LinkedIn just released its Q3 financial results, and knocked them out of the park. Shares quickly began to skyrocket in after hours trading after the company posed massive beats.
Adjusted earnings per share of $0.78 topped the expected $0.45 while revenue was $780 million, well ahead of the expected $756 million.
$41 million of the revenue came from Lynda.com. Talent Solutions revenue was $502 million, up 46% from the same period last year. Marketing Solutions revenue was $140 million, up 28%. Premium subscriptions revenue was $138 million, an increase of 21%.
“LinkedIn delivered strong results in the third quarter, and recently announced several products focused on delivering increased member and customer value,” said Jeff Weiner, CEO of LinkedIn. “Our commitment to investing in our long-term roadmap continues to lay the foundation for future growth of the company.”
“LinkedIn achieved strong performance across all three product lines during the quarter,” said CFO Steve Sordello. “We remain focused on pursuing long-term investments to achieve future growth and increased profitability.”
LinkedIn Q3 2015 Earnings Call from LinkedIn
LinkedIn also announced that it has reached over 400 million members.
In a blog post about that, Aatif Awan writes, “Our vision at LinkedIn is to create economic opportunity for every member of the 3.3 billion strong global workforce. To realize this vision, we’re creating the world’s first economic graph by digitally mapping the global economy, identifying the connections between people, jobs, companies, skills, schools, and knowledge. You, our members, make up the core of the economic graph, and play an important role in bringing this vision to life.”
Here’s the release in its entirety:
MOUNTAIN VIEW, Calif., Oct. 29, 2015 (GLOBE NEWSWIRE) — LinkedIn Corporation (NYSE:LNKD), the world’s largest professional network on the Internet reported its results for the third quarter of 2015. The transcript with prepared remarks is contained within this release. In addition, a supplemental presentation will be made available on the investor relations section of the LinkedIn website at http://investors.linkedin.com.
“LinkedIn delivered strong results in the third quarter, and recently announced several products focused on delivering increased member and customer value,” said Jeff Weiner, CEO of LinkedIn. “Our commitment to investing in our long-term roadmap continues to lay the foundation for future growth of the company.”
LinkedIn added a number of enhancements across our member value propositions during the quarter, including replacing the email inbox with a new messaging experience, expanding the publishing platform to include German, French, and Portuguese languages and developing the next generation of LinkedIn’s mobile flagship experience.
Total revenue increased 37% year-over-year to $780 million, which includes $41 million in revenue from lynda.com.
Talent Solutions revenue increased 46% year-over-year to $502 million.
Hiring contributed $461 million in revenue, up 34% year-over-year, driven by continued operational improvement from our field sales organization and strong online growth.
Learning & Development contributed $41 million in revenue, in its first full quarter of contribution post acquisition.
Marketing Solutions revenue grew 28% year-over-year to $140 million.
Sponsored Updates performance once again exceeded 100% year-over-year growth, partially offset by expected premium display headwinds.
Premium Subscriptions revenue improved 21% year-over-year to $138 million.
Sales Navigator continued to gain traction with large enterprises and saw improvements in customers’ satisfaction.
Adjusted EBITDA was $208 million, or 27% of revenue which is consistent with last year. GAAP net loss attributable to common stockholders was $41 million and non-GAAP net income was $103 million.
GAAP diluted EPS was $(0.31), below last year’s performance of $(0.03). Non-GAAP diluted EPS improved to $0.78 compared to $0.52 last year.
“LinkedIn achieved strong performance across all three product lines during the quarter,” said Steve Sordello, CFO of LinkedIn. “We remain focused on pursuing long-term investments to achieve future growth and increased profitability.”
Business Outlook
LinkedIn is providing guidance for the fourth quarter and full year 2015. Further details can be found in the transcript below and the supplemental presentation, which will be made available on the investor relations section of the LinkedIn website at http://investors.linkedin.com:
Q4 2015 Guidance: Revenue is expected to range between $845 million and $850 million. Adjusted EBITDA is expected to be approximately $210 million. Non-GAAP EPS is expected to be approximately $0.74. The company expects depreciation of approximately $78 million, amortization of approximately $47 million, and stock-based compensation of approximately $135 million. The company also expects approximately 132 million GAAP fully-diluted weighted shares and 134 million non-GAAP fully-diluted weighted shares.
