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LinkedIn Earnings Released, Revenue Up 47%

Launches New Sales Navigator

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LinkedIn Earnings Released, Revenue Up 47%
[ Finance]

LinkedIn just released its earnings report for the second quarter with revenue of $534 million, up 47% year-over-year. Net loss (attributable to common stockholders) was $1 million, compared to net income of $3.7 million for the same quarter last year. Non-GAAP net income was $63 million compared to $44 million for the same quarter last year.

GAAP diluted EPS for Q2 was $(0.01), compared to GAAP diluted EPS of $0.03 last year. non-GAAP diluted EPS was $0.51, compared to $0.38 last year.

CEO Jeff Weiner said, “LinkedIn delivered strong financial results in the second quarter while maintaining investment in our member and customer offerings. We made significant progress against several key strategic priorities including increasing the scale of job opportunities on LinkedIn; expanding our professional publishing platform; and continuing the strategic shift towards content marketing through Sponsored Updates.”

60% of LinkedIn’s total revenue was from the U.S. ($318 million). Revenue for the full year is expected to be between $2.14 billion and $2.15 billion.

The company is still touting the same “over 300 million members” stat it shared last quarter.

In addition to releasing its earnings, LinkedIn announced the launch of a new Sales Navigator, which it says enables “buyers to build relationships with the most relevant sales professionals through an enterprise focused SaaS product.”

In the prepared comments on the earnings call, Weiner said, LinkedIn delivered strong financial results in the second quarter while maintaining continued investment in our member and customer offerings. We made significant progress against several key strategic priorities including increasing the scale of job opportunities on LinkedIn; expanding our professional publishing platform; adding to our growing portfolio of mobile apps; and successfully positioning our Marketing Solutions business for the future through the growth of Sponsored Updates.”

He went on to say the launch of Sales Navigator and the recent acquisition of Bizo “underscore the opportunities we have to continue building a scalable, diverse business that adds value for our members and customers based on the critical mass of the LinkedIn network.”

“We continue to see healthy member engagement dynamics across LinkedIn, especially in light of the challenging year over year comparison that we discussed last quarter,” he said. “During Q2, cumulative members grew 32 percent to 313 million, internally-measured unique visiting members to LinkedIn grew 13 percent to an average of 84 million per month, and internal member pageviews grew 22 percent to 25 billion for the quarter, well ahead of unique member growth.”

Organic engagement is one area of particular strength, driven by our mobile and content efforts,” he said. “Homepage traffic, as measured by unique visiting members, continues to outpace overall site traffic growth, increasing approximately 40 percent faster over the past year. Mobile also continues to drive a growing share of engagement, growing more than three times as fast as overall uniques. Mobile now accounts for 45 percent of total traffic to LinkedIn.”

67% of members come from outside the U.S.

They surpassed 30,000 weekly long-form posts on their publishing platform, and traffic to publisher and influencer posts is up over 100% since launch in February.

Since it launched its new search architecture, pageviews to content driven by search have accelerated.

Here’s what Weiner said about Sales Navigator on the call:

“Within Subscriptions, today we are pleased to announce the launch of the all-new Sales Navigator. This new SaaS product delivers a customized view into LinkedIn to better connect sales professionals with the right buyers by leveraging key insights and connections across the LinkedIn network. Our research shows that social selling transforms the sales process — buyers are over five times more likely to engage with sales professionals when introduced through a common connection versus a cold call. Just as the launch of our flagship Recruiter product transformed the way talent professionals recruit, we expect Sales Navigator will similarly transform the effectiveness of sales professionals.”

