LinkedIn Reports Solid Q3 Earnings; Microsoft Merger On Track

LNKD: LinkedIn logo

LinkedIn (NASDAQ:LNKD) posted solid third quarter 2016 results last week, with growth across all its divisions. Overall revenues increased 23% year-over-year (y-o-y) to $960 million driven by a 24% sales increase in Talent Solutions and a robust increase in member engagement. This was further driven by initiatives such as redesigning member profiles, expanding the mobile ecosystem and publisher network, strengthening jobs listings, and foraying into newer geographies. The company reported non-GAAP earnings of $1.18 per share in Q3 2016 compared to $0.78 per share in Q3 2015, beating the 91-cents consensus estimates.

In light of its pending merger with Microsoft, LinkedIn did not update its outlook for full year 2016. The company expects the merger to close by the end of the year. The deal has already received regulatory approval in the U.S., Canada and Brazil and is currently pending before the EU Competition Commission, which has set a Nov 22 deadline to examine the case. [1]

Solid Growth Across Divisions

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Talent Solutions contributed about 65% of LinkedIn’s total revenue in Q3 2016, with the Learning and Development business reporting sales of $67 million and Hiring increasing 21% y-o-y to $556 million. The Learning and Development division primarily reports revenue from online learning courses offered by LinkedIn. Marketing Solutions revenue grew by 26% y-o-y to $176 million, primarily driven by an increase in revenue through sponsored content. Premium Subscription revenue increased 17% y-o-y.lnkd-8

Strong Operating Metrics

LinkedIn’s total members increased 18% y-o-y to 467 million, while monthly active users increased 6% to 106.5 million and member page views grew by 27% y-o-y to 48 billion.


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  1. Microsoft Goes to the EU to Approve Its LinkedIn Bid, Reuters, Oct 14 2016 []