Full Year 2015 Guidance: Revenue is expected to range between $2.975 billion and $2.980 billion. Adjusted EBITDA is expected to be approximately $740 million. Non-GAAP EPS is expected to be approximately $2.63. The company expects depreciation of approximately $281 million, amortization of approximately $135 million, and stock-based compensation of approximately $510 million. The company also expects approximately 129 million GAAP fully-diluted weighted shares and 131 million non-GAAP fully-diluted weighted shares.
Prepared Remarks — Jeff Weiner, CEO LinkedIn Corporation
Q3 was a strong quarter for LinkedIn. Our member-facing product pipeline has never been stronger, and recent roll-outs are driving continued positive engagement trends. In terms of our business lines, Talent Solutions performed well, while Marketing Solutions remained stable. We also made good progress in Sales Solutions and lynda.com, our more nascent opportunities, which are future growth drivers for the company.
For Q3, overall revenues grew 37% to $780 million. We delivered adjusted EBITDA of $208 million, and non-GAAP EPS of $0.78 cents.
Q3 cumulative members grew 20% to 396 million, and last week reached the 400 million member milestone. Unique visiting members grew 11% to an average of 100 million per month, and member page views grew 33%. This has yielded 20% year over year growth in page views per unique visiting member, continuing a pattern of accelerated growth throughout 2015. This is in part a result of placing more emphasis on quality engagement for our members and less on transactional engagement generated by emails. Mobile continues to grow at double the rate of overall member activity, and now represents 55% of all traffic to LinkedIn.
LinkedIn’s value proposition is simple – connect to opportunity. For our members, this means three things: connect to your professional world, stay informed through professional news and knowledge, and get hired and build your career. In 2015, we made substantial progress on delivering these value propositions. Here are a few highlights of the progress we’ve made since our last earnings call.
We continued to expand the LinkedIn network globally. Since our last call, China has continued to accelerate the absolute number of signups, and now has more than 13 million members, up more than 3x since early 2014 when we launched our local language version. Though still early, we are also seeing strong sign-ups and engagement for Chitu, our first professional networking app designed specifically for the Chinese market.
In Q3, we replaced the traditional Inbox with Messaging, a more lightweight and casual communications interface. While still early, but we have already seen a double digit percentage increase in the number of messages sent between members, and a significant lift in one day reply rates. Messaging is already available for our English-language members, and we are in the process of completing the roll out globally.
Finally, a few weeks ago, we previewed the next generation of LinkedIn’s mobile flagship experience. This new app was developed mobile first; does fewer things better; and is faster, simpler, and more personalized. It’s structured around five key pillars – the Feed, Profile, My Network, Messaging, and Search – and will launch next month. In 2016, these pillars will also serve as the foundation for the ongoing evolution of our desktop site.
Connecting our members to relevant news, knowledge, and skills is another strategic priority integral to creating member value. Our publishing platform is central to this effort. In Q3, the number of long-form posts published per week reached more than 150,000. We also recently added the ability to post long-form content in more languages, including Portuguese, French, and German. And last week, we welcomed Oprah Winfrey to the Influencer platform.
Lastly, helping members get hired is one of the fastest growing areas of engagement on LinkedIn. We continue to increase the scale of jobs on the platform, with more than 4 million active job listings today, compared to roughly 1 million a year ago. Monthly job page views were up over 90% year over year in September, and we have seen a 75% year over year increase in applications to those jobs.
Creating value for our members enables us to transform the way our customers Hire, Market, and Sell on a global basis through our three diverse product lines. In Q3, Talent Solutions grew 46% to $502 million, inclusive of Learning & Development revenue from lynda.com; Marketing Solutions was up 28% to $140 million; and Premium Subscriptions, which includes Sales Solutions, increased 21% to $138 million.
For Talent Solutions, Q3 saw continued strength stemming from the sales force realignment done at the start of the year. We have been investing in Talent Solutions R&D throughout 2015, and we now have the most powerful pipeline of new products for recruiters in our history. At Talent Connect, we announced two of our biggest – LinkedIn Referrals, and a completely revamped Recruiter platform. Both products enable employers to more easily leverage better data and employee relationships to hire the right talent faster. Referrals is expected to launch in November, and the new Recruiter early next year.