Here’ the release in its entirety:

MOUNTAIN VIEW, Calif., July 31, 2014 (GLOBE NEWSWIRE) –¬†LinkedIn¬†Corporation (NYSE:LNKD), the world’s largest professional network on the Internet, with over 300 million members, reported its quarterly results for the second quarter of 2014:

  • Revenue for the second quarter was $534 million, an increase of 47% compared to $364 million in the second quarter of 2013.
  • Net loss attributable to common stockholders for the second quarter was $1.0 million, compared to net income of $3.7 million for the second quarter of 2013. Non-GAAP net income for the second quarter was $63 million, compared to $44 million for the second quarter of 2013. Non-GAAP measures exclude tax-affected stock-based compensation expense and tax-affected amortization of acquired intangible assets.
  • Adjusted EBITDA for the second quarter was $145 million, or 27% of revenue, compared to $89 million for the second quarter of 2013, or 24% of revenue.
  • GAAP diluted EPS for the second quarter was $(0.01), compared to GAAP diluted EPS of $0.03 for the second quarter 2013; non-GAAP diluted EPS for the second quarter was $0.51, compared to non-GAAP diluted EPS of $0.38 for the second quarter of 2013.

“LinkedIn delivered strong financial results in the second quarter while maintaining investment in our member and customer offerings,” said Jeff Weiner, CEO of LinkedIn. “We made significant progress against several key strategic priorities including increasing the scale of job opportunities on LinkedIn; expanding our professional publishing platform; and continuing the strategic shift towards content marketing through Sponsored Updates.”

Second Quarter Operating Summary

Please note, in the second quarter of 2014, we reclassified recruitment media products from Marketing Solutions to Talent Solutions. Accordingly, prior period amounts have been recast to conform to the current period presentation. See our “Selected Company Metrics and Financials” table on the quarterly earnings section of the investor relations website for additional information.

  • Talent Solutions(1): Revenue from Talent Solutions products totaled $322 million, an increase of 49% compared to the second quarter of 2013. Talent Solutions revenue represented 60% of total revenue in the second quarter of 2014 and 2013.
  • Marketing Solutions(1): Revenue from Marketing Solutions products totaled $106 million, an increase of 44% compared to the second quarter of 2013. Marketing Solutions revenue represented 20% of total revenue in the second quarter of 2014 and 2013.
  • Premium Subscriptions: Revenue from Premium Subscriptions products totaled $105 million, an increase of 44% compared to the second quarter of 2013. Premium Subscriptions represented 20% of total revenue in the second quarter of 2014 and 2013.
(1) Recruitment media revenue was $18 million and $12 million in the second quarter of 2014 and 2013, respectively.

Revenue from the U.S. totaled $318 million, and represented 60% of total revenue in the second quarter of 2014. Revenue from international markets totaled $216 million, and represented 40% of total revenue in the second quarter of 2014.

Revenue from the field sales channel totaled $319 million, and represented 60% of total revenue in the second quarter of 2014. Revenue from the online, direct sales channel totaled $215 million, and represented 40% of total revenue in the second quarter of 2014.

Second Quarter Highlights and Strategic Announcements

In the second quarter of 2014:

  • LinkedIn launched “Limited Listings” to grow dramatically the number of job opportunities made available on LinkedIn for active job searchers. This initiative was accelerated by the Bright acquisition in February, and there are now one million jobs on LinkedIn.
  • LinkedIn continued to gain traction with its professional publishing platform, now generating over 30,000 weekly long-form posts after ramping posting capability to 15 million LinkedIn members. Since launching in February, traffic to publisher and Influencer posts has risen more than 100%.
  • LinkedIn added to its growing multi-app mobile portfolio with the launch of several new mobile experiences including: Connected; the LinkedIn Job Search App for iPhone; and a new SlideShare app for Android.

Additionally, this afternoon, LinkedIn announced the launch of the all-new Sales Navigator, enabling buyers to build relationships with the most relevant sales professionals through an enterprise focused SaaS product. Also, Last week LinkedIn announced the acquisition of Bizo with the goal of creating a comprehensive B2B marketing platform.

“LinkedIn achieved strong results across the business,” said Steve Sordello, CFO of LinkedIn. “The success of Sponsored Updates, scaling jobs, and the launch of the new Sales Navigator underscore the positive impact of recent strategic investments, and we will continue to invest aggressively in our member and customer platforms.”

