‘Yeah, so the online business, it has been decelerating over the last few years. It’s a structural decel, if you look at our Subs business in the aggregate... the trajectory of the online business is it’s been pretty linear in terms of the year-on-year growth rate.’
— LinkedIn Management

LinkedIn is set to report Q1 earnings after the bell (released at 4:05pm ET last quarter). The company also has a conference call scheduled to follow at 5:00pm ET, to discuss their results.

Key Metrics/Guidance

  • Q1
    • Guidance for adj EPS of ~$0.55 on revs of ~$820 mln.

Capital IQ Consensus is calling for adj EPS of $0.60 on revenues of $827.7 mln (+30% Y/Y).


  • Guidance for adj EPS of ~$3.05-3.20 on revenues of $3.6-3.65 bln.

Consensus is calling for adj EPS of $3.20 on revenues of $3.67 bln (+23% Y/Y).

Important User Metrics from Q4'15

  • Cumulative members grew 19% Y/Y to 414 mln
  • Unique visiting members grew 7% Y/Y to an average of 100 mln per month
  • Member page views grew 26% Y/Y to 37 bln (but down 3% Q/Q)
  • Valuation

Some analysts believe that LinkedIn's management was possibly conservative in their guidance.


LinkedIn beats by $0.14, beats on revs; guides Q2 EPS above consensus, revs in-line; raises FY16 EPS above consensus, raises revs, in-line  (123.01 +4.16)

  • Reports Q1 (Mar) earnings of $0.74 per share, excluding non-recurring items, $0.14 better than the Consensus of $0.60; revenues rose 35.0% year/year to $861 mln vs the $828.66 mln Consensus. 
    • Talent Solutions revenue increased 41% year-over-year to $558 million.
      • Hiring revenue contributed $502 million in revenue, up 27% year-over-year.
      • Learning & Development contributed $55 million in revenue.
    • Marketing Solutions revenue increased 29% year-over-year to $154 million.
    • Premium Subscriptions revenue increased 22% year-over-year to $149 million. Adjusted EBITDA was $222 million, or 26% of revenue.
  • Co issues guidance for Q2, sees EPS of $0.74-0.77, excluding non-recurring items, vs. $0.71 Consensus Estimate; sees Q2 revs of $885-890 mln vs. $887.27 mln Consensus Estimate.
  • Co issues guidance for FY16, raises EPS to $3.30-3.40 from $3.05-3.20, excluding non-recurring items, vs. $3.22 Consensus; raises FY16 revs to $3.65-3.70 bln from $3.60-3.65 bln vs. $3.68 bln Consensus Estimate.

LinkedIn Call Highlights: 

  • Engagement materially strengthened across their member platform, driven by our new flagship experience.
  • Core monetization products — Recruiter and Sponsored Updates — showed continued growth, while their emerging strategic investments such as Sales Navigator and Learning & Development continue to show progress.
  • Saw significant improvements in their ability to increase ROI across the business.
  • They saw better than expected results in EMEA across all of their product lines.

This company is a piece of shit in my opinion. I don't believe in management as much as Wall St. does.