EX-99.1 2 a20150331-earningsrelease.htm PRESS RELEASE 2015.03.31 - Earnings Release
Exhibit 99.1

LinkedIn Announces First Quarter 2015 Results


MOUNTAIN VIEW, Calif., April 30, 2015 - LinkedIn Corporation (NYSE: LNKD), the world's largest professional network on the Internet, with more than 350 million members, reported its results for the first quarter of 2015. In addition, see the transcript containing prepared remarks from the results call on the investor relations section of the LinkedIn website.

Revenue for the first quarter was $638 million, an increase of 35% compared to $473 million in the first quarter of 2014.

Net loss attributable to common stockholders for the first quarter was $43 million, compared to net loss of $13 million for the first quarter of 2014. Non-GAAP net income for the first quarter was $73 million, compared to $47 million for the first quarter of 2014. 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 first quarter was $160 million, or 25% of revenue, compared to $117 million for the first quarter of 2014, or 25% of revenue.

GAAP diluted EPS for the first quarter was ($0.34), compared to GAAP diluted EPS of ($0.11) for the first quarter of 2014; non-GAAP diluted EPS for the first quarter was $0.57, compared to non-GAAP diluted EPS of $0.38 for the first quarter of 2014.

“Q1 was a solid quarter in which we made meaningful progress against our multi-year strategic roadmap,” said Jeff Weiner, CEO of LinkedIn. “During the quarter, we maintained steady growth in member engagement while achieving strong financial results.”


First Quarter Operating Summary

Talent Solutions: Revenue from Talent Solutions products totaled $396 million, an increase of 36% compared to the first quarter of 2014. Talent Solutions revenue represented 62% of total revenue in the first quarter of 2015 and 2014.

Marketing Solutions: Revenue from Marketing Solutions products totaled $119 million, an increase of 38% compared to the first quarter of 2014. Marketing Solutions revenue represented 19% of total revenue in the first quarter of 2015, compared to 18% of total revenue in the first quarter of 2014.

Premium Subscriptions: Revenue from Premium Subscriptions products totaled $122 million, an increase of 28% compared to the first quarter of 2014. Premium Subscriptions represented 19% of total revenue in the first quarter of 2015, compared to 20% of total revenue in the fourth quarter of 2014.

Revenue from the U.S. totaled $389 million, and represented 61% of total revenue in the first quarter of 2015. Revenue from international markets totaled $248 million, and represented 39% of total revenue in the first quarter of 2015.




Revenue from the field sales channel totaled $393 million, and represented 62% of total revenue in the first quarter of 2015. Revenue from the online channel totaled $244 million, and represented 38% of total revenue in the first quarter of 2015.

First Quarter 2015 Highlights and Strategic Announcements

In the first quarter of 2015, LinkedIn:

Witnessed continued adoption of its professional publishing platform, eclipsing 100,000 member-generated long-form posts for the first time. When combined with SlideShare’s 18 million pieces of unique content, members can increasingly stay informed and discover relevant professional knowledge on LinkedIn.

Achieved its mobile moment, with the number of unique visiting members accessing LinkedIn via mobile devices surpassing 50%. LinkedIn continues to rapidly innovate in mobile, launching the LinkedIn Job Search app for Android during the quarter.

Introduced an expanded portfolio for its Marketing Solutions business, including the new LinkedIn Lead Accelerator, Network Display advertising, and revamped Sponsored InMail. The new end-to-end product suite allows marketers to reach, nurture, and acquire customers on and off LinkedIn, increasingly making LinkedIn the most effective platform to engage with professionals.

Additionally, earlier this month, LinkedIn announced the pending acquisition of lynda.com, which will change the way people connect to opportunity by combining an extensive library of skills-based video content with the hundreds of millions of members and millions of jobs on LinkedIn.

“LinkedIn demonstrated continued solid growth during the first quarter,” said Steve Sordello, CFO of LinkedIn. “This performance comes amidst the backdrop of several important strategic investments to better position the business to execute on our long-term roadmap.”