Business Outlook

LinkedIn is providing guidance for the third quarter and full year of 2014:

  • Q3 2014 Guidance: Revenue is expected to range between $543 million and $547 million. Adjusted EBITDA is expected to range between $134 million and $136 million. Non-GAAP EPS is expected to be approximately $0.44. The company expects depreciation of approximately $50 million, amortization of approximately $8.0 million, stock-based compensation of approximately $80 million, and 126 million fully-diluted weighted shares.
  • Full Year 2014 Guidance: Revenue is expected to range between $2.14 billion and $2.15 billion. Adjusted EBITDA is expected to range between $545 and $550 million. Non-GAAP EPS is expected to be approximately $1.80. The company expects depreciation of approximately $202 million, amortization of approximately $28 million, stock-based compensation of approximately $305 million, and 126 million fully-diluted weighted shares.

Quarterly Results Webcast and Conference Call

LinkedIn will host a webcast and conference call to discuss its second quarter 2014 financial results and business outlook today at 2:00 p.m. Pacific Time. Jeff Weiner and Steve Sordello will host the webcast, which can be viewed on the investor relations section of the LinkedIn website at¬†http://investors.linkedin.com/. This call will contain forward-looking statements and other material information regarding the company’s financial and operating results. Following completion of the call, a recorded replay of the webcast will be available on the website.

Upcoming Events

Management will participate in upcoming financial Q&A discussions at industry events on September 3, 2014. LinkedIn will furnish a link to these events on its investor relations website, http://investors.linkedin.com/ for both the live and archived webcasts.

About LinkedIn

Founded in 2003, LinkedIn connects the world’s professionals to make them more productive and successful. With over 300 million members worldwide, including executives from every Fortune 500 company, LinkedIn is the world’s largest professional network on the Internet. The company has a diversified business model with revenue coming from Talent Solutions, Marketing Solutions and Premium Subscriptions products. Headquartered in Silicon Valley, LinkedIn has offices across the globe.

Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with GAAP, the company uses the following non-GAAP financial measures: adjusted EBITDA, non-GAAP net income, and non-GAAP diluted EPS (collectively the “non-GAAP financial measures”). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.

The company excludes the following items from one or more of its non-GAAP measures:

Stock-based compensation. The company excludes stock-based compensation because it is non-cash in nature and because the company believes that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance and liquidity. The company further believes this measure is useful to investors in that it allows for greater transparency to certain line items in its financial statements and facilitates comparisons to peer operating results.

Amortization of acquired intangible assets. The company excludes amortization of acquired intangible assets because it is non-cash in nature and because the company believes that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance and liquidity. In addition, excluding this item from the non-GAAP measures facilitates internal comparisons to historical operating results and comparisons to peer operating results.

Accretion of redeemable noncontrolling interest.¬†The accretion of redeemable noncontrolling interest represents the accretion of the company’s redeemable noncontrolling interest to its redemption value. The company excludes the accretion because it is non-cash in nature and because the company believes that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operating performance. In addition, excluding this item from the non-GAAP financial measures facilitates internal comparisons to historical operating results and comparisons to peer operating results.

Income tax effects and adjustments.¬†The company adjusts non-GAAP net income by considering the income tax effects of excluding stock-based compensation and the amortization of acquired intangible assets. Beginning in the first quarter of 2014, the company has implemented a long-term non-GAAP tax rate for evaluating its operating performance as well as for planning and forecasting purposes. This projected long-term non-GAAP tax rate eliminates the effects of non-recurring and period specific items, which can vary in size and frequency and does not necessarily reflect our long-term operations. Historically, the company computed a non-GAAP tax rate based on non-GAAP pre-tax income on a quarterly basis.¬†Based on our current forecast, a long-term non-GAAP tax rate of 35% has been applied to our non-GAAP financial results for the current period. The company believes that adjusting for these income tax effects and adjustments provides additional transparency to the overall or “after tax” effects of excluding these items from non-GAAP net income.

