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LinkedIn Announces Fourth Quarter and Full Year 2014 Results

MOUNTAIN VIEW, Calif., Feb. 5, 2015 (GLOBE NEWSWIRE) -- LinkedIn Corporation (NYSE:LNKD), the world's largest professional network on the Internet, with more than 300 million members, reported its results for the fourth quarter and full year 2014. In addition, please see the transcript containing prepared remarks from the results call.

  • Revenue for the fourth quarter was $643 million, an increase of 44% compared to $447 million in the fourth quarter of 2013. Revenue in 2014 was $2,219 million, an increase of 45% compared to $1,529 million in 2013.
  • Net income attributable to common stockholders for the fourth quarter was $3 million, compared to net income of $4 million for the fourth quarter of 2013. Non-GAAP net income for the fourth quarter was $77 million, compared to $48 million for the fourth quarter of 2013. Net loss attributable to common stockholders in 2014 was ($16) million, compared to net income of $27 million in 2013. Non-GAAP net income in 2014 was $254 million, compared to $192 million in 2013. Non-GAAP net income excludes tax affected non-cash items, such as stock-based compensation and amortization of acquired intangible assets. For additional information, see section "Non-GAAP Financial Measures."
  • Adjusted EBITDA for the fourth quarter was $179 million, or 28% of revenue, compared to $111 million for the fourth quarter of 2013, or 25% of revenue. Adjusted EBITDA in 2014 was $592 million, or 27% of revenue, compared to $376 million in 2013, or 25% of revenue.
  • GAAP diluted EPS for the fourth quarter was $0.02, compared to GAAP diluted EPS of $0.03 for the fourth quarter 2013; non-GAAP diluted EPS for the fourth quarter was $0.61, compared to non-GAAP diluted EPS of $0.39 for the fourth quarter of 2013. GAAP diluted EPS in 2014 was ($0.13), compared to GAAP diluted EPS of $0.23 in 2013; non-GAAP diluted EPS in 2014 was $2.02, compared to non-GAAP diluted EPS of $1.61 in 2013.

"The fourth quarter capped another successful year for LinkedIn, which was marked by steady member growth and strong financial results," said Jeff Weiner, CEO of LinkedIn. "We continued to make significant progress against a number of multi-year, strategic initiatives including mobile, jobs, content, and global expansion."

Fourth Quarter Operating Summary

  • Talent Solutions: Revenue from Talent Solutions products totaled $369 million, an increase of 41% compared to the fourth quarter of 2013. Talent Solutions revenue represented 57% of total revenue in the fourth quarter of 2014, compared to 58% of total revenue in the fourth quarter of 2013.
  • Marketing Solutions: Revenue from Marketing Solutions products totaled $153 million, an increase of 56% compared to the fourth quarter of 2013. Marketing Solutions revenue represented 24% of total revenue in the fourth quarter of 2014, compared to 22% of total revenue in the fourth quarter of 2013.
  • Premium Subscriptions: Revenue from Premium Subscriptions products totaled $121 million, an increase of 38% compared to the fourth quarter of 2013. Premium Subscriptions represented 19% of total revenue in the fourth quarter of 2014, compared to 20% of total revenue in the fourth quarter of 2013.

Revenue from the U.S. totaled $388 million, and represented 60% of total revenue in the fourth quarter of 2014. Revenue from international markets totaled $255 million, and represented 40% of total revenue in the fourth quarter of 2014.

Revenue from the field sales channel totaled $414 million, and represented 64% of total revenue in the fourth quarter of 2014. Revenue from the online channel totaled $230 million, and represented 36% of total revenue in the fourth quarter of 2014.

2014 Highlights and Strategic Announcements

Throughout 2014, LinkedIn:

  • Increased the scale and relevance of job listings through the acquisition of Bright. LinkedIn now has 3 million active job listings on the platform, an approximate 10x increase versus last year. As we continue to add jobs on LinkedIn, we grow closer to realizing our vision of having every job in the world on LinkedIn.
  • Expanded the professional publishing platform by introducing long-form posting to more than 230 million English-speaking members. Members are increasingly creating content on LinkedIn, and we recently surpassed one million total long-form posts and 50,000 posts per week. Through the publishing platform, Pulse, and SlideShare, we seek to make the world's professional knowledge available on LinkedIn.
  • Broadened its global reach, with nearly 70% of total members coming from non-U.S. geographies. In February, we launched a localized version of LinkedIn in Simplified Chinese & Traditional Chinese. Since launch, LinkedIn has nearly doubled its Chinese member base from 4 million to more than 8 million. More recently, LinkedIn's application for an ICP license in China for the local Chinese LinkedIn site was approved, better enabling us to connect the world's professionals.

