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Writer's pictureFahad H

LinkedIn Beats Expectations With A $327 Million Q1, But Stock Declines After-Hours


LinkedIn

reported Q1 2013 results this afternoon. With revenue of $324.7 million, the company beat consensus Wall Street expectations. Revenue for the same period last year was $188.5 million. The US market was responsible for 62 percent of the total, while international revenues were 38 percent.

Net income was $22.6 million vs. $5 million in Q1 2012. Non-GAAP income was $52.4 million. The company said it now has 225 million users.

Here are the revenue generating products from LinkedIn and the corresponding figures:

  1. Talent Solutions: Revenue from Talent Solutions products totaled $184.3 million, an increase of 80% compared to the first quarter of 2012. Talent Solutions revenue represented 57% of total revenue in the first quarter of 2013, compared to 54% in the first quarter of 2012.

  2. Marketing Solutions: Revenue from Marketing Solutions products totaled $74.8 million, an increase of 56% compared to the first quarter of 2012.  Marketing Solutions revenue represented 23% of total revenue in the first quarter of 2013, compared to 25% in the first quarter of 2012.

  3. Premium Subscriptions: Revenue from Premium Subscriptions products totaled $65.6 million, an increase of 73% compared to the first quarter of 2012. Premium Subscriptions represented 20% of total revenue in the first quarter of 2013, consistent with the first quarter of 2012.

The following are slides from the earnings presentation:

LinkedIn Q1 Revenue
LinkedIn Q1 Revenue by Product
LinkedIn Q1 Revenue by Geo

LinkedIn’s stated goal is to drive daily engagement among its user base and it has made considerable progress toward that goal with a range of new products and services, including improved search and more content.

LinkedIn expects full year 2013 revenue to come in between $1.43 billion and $1.46 billion. However weaker guidance for Q2 is what has sent the stock down in after-hours trading. Indeed, record revenues are projected for 2013 though the pace of revenue growth is slowing.

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