LinkedIn Beats on Both Top and Bottom Lines

Just the facts, Fool.

Seth Jayson
Seth Jayson
May 4, 2013 at 12:00AM
Other

LinkedIn (NYSE: LNKD) reported earnings on May 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), LinkedIn beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.

Margins grew across the board.

Revenue details
LinkedIn reported revenue of $324.7 million. The 26 analysts polled by S&P Capital IQ predicted revenue of $318.0 million on the same basis. GAAP reported sales were 72% higher than the prior-year quarter's $188.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.45. The 27 earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. Non-GAAP EPS of $0.45 for Q1 were 200% higher than the prior-year quarter's $0.15 per share. GAAP EPS of $0.20 for Q1 were 300% higher than the prior-year quarter's $0.05 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 86.9%, 20 basis points better than the prior-year quarter. Operating margin was 7.3%, 170 basis points better than the prior-year quarter. Net margin was 7.0%, 440 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)


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Looking ahead
Next quarter's average estimate for revenue is $358.3 million. On the bottom line, the average EPS estimate is $0.31.

Next year's average estimate for revenue is $1.50 billion. The average EPS estimate is $1.40.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 551 members out of 1,418 rating the stock outperform, and 867 members rating it underperform. Among 375 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 145 give LinkedIn a green thumbs-up, and 230 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LinkedIn is outperform, with an average price target of $166.29.

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