The ongoing integration of lynda.com progressed in Q3 with the launch of new LinkedIn Influencer courses and new features for our members. And the enterprise business remains strong; last quarter, lynda signed an existing customer to multi-year renewal for more than four million dollars, the largest deal in its history.
For Marketing Solutions, we continue to create a more scalable business and become the most effective platform for marketers to engage professionals. In Q3, Sponsored Updates accounted for approximately half of all Marketing Solutions revenue, and continues to grow in excess of 100% year over year.
In Sales Solutions, we launched a new Sales Navigator homepage with integrated Social Selling Index data. Sales Navigator customer satisfaction continued to increase during Q3. In addition, the field sales team is seeing early success with a “land and expand” go to market strategy.
Additionally, just this week, LinkedIn and EY agreed on the largest single deal in our history, leveraging Sales Navigator as a platform, as well as a go-to-market alliance to help accelerate our respective growth in the business-to-business enterprise market. Our collaboration with EY will enable us to leverage EY’s extensive capabilities, footprint and global reach. Together, we’ll help companies develop deeper and more trusted customer relationships through social and data analytics. We believe this strategic relationship will lead to collaboration and co-creation of solutions, generating opportunities for both of our organizations.
Lastly, LinkedIn @ Work, our newest value proposition for our customers, continues to gain momentum. In August, we launched LinkedIn LookUp, a standalone app that allows members to find and contact co-workers. And in September, we announced the general availability of LinkedIn Elevate to all large enterprises. Nearly all of the pilot partners up for renewal have purchased the product.
As we think about 2016, we expect to accelerate our focus on how we integrate all of these assets to help enterprises hire, market, and sell by using LinkedIn to connect to opportunity.
Finally, a word about our Talent, our most important operating priority. In Q3, we made strong progress on hiring senior level engineering talent, as well as hiring a record number of engineering managers, both of which are key objectives for us in 2015. This traction enables us to scale faster and deliver our product roadmap more effectively.
And now, I’ll turn it over to Steve for a deeper dive into our operating metrics and financials.
Prepared Remarks — Steve Sordello, CFO LinkedIn Corporation
Today I will discuss growth rates on a year-over-year basis unless indicated otherwise, and non-GAAP financial measures exclude items such as stock-based compensation expenses, amortization of intangibles, and the tax impacts of these adjustments.
During the third quarter, we demonstrated strong financial performance, and made significant progress on our long-term product roadmap for both members and customers.
With respect to revenue, in Q3 we generated $780 million in total sales, an increase of 37% year-over-year, or 43% on a constant currency basis. While lynda contributed approximately $41 million to revenue in its first full quarter post acquisition, the vast majority of our out performance relative to guidance was driven by the core business.
Talent Solutions, showed strong performance, with revenue of $502 million growing 46% year-over-year, and represented 64% of sales versus 61% last year.
Within our Hiring business, revenue grew 34% year-over-year, or 39% on a constant currency basis.
In our field sales channel, we saw nice year-over-year improvement in both churn and the net ratio. We also saw steady growth in new customers as we approach nearly 40,000 enterprise accounts under contract.
Our online channel is where small companies turn to LinkedIn on a self-serve basis, and in Q3 showed solid growth. All three online products – Recruiter Lite, Job Seeker, and online jobs – exhibited strength, the result of an upgraded customer experience.
Learning & Development contributed $41 million in the first full quarter following the lynda acquisition. Our product and go-to-market teams have focused on growing lynda’s existing business, and we plan to begin launching more integrated consumer and enterprise products in 2016.
Marketing Solutions grew 28% to $140 million, or 34% on a constant currency basis, and represented 18% of revenue versus 19% last year.
Sponsored Updates maintained strong momentum, and continues to be the driver of our advertising business. Sponsored Updates represented nearly 50% of marketing revenue, and once again grew in excess of 100% year-over-year. Recent growth has been driven by increased customer demand, aided by the launch of our new online campaign manager.
As expected, CPM-based premium display continued to face secular-driven headwinds. We experienced similar trends as compared with last quarter with revenue decreasing in the mid 30% range year-over-year. Premium display now represents approximately 15% of the Marketing Solutions mix compared with approximately 30% last year. As Sponsored Updates continues to grow, we expect premium display to contribute a smaller portion of our long-term mix.
