions +19% to $144M, with Sales Navigator providing a lift. LinkedIn notes general subscriptions are now growing only at a single-digit rate as subscribers migrate to products such as Job Seeker and Recruiter Lite.
Registered members rose by 18M Q/Q to 414M. Unique visiting members only rose 7% to 100M (57M mobile). Member page views +26% to 37B. The U.S. was 61% of revenue.
- Financials: 2015 free cash flow was $300M, up from just $21M in 2014. GAAP costs/expenses rose 39% Y/Y in Q4 to $877.9M. On a non-GAAP basis, sales/marketing spend was 31% of revenue, R&D 18%, G&A 11%, and cost of revenue 12%. LinkedIn ended 2015 with $3.1B in cash and $1.1B in convertible debt.
- In other news, LinkedIn has announced it's buying Connectifier, a startup that has developed A.I.-based search technology for helping recruiters find job candidates. LinkedIn, which bough job search engine/listing platform Bright in 2014, says Connectifier will "further strengthen our core products and accelerate our product roadmap, leveraging powerful machine learning-based searching and matching technology to help recruiters and hiring managers find the perfect talent fit."
- LinkedIn has tumbled to $139.46 after hours.
- LinkedIn's results/guidance, earnings release, slides (.pdf)
Thu, Feb. 4, 4:09 PM
- LinkedIn (NYSE:LNKD): Q4 EPS of $0.94 beats by $0.16.
- Revenue of $861.9M (+34.0% Y/Y) beats by $4.31M.
- Expects Q1 revenue of $820M, below an $866.7M consensus.
- Expects 2016 revenue of $3.6B-$3.65B and EPS of $3.05-$3.20, below a consensus of $3.91B and $3.67.
- Shares -19% after hours.
LinkedIn Corp. operates an online professional network on the Internet. The company's proprietary platform enables members to create, manage and share their professional identities online, build and engage with their professional networks, access shared knowledge and insights, and find business... More
Industry: Internet Information Providers
Country: United States
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