"The fourth quarter underscored a strong 2014 for LinkedIn, as we demonstrated growing organic engagement and solid performance across our three, diverse product lines." said Steve Sordello, CFO of LinkedIn. "Entering 2015, we plan to continue investing in our long-term roadmap to further pursue our vision to build the world's first economic graph."

Business Outlook

LinkedIn is providing guidance for the first quarter and full year of 2015:

  • Q1 2015 Guidance: Revenue is expected to range between $618 million and $622 million. Adjusted EBITDA is expected to range between $152 million and $154 million. Non-GAAP EPS is expected to be approximately $0.53. The company expects depreciation of approximately $61 million, amortization of approximately $12 million, stock-based compensation of approximately $103 million, and 128 million fully-diluted weighted shares.
  • Full Year 2015 Guidance: Revenue is expected to range between $2.93 billion and $2.95 billion. Adjusted EBITDA is expected to be approximately $785 million. Non-GAAP EPS is expected to be approximately $2.95. The company expects depreciation of approximately $270 million, amortization of approximately $45 million, stock-based compensation of approximately $460 million, and approximately 130 million fully-diluted weighted shares.

Quarterly Results Webcast and Conference Call

LinkedIn will host a webcast and conference call to discuss its fourth quarter 2014 financial results and business outlook today at 2:00 p.m. Pacific Time. Jeff Weiner and Steve Sordello will host the webcast, which can be viewed on the investor relations section of the LinkedIn website at http://investors.linkedin.com/. This call will contain forward-looking statements and other material information regarding the company's financial and operating results. Following completion of the call, a recorded replay of the webcast will be available on the website.

Upcoming Events

Management will participate in upcoming financial Q&A discussions at industry events on February 10th, 24th and March 2nd, and 10th of 2015. LinkedIn will furnish a link to these events on its investor relations website, http://investors.linkedin.com/ for both the live and archived webcasts.

About LinkedIn

LinkedIn connects the world's professionals to make them more productive and successful and transforms the ways companies hire, market and sell. Our vision is to create economic opportunity for every member of the global workforce through the ongoing development of the world's first Economic Graph. LinkedIn has more than 300 million members and has offices around the world.

Non-GAAP Financial Measures

To supplement its condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, the company uses the following non-GAAP financial measures: adjusted EBITDA, non-GAAP net income, and non-GAAP diluted EPS (collectively the "non-GAAP financial measures"). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.

The company excludes the following items from one or more of its non-GAAP measures:

Stock-based compensation. The company excludes stock-based compensation because it is non-cash in nature and because the company believes that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance and liquidity. The company further believes this measure is useful to investors in that it allows for greater transparency to certain line items in its financial statements and facilitates comparisons to peer operating results.

Non-cash interest expense related to convertible senior notes. In November 2014, the company issued $1,323 million aggregate principal amount of 0.50% convertible senior notes. In accordance with GAAP, the company separately accounted for the value of the conversion feature as a debt discount, which is amortized in a manner that reflects the company's non-convertible debt borrowing rate. Accordingly, the company recognizes imputed interest expense on its convertible senior notes of approximately 4.7% in its statement of operations. The company excludes the difference between the imputed interest expense and coupon interest expense, net of any capitalized interest, because it is non-cash in nature and because the company believes that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance and liquidity. In addition, excluding this item from the non-GAAP measures facilitates comparisons to historical operating results and comparisons to peer operating results.

Amortization of acquired intangible assets. The company excludes amortization of acquired intangible assets because it is non-cash in nature and because the company believes that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance and liquidity. In addition, excluding this item from the non-GAAP measures facilitates comparisons to historical operating results and comparisons to peer operating results.

Accretion of redeemable noncontrolling interest. The accretion of redeemable noncontrolling interest represents the accretion of the company's redeemable noncontrolling interest to its redemption value. The company excludes the accretion because it is non-cash in nature and because the company believes that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operating performance. In addition, excluding this item from the non-GAAP financial measures facilitates comparisons to historical operating results and comparisons to peer operating results.