We also remained focused on the B2B opportunity and continue to evolve our recently launched LinkedIn Lead Accelerator product. During the quarter, we saw churn decrease due to the emphasis on annual vs. quarterly campaigns.
Premium Subscriptions grew to $138 million up 21% year-over-year, or 26% growth on a constant currency basis, and contributed 18% of revenue versus 20% last year.
Sales Solutions remained the faster growing component of Premium, now representing over one-third of this revenue line. We continue to make both product and go-to-market gains as this new business enters its second year.
In addition to introducing Sales Navigator to new enterprise customers like EY, we continue to gain traction with our land and expand play book. Microsoft provides a terrific example, having grown their social selling practice from 15 Sales Navigator seats to more than 3,000 in less than two years. In the process, their social selling reps have seen a nearly 40% increase in productivity when compared to traditional sales reps.
General subscriptions still represents the majority of premium revenue, though since launching the new on-boarding experience late last year, we continue to see the individual subscriber mix shift towards Job Seeker and Recruiter Lite which are both reported within Talent Solutions.
In terms of geography, revenue generated outside the US represented 38% of overall revenue versus 40% last year, or 40% this quarter on a constant currency basis. EMEA performed well showing acceleration during the quarter, and APAC showed nice improvement as well.
By channel, field sales contributed 62% of revenue versus 60% last year. While a smaller portion of our revenue, higher margin online products performed well during the quarter, especially within Talent Solutions.
Moving to the non-GAAP financials, Adjusted EBITDA was $208 million, a 27% margin. This exceeded our expectations with revenue driving over half of our out performance, the vast majority coming from the core business, with especially strong performance from high-margin online products. The remainder of over performance was tied to lower expenses oriented across several areas including lynda and facilities.
Depreciation and Amortization totaled $118 million while stock compensation was $127 million.
GAAP net loss was $41 million, resulting in a $0.31 loss per share, compared to a loss of $4 million and $0.03 last year.
Non-GAAP net income was $103 million, resulting in earnings of $0.78 per share, compared with $66 million and $0.52 last year.
The balance sheet remains well positioned with $3.1 billion of cash and marketable securities. Operating cash flow was $240 million versus $181 million a year ago, and free cash flow was $73 million, up from $61 million last year. Note, capex increased meaningfully quarter over quarter as we began the buildout of our third self-managed data center.
I will end the call with guidance for the fourth quarter and an updated outlook for 2015.
For the fourth quarter:
We expect revenue between $845 and $850 million, 32% growth at the midpoint.
We expect Adjusted EBITDA of approximately $210 million, a 25% margin.
For non-GAAP EPS, we expect approximately $0.74 per share.
For the full year:
We expect revenue between approximately $2.975 and $2.980 billion, representing growth of 34% year-over-year.
This represents an increase of $35 – $40 million compared to prior guidance. The majority of the out performance was driven by Q3 results, with the remaining increase from a slight up-tick in our Q4 outlook for both our core business and lynda.
We expect Adjusted EBITDA of approximately $740 million, a 25% margin.
This represents an increase of approximately $75 million compared to prior guidance, with Q3 out performance of about $60 million.
For non-GAAP EPS, we expect approximately $2.63 per share.
I will now provide some additional context on guidance.
With respect to revenue in the fourth quarter:
Within Hiring, Learning & Development, and Sales Solutions, we expect healthy underlying trends to continue, albeit compared against a particularly strong Q4 in 2014.
For Marketing Solutions specifically, we expect Sponsored Updates to continue to drive our growth, offsetting consistent secular display headwinds and our first full quarter with a year-over-year comparison post the Bizo acquisition last year.
We also expect an approximately 5% growth headwind relative to F/X, unchanged from our previous Q4 outlook.
With respect to Adjusted EBITDA guidance:
We expect greater expense impact from a heavier quarter of sales rep hiring, greater field sales seasonality after a particularly strong online quarter in Q3, and ongoing investments in key areas including China and our member platform as we launch the new flagship app.
Lastly, I want to touch on how improvements to member-facing products will impact engagement metrics in the short-term:
First, we are streamlining our new mobile app thereby decreasing the number of page views necessary to deliver a high quality experience. Specifically, more intuitive tabbed browsing replaces a dedicated navigation page, creating more seamless interaction.
