Linkedin Corporation (NYSE:LNKD) shares have risen +17% since the company reported strong CQ3:12
results on 11/1/12, outperforming the NASDAQ (+6%) along the way, and trade near their all-time high of $127. The stock is up another 9.2% to $135 a share.
Linkedin Corporation (NYSE:LNKD) reported a big quarter with mixed but generally solid guidance. Q4 results beat consensus revenue by 9% and EBITDA by a whopping 25%. Of the ~$23 million of revenue upside, ~$16 million of it fell to the EBITDA line, demonstrating strong incremental leverage.
Q1 guidance for revenue of $305-310 million and EBITDA of $67-69 million (22% margin at midpoint) is slightly light of revenue estimates but ahead on EBITDA. For the year, guidance for revenue of $1.41-1.44 billion is below analysts' $1.5 1 billion estimate, and EBITDA of $315-$330 million.
Linkedin Corporation (NYSE:LNKD) delivered adjusted EBITDA of $79 million translating to non-GAAP EPS of $0.35. For the full year 2012 revenues were a record $972 million up 86% and Linkedin delivered adjusted EBITDA of $223 million or non-GAAP EPS of $0.89. At the end of the fourth quarter cumulative membership grew 39% year over year and in December the company passed the two hundred million member milestone ending the year with nearly 202 million members.
Linkedin continues to add approximately two member signups per second. With regard to engagement as measured by comScore LinkedIn averaged 155 million unique visitors in Q4 which including SlideShare and in December Linkedin was the 25th most visited web property in the world.
Overall unique visiting members grew approximately 29% year over year versus 22% in Q3. More importantly member page views grew approximately 67% in Q4 the company's highest page growth in 2012. Linkedin's internal unique visitor and page view metrics showed accelerating year-over-year growth in Q4 indicating that members are becoming increasingly active on Linkedin Corporation (NYSE:LNKD).
Linkedin Corporation (NYSE:LNKD) generated a record $79 million in adjusted EBITDA in the fourth quarter, a 26% margin. This compares to $34 million in adjusted EBITDA and a 201% margin last year.
Depreciation and amortization totaled $24 million while stock-based compensation of $28 million.
GAAP taxes on absolute basis were above expectations but the GAAP and non-GAAP rates were lower than expected due to a greater level of pre-tax profit and improving profitability in their international entities. Bottom line results reached record highs.
GAAP net income was $11 million leading to EPS of $0.10 on 114 million fully diluted weighted shares, this compares to search million dollars in net income and $0.06 per share last year.
On a non-GAAP basis net income more than tripled to $40 million translate think 35 in EPS versus $13 million and $0.12 last year. the balance sheet remains well positioned with $750 million in cash cash equivalents and short term again zero debt.
Cash flow remained strong with $69 million in operating cash flow and $37 million in free cash flow. For the full year operating cash flow was $267 million compared to $133 million last year and free cash flow more than tripled to $142 million compared to just $44 million last year I will close the call with guidance for the first quarter and full year 2013.
For the first quarter the company expects revenue between $305 million and $310 million, range of 62% to 64% year over year and for the full year Linkedin expects revenues of 1.4 billion growth of 45% to 48% year on year.
For adjusted EBITDA Linkedin Corporation (NYSE:LNKD) expects $67 million to $69 million in the first quarter a 22% margin and for the full year the company expects range of $315 million to $330 million, a 23% margin at the midpoint.