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LinkedIn Q3 2012 Earnings

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LinkedIn
LinkedIn

The document provides LinkedIn's Q3 2012 results. Key metrics show continued growth in members, engagement, and website traffic. Revenue increased 48% year-over-year to $252 million, driven by growth in Talent Solutions and Marketing Solutions. Adjusted EBITDA was $65 million, representing a 26% margin. For Q4 2012, LinkedIn expects revenue of $270-275 million and adjusted EBITDA of $58-60 million.

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Q3’12 Results LinkedIn Confidential ©2013 All Rights Reserved
Safe Harbor “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation and the accompanying conference call contain forward-looking statements about our products, including our planned investments in key strategic areas, certain non-financial metrics, such as member growth and engagement, and our expected financial metrics such as revenue, adjusted EBITDA, depreciation and amortization and stock-based compensation for the fourth quarter of 2012 and the full fiscal year 2012. The achievement of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any of these 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 limited operating history in a new and unproven market; engagement of our members; the price volatility of our Class A common stock; general economic conditions; expectations regarding the return on our strategic investments; execution of our plans and strategies, including with respect to acquisitions of other companies; expectations regarding the company’s ability to timely and effectively scale and adapt existing technology and network infrastructure to ensure that its products, services and solutions are accessible at all times with short or no perceptible load times; security measures and the risk that the company may be subject to attacks that degrade or deny the ability of members to access the company’s solutions or that our security measures may not be sufficient to prevent unauthorized access to our member data; our ability to maintain our rate of revenue growth and manage our expenses and investment plans; our ability to accurately track our key metrics internally; 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, litigation and regulatory issues; increasing competition; our ability to manage our growth and retain our employees; the application of US and international tax laws on our tax structure and any changes to such tax laws; 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 section entitled “Risk Factors” in the company’s Annual Report on Form 10-K that was filed for the year ended December 31, 2011, and additional information will also be set forth in our Form 10-Q that will be filed for the quarter ended September 30, 2012, which should be read in conjunction with these financial results. These documents are available on the SEC Filings section of the Investor Relations page of the company’s website at http://investors.linkedin.com/. All information provided in this release and in the attachments is as of November 1, 2012, and LinkedIn undertakes no duty to update this information.
Jeff Weiner Chief Executive Officer LinkedIn Steve Sordello Chief Financial Officer LinkedIn 3
Key Metrics *comScore metrics reflect LinkedIn site only, not including SlideShare 4
Revenue 5
Revenue by Product 6
Revenue by Geography 7
Revenue by Channel 8
Adjusted EBITDA & Margin 9
Net Income (Loss) & Cash Flow Highlights Q3 2012 Q2 2012 Q3 2011 Net Income (Loss) $mn, GAAP $2.3 $2.8 ($1.6) Net Income $mn, Non-GAAP $25.1 $18.1 $6.6 EPS, GAAP Fully-Diluted Weighted Shares $0.02 $0.03 ($0.02) EPS, Non-GAAP Fully-Diluted Weighted Shares $0.22 $0.16 $0.06 Operating Cash Flow (OCF), $mn $87.6 $47.0 $46.7 Free Cash Flow, $mn (OCF – Purchases of PPE) $54.0 $9.4 $17.9 Cash, Cash Equivalents, & ST Investments, $mn $676.6 $617.1 $387.7
Guidance Q4 2012 FY 2012 Revenue, $mn $270-275 $939-944 Adjusted EBITDA, $mn $58-60 $202-204 Depreciation & Amortization, $mn $23-25 $79-81 Stock-Based Compensation, $mn $28-30 $87-89
Non-GAAP Reconciliations LinkedIn Confidential ©2013 All Rights Reserved 12
Thank You LinkedIn Confidential ©2013 All Rights Reserved 13

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LinkedIn Q3 2012 Earnings

  • 1. Q3’12 Results LinkedIn Confidential ©2013 All Rights Reserved
  • 2. Safe Harbor “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation and the accompanying conference call contain forward-looking statements about our products, including our planned investments in key strategic areas, certain non-financial metrics, such as member growth and engagement, and our expected financial metrics such as revenue, adjusted EBITDA, depreciation and amortization and stock-based compensation for the fourth quarter of 2012 and the full fiscal year 2012. The achievement of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any of these 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 limited operating history in a new and unproven market; engagement of our members; the price volatility of our Class A common stock; general economic conditions; expectations regarding the return on our strategic investments; execution of our plans and strategies, including with respect to acquisitions of other companies; expectations regarding the company’s ability to timely and effectively scale and adapt existing technology and network infrastructure to ensure that its products, services and solutions are accessible at all times with short or no perceptible load times; security measures and the risk that the company may be subject to attacks that degrade or deny the ability of members to access the company’s solutions or that our security measures may not be sufficient to prevent unauthorized access to our member data; our ability to maintain our rate of revenue growth and manage our expenses and investment plans; our ability to accurately track our key metrics internally; 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, litigation and regulatory issues; increasing competition; our ability to manage our growth and retain our employees; the application of US and international tax laws on our tax structure and any changes to such tax laws; 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 section entitled “Risk Factors” in the company’s Annual Report on Form 10-K that was filed for the year ended December 31, 2011, and additional information will also be set forth in our Form 10-Q that will be filed for the quarter ended September 30, 2012, which should be read in conjunction with these financial results. These documents are available on the SEC Filings section of the Investor Relations page of the company’s website at http://investors.linkedin.com/. All information provided in this release and in the attachments is as of November 1, 2012, and LinkedIn undertakes no duty to update this information.
  • 3. Jeff Weiner Chief Executive Officer LinkedIn Steve Sordello Chief Financial Officer LinkedIn 3
  • 4. Key Metrics *comScore metrics reflect LinkedIn site only, not including SlideShare 4
  • 9. Adjusted EBITDA & Margin 9
  • 10. Net Income (Loss) & Cash Flow Highlights Q3 2012 Q2 2012 Q3 2011 Net Income (Loss) $mn, GAAP $2.3 $2.8 ($1.6) Net Income $mn, Non-GAAP $25.1 $18.1 $6.6 EPS, GAAP Fully-Diluted Weighted Shares $0.02 $0.03 ($0.02) EPS, Non-GAAP Fully-Diluted Weighted Shares $0.22 $0.16 $0.06 Operating Cash Flow (OCF), $mn $87.6 $47.0 $46.7 Free Cash Flow, $mn (OCF – Purchases of PPE) $54.0 $9.4 $17.9 Cash, Cash Equivalents, & ST Investments, $mn $676.6 $617.1 $387.7
  • 11. Guidance Q4 2012 FY 2012 Revenue, $mn $270-275 $939-944 Adjusted EBITDA, $mn $58-60 $202-204 Depreciation & Amortization, $mn $23-25 $79-81 Stock-Based Compensation, $mn $28-30 $87-89
  • 12. Non-GAAP Reconciliations LinkedIn Confidential ©2013 All Rights Reserved 12
  • 13. Thank You LinkedIn Confidential ©2013 All Rights Reserved 13