LinkedIn tops with 52 cents EPS on $568M in revenue

Shares trade sideways after company once again low-balls Q4 and FY guidance

Shares of LinkedIn dipped down nearly 3% in after-hours trading (it has since bounced back to be up nearly 2%) on Thursday, despite the company posting better-than-expected third-quarter earnings. The stock had gone up 1.7%, or $3.39, to $202.90, in regular trading.

In the earnings report, LinkedIn posted non-GAAP earnings per share of  52 cents on revenue of $568 million, up 45% from $393 million in the year-ago period. Analysts had been expecting EPS of 47 cents a share on revenue of $557 million. 

Net loss for the quarter was $4.3 million, compared to net loss of $3.4 million for the third quarter of 2013. Non-GAAP net income for the second quarter was $66 million, compared to $47 million a year ago.

Adjusted EBITDA for the third quarter was $151 million, or 27% of revenue, compared to $93 million for the third quarter of 2013, or 24% of revenue.

LinkedIn's third quarter numbers also easily beat LinkedIn's own estimates which had been to see revenue in the range of $543 and $547 million for the third  quarter, while adjusted EBITDA was expected to range between $134 million and $136 million. 

Investors intitially went down, or were at least muted, due to weaker than expected guidance for the upcoming quarter and full year.

LinkedIn now expects to see Q4 revenue between $600 million and $605 million, with Adjusted EBITDA expected to range between $153 million and $155 million. The Street had been looking for Q4 guidance of $611.55 million.

For the full year 2014, revenue is expected to range between $2.175 billion and $2.180 billion with Adjusted EBITDA expected to range between $566 and $568 million. The high end of LinkedIn's expected 2014 revenue comes in the middle range of what Wall Street wanted to see, between $2.14 billion to $2.23 billion.

Talent Solutions took in $345 million in revenue in Q3, up 45% year-to-year. This sector represented 61% of the company's quarterly revenue, compared to 60% a year ago.

Revenue from Marketing Solutions was $109 million during the quarter, an increase of 45% year to year. It accounted for 19% of total revenue, the same as Q3 last year. Premium Subscriptions brought in $114 million, an increase of 43% and 20% of total revenue.

A total of $343 million, or 60% of LinkedIn’s revenue, came from the U.S., while $225 million, or 40%, came from international markets

The company is expecting Q4 2014 to see revenue between $and $million, with adjusted EBITDA expected to range between $ million and $ million. 

(Image source: linkedinsignin.com)