Delicious
Digg
Facebook
Twitter
— Revenue Growth of 120%, to $121.0 million —
MOUNTAIN VIEW, Calif., Aug. 4, 2011 (GLOBE NEWSWIRE) -- LinkedIn Corporation (NYSE:LNKD), the world's largest professional network on the Internet, today reported its financial results for the second quarter ended June 30, 2011:
"In the second quarter, we saw record levels of members, unique visitors, and page views, while revenue growth further accelerated," said Jeff Weiner, CEO of LinkedIn. "Going forward, we plan to continue to invest in our team, technology, and products in order to increase the value we deliver to members and realize the full potential of the LinkedIn platform." Second Quarter Highlights and Strategic Announcements Second Quarter Financial Details and Operating Summary
LinkedIn reported revenue of $121.0 million for the quarter ended June 30, 2011, an increase of 120% compared to the second quarter of 2010.
Revenue from the U.S. totaled $82.7 million, and represented 68% of total revenue in the second quarter of 2011. Revenue from international totaled $38.3 million, and represented 32% of total revenue in the second quarter of 2011.
Revenue from the field sales channel totaled $66.7 million, and represented 55% of total revenue in the second quarter of 2011. Revenue from the online, direct sales channel totaled $54.3 million, and represented 45% of total revenue in the second quarter of 2011.
Net income for the second quarter was $4.5 million, compared to $4.3 million for the second quarter of 2010. Adjusted EBITDA was $26.3 million in the second quarter of 2011, or 22% of revenue, compared to $11.5 million in the second quarter of 2010, or 21% of revenue.
GAAP EPS was $0.04 based on 103.1 million fully-diluted weighted shares outstanding compared to $0.02 for the second quarter of 2010 based on 45.6 million fully-diluted weighted shares outstanding; Non-GAAP EPS was $0.10 based on 103.1 million fully-diluted weighted shares outstanding compared to $0.07 for the second quarter of 2010 based on 91.3 million fully-diluted weighted shares outstanding.
"Strength in our engagement metrics, outperformance in our leveraged online channels, and a growing backlog with key corporate clients drove record revenues and adjusted EBITDA during the quarter," said Steve Sordello, CFO of LinkedIn. "We will continue to take a long-term perspective and invest aggressively in the global LinkedIn platform."
For additional information, please see the "Selected Company Metrics and Financials" page, updated through the end of the second quarter of 2011, on LinkedIn's Investor Relations site. Business Outlook
As of today, LinkedIn is initiating guidance for its third quarter of 2011 and full year 2011 revenue and adjusted EBITDA guidance. Quarterly Conference Call
LinkedIn plans to host a webcast/conference call to discuss its second quarter 2011 financial results and business outlook today at 2:00 p.m. Pacific Time. Jeff Weiner and Steve Sordello will host the webcast, which can be viewed on the investor relations section of the LinkedIn website at http://investors.linkedin.com/. This call may contain forward-looking statements and other material information regarding the Company's financial and operating results. Following completion of the call, a recorded replay of the webcast will be available on the website. For those without access to the Internet, a replay of the call will be available beginning at 5:00 p.m. Pacific Time on August 4, 2011 through August 11, 2011 at 9:00
p.m. Pacific Time. To listen to the telephone replay, please call (706) 645-9291, access code 75477524. About LinkedIn
Founded in 2003, LinkedIn connects the world's professionals to make them more productive and successful. With more than 120 million members worldwide, including executives from every Fortune 500 company, LinkedIn is the world's largest professional network on the Internet. The company has a diversified business model with revenue coming from member subscriptions, marketing solutions and hiring solutions. Headquartered in Silicon Valley, LinkedIn also has offices across North America, as well as throughout Europe, Asia and Australia.
The LinkedIn logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=9679 Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared and presented in accordance with GAAP, the company uses the following non-GAAP financial measures: adjusted EBITDA, non-GAAP net income, and non-GAAP EPS (collectively the "non-GAAP financial measures"). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its
financial and operational decision making.