Income tax effects and adjustments. The company adjusts non-GAAP net income by considering the income tax effects of excluding stock-based compensation and the amortization of acquired intangible assets. Beginning in the first quarter of 2014, the company has implemented a static non-GAAP tax rate for evaluating its operating performance as well as for planning and forecasting purposes. This projected 10-year weighted average non-GAAP tax rate eliminates the effects of non-recurring and period specific items, which can vary in size and frequency and does not necessarily reflect the company's long-term operations. Historically, the company computed a non-GAAP tax rate based on non-GAAP pre-tax income on a quarterly basis. Based on the company's current forecast, a tax rate of 25% will be applied to its non-GAAP financial results beginning in the first quarter of 2015. This rate will be adjusted annually, if necessary. The company believes that adjusting for these income tax effects and adjustments provides additional transparency to the overall or "after tax" effects of excluding these items from its non-GAAP net income.

Dilutive shares under the treasury stock method. During periods with a net loss, the company excluded certain potential common shares from its GAAP diluted shares because their effect would have been anti-dilutive. On a non-GAAP basis, these shares would have been dilutive. As a result, the company has included the impact of these shares in the calculation of its non-GAAP diluted net income per share under the treasury stock method.

For more information on the non-GAAP financial measures, please see the "Trended Reconciliation of GAAP to Non-GAAP Financial Measures" table in this press release. This accompanying table has more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. Additionally, the company has not reconciled adjusted EBITDA or non-GAAP EPS guidance to net income (loss) or GAAP EPS guidance because it does not provide guidance for either other income (expense), net, or GAAP provision for income taxes, which are reconciling items between net income (loss) and adjusted EBITDA and non-GAAP EPS. As items that impact net income (loss) are out of the company's control and/or cannot be reasonably predicted, the company is unable to provide such guidance. Accordingly, a reconciliation to net income (loss) is not available without unreasonable effort.

Safe Harbor Statement

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release and the accompanying conference call contain forward-looking statements about our products, including our investments in products, technology and other key strategic areas, certain non-financial metrics, such as customer and member growth and engagement, and our expected financial metrics such as revenue, adjusted EBITDA, non-GAAP EPS, depreciation and amortization, stock-based compensation and fully-diluted weighted shares for the first quarter of 2015 and the full fiscal year 2015. The achievement of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any of these risks or uncertainties materialize or if any of the assumptions prove incorrect, the company's results could differ materially from the results expressed or implied by the forward-looking statements the company makes.

The risks and uncertainties referred to above include - but are not limited to - risks associated with: our limited operating history in a new and unproven market; engagement of our members; the price volatility of our Class A common stock; general economic conditions; expectations regarding the return on our strategic investments; execution of our plans and strategies, including with respect to mobile products and features; security measures and the risk that they may not be sufficient to secure our member data adequately or that we are subject to attacks that degrade or deny the ability of members to access our solutions; expectations regarding our ability to timely and effectively scale and adapt existing technology and network infrastructure to ensure that our solutions are accessible at all times with short or no perceptible load times; our ability to maintain our rate of revenue growth and manage our expenses and investment plans; our ability to accurately track our key metrics internally; members and customers curtailing or ceasing to use our solutions; our core value of putting members first, which may conflict with the short-term interests of the business; privacy and changes in regulations, which could impact our ability to serve our members or curtail our monetization efforts; litigation and regulatory issues; increasing competition; our ability to manage our growth; our international operations; our ability to recruit and retain our employees; the application of U.S. and international tax laws on our tax structure and any changes to such tax laws; acquisitions we have made or may make in the future; and the dual class structure of our Class A common stock.

Further information on these and other factors that could affect the company's financial results is included in filings it makes with the Securities and Exchange Commission from time to time, including the section entitled "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2013, as well as the company's most recent Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, and additional information will also be set forth in our Form 10-K that will be filed for the year ended December 31, 2014, which should be read in conjunction with these financial results. These documents are or will be available on the SEC Filings section of the Investor Relations page of the company's website at http://investors.linkedin.com/. All information provided in this release and in the attachments is as of February 5, 2015, and LinkedIn undertakes no duty to update this information.