Second, we continue to remove emails and other transactional pages that generate lower value engagement to the site. This creates a better experience and long-term value for members, but will have a short-term impact on page view growth, especially when compared against a heavy transactional period like Q4’2014.
Both initiatives reflect our commitment and investment in the member platform. Throughout 2015, we have increasingly seen deeper member interaction across our core value propositions, including greater than 90% growth in traffic to jobs, and publishing content growing two times faster than the overall site. We look forward to sharing continued progress as we further innovate on our member platform.
Additional guidance incorporates:
Depreciation of approximately $78 million for Q4 and $281 million for the full year, with fourth quarter amortization of approximately $47 million and $135 million for the full year.
Stock based compensation of approximately $135 million for Q4 and approximately $510 million for the full year.
Other expense of approximately $16 million for Q4 and $57 million for the full year, including GAAP-only convertible accretion of $12 million in Q4 and $46 million for the full year.
In addition in Q4 we are evaluating and may adopt new accounting guidance with regard to our China JV, which increases the volatility of non-cash other expense.
A Non-GAAP tax rate of 23% for Q4 and the full year.
Capex of approximately 20% of revenue for the full year, reflecting the 2nd half data center build-out.
And for the share count:
On a GAAP basis, we expect 132 million fully diluted weighted shares in Q4, and an average of 129 million for the full year.
On a non-GAAP basis, we expect 134 million fully diluted weighted shares in Q4 and an average of 131 million for the full year.
In closing, LinkedIn delivered strong performance during the third quarter. As we end the year, our focus remains on the long-term realization of our mission and vision. This is an exciting period for LinkedIn as our product innovation takes root with complete re-designs of both our flagship mobile app and recruiter platform. We will continue to focus on areas that drive the greatest long-term business impact, while scaling our platform to create the most value for our members and customers.
LINKEDIN CORPORATION
TRENDED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
As of
September 30,
2014
December 31,
2014
March 31,
2015
June 30,
2015
September 30,
2015
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
526,837
$
460,887
$
1,017,287
$
450,991
$
631,725
Marketable securities
1,736,958
2,982,422
2,512,588
2,582,435
2,457,607
Accounts receivable
344,773
449,048
424,787
449,500
457,975
Deferred commissions
40,810
66,561
60,259
58,585
56,453
Prepaid expenses
55,571
52,978
62,800
75,669
72,752
Other current assets
79,795
110,204
141,798
118,718
136,225
Total current assets
2,784,744
4,122,100
4,219,519
3,735,898
3,812,737
Property and equipment, net
557,017
740,909
755,396
793,034
906,189
Goodwill
356,369
356,718
359,739
1,492,972
1,508,946
Intangible assets, net
140,802
131,275
122,826
456,233
418,050
Other assets
67,080
76,255
80,684
78,645
70,788
TOTAL ASSETS
$
3,906,012
$
5,427,257
$
5,538,164
$
6,556,782
$
6,716,710
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
106,658
$
100,297
$
85,104
$
109,715
$
123,329
Accrued liabilities
188,983
260,189
206,826
256,958
296,794
Deferred revenue
463,576
522,299
585,812
629,671
621,411
Total current liabilities
759,217
882,785
877,742
996,344
1,041,534
CONVERTIBLE SENIOR NOTES, NET
—
1,081,553
1,092,715
1,104,010
1,115,439
DEFERRED TAX LIABILITIES
41,327
—
—
55,100
46,645
OTHER LONG-TERM LIABILITIES
105,043
132,100
143,704
180,101
185,187