Business Outlook

LinkedIn is providing guidance for the second quarter and full year 2015. Further details can be found in our transcript including the impact of the pending lynda.com acquisition:

Q2 2015 Guidance: Revenue is expected to range between $670 million and $675 million. Adjusted EBITDA is expected to be approximately $120 million. Non-GAAP EPS is expected to be approximately $0.28. The company expects depreciation of approximately $68 million, amortization of approximately $24 million, and stock-based compensation of approximately $144 million. The company also expects approximately 129 million fully-diluted weighted shares.

Full Year 2015 Guidance: Revenue is expected to be approximately $2.90 billion. Adjusted EBITDA is expected to be approximately $630 million. Non-GAAP EPS is expected to be approximately $1.90. The company expects depreciation of approximately $290 million, amortization of approximately $128 million, and stock-based compensation of approximately $500 million. The company also expects approximately 131 million fully-diluted weighted shares.




Quarterly Results Webcast and Conference Call

LinkedIn will host a webcast and conference call to discuss its first quarter 2015 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 May 12th, 19th, and June 2nd 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 350 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 $1.3 billion 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 23% has been applied to its non-GAAP financial results for the current period. 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 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 loss and adjusted EBITDA and non-GAAP EPS. As items that impact net 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 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 second 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, 2014, and additional information will also be set forth in our Form 10-Q that will be filed for the quarter ended March 31, 2015, 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 April 30, 2015, and LinkedIn undertakes no duty to update this information.






LINKEDIN CORPORATION
TRENDED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited) 
 
As of
 
March 31,
2014
 
June 30,
2014
 
September 30,
2014
 
December 31,
2014
 
March 31,
2015
 
 
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
CURRENT ASSETS:
 
 
 
 
 
 
 
 
 
     Cash and cash equivalents
$
508,850

 
$
645,092

 
$
526,837

 
$
460,887

 
$
1,017,287

     Marketable securities
1,797,373

 
1,721,847

 
1,736,958

 
2,982,422

 
2,512,588

     Accounts receivable
328,661

 
347,152

 
344,773

 
449,048

 
424,787

     Deferred commissions
46,575

 
45,941

 
40,810

 
66,561

 
60,259

     Prepaid expenses
47,513

 
49,503

 
55,571

 
52,978

 
62,800

     Other current assets
50,933

 
61,042

 
79,795

 
110,204

 
141,798

          Total current assets
2,779,905

 
2,870,577

 
2,784,744

 
4,122,100

 
4,219,519

     Property and equipment, net
406,543

 
476,058

 
557,017

 
740,909

 
755,396

     Goodwill
228,893

 
228,943

 
356,369

 
356,718

 
359,739

     Intangible assets, net
101,597

 
99,175

 
140,802

 
131,275

 
122,826

     Other assets
44,931

 
46,133

 
67,080

 
76,255

 
80,684

TOTAL ASSETS
$
3,561,869

 
$
3,720,886

 
$
3,906,012

 
$
5,427,257

 
$
5,538,164

 
 
 
 
 
 
 
 
 
 
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES:
 
 
 
 
 
 
 
 
 
     Accounts payable
$
79,711

 
$
90,728

 
$
106,658

 
$
100,297

 
$
85,104

     Accrued liabilities
142,141

 
164,051

 
188,983

 
260,189

 
206,826

     Deferred revenue
479,576

 
481,450

 
463,576

 
522,299

 
585,812

          Total current liabilities
701,428

 
736,229

 
759,217

 
882,785

 
877,742

CONVERTIBLE SENIOR NOTES, NET

 

 

 
1,081,553

 
1,092,715

DEFERRED TAX LIABILITIES
23,900

 
24,088

 
41,327

 

 

OTHER LONG TERM LIABILITIES
70,226

 
80,298

 
105,043

 
132,100

 
143,704

          Total liabilities
795,554

 
840,615

 
905,587

 
2,096,438

 
2,114,161

COMMITMENTS AND CONTINGENCIES
 
 
 
 
 
 
 
 
 
REDEEMABLE NONCONTROLLING INTEREST
5,126

 
5,226

 
5,327

 
5,427

 
5,536

STOCKHOLDERS’ EQUITY:
 
 
 
 
 
 
 
 
 
     Class A and Class B common stock
12

 
12

 
12

 
13

 
13

     Additional paid-in capital
2,718,321

 
2,833,030

 
2,957,524

 
3,285,705

 
3,420,045

 Accumulated other comprehensive income (loss)
682

 
863

 
685

 
(198
)
 
