LinkedIn Corp (LNKD) Surprises On Revenue, Disappoints On Guidance

LinkedIn Corp (NYSE:LNKD) released its fourth quarter earnings report after closing bell, posting earnings of 39 cents per share, excluding items. Revenue for the quarter was $447 million.  Profits were 3 cents per share, compared to profits of 10 cents per share in the same quarter a year ago.

Analysts had been expecting the social network to report revenue of $438 million and EBITDA of $107 million. They were also looking for 39 cents per share in non-GAAP earnings. Shares of LinkedIn Corp (NYSE:LNKD) fell as much as 12% in after-hours trading, however, as investors were disappointed by the company’s guidance for the current quarter.

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Breaking down LinkedIn’s results

Analysts at RBC Capital Markets were looking for around $238 million in Talent Solutions revenue and 47% year over year growth in Corporate Solutions customers. LinkedIn Corp (NYSE:LNKD) managed to beat in this area, however, posting a 53% increase in revenue for this division to $245.6 million.

They were expecting Marketing Solutions revenue to grow 21% to $101 million during the quarter, along with a 25% increase in page views. LinkedIn Corp (NYSE:LNKD) also beat in this division, posting $113.5 million in Marketing Solutions revenue, a 36% increase. This division made up 25% of LinkedIn’s total revenue in the December quarter.

RBC also expected premium subscription revenue of $86 million for the quarter and a 39% year over year growth in registered members. LinkedIn Corp (NYSE:LNKD) reported $88.1 million in premium subscription revenue—a 48% increase.

LinkedIn guides weak for 2014

LinkedIn Corp (NYSE:LNKD) also provided guidance for the current quarter. It projects revenue of between $455 million and $460 million. Analysts had been hoping for guidance of $470 million for the current quarter.

For the full fiscal year, LinkedIn Corp (NYSE:LNKD) said it expects revenue to be between $2.02 billion and $2.05 billion. That’s also lower than consensus of $2.16 billion.