Total liabilities
905,587
2,096,438
2,114,161
2,335,555
2,388,805
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NONCONTROLLING INTEREST
5,327
5,427
5,536
25,784
26,296
STOCKHOLDERS’ EQUITY:
Class A and Class B common stock
12
13
13
13
13
Additional paid-in capital
2,957,524
3,285,705
3,420,045
4,268,731
4,405,911
Accumulated other comprehensive income (loss)
685
(198
)
1,085
(2,877
)
6,632
Accumulated earnings (deficit)
36,877
39,872
(2,676
)
(70,424
)
(110,947
)
Total stockholders’ equity
2,995,098
3,325,392
3,418,467
4,195,443
4,301,609
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY
$
3,906,012
$
5,427,257
$
5,538,164
$
6,556,782
$
6,716,710
LINKEDIN CORPORATION
TRENDED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
September 30,
2014
December 31,
2014
March 31,
2015
June 30,
2015
September 30,
2015
Net revenue
$
568,265
$
643,432
$
637,687
$
711,735
$
779,595
Costs and expenses:
Cost of revenue (exclusive of depreciation and amortization shown separately below)
74,904
86,902
88,406
100,086
111,368
Sales and marketing
199,168
224,227
229,636
261,271
265,454
Product development
136,542
150,289
165,580
190,133
202,682
General and administrative
89,266
96,722
97,313
142,389
118,871
Depreciation and amortization
59,782
71,118
73,972
99,004
117,901
Total costs and expenses
559,662
629,258
654,907
792,883
816,276
Income (loss) from operations
8,603
14,174
(17,220
)
(81,148
)
(36,681
)
Other income (expense), net:
Interest income
1,413
1,223
1,985
2,017
2,798
Interest expense
—
(6,797
)
(12,597
)
(12,694
)
(12,773
)
Other, net
(1,261
)
(1,731
)
(4,035
)
(1,723
)
(3,784
)
Other income (expense), net
152
(7,305
)
(14,647
)
(12,400
)
(13,759
)
Income (loss) before income taxes
8,755
6,869
(31,867
)
(93,548
)
(50,440
)
Provision (benefit) for income taxes
12,917
3,774
10,572
(26,048
)
(10,429
)
Net income (loss)
(4,162
)
3,095
(42,439
)
(67,500
)
(40,011
)
Accretion of redeemable noncontrolling interest
(101
)
(100
)
(109
)
(248
)
(512
)
Net income (loss) attributable to common stockholders
$
(4,263
)
$
2,995
$
(42,548
)
$
(67,748
)
$
(40,523
)
Net income (loss) per share attributable to common stockholders:
Basic
$
(0.03
)
$
0.02
$
(0.34
)
$
(0.53
)
$
(0.31
)
Diluted
$
(0.03
)
$
0.02
$
(0.34
)
$
(0.53
)
$
(0.31
)
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:
Basic
123,427
124,590
125,471
128,241
130,716
Diluted
123,427
127,338
125,471
128,241
130,716
LINKEDIN CORPORATION
TRENDED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
September 30,
2014
December 31,
2014
March 31,
2015
June 30,
2015
September 30,
2015
OPERATING ACTIVITIES:
Net income (loss)
$
(4,162
)
$
3,095
$
(42,439
)
$
(67,500
)
$
(40,011
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
59,782
71,118
73,972
99,004
117,901
Provision for doubtful accounts and sales returns
3,805
2,216
1,795
3,280
3,373
Amortization of investment premiums, net
3,457
4,309
5,514
5,001
5,362
Amortization of debt discount and transaction costs
—
5,916
11,189
11,322
11,456
Stock-based compensation
82,910
93,626
103,109
145,491
126,874
Excess income tax benefit from stock-based compensation
(13,114
)
(51,512
)
(18,198
)
18,198
1,726
Changes in operating assets and liabilities:
Accounts receivable
15,657
(103,002
)
29,489
(21,887
)
(9,168
)
Deferred commissions
4,836
(29,073
)
7,067
1,535
3,094
Prepaid expenses and other assets
(15,605
)
(4,383
)
(34,629
)
(1,957
)
(9,568
)
Accounts payable and other liabilities
54,017
89,656
(40,725
)
55,959
51,954
Income taxes, net
8,248
(10,258
)
5,629
(22,876
)
(15,659
)
Deferred revenue
(18,605
)
58,723
63,359
72
(7,739
)
Net cash provided by operating activities
181,226
130,431
165,132
225,642
239,595
INVESTING ACTIVITIES:
Purchases of property and equipment
(120,721
)
(241,611
)
(90,121
