Earnings expectations for LinkedIn Corp. (NYSE: LNKD) were high after a positive earnings and mobile trends report from Facebook, Inc. (NASDAQ: FB) as its rival social network, but the Yelp Inc. (NYSE: YELP) gains due to mobile growth kept hopes high that maybe LinkedIn was also winning. In fact, LinkedIn shares closed up 4.5% at $213.00 and the stock hit yet a new high of $213.48 on the day. Things are looking so great that its market capitalization rate is now $23.5 billion.
The professional social network reported its adjusted earnings after the close on Thursday of $0.38 in earnings per share, with revenue coming up 59% at $363.7 million. Thomson Reuters had estimates of $0.31 per share and $353.85 million. Be advised that the 59% sales gain translated to an earnings gain that was more than double: $44.5 million versus $18.1 million a year ago. Its adjusted EBITDA for the second quarter was $88.6 million, or 24% of revenue, versus $50.4 million for the second quarter of 2012.
LinkedIn gave guidance $367 million to $373 million in revenue, versus the Thomson Reuters consensus $383.79 million in revenue. Its other guidance said, “Adjusted EBITDA is expected to range between $81 million and $83 million. The company expects depreciation and amortization in the range of $38 million to $40 million, and stock-based compensation in the range of $49 million to $51 million.”
Below is a breakdown of how the quarter went by business segment and by metric:
- Talent Solutions… Revenue from products rose 69% to $205.1 million; Talent Solutions revenue represented 56% of total revenue in the second quarter of 2013, compared to 53% in the same period in 2012.
- Marketing Solutions… Revenue from Marketing Solutions products rose 36% to $85.6 million; Marketing Solutions revenue represented 24% of total revenue in the second quarter of 2013 versus 28% a year ago.
- Premium Subscriptions… Revenue from Premium Subscriptions products rose 68% to $73.0 million; Premium Subscriptions represented 20% of total revenue in the second quarter of 2013 versus 19% a year ago.
- US and International… Revenue from the U.S. totaled $224.3 million, or 62% of total revenue; Revenue from international markets totaled $139.4 million, or 38% of total revenue in the second quarter of 2013.
- LinkedIn membership grew to 238 million, as growth accelerated to 37% year-over-year.
- LinkedIn’s professional publishing platform contributed to homepage traffic more than doubling compared with last year.
- Mobile homepage engagement rising over 40%, and increasing levels of social actions, article views, and mobile profile edits when compared to the past version.
Shares are up on the news, and we are not going to try to use any valuation concerns or other suppositions when the stock market is running this strong. That being said, we would liked to have seen more commentary around the mobile side of the business then the already-impressive mention made.
LinkedIn shares are trading up 3.6% at $220.70 shortly after the earnings report. If that holds, then LinkedIn is trading at an all-time high yet again. Be advised that the consensus analyst price target from Thomson Reuters was $204.51 prior to the earnings report.