The company excludes the following items from one or more of its non-GAAP measures: Stock-based compensation. The company excludes stock-based compensation because it is non-cash in nature and because the company believes that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance and liquidity. The company further believes this measure is useful to investors in that it allows for greater transparency to certain line items in its financial statements and facilitates comparisons to competitors' operating results. Amortization of acquired intangible assets. The company excludes amortization of acquired intangible assets because it is non-cash in nature and because the company believes that the non-GAAP financial measures excluding this item provide meaningful supplemental information
regarding operational performance and liquidity. In addition, excluding this item from various non-GAAP measures facilitates internal comparisons to historical operating results and comparisons to competitors' operating results. Income tax effect of non-GAAP adjustments. Excluding the income tax effect of non-GAAP adjustments from the provision for income taxes assists investors in understanding the tax provision related to those adjustments and the effective tax rate related to ongoing operations. Assumed preferred stock conversion. As a result of the company's initial public offering, all outstanding shares of preferred stock were automatically converted into shares of Class B common stock. Consequently, non-GAAP diluted net income per share has been calculated assuming the conversion of all outstanding shares of preferred stock into shares of Class B common
stock.
For more information on the non-GAAP financial measures, please see the "Reconciliation of GAAP to non-GAAP Financial Measures" table in this press release. This accompanying table has more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. Additionally, the company has not reconciled adjusted EBITDA guidance to net income guidance because it does not provide guidance for stock-based compensation, other income (expense), provision for income taxes, and depreciation and amortization, which are the reconciling items between net income and adjusted EBITDA. As items that impact net income are out of the company's control and/or cannot be reasonably predicted, the company is unable to provide such guidance. Accordingly, a reconciliation to net income is not available without
unreasonable effort. Safe Harbor Statement
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release and the accompanying conference call contain forward-looking statements about expected financial metrics such as revenue, adjusted EBITDA, and EPS, as well as non-financial metrics, such as member growth, page views and unique visitors to the company's site, for the third quarter of 2011 and the full fiscal year and beyond. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the company's results could differ materially from the results expressed or implied by the forward-looking statements the company makes.
The risks and uncertainties referred to above include - but are not limited to - risks associated with the company's short operating history in a new and unproven market; engagement of its members; the price volatility of its Class B common stock; expectations regarding the company's ability to timely and effectively scale and adapt existing technology and network infrastructure to ensure that its website is accessible at all times with short or no perceptible load times; security measures and the risk that the company's website may be subject to attacks that degrade or deny the ability of members to access the company's solutions; members and customers curtailing or ceasing to use the company's solutions; the company's core value of putting members first, which may conflict with the short-term interests of the business; privacy issues; increasing competition in the market for online
professional networks; and the dual class structure of the company's common stock.
Further information on these and other factors that could affect the company's financial results is included in filings it makes with the Securities and Exchange Commission from time to time, including the company's Form 10-Q that will be filed for the quarter ended June 30, 2011. These documents are available on the SEC Filings section of the Investor Information section of the company's website at http://investors.linkedin.com/. All information provided in this release and in the attachments is as of August 4, 2011, and LinkedIn undertakes no duty to update this information.
