LinkedIn stock jumps 10%, after blow-out Q4

Business network handily beats revenue and earning estimates

Shares of LinkedIn are up 10% in after-hours trading Thursday, after the business network posted better-than expected fourth-quarter earning.

Shares are currently trading at $136.75 a share. They were down 1.34% in regular trading, declining $1.68 cents. 

LinkedIn posted non-GAAP earnings per share of 35 cents on revenue of $303.6 million, up 81% from $167.7 million in the year-ago period, and well above the consensus estimates compiled by Thomson Reuters of 19 cents a share on revenue of $279.5 million. 

Net income for the fourth quarter was $11.5 million, up 40%  from net income of $6.9 million for the fourth quarter of 2011. Non-GAAP net income for the fourth quarter was $40.2 million, 65% higher than the $13.3 million it posted for the fourth quarter of 2011.

Adjusted EBITDA for the fourth quarter was $78.6 million, or 26% of revenue, compared to $34.4 million for the fourth quarter of 2011, or 21% of revenue.

For the full year 2012, revenue increased 86% to $972.3 million from $522.2 million.

"2012 was a transformative year for LinkedIn," Jeff Weiner, CEO of LinkedIn, said in a statement. "We exited 2011 having successfully revamped our underlying development infrastructure. Based on that investment, we said that 2012 would be a year of accelerated product innovation, and it was. The products we delivered throughout the year drove member engagement and financial results to record levels in the fourth quarter."

Revenue

LinkedIn saw an 81% increase in revenue, posting $303.6 compared to $167.7 million the same quarter in 2011.

Revenue from Talent Solutions was $161.0 million during the quarter, an increase of 90% year-to-year. It accounted for 53% of total revenue, compared to 51% in Q4 2011.

Marketing Solutions took in $83.2 million, or 27% of total revenue, up 68% from 2011, when it accounted for 30% of total revenue. Revenue from Premium Subscriptions was up 79% year to year, taking in $59.4 million. It accounted for 20% of the revenue for the fourth quarter of 2012.

A total of $189.0 million, or 62%, of LinkedIn’s revenue came from the U.S., while $114.6 million, or 38%, came from international markets.

"Continued investment in our talent and technology infrastructure drove momentum in both product and monetization, resulting in record revenue, profitability, and cash flow," Steve Sordello, CFO of LinkedIn, said in  statement. "As we look forward to 2013, we remain excited about the value LinkedIn will create for members and customers in the coming year."

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