Reddit's IPO at one week: how it compares to other social media IPOs
While Reddit's had the second highest IPO price, it raised by far the least amount of money
Read more...Shares of LinkedIn are down over 4% in after-hours trading Tuesday, even though the company posted than expected third-quarter earnings.
The reason for the fall seems to have been weaker than expected guidance for the fourth quarter and full year. The stock had gone up 1.70%, or $4.14, to $247.14 a share in regular trading earier in the day.
In the earnings report, LinkedIn posted non-GAAP earnings per share of 39 cents on revenue of $393 million, up 56% from $252 million in the year-ago period. Analysts had been projecting EPS of 32 cents a share on revenue of $385 million.
Net loss for the quarter was $3.4 million, compared to net income of $2.3 million for the third quarter of 2012. Non-GAAP net income for the second quarter was $46.8 million, compared to $25.1 million for the third quarter of 2012.
Adjusted EBITDA for the third quarter was $92.8 million, or 24% of revenue, compared to $56.0 million for the third quarter of 2012, or 22% of revenue.
LinkedIn also beat its own expectations. In previous its earnings report, LinkedIn had projected revenue in the range of $367 million and $373 million for the third quarter, while adjusted EBITDA was expected to range between $81 million and $83 million.
“Increased member growth and engagement helped drive strong financial results in the third quarter,” Jeff Weiner, CEO of LinkedIn, said in a statement. “We continue to deliver value to professionals through investment in core products and strategic initiatives such as mobile, students, and the professional publishing platform.”
Talent Solutions took in $224.7 million, or 57% of total revenue, up 62% from a year ago, when it accounted for 55% of total revenue.
Revenue from Marketing Solutions was $88.5 million during the quarter, an increase of 38% year-to-year. It accounted for 23% of total revenue, compared to 25% in Q3 2012.. Premium Subscriptions brought in 20% of total revenue, or $79.8 million, up 61% year to year.
A total of $245.3 million, or 62% of LinkedIn’s revenue, came from the U.S., while $147.7 million, or 38%, came from international markets.
The company's membership grew 38% year-to-year, to over 259 million members.
LinkedIn is expecting revenue in the range of $415 million and $420 million for the fourth quarter, while adjusted EBITDA is expected to range between $98 million and $100 million.
For the full year, the company revised its estimates upward to $1.5 billion in revenue, and adjusted EBITDA of $364 million.
Both estimate fell short of consensus, however. For Q4, the street is expecting revenue of $438.08 million, and revenye of $1.51 billion for the full year.
(Image source: https://socialmediatoday.com)
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