— GAAP EPS of $0.04; Non-GAAP EPS of $0.10 —
— Strong Growth in Key Member Engagement Metrics —
LINKEDIN CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) June 30, December 31, 2011 2010 ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$ 352,854
$ 92,951
Short-term investments
19,260
--
Accounts receivable (net of allowance for doubtful accounts of $3,712 and $2,672 at
June 30, 2011 and December 31, 2010, respectively)
70,241
58,263
Deferred commissions
7,952
8,684
Prepaid expenses and other current assets
12,047
5,767
Income tax receivable
3,586
3,090
Deferred income taxes
3,451
3,451
Total current assets
469,391
172,206
Property and equipment, net
83,033
56,743
Goodwill
1,564
--
Intangible assets, net
4,577
5,232
Other assets
3,925
4,007
TOTAL ASSETS
$ 562,490
$ 238,188
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
$ 3,767
$ 2,064
Accrued liabilities
48,844
38,003
Deferred revenue
99,444
64,985
Income tax payable
258
420
Total current liabilities
152,313
105,472
LONG TERM LIABILITIES
2,021
1,861
DEFERRED TAX LIABILITIES
11,655
6,625
Total liabilities
165,989
113,958
COMMITMENTS AND CONTINGENCIES
REDEEMABLE CONVERTIBLE PREFERRED STOCK
--
87,981
STOCKHOLDERS' EQUITY:
Convertible preferred stock
--
15,846
Class A and Class B common stock
10
4
Additional paid-in capital
394,565
25,074
Accumulated other comprehensive income (loss)
7
(3)
Accumulated earnings (deficit)
1,919
(4,672)
Total stockholders' equity
396,501
36,249
TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND
STOCKHOLDERS' EQUITY
$ 562,490
$ 238,188
LINKEDIN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended
June 30, June 30, 2011 2010 2011 2010
Net revenue
$ 121,040
$ 54,895
$ 214,972
$ 99,611
Costs and expenses:
Cost of revenue (exclusive of depreciation and
amortization shown separately below)
18,403
9,842
35,186
18,147
Sales and marketing
36,019
13,055
65,380
23,509
Product development
30,414
14,822
55,149
26,963
General and administrative
16,673
7,667
30,287
14,339
Depreciation and amortization
9,602
4,201
17,761
8,141
Total costs and expenses
111,111
49,587
203,763
91,099
Income from operations
9,929
5,308
11,209
8,512
Other income (expense), net
11
(357)
460
(703)
Income before income taxes
9,940
4,951
11,669
7,809
Provision for income taxes
5,427
658
5,078
1,701
Net income
$ 4,513
$ 4,293
$ 6,591
$ 6,108
Net income attributable to common stockholders
$ 4,513
$ 938
$ 6,591
$ 938
Net income per share attributable to common stockholders:
Basic
$ 0.07
$ 0.02
$ 0.12
$ 0.02
Diluted
$ 0.04
$ 0.02
$ 0.07
$ 0.02
Weighted-average shares used to compute net income per
share attributable to common stockholders:
Basic
69,395
42,232
56,631
42,100
Diluted
103,129
45,624
100,131
44,927
LINKEDIN CORPORATION SUPPLEMENTAL REVENUE INFORMATION (In thousands) (Unaudited) Three Months Ended Six Months Ended
June 30, June 30, 2011 2010 2011 2010 Revenue by product:
Hiring Solutions
$ 58,619
$ 21,723
$ 104,953
$ 38,652
Marketing Solutions
38,571
18,308
66,253
32,534
Premium Subscriptions
23,850
14,864
43,766
28,425
Total
$ 121,040
$ 54,895
$ 214,972
$ 99,611
Revenue by geography:
United States
$ 82,739
$ 40,299
$ 147,859
$ 72,834
International
38,301
14,596
67,113
26,777
Total
$ 121,040
$ 54,895
$ 214,972
$ 99,611
Revenue by channel:
Field sales
$ 66,699
$ 30,202
$ 117,327
$ 53,886
Online sales
54,341
24,693
97,645
45,725
Total
$ 121,040
$ 54,895
$ 214,972
$ 99,611
LINKEDIN CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended
June 30, June 30, 2011 2010 2011 2010 Non-GAAP net income and net income per share:
GAAP net income
$ 4,513
$ 4,293
$ 6,591
$ 6,108
Add back: stock-based compensation
6,815
1,955
10,658
3,889
Add back: amortization of intangible assets
862
53
1,671
107
Income tax effect of non-GAAP adjustments
(1,414)
134
(2,392)
535
NON-GAAP NET INCOME
$ 10,776
$ 6,435
$ 16,528
$ 10,639
GAAP diluted shares
103,129
45,624
100,131
44,927
Add back: assumed preferred stock conversion
--
45,647
--
45,647
NON-GAAP DILUTED SHARES
103,129
91,271
100,131
90,574
NON-GAAP DILUTED NET INCOME PER SHARE
$ 0.10
$ 0.07
$ 0.17
$ 0.12
Adjusted EBITDA:
Net income
$ 4,513
$ 4,293
$ 6,591
$ 6,108
Provision for income taxes
5,427
658
5,078
1,701
Other (income) expense, net
(11)
357
(460)
703
Depreciation and amortization
9,602
4,201
17,761
8,141
Stock-based compensation
6,815
1,955
10,658
3,889
ADJUSTED EBITDA
$ 26,346
$ 11,464
$ 39,628
$ 20,542 CONTACT: Press contact
Hani Durzy
hdurzy@linkedin.com
650-605-0829
Investor contact
Marilyn Lattin
mlattin@linkedin.com
650-605-0711