LINKEDIN CORPORATION
TRENDED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
As of
December 31, March 31, June 30, September 30, December 31,
2013 2014 2014 2014 2014
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 803,089 $ 508,850 $ 645,092 $ 526,837 $ 460,887
Marketable securities 1,526,212 1,797,373 1,721,847 1,736,958 2,982,422
Accounts receivable 302,168 328,661 347,152 344,773 449,048
Deferred commissions 47,496 46,575 45,941 40,810 66,561
Prepaid expenses 32,114 47,513 49,503 55,571 52,978
Other current assets 44,391 50,933 61,042 79,795 110,204
Total current assets 2,755,470 2,779,905 2,870,577 2,784,744 4,122,100
Property and equipment, net 361,741 406,543 476,058 557,017 740,909
Goodwill 150,871 228,893 228,943 356,369 356,718
Intangible assets, net 43,046 101,597 99,175 140,802 131,275
Other assets 41,665 44,931 46,133 67,080 76,255
TOTAL ASSETS $ 3,352,793 $ 3,561,869 $ 3,720,886 $ 3,906,012 $ 5,427,257
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 66,744 $ 79,711 $ 90,728 $ 106,658 $ 100,297
Accrued liabilities 183,004 142,141 164,051 188,983 260,189
Deferred revenue 392,243 479,576 481,450 463,576 522,299
Total current liabilities 641,991 701,428 736,229 759,217 882,785
CONVERTIBLE SENIOR NOTES, NET 1,081,553
DEFERRED TAX LIABILITIES 14,879 23,900 24,088 41,327
OTHER LONG TERM LIABILITIES 61,529 70,226 80,298 105,043 132,100
Total liabilities 718,399 795,554 840,615 905,587 2,096,438
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NONCONTROLLING INTEREST 5,000 5,126 5,226 5,327 5,427
STOCKHOLDERS' EQUITY:
Class A and Class B common stock 12 12 12 12 13
Additional paid-in capital 2,573,449 2,718,321 2,833,030 2,957,524 3,285,705
Accumulated other comprehensive income (loss) 314 682 863 685 (198)
Accumulated earnings 55,619 42,174 41,140 36,877 39,872
Total stockholders' equity 2,629,394 2,761,189 2,875,045 2,995,098 3,325,392
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY $ 3,352,793 $ 3,561,869 $ 3,720,886 $ 3,906,012 $ 5,427,257
LINKEDIN CORPORATION
TRENDED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, Dec 31,
2013 2014 2014 2014 2014 2013 2014
Net revenue $ 447,219 $ 473,193 $ 533,877 $ 568,265 $ 643,432 $ 1,528,545 $ 2,218,767
Costs and expenses:
Cost of revenue (exclusive of depreciation and amortization shown separately below) 57,865 62,455 69,536 74,904 86,902 202,908 293,797
Sales and marketing 157,235 166,522 184,494 199,168 224,227 522,100 774,411
Product development 113,140 120,622 128,731 136,542 150,289 395,643 536,184
General and administrative 64,790 74,618 80,688 89,266 96,722 225,566 341,294
Depreciation and amortization 42,750 49,740 56,306 59,782 71,118 134,516 236,946
Total costs and expenses 435,780 473,957 519,755 559,662 629,258 1,480,733 2,182,632
Income (loss) from operations 11,439 (764) 14,122 8,603 14,174 47,812 36,135
Other income (expense), net 1,820 1,026 1,197 152 (7,305) 1,416 (4,930)
Income before income taxes 13,259 262 15,319 8,755 6,869 49,228 31,205
Provision for income taxes 9,477 13,581 16,253 12,917 3,774 22,459 46,525
Net income (loss) 3,782 (13,319) (934) (4,162) 3,095 26,769 (15,320)
Accretion of redeemable noncontrolling interest (126) (100) (101) (100) (427)
Net income (loss) attributable to common stockholders $ 3,782 $ (13,445) $ (1,034) $ (4,263) $ 2,995 $ 26,769 $ (15,747)
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:
Basic $ 0.03 $ (0.11) $ (0.01) $ (0.03) $ 0.02 $ 0.24 $ (0.13)
Diluted $ 0.03 $ (0.11) $ (0.01) $ (0.03) $ 0.02 $ 0.23 $ (0.13)
Net income (loss) per share attributable to common stockholders:
Basic 119,849 120,967 122,170 123,427 124,590 113,643 122,800
Diluted 124,438 120,967 122,170 123,427 127,338 118,944 122,800
LINKEDIN CORPORATION
TRENDED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended Year Ended
Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, Dec 31,
2013 2014 2014 2014 2014 2013 2014
OPERATING ACTIVITIES:
Net income (loss) $ 3,782 $ (13,319) $ (934) $ (4,162) $ 3,095 $ 26,769 $ (15,320)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization 42,750 49,740 56,306 59,782 71,118 134,516 236,946
Provision for doubtful accounts and sales returns 1,254 1,207 4,118 3,805 2,216 4,775 11,346
Amortization of investment premiums, net 2,356 2,774 3,073 3,457 4,309 8,268 13,613
Amortization of debt discount and transaction costs 5,916 5,916
Stock-based compensation 57,177 67,769 74,828 82,910 93,626 193,915 319,133
Excess income tax benefit from stock-based compensation (16,008) (15,982) (18,639) (13,114) (51,512) (43,755) (99,247)
Changes in operating assets and liabilities:
Accounts receivable (94,627) (26,764) (23,462) 15,657 (103,002) (102,618) (137,571)
Deferred commissions (20,028) 1,116 712 4,836 (29,073) (18,249) (22,409)
Prepaid expenses and other assets 570 (14,516) (7,528) (15,605) (4,383) (19,481) (42,032)
Accounts payable and other liabilities 44,307 (18,428) 24,726 54,017 89,656 114,713 149,971
Income taxes, net 4,377 7,928 13,362 8,248 (10,258) 3,120 19,280
Deferred revenue 56,543 87,333 1,874 (18,605) 58,723 134,500 129,325
Net cash provided by operating activities 82,453 128,858 128,436 181,226 130,431 436,473 568,951
INVESTING ACTIVITIES:
Purchases of property and equipment (57,394) (88,871) (96,430) (120,721) (241,611) (278,019) (547,633)
Purchases of investments (851,312) (737,739) (649,803) (501,074) (1,542,950) (1,493,754) (3,431,566)
Sales of investments 68,547 72,239 117,359 53,511 50,924 179,904 294,033
Maturities of investments 129,646 393,044 604,231 429,641 238,283 258,425 1,665,199
Payments for intangible assets and acquisitions, net of cash acquired (3,894) (85,061) (4,800) (160,894) (2,783) (19,197) (253,538)
Changes in deposits and restricted cash (6) (1,404) (3,357) (20,504) 5,499 (4,904) (19,766)
Net cash used in investing activities (714,413) (447,792) (32,800) (320,041) (1,492,638) (1,357,545) (2,293,271)
FINANCING ACTIVITIES:
Net cash provided by financing activities (1) 38,596 24,122 39,753 24,864 1,299,746 1,454,219 1,388,485
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 161 573 853 (4,304) (3,489) (466) (6,367)
CHANGE IN CASH AND CASH EQUIVALENTS (593,203) (294,239) 136,242 (118,255) (65,950) 532,681 (342,202)
CASH AND CASH EQUIVALENTS—Beginning of period 1,396,292 803,089 508,850 645,092 526,837 270,408 803,089
CASH AND CASH EQUIVALENTS—End of period $ 803,089 $ 508,850 $ 645,092 $ 526,837 $ 460,887 $ 803,089 $ 460,887
(1) In the fourth quarter of 2014, we received net proceeds from our convertible senior notes offering, after deducting initial purchasers' discount and debt issuance costs, of approximately $1,305.4 million. Concurrently with the issuance of the notes, we used approximately $248.0 million of the net proceeds of the offering of the notes to pay the cost of convertible note hedge transactions, which was offset by $167.3 million in proceeds from warrants we sold. In the third quarter of 2013, we received of $1,348.1 million in net proceeds from our follow-on offering, net of underwriting discounts and commissions and other costs. With the exception of the notes issuance and the follow-on offering, our financing activities consist primarily of the excess tax benefit from stock-based compensation and the net proceeds from the issuance of common stock from employee stock option exercises and our employee stock purchase plan.
LINKEDIN CORPORATION
TRENDED SUPPLEMENTAL REVENUE INFORMATION
(In thousands)
(Unaudited)
Three Months Ended Year Ended
Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, Dec 31,
2013 2014 2014 2014 2014 2013 2014
Revenue by product:
Talent Solutions $ 261,359 $ 291,594 $ 322,227 $ 344,568 $ 369,348 $ 910,257 $ 1,327,737