Dilutive shares under the treasury stock method. During periods with a net loss, the company excluded certain potential common shares from its GAAP diluted shares because their effect would have been anti-dilutive. On a non-GAAP basis, these shares would have been dilutive. As a result, the company has included the impact of these shares in the calculation of its non-GAAP diluted net income per share under the treasury stock method.

For more information on the non-GAAP financial measures, please see the “Reconciliation of GAAP to Non-GAAP Financial Measures” table in this press release. This accompanying table has more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. Additionally, the company has not reconciled adjusted EBITDA or non-GAAP EPS guidance to net income (loss) or GAAP EPS guidance because it does not provide guidance for either other income (expense), net, or GAAP provision for income taxes, which are reconciling items between net income (loss) and adjusted EBITDA and non-GAAP EPS. As items that impact net income (loss) are out of the company’s control and/or cannot be reasonably predicted, the company is unable to provide such guidance. Accordingly, a reconciliation to net income (loss) is not available without unreasonable effort.

Safe Harbor Statement

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release and the accompanying conference call contain forward-looking statements about our products, including our investments in products, technology and other key strategic areas, certain non-financial metrics, such as customer and member growth and engagement, and our expected financial metrics such as revenue, adjusted EBITDA, non-GAAP EPS, depreciation and amortization and stock-based compensation for the third quarter of 2014 and the full fiscal year 2014. The achievement of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any of these risks or uncertainties materialize or if any of the assumptions prove incorrect, the company’s results could differ materially from the results expressed or implied by the forward-looking statements the company makes.

The risks and uncertainties referred to above include – but are not limited to – risks associated with: our limited operating history in a new and unproven market; engagement of our members; the price volatility of our Class A common stock; general economic conditions; expectations regarding the return on our strategic investments; execution of our plans and strategies, including with respect to mobile products and features; security measures and the risk that they may not be sufficient to secure our member data adequately or that we are subject to attacks that degrade or deny the ability of members to access our solutions; expectations regarding our ability to timely and effectively scale and adapt existing technology and network infrastructure to ensure that our solutions are accessible at all times with short or no perceptible load times; our ability to maintain our rate of revenue growth and manage our expenses and investment plans; our ability to accurately track our key metrics internally; members and customers curtailing or ceasing to use our solutions; our core value of putting members first, which may conflict with the short-term interests of the business; privacy and changes in regulations in the United States, Europe, Asia and elsewhere, which could impact our ability to serve our members or curtail our monetization efforts; litigation and regulatory issues; increasing competition; our ability to manage our growth; our international operations; our ability to recruit and retain our employees; the application of U.S. and international tax laws on our tax structure and any changes to such tax laws; acquisitions we have made or may make in the future; and the dual class structure of our common stock.

Further information on these and other factors that could affect the company’s financial results is included in filings it makes with the Securities and Exchange Commission from time to time, including the section entitled “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended December 31, 2013, and additional information will also be set forth in our Form 10-Q that will be filed for the quarter ended June¬†30, 2014, which should be read in conjunction with these financial results. These documents are or will be available on the SEC Filings section of the Investor Relations page of the company’s website at¬†http://investors.linkedin.com/. All information provided in this release and in the attachments is as of July¬†31, 2014, and LinkedIn undertakes no duty to update this information.