1,085

     Accumulated earnings (deficit)
42,174

 
41,140

 
36,877

 
39,872

 
(2,676
)
          Total stockholders’ equity
2,761,189

 
2,875,045

 
2,995,098

 
3,325,392

 
3,418,467

TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY
$
3,561,869

 
$
3,720,886

 
$
3,906,012

 
$
5,427,257

 
$
5,538,164






LINKEDIN CORPORATION
TRENDED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited) 
 
Three Months Ended
 
March 31,
2014
 
June 30,
2014
 
September 30,
2014
 
December 31,
2014
 
March 31,
2015
 
 
 
 
 
 
 
 
 
 
Net revenue
$
473,193

 
$
533,877

 
$
568,265

 
$
643,432

 
$
637,687

Costs and expenses:
 
 
 
 
 
 
 
 
 
Cost of revenue (exclusive of depreciation and amortization shown separately below)
62,455

 
69,536

 
74,904

 
86,902

 
88,406

Sales and marketing
166,522

 
184,494

 
199,168

 
224,227

 
229,636

Product development
120,622

 
128,731

 
136,542

 
150,289

 
165,580

General and administrative
74,618

 
80,688

 
89,266

 
96,722

 
97,313

Depreciation and amortization
49,740

 
56,306

 
59,782

 
71,118

 
73,972

          Total costs and expenses
473,957

 
519,755

 
559,662

 
629,258

 
654,907

Income (loss) from operations
(764
)
 
14,122

 
8,603

 
14,174

 
(17,220
)
Other income (expense), net:
 
 
 
 
 
 
 
 
 
Interest income
1,006

 
1,329

 
1,412

 
1,224

 
1,985

Interest expense

 

 

 
(6,797
)
 
(12,597
)
Other, net
20

 
(132
)
 
(1,260
)
 
(1,732
)
 
(4,035
)
Other income (expense), net
1,026

 
1,197

 
152

 
(7,305
)
 
(14,647
)
Income (loss) before income taxes
262

 
15,319

 
8,755

 
6,869

 
(31,867
)
Provision for income taxes
13,581

 
16,253

 
12,917

 
3,774

 
10,572

Net income (loss)
(13,319
)
 
(934
)
 
(4,162
)
 
3,095

 
(42,439
)
Accretion of redeemable noncontrolling interest
(126
)
 
(100
)
 
(101
)
 
(100
)
 
(109
)
Net income (loss) attributable to common stockholders
$
(13,445
)
 
$
(1,034
)
 
$
(4,263
)
 
$
2,995

 
$
(42,548
)
Net income (loss) per share attributable to common stockholders:
 
 
 
 
 
 
 
 
 
     Basic
$
(0.11
)
 
$
(0.01
)
 
$
(0.03
)
 
$
0.02

 
$
(0.34
)
     Diluted
$
(0.11
)
 
$
(0.01
)
 
$
(0.03
)
 
$
0.02

 
$
(0.34
)
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:
 
 
 
 
 
 
 
 
 
     Basic
120,967

 
122,170

 
123,427

 
124,590

 
125,471

     Diluted
120,967

 
122,170

 
123,427

 
127,338

 
125,471







LINKEDIN CORPORATION
TRENDED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited) 
 
Three Months Ended
 
March 31,
2014
 
June 30,
2014
 
September 30,
2014
 
December 31,
2014
 
March 31,
2015
 
 
 
 
 
 
 
 
 
 
OPERATING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(13,319
)
 
$
(934
)
 
$
(4,162
)
 
$
3,095

 
$
(42,439
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
49,740

 
56,306

 
59,782

 
71,118

 
73,972

Provision for doubtful accounts and sales returns
1,207

 
4,118

 
3,805

 
2,216

 
1,795

Amortization of investment premiums, net
2,774

 
3,073

 
3,457

 
4,309

 
5,514

Amortization of debt discount and transaction costs

 

 

 
5,916

 
11,189

Stock-based compensation
67,769

 
74,828

 
82,910

 
93,626

 
103,109

Excess income tax benefit from stock-based compensation
(15,982
)
 