Marketing Solutions 97,732 86,064 106,476 109,231 152,729 311,777 454,500
Premium Subscriptions 88,128 95,535 105,174 114,466 121,355 306,511 436,530
Total $ 447,219 $ 473,193 $ 533,877 $ 568,265 $ 643,432 $ 1,528,545 $ 2,218,767
Revenue by geographic region:
United States $ 271,140 $ 284,878 $ 317,774 $ 343,132 $ 388,194 $ 942,122 $ 1,333,978
International
Other Americas (1) 31,612 31,904 35,527 36,538 39,238 109,672 143,207
EMEA (2) 108,309 117,871 134,930 139,702 162,064 358,244 554,567
APAC (3) 36,158 38,540 45,646 48,893 53,936 118,507 187,015
Total International revenue 176,079 188,315 216,103 225,133 255,238 586,423 884,789
Total revenue $ 447,219 $ 473,193 $ 533,877 $ 568,265 $ 643,432 $ 1,528,545 $ 2,218,767
Revenue by geography, by product:
United States
Talent Solutions $ 164,207 $ 180,403 $ 197,852 $ 208,635 $ 222,670 $ 582,928 $ 809,560
Marketing Solutions 55,269 49,038 59,383 68,767 94,991 179,983 272,179
Premium Subscriptions 51,664 55,437 60,539 65,730 70,533 179,211 252,239
Total United States revenue $ 271,140 $ 284,878 $ 317,774 $ 343,132 $ 388,194 $ 942,122 $ 1,333,978
International
Talent Solutions 97,152 111,191 124,375 135,933 146,678 327,329 518,177
Marketing Solutions 42,463 37,026 47,093 40,464 57,738 131,794 182,321
Premium Subscriptions 36,464 40,098 44,635 48,736 50,822 127,300 184,291
Total International revenue $ 176,079 $ 188,315 $ 216,103 $ 225,133 $ 255,238 $ 586,423 $ 884,789
Total revenue $ 447,219 $ 473,193 $ 533,877 $ 568,265 $ 643,432 $ 1,528,545 $ 2,218,767
Revenue by channel:
Field sales $ 270,672 $ 275,262 $ 318,984 $ 341,691 $ 413,867 $ 891,458 $ 1,349,804
Online sales 176,547 197,931 214,893 226,574 229,565 637,087 868,963
Total $ 447,219 $ 473,193 $ 533,877 $ 568,265 $ 643,432 $ 1,528,545 $ 2,218,767
(1) Canada, Latin America and South America
(2) Europe, the Middle East and Africa ("EMEA")
(3) Asia-Pacific ("APAC")
LINKEDIN CORPORATION
TRENDED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, Dec 31,
2013 2014 2014 2014 2014 2013 2014
Non-GAAP net income and net income per share:
GAAP net income (loss) attributable to common stockholders $ 3,782 $ (13,445) $ (1,034) $ (4,263) $ 2,995 $ 26,769 $ (15,747)
Add back: stock-based compensation 57,177 67,769 74,828 82,910 93,626 193,915 319,133
Add back: non-cash interest expense related to convertible senior notes 5,916 5,916
Add back: amortization of intangible assets 4,056 4,813 7,224 9,986 12,612 16,406 34,635
Add back: accretion of redeemable noncontrolling interest 126 100 101 100 427
Income tax effects and adjustments (1) (16,776) (11,914) (17,827) (22,661) (37,884) (45,198) (90,286)
NON-GAAP NET INCOME $ 48,239 $ 47,349 $ 63,291 $ 66,073 $ 77,365 $ 191,892 $ 254,078
GAAP diluted shares 124,438 120,967 122,170 123,427 127,338 118,944 122,800
Add back: dilutive shares under the treasury stock method 3,884 3,087 3,046 3,192
NON-GAAP DILUTED SHARES 124,438 124,851 125,257 126,473 127,338 118,944 125,992
NON-GAAP DILUTED NET INCOME PER SHARE $ 0.39 $ 0.38 $ 0.51 $ 0.52 $ 0.61 $ 1.61 $ 2.02
Adjusted EBITDA:
Net income (loss) $ 3,782 $ (13,319) $ (934) $ (4,162) $ 3,095 $ 26,769 $ (15,320)
Provision for income taxes 9,477 13,581 16,253 12,917 3,774 22,459 46,525
Other (income) expense, net (1,820) (1,026) (1,197) (152) 7,305 (1,416) 4,930
Depreciation and amortization 42,750 49,740 56,306 59,782 71,118 134,516 236,946
Stock-based compensation 57,177 67,769 74,828 82,910 93,626 193,915 319,133
ADJUSTED EBITDA $ 111,366 $ 116,745 $ 145,256 $ 151,295 $ 178,918 $ 376,243 $ 592,214
(1) Excludes accretion of redeemable noncontrolling interest

CONTACT: Press: press@linkedin.com Investors: Matthew Danziger mdanziger@linkedin.com 650-426-6104 Kristin Altorfer kaltorfer@linkedin.com 408-604-6630 Matt Sonefeldt msonefeldt@linkedin.com 650-605-0861

Source: LinkedIn