LinkedIn announces second quarter 2011 financial results

Categories: Earnings
LinkedIn logo

LinkedIn Corporate Communications

Mountain View, Calif. -- August 4, 2011 -- 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:

  • Members grew to 115.8 million, an increase of 61% from the second quarter of 2010
  • Unique visitors of 81.8 million per month, an increase of 83% from the second quarter of 2010
  • Page views of 7.1 billion, an increase of 80% from the second quarter of 2010
  • Revenue for the second quarter was $121.0 million, an increase of 120% compared to $54.9 million for the second quarter of 2010
  • Net income for the second quarter was $4.5 million, compared to $4.3 million for the second quarter of 2010; Non-GAAP net income for the second quarter was $10.8 million, compared to $6.4 million for the second quarter of 2010. Non-GAAP measures exclude tax-effected stock-based compensation expense and tax-effected amortization of acquired intangible assets
  • Adjusted EBITDA for the second quarter was $26.3 million, or 22% of revenue, compared to $11.5 million for the second quarter of 2010, or 21% of revenue
  • GAAP EPS for the second quarter was $0.04; Non-GAAP EPS for the second quarter was $0.10

"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

  • In April 2011, LinkedIn opened up full access to the LinkedIn platform to developers, enabling them to build the professional Web. A number of new plug-ins were introduced, including the LinkedIn Share Button, which more than 100,000 publishers are now using to drive traffic to their sites. And later in the quarter, new Groups, Company, and Jobs APIs were introduced. LinkedIn now has more than 30,000 developers using its APIs.
  • LinkedIn extended its mobile presence with the April 2011 launch of LinkedIn for Android. In May, the flagship social news product, LinkedIn Today, came to the iPhone via LinkedIn for iPhone 3.6. In June, LinkedIn Today was added to Flipboard, giving professionals a new way to use the innovative iPad app to consume the news that matters to their professional lives. Mobile page views have increased approximately 400% year-over-year.
  • LinkedIn expanded its global footprint with the opening of an Asian regional headquarters in Singapore in May 2011 and a Northern European hub in Stockholm in June, bringing the total number of offices outside the U.S. to 12. Also in June, LinkedIn was made available to members in three new languages — Turkish, Russian, and Romanian, bringing the total to nine.

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.

  • Hiring Solutions: Revenue from Hiring Solutions products totaled $58.6 million, an increase of 170% compared to the second quarter of 2010. Hiring Solutions revenue represented 48% of total revenue in the second quarter of 2011, compared to 49% in the first quarter of 2011 and 40% in the second quarter of 2010.
  • Marketing Solutions: Revenue from Marketing Solutions products totaled $38.6 million, an increase of 111% compared to the second quarter of 2010. Marketing Solutions revenue represented 32% of total revenue in the second quarter of 2011, compared to 30% in the first quarter of 2011 and 33% in the second quarter of 2010.
  • Premium Subscriptions: Revenue from Premium Subscriptions products totaled $23.9 million, an increase of 60% compared to the second quarter of 2010. Premium Subscriptions represented 20% of total revenue in the second quarter of 2011, compared to 21% in the first quarter of 2011 and 27% in 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.

  • Q3 FY11 Guidance: Revenue for the third quarter of 2011 is projected to be in the range of approximately $121 million to approximately $125 million. For the third quarter of 2011, the company expects to report adjusted EBITDA of approximately $9 million to approximately $11 million.
  • Full Year FY11 Guidance: Revenue for the full year of 2011 is projected to be in the range of approximately $475 million to approximately $485 million. For the full year of 2011, the company expects to report adjusted EBITDA of approximately $65 million to approximately $70 million.

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.