(18,639
)
 
(13,114
)
 
(51,512
)
 
(18,198
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
Accounts receivable
(26,764
)
 
(23,462
)
 
15,657

 
(103,002
)
 
29,489

Deferred commissions
1,116

 
712

 
4,836

 
(29,073
)
 
7,067

Prepaid expenses and other assets
(14,516
)
 
(7,528
)
 
(15,605
)
 
(4,383
)
 
(34,629
)
Accounts payable and other liabilities
(18,428
)
 
24,726

 
54,017

 
89,656

 
(40,725
)
Income taxes, net
7,928

 
13,362

 
8,248

 
(10,258
)
 
5,629

Deferred revenue
87,333

 
1,874

 
(18,605
)
 
58,723

 
63,359

Net cash provided by operating activities
128,858

 
128,436

 
181,226

 
130,431

 
165,132

INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Purchases of property and equipment
(88,871
)
 
(96,430
)
 
(120,721
)
 
(241,611
)
 
(90,121
)
Purchases of investments
(737,739
)
 
(649,803
)
 
(501,074
)
 
(1,542,950
)
 
(454,281
)
Sales of investments
72,239

 
117,359

 
53,511

 
50,924

 
438,409

Maturities of investments
393,044

 
604,231

 
429,641

 
238,283

 
482,840

Payments for intangible assets and acquisitions, net of cash acquired
(85,061
)
 
(4,800
)
 
(160,894
)
 
(2,783
)
 
(4,161
)
Changes in deposits and restricted cash
(1,404
)
 
(3,357
)
 
(20,504
)
 
5,499

 
(1,382
)
Net cash provided by (used in) investing activities
(447,792
)
 
(32,800
)
 
(320,041
)
 
(1,492,638
)
 
371,304

FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Net cash provided by financing activities (1)
24,122

 
39,753

 
24,864

 
1,299,746

 
26,739

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
573

 
853

 
(4,304
)
 
(3,489
)
 
(6,775
)
CHANGE IN CASH AND CASH EQUIVALENTS
(294,239
)
 
136,242

 
(118,255
)
 
(65,950
)
 
556,400

CASH AND CASH EQUIVALENTS—Beginning of period
803,089

 
508,850

 
645,092

 
526,837

 
460,887

CASH AND CASH EQUIVALENTS—End of period
$
508,850

 
$
645,092

 
$
526,837

 
$
460,887

 
$
1,017,287

______________
 
 
 
 
 
 
 
 
 
(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.





LINKEDIN CORPORATION
TRENDED SUPPLEMENTAL REVENUE INFORMATION
(In thousands)
(Unaudited) 
 
Three Months Ended
 
March 31,
2014
 
June 30,
2014
 
September 30,
2014
 
December 31,
2014
 
March 31,
2015
 
 
 
 
 
 
 
 
 
 
Revenue by product:
 
 
 
 
 
 
 
 
 
     Talent Solutions
$
291,594

 
$
322,227

 
$
344,568

 
$
369,348

 
$
396,375

     Marketing Solutions
86,064

 
106,476

 
109,231

 
152,729

 
119,192

     Premium Subscriptions
95,535

 
105,174

 
114,466

 
121,355

 
122,120

Total
$
473,193

 
$
533,877

 
$
568,265

 
$
643,432

 
$
637,687

 
 
 
 
 
 
 
 
 
 
Revenue by geographic region:
 
 
 
 
 
 
 
 
 
     United States
$
284,878

 
$
317,774

 
$
343,132

 
$
388,194

 
$
389,258

     International
 
 
 
 
 
 
 
 
 
          Other Americas (1)
31,904

 
35,527

 
36,538

 
39,238

 
38,066

          EMEA (2)
117,871

 
134,930

 
139,702

 
162,064

 
156,563

          APAC (3)
38,540

 
45,646

 
48,893

 
53,936

 
53,800

Total International revenue
188,315

 
216,103

 
225,133

 
255,238

 
248,429

 
 
 
 
 
 
 
 
 
 
                         Total revenue
$
473,193

 
$
533,877

 
$
568,265

 
$
643,432

 
$
637,687

 
 
 
 
 
 
 
 
 
 