LINKEDIN CORPORATION
TRENDED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
As of
June 30, September 30, December 31, March 31, June 30,
2013 2013 2013 2014 2014
ASSETS
CURRENT ASSETS:
Cash and cash equivalents  $ 262,670  $ 1,396,292  $ 803,089  $ 508,850  $ 645,092
Marketable securities  610,728  875,993  1,526,212  1,797,373  1,721,847
Accounts receivable  203,585  208,956  302,168  328,661  347,152
Deferred commissions  29,710  28,507  47,496  46,575  45,941
Prepaid expenses  26,785  33,831  32,114  47,513  49,503
Other current assets  30,672  28,259  44,391  50,933  61,042
Total current assets  1,164,150  2,571,838  2,755,470  2,779,905  2,870,577
Property and equipment, net  292,715  336,656  361,741  406,543  476,058
Goodwill  150,831  150,831  150,871  228,893  228,943
Intangible assets, net  38,284  43,209  43,046  101,597  99,175
Other assets  41,980  41,744  41,665  44,931  46,133
TOTAL ASSETS  $ 1,687,960  $ 3,144,278  $ 3,352,793  $ 3,561,869  $ 3,720,886
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’¬†EQUITY
CURRENT LIABILITIES:
Accounts payable  $ 74,605  $ 70,340  $ 66,744  $ 79,711  $ 90,728
Accrued liabilities  106,118  139,898  183,004  142,141  164,051
Deferred revenue  331,187  335,700  392,243  479,576  481,450
Total current liabilities  511,910  545,938  641,991  701,428  736,229
DEFERRED TAX LIABILITIES  22,905  15,861  14,879  23,900  24,088
OTHER LONG TERM LIABILITIES  42,128  51,347  61,529  70,226  80,298
Total liabilities  576,943  613,146  718,399  795,554  840,615
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NONCONTROLLING INTEREST ¬†‚ÄĒ ¬†‚ÄĒ ¬†5,000 ¬†5,126 ¬†5,226
STOCKHOLDERS’ EQUITY:
Class A and Class B common stock  11  12  12  12  12
Additional paid-in capital  1,055,870  2,478,813  2,573,449  2,718,321  2,833,030
Accumulated other comprehensive income (loss)  (64)  470  314  682  863
Accumulated earnings  55,200  51,837  55,619  42,174  41,140
Total stockholders’ equity ¬†1,111,017 ¬†2,531,132 ¬†2,629,394 ¬†2,761,189 ¬†2,875,045
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY ¬†$¬†1,687,960 ¬†$¬†3,144,278 ¬†$¬†3,352,793 ¬†$¬†3,561,869 ¬†$¬†3,720,886
LINKEDIN CORPORATION
TRENDED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
June 30, September 30, December 31, March 31, June 30,
2013 2013 2013 2014 2014
Net revenue  $ 363,661  $ 392,960  $ 447,219  $ 473,193  $ 533,877
Costs and expenses:
Cost of revenue (exclusive of depreciation and amortization shown separately below)  49,264  53,395  57,865  62,455  69,536
Sales and marketing  122,276  133,172  157,235  166,522  184,494
Product development  95,608  106,223  113,140  120,622  128,731
General and administrative  56,225  61,767  64,790  74,618  80,688
Depreciation and amortization  32,193  33,767  42,750  49,740  56,306
Total costs and expenses  355,566  388,324  435,780  473,957  519,755
Income (loss) from operations  8,095  4,636  11,439  (764)  14,122
Other income (expense), net  (252)  156  1,820  1,026  1,197
Income before income taxes  7,843  4,792  13,259  262  15,319
Provision for income taxes  4,109  8,155  9,477  13,581  16,253
Net income (loss)  3,734  (3,363)  3,782  (13,319)  (934)
Accretion of redeemable noncontrolling interest ¬†‚ÄĒ ¬†‚ÄĒ ¬†‚ÄĒ ¬†(126) ¬†(100)
Net income (loss) attributable to common stockholders  3,734  (3,363)  3,782  (13,445)  (1,034)
