LinkedIn Financial Report: LinkedIn's revenue in Q2 2012 was $228.2 million, up 89% year-on-year

On the morning of August 3, 2012, LinkedIn, an American professional social networking site, released its second quarter financial report for fiscal year 2012. The report showed that LinkedIn's second quarter revenue was $228.2 million, up 89% from $121 million in the same period last year; net profit was $2.8 million, down 38% from $4.5 million in the same period last year. LinkedIn's second quarter performance exceeded Wall Street analysts' previous expectations, pushing its stock price up more than 5% after the market closed.

In the quarter ended June 30, LinkedIn's net profit was $2.8 million, with earnings per share of 3 cents, which was lower than the same period last year. In the second quarter of fiscal year 2011, LinkedIn's net profit was $4.5 million, with earnings per share of 4 cents. Excluding equity incentive expenses and other one-time items (not in accordance with US generally accepted accounting principles), LinkedIn's second quarter net profit was $18.1 million, up from $10.8 million in the same period last year; earnings per share were 16 cents, up from 10 cents in the same period last year, in line with Wall Street analysts' previous expectations.

LinkedIn's second-quarter revenue was $228.2 million, up 89% from $121 million in the same period last year, higher than the company's forecast of $210 million to $215 million in May and exceeding analysts' expectations. According to a survey by financial information provider FactSet Research, LinkedIn's second-quarter revenue was $215.8 million, with earnings per share of 16 cents.

LinkedIn's second-quarter adjusted EBITDA (net profit before interest, taxes, depreciation and amortization) was $50.4 million, accounting for 22% of revenue; adjusted EBITDA in the same period last year was $26.3 million, accounting for 22% of revenue.

By region, LinkedIn's revenue from the United States in the second quarter was US$147.3 million, accounting for 65% of total revenue; revenue from international markets was US$81 million, accounting for 35% of total revenue.

By sales channel, LinkedIn's revenue from field sales channels in the second quarter was US$129.4 million, accounting for 57% of total revenue; revenue from online direct sales channels was US$98.8 million, accounting for 43% of total revenue.

By division, LinkedIn's second-quarter revenue from the hiring solutions division was $121.6 million, up 107% from the same period last year, accounting for 53% of total revenue, up from 48% in the same period last year. LinkedIn's second-quarter revenue from the marketing solutions division was $63.1 million, up 64% from the same period last year, accounting for 53% of total revenue.

LinkedIn's second quarter revenue from paid subscriptions was $43.5 million, up 82% from the same period last year, accounting for 19% of total revenue, down from 20% in the same period last year.

LinkedIn expects revenue of $235 million to $240 million, adjusted EBITDA of $42 million to $45 million, equity incentive expenses of $27 million to $28 million, and depreciation and amortization expenses of $20 million to $25 million for the third quarter of fiscal 2012.

LinkedIn also expects revenue of $915 million to $925 million in fiscal 2012, higher than the previous forecast of $880 million to $900 million; adjusted EBITDA of $185 million to $195 million, higher than the previous forecast of $170 million to $175 million; equity incentive expenses of $85 million to $95 million, and depreciation and amortization expenses of $75 million to $80 million.

On the same day, LinkedIn's stock price fell by $2.13 in regular trading on the New York Stock Exchange, closing at $93.51, a drop of 2.23%. In the subsequent after-hours trading that ended at 17:46 Eastern Time (5:46 Beijing Time on the 3rd), LinkedIn's stock price rose by $5.96 to $99.47, an increase of 6.37%. In the past 52 weeks, LinkedIn's highest price was $120.63 and its lowest price was $55.98.