LinkedIn: Color on qtr (180.64)
- Wunderlich Secuirities notes LinkedIn Corporation (LNKD) reported Q2 revenues, EBITDA, and EPS that were 3%, 14%, and 23% ahead of consensus, respectively. Guidance for next quarter was also ahead of the consensus and FY14 revenues and EBITDA guidance was raised by 8% and 4%, respectively. The company added 2,236 LinkedIn Corporate Solutions (LCS) customers, up from 1,400 last quarter and grew Talent revenues 57% Y/Y, ahead of estimates. Firm is raising estimates slightly with the expectation for continued beats and raises. Maintaining Buy rating and tgt of $250,
- RBC Capital notes the Positives include: 1) Top Line Strength; 2) Solid Corporate Solutions Customer Adds; 3) increased penetration with existing clients, per management; 4) ARPU growth of 6% Y/Y was higher then expected; 5) EBITDA Margin Expansion... Negatives included 1) Soft Overall User & Engagement Growth.
- FBR Capital notes LinkedIn (LNKD) growth improved after 10 quarters of deceleration. Guidance was also raised above consensus' estimates. Growth was led by Talent Solutions, while Marketing Solutions was the source of growth resurgence. The 3Q guidance implies deceleration to 39% growth at the high end. Among the wrinkles in the quarter was a 4.6% decline in FCF/share and lower engagement on tough comps. Raise tgt to $156 (from $141).
- Topeka Capital notes LinkedIn delivered a nice upside quarter with revenues, Adj. EBITDA, and Adj. EPS handily above firm's estimates and consensus, and with guidance that was cleanly raised above consensus. Topeka continues to see an opportunity for more beat and raise quarters with guidance that could top Street expectations as LNKD executes. Longer-term sees LinkedIn benefiting financially from investments in R&D, Sales Solutions, Sponsored content, and China.
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Needham Research notes LinkedIn's Q2 revenue and 2014 guidance exceeded expectations. The outperformance was driven primarily by ARPU acceleration and solid net new customer adds in Talent Solutions. Firm expects ARPU increases to be the main Talent Solutions revenue driver in 2H14. Marketing Solutions revenue growth remained solid, but is growing at a more modest pace than optimistic view. LinkedIn continues to be Needham's top large cap pick given its limited competition and innovative products that raise member and enterprise engagement, as well as drive incremental revenues.