From Mountain View, California, LinkedIn, the network for professionals to mingle, has reported its financial results for the second quarter (Q2) of 2013. The results appear to be looking fruitful for investors, as LinkedIn’s earning are up 59pc for the quarter, with the networking site’s mobile attack proving to be a big win-win for attracting and retaining members on the site. LinkedIn now counts more than 238m members, with the site achieving its first membership growth acceleration since the third quarter of 2011.
Revealing the results, Jeff Weiner, CEO of LinkedIn, said that "accelerated" member growth and "strong engagement" drove "record" operating and financial results in the second quarter.
"We are continuing to invest in driving scale across the LinkedIn platform in order to fully realise our long-term potential," he said.
Complementing his words, Steve Sordello, CFO of LinkedIn, said that LinkedIn operated at a high level in the second quarter.
This, he said, was evidenced by strong engagement, steady growth, and increasing levels of adjusted EBITDA (earnings before interest, taxes and amortisation) and cash flow.
"We continue to make long-term investments against our operating priorities in order to add increased value for our members and customers," said Sordello.
Here’s a snippet of the chief points from LinkedIn’s financial status for the quarter:
- Revenue for the Q2 was US$363.7m, a hike of 59pc compared to US$228.2m in the second quarter of 2012.
- Net income for Q2 was US$3.7m – this is compared to net income of US$2.8m for the second quarter of 2012.
- Non-GAAP net income for Q2 was US$44.5m, compared to US$18.1m for the second quarter of 2012.
- Non-GAAP measures exclude tax-affected stock-based compensation expense and tax-affected amortisation of acquired intangible assets.
- And adjusted EBITDA for the Q2 was US$88.6m – or 24pc of revenue – compared to US$50.4m for the second quarter of 2012 (22pc of revenue).
In the second quarter of 2013, LinkedIn membership grew to 238m, as growth reached to 37pc year-over-year.
LinkedIn said this strength was driven primarily by product optimisation – representing the first membership growth acceleration since the third quarter of 2011.
For the third quarter and full year of 2013, LinkedIn is forecasting that:
- Revenue will range between US$367m and US$373m.
- The company believes that adjusted EBITDA will range between US$81m and $83m.
It anticipates depreciation and amortization in the range of US$38m to US$40m, and stock-based compensation in the range of US$49m to US$51m.
For its full year guidance for 2013, LinkedIn expects revenue to be revised upwards to range between US$1.455bn and US$1.475bn.
It believes that adjusted EBITDA will be revised upwards to range between US$340m and US$355m.
The company expects depreciation and amortisation in the range of US$135m to US$140m, and stock-based compensation in the range of US$183m to US$188m.
How it all began
Founded in 2003, LinkedIn aims to connects the world’s professionals and is also used regularly by talent scouts and recruitment agencies sniffing out the best talent in their class.
Over the years, the company has diversified its business model, with revenue coming from Talent Solutions, Marketing Solutions and Premium Subscriptions products.
Headquartered in Silicon Valley, US, LinkedIn has offices across the globe, including its EMEA HQ in Dublin, Ireland.