)
(72,462
)
(166,653
)
Purchases of investments
(501,074
)
(1,542,950
)
(454,281
)
(632,774
)
(809,448
)
Sales of investments
53,511
50,924
438,409
141,452
391,914
Maturities of investments
429,641
238,283
482,840
417,115
536,891
Payments for intangible assets and acquisitions, net of cash acquired
(160,894
)
(2,783
)
(4,161
)
(650,681
)
(20,030
)
Changes in deposits and restricted cash
(20,504
)
5,499
(1,382
)
(1,877
)
10,461
Net cash provided by (used in) investing activities
(320,041
)
(1,492,638
)
371,304
(799,227
)
(56,865
)
FINANCING ACTIVITIES:
Net cash provided by financing activities (1)
24,864
1,299,746
26,739
3,364
1,255
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
(4,304
)
(3,489
)
(6,775
)
3,925
(3,251
)
CHANGE IN CASH AND CASH EQUIVALENTS
(118,255
)
(65,950
)
556,400
(566,296
)
180,734
CASH AND CASH EQUIVALENTS—Beginning of period
645,092
526,837
460,887
1,017,287
450,991
CASH AND CASH EQUIVALENTS—End of period
$
526,837
$
460,887
$
1,017,287
$
450,991
$
631,725
(1) In the fourth quarter of 2014, we received net proceeds from our convertible senior notes offering, after deducting initial purchasers’ discount and debt issuance costs, of approximately $1,305.4 million. Concurrently with the issuance of the notes, we used approximately $248.0 million of the net proceeds of the offering of the notes to pay the cost of convertible note hedge transactions, which was offset by $167.3 million in proceeds from warrants we sold.
LINKEDIN CORPORATION
TRENDED SUPPLEMENTAL REVENUE INFORMATION
(In thousands)
(Unaudited)
Three Months Ended
September 30,
2014
December 31,
2014
March 31,
2015
June 30,
2015
September 30,
2015
Revenue by product:
Talent Solutions
Hiring
$
344,568
$
369,348
$
396,375
$
425,812
$
460,838
Learning & Development
—
—
—
17,558
41,273
Total Talent Solutions
344,568
369,348
396,375
443,370
502,111
Marketing Solutions
109,231
152,729
119,192
140,037
139,549
Premium Subscriptions
114,466
121,355
122,120
128,328
137,935
Total
$
568,265
$
643,432
$
637,687
$
711,735
$
779,595
Revenue by geographic region:
United States
$
343,132
$
388,194
$
389,258
$
444,531
$
484,300
International
Other Americas (1)
36,538
39,238
38,066
39,904
43,505
EMEA (2)
139,702
162,064
156,563
168,771
187,286
APAC (3)
48,893
53,936
53,800
58,529
64,504
Total International revenue
225,133
255,238
248,429
267,204
295,295
Total revenue
$
568,265
$
643,432
$
637,687
$
711,735
$
779,595
Revenue by geography, by product:
United States
Talent Solutions
$
208,635
$
222,670
$
240,752
$
277,772
$
309,935
Marketing Solutions
68,767
94,991
77,412
91,761
93,362
Premium Subscriptions
65,730
70,533
71,094
74,998
81,003
Total United States revenue
$
343,132
$
388,194
$
389,258
$
444,531
$
484,300
International
Talent Solutions
135,933
146,678
155,623
165,598
192,176
Marketing Solutions
40,464
57,738
41,780
48,276
46,187
Premium Subscriptions
48,736
50,822
51,026
53,330
56,932
Total International revenue
$
225,133
$
255,238
$
248,429
$
267,204
$
295,295
Total revenue
$
568,265
$
643,432
$
637,687
$
711,735
$
779,595
Revenue by channel:
Field sales
$
341,691
$
413,867
$
393,251
$
440,476
$
479,547
Online sales
226,574
229,565
244,436
271,259
300,048
Total
$
568,265
$
643,432
$
637,687
$
711,735
$
779,595
(1) Canada, Latin America and South America
(2) Europe, the Middle East and Africa (“EMEA”)
(3) Asia-Pacific (“APAC”)
LINKEDIN CORPORATION
TRENDED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
Three Months Ended
September 30,
2014
December 31,
2014
March 31,
2015
June 30,
2015
September 30,
2015
Non-GAAP net income and net income per share:
GAAP net income (loss) attributable to common stockholders
$
(4,263
)
$
2,995
$
(42,548
)
$
(67,748
)
$
(40,523
)
Add back: stock-based compensation
82,910</td