Net income (loss) per share attributable to common stockholders:
Basic  111,214  113,940  119,849  120,967  122,170
Diluted  116,627  113,940  124,438  120,967  122,170
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:
Basic  $ 0.03  $ (0.03)  $ 0.03  $ (0.11)  $ (0.01)
Diluted  $ 0.03  $ (0.03)  $ 0.03  $ (0.11)  $ (0.01)
LINKEDIN CORPORATION
TRENDED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
June 30, September 30, December 31, March 31, June 30,
2013 2013 2013 2014 2014
OPERATING ACTIVITIES:
Net income (loss)  $ 3,734  $ (3,363)  $ 3,782  $ (13,319)  $ (934)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization  32,193  33,767  42,750  49,740  56,306
Provision for doubtful accounts and sales returns  1,639  568  1,254  1,207  4,118
Stock-based compensation  48,354  54,445  57,177  67,769  74,828
Excess income tax benefit from stock-based compensation  (5,003)  (10,188)  (16,008)  (15,982)  (18,639)
Changes in operating assets and liabilities:
Accounts receivable  8,577  (7,719)  (94,627)  (26,764)  (23,462)
Deferred commissions  1,185  1,236  (20,028)  1,116  712
Prepaid expenses and other assets  (8,448)  3,707  2,926  (11,742)  (4,455)
Accounts payable and other liabilities  24,313  49,591  44,307  (18,428)  24,726
Income taxes, net  3,522  (531)  4,377  7,928  13,362
Deferred revenue  14,099  4,513  56,543  87,333  1,874
Net cash provided by operating activities  124,165  126,026  82,453  128,858  128,436
INVESTING ACTIVITIES:
Purchases of property and equipment  (93,184)  (83,158)  (57,394)  (88,871)  (96,430)
Purchases of investments  (98,715)  (385,517)  (851,312)  (737,739)  (649,803)
Sales of investments  17,389  34,937  68,547  72,239  117,359
Maturities of investments  33,897  83,652  129,646  393,044  604,231
Payments for intangible assets and acquisitions, net of cash acquired  (6,321)  (8,756)  (3,894)  (85,061)  (4,800)
Changes in deposits and restricted cash  (3,488)  (1,355)  (6)  (1,404)  (3,357)
Net cash used in investing activities  (150,422)  (360,197)  (714,413)  (447,792)  (32,800)
FINANCING ACTIVITIES:
Proceeds from follow-on offering, net of issuance costs ¬†‚ÄĒ ¬†1,348,419 ¬†(360) ¬†‚ÄĒ ¬†‚ÄĒ
Proceeds from issuance of preferred shares in joint venture ¬†‚ÄĒ ¬†‚ÄĒ ¬†4,600 ¬†‚ÄĒ ¬†‚ÄĒ
Proceeds from issuance of common stock from employee stock options  7,681  7,408  5,678  8,147  4,759
Proceeds from issuance of common stock from employee stock purchase plan ¬†11,500 ¬†‚ÄĒ ¬†13,089 ¬†‚ÄĒ ¬†16,324
Excess income tax benefit from stock-based compensation  5,003  10,188  16,008  15,982  18,639
Other financing activities  797  (2)  (419)  (7)  31
Net cash provided by financing activities  24,981  1,366,013  38,596  24,122  39,753
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS  (993)  1,780  161  573  853
CHANGE IN CASH AND CASH EQUIVALENTS  (2,269)  1,133,622  (593,203)  (294,239)  136,242
CASH AND CASH EQUIVALENTS‚ÄĒBeginning of period ¬†264,939 ¬†262,670 ¬†1,396,292 ¬†803,089 ¬†508,850
CASH AND CASH EQUIVALENTS‚ÄĒEnd of period ¬†$¬†262,670 ¬†$¬†1,396,292 ¬†$¬†803,089 ¬†$¬†508,850 ¬†$¬†645,092
LINKEDIN CORPORATION
TRENDED SUPPLEMENTAL REVENUE INFORMATION
(In thousands)
(Unaudited)
Three Months Ended
June 30, September 30, December 31, March 31, June 30,
2013 2013 2013 2014 2014
Revenue by product:
Talent Solutions (1)  $ 216,938  $ 237,668  $ 261,359  $ 291,594  $ 322,227
Marketing Solutions (1)  73,747  75,510  97,732  86,064  106,476
Premium Subscriptions  72,976  79,782  88,128  95,535  105,174
Total  $ 363,661  $ 392,960  $ 447,219  $ 473,193  $ 533,877
Revenue by geographic region:
United States  $ 224,277  $ 245,302  $ 271,140  $ 284,878  $ 317,774
International
Other Americas (2)  26,857  27,027  31,612  31,904  35,527
EMEA (3)  84,691  90,087  108,309  117,871  134,930
APAC (4)  27,836  30,544  36,158  38,540  45,646
Total International revenue  139,384  147,658  176,079  188,315  216,103
Total revenue  $ 363,661  $ 392,960  $ 447,219  $ 473,193  $ 533,877
Revenue by geography, by product:
United States
Talent Solutions (1)  $ 140,420  $ 152,371  $ 164,207  $ 180,403  $ 197,852
Marketing Solutions (1)  41,259  45,789  55,269  49,038  59,383
Premium Subscriptions  42,598  47,142  51,664  55,437  60,539
Total United States revenue  $ 224,277  $ 245,302  $ 271,140  $ 284,878  $ 317,774
International
Talent Solutions (1)  76,518  85,297  97,152  111,191  124,375
Marketing Solutions (1)  32,488  29,721  42,463  37,026  47,093
Premium Subscriptions  30,378  32,640  36,464  40,098  44,635
Total International revenue  $ 139,384  $ 147,658  $ 176,079  $ 188,315  $ 216,103
Total revenue  $ 363,661  $ 392,960  $ 447,219  $ 473,193  $ 533,877
Revenue by channel:
Field sales  $ 209,227  $ 227,588  $ 270,672  $ 275,262  $ 318,984
Online sales  154,434  165,372  176,547  197,931  214,893
Total  $ 363,661  $ 392,960  $ 447,219  $ 473,193  $ 533,877
(1) Prior period amounts have been recast to conform to the current year presentation.
(2) Canada, Latin America and South America
(3)¬†Europe, the Middle East and Africa (“EMEA”)
(4)¬†Asia-Pacific (“APAC”)
LINKEDIN CORPORATION
TRENDED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
Three Months Ended
June 30, September 30, December 31, March 31, June 30,
2013 2013 2013 2014 2014
Non-GAAP net income and net income per share:
GAAP net income (loss) attributable to common stockholders  $ 3,734  $ (3,363)  $ 3,782  $ (13,445)  $ (1,034)
Add back: accretion of redeemable noncontrolling interest ¬†‚ÄĒ ¬†‚ÄĒ ¬†‚ÄĒ ¬†126 ¬†100
Add back: stock-based compensation  48,354  54,445  57,177  67,769  74,828
Add back: amortization of intangible assets  5,677  3,832  4,056  4,813  7,224
Income tax effects and adjustments (1)  (13,307)  (8,120)  (16,776)  (11,914)  (17,827)
NON-GAAP NET INCOME  $ 44,458  $ 46,794  $ 48,239  $ 47,349  $ 63,291
GAAP diluted shares  116,627  113,940  124,438  120,967  122,170
Add back: dilutive shares under the treasury stock method ¬†‚ÄĒ ¬†5,248 ¬†‚ÄĒ ¬†3,884 ¬†3,087
NON-GAAP DILUTED SHARES  116,627  119,188  124,438  124,851  125,257
NON-GAAP DILUTED NET INCOME PER SHARE  $ 0.38  $ 0.39  $ 0.39  $ 0.38  $ 0.51
Adjusted EBITDA:
Net income (loss)  $ 3,734  $ (3,363)  $ 3,782  $ (13,319)  $ (934)
Provision for income taxes  4,109  8,155  9,477  13,581  16,253
Other (income) expense, net  252  (156)  (1,820)  (1,026)  (1,197)
Depreciation and amortization  32,193  33,767  42,750  49,740  56,306
Stock-based compensation  48,354  54,445  57,177  67,769  74,828
ADJUSTED EBITDA  $ 88,642  $ 92,848  $ 111,366  $ 116,745  $ 145,256
(1) Excludes accretion of redeemable noncontrolling interest


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