Revenue by geography, by product:
 
 
 
 
 
 
 
 
 
United States
 
 
 
 
 
 
 
 
 
          Talent Solutions
$
180,403

 
$
197,852

 
$
208,635

 
$
222,670

 
$
240,752

          Marketing Solutions
49,038

 
59,383

 
68,767

 
94,991

 
77,412

          Premium Subscriptions
55,437

 
60,539

 
65,730

 
70,533

 
71,094

Total United States revenue
$
284,878

 
$
317,774

 
$
343,132

 
$
388,194

 
$
389,258

     International
 
 
 
 
 
 
 
 
 
          Talent Solutions
111,191

 
124,375

 
135,933

 
146,678

 
155,623

          Marketing Solutions
37,026

 
47,093

 
40,464

 
57,738

 
41,780

          Premium Subscriptions
40,098

 
44,635

 
48,736

 
50,822

 
51,026

Total International revenue
$
188,315

 
$
216,103

 
$
225,133

 
$
255,238

 
$
248,429

 
 
 
 
 
 
 
 
 
 
                         Total revenue
$
473,193

 
$
533,877

 
$
568,265

 
$
643,432

 
$
637,687

 
 
 
 
 
 
 
 
 
 
Revenue by channel:
 
 
 
 
 
 
 
 
 
     Field sales
$
275,262

 
$
318,984

 
$
341,691

 
$
413,867

 
$
393,251

     Online sales
197,931

 
214,893

 
226,574

 
229,565

 
244,436

          Total
$
473,193

 
$
533,877

 
$
568,265

 
$
643,432

 
$
637,687

______________
 
 
 
 
 
 
 
 
 
(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
 
March 31,
2014
 
June 30,
2014
 
September 30,
2014
 
December 31,
2014
 
March 31,
2015
 
 
 
 
 
 
 
 
 
 
Non-GAAP net income and net income per share:
 
 
 
 
 
 
 
 
 
GAAP net income (loss) attributable to common stockholders
$
(13,445
)
 
$
(1,034
)
 
$
(4,263
)
 
$
2,995

 
$
(42,548
)
Add back: stock-based compensation
67,769

 
74,828

 
82,910

 
93,626

 
103,109

Add back: non-cash interest expense related to convertible senior notes

 

 

 
5,916

 
11,189

Add back: amortization of intangible assets
4,813

 
7,224

 
9,986

 
12,612

 
11,778

Add back: accretion of redeemable noncontrolling interest
126

 
100

 
101

 
100

 
109

Income tax effects and adjustments (1)
(11,914
)
 
(17,827
)
 
(22,661
)
 
(37,884
)
 
(11,096
)
NON-GAAP NET INCOME
$
47,349

 
$
63,291

 
$
66,073

 
$
77,365

 
$
72,541

 
 
 
 
 
 
 
 
 
 
  GAAP diluted shares
120,967

 
122,170

 
123,427

 
127,338

 
125,471

Add back: dilutive shares under the treasury stock method
3,884

 
3,087

 
3,046

 

 
2,827

   NON-GAAP DILUTED SHARES
124,851

 
125,257

 
126,473

 
127,338

 
128,298

 
 
 
 
 
 
 
 
 
 
NON-GAAP DILUTED NET INCOME PER SHARE
$
0.38

 
$
0.51

 
$
0.52

 
$
0.61

 
$
0.57

 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA:
 
 
 
 
 
 
 
 
 
   Net income (loss)
$
(13,319
)
 
$
(934
)
 
$
(4,162
)
 
$
3,095

 
$
(42,439
)
   Provision for income taxes
13,581

 
16,253

 
12,917

 
3,774

 
10,572

   Other (income) expense, net
(1,026
)
 
(1,197
)
 
(152
)
 
7,305

 
14,647

   Depreciation and amortization
49,740

 
56,306

 
59,782

 
71,118

 
73,972

   Stock-based compensation
67,769

 
74,828

 
82,910

 
93,626

 
103,109

ADJUSTED EBITDA
$
116,745

 
$
145,256

 
$
151,295

 
$
178,918

 
$
159,861

______________
 
 
 
 
 
 
 
 
 
(1) Excludes accretion of redeemable noncontrolling interest