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LinkedIn’s Operating Margin in 3Q15 Beats Facebook, Twitter

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Gross margin at 3Q15

LinkedIn’s (LNKD) gross margin has been more or less flat year-over-year from 86.4% in 3Q13 to 86.8% in 3Q14 and 85.71% in 3Q15. Twitter’s (TWTR) gross margin has been flat as well, from 63.1% in 3Q13 to 65.6% in 3Q14 and 64.8% in 3Q15. Facebook’s gross margin (FB) rose significantly year-over-year from 74.9% in 3Q13 to 82.4% in 3Q14 and 84% in 3Q15.

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3Q15 operating margin

LinkedIn’s (LNKD) operating margin rose year-over-year from 1.2% in 3Q13 to 1.5% in 3Q14 and then decreased to -4.7% in 3Q15. Twitter’s (TWTR) operating margin has been improving year-over-year from -37.6% in 3Q13 to -44.7% in 3Q14 and -18.5% in 3Q15. Facebook’s (FB) operating margin rose year-over-year from 36.5% in 3Q13 to 43.6% in 3Q14 and then decreased to 32.4% in 3Q15.

3Q15 net margin

LinkedIn’s (LNKD) net margin rose year-over-year from -0.86% in 3Q13 to -0.75% in 3Q14 and then decreased to -5.2% in 3Q15. Twitter’s (TWTR) net margin has been improving year-over-year from -38.3% in 3Q13 to -48.6% in 3Q14 and -23.13% in 3Q15. Facebook’s (FB) net margin rose year-over-year from 21.1% in 3Q13 to 25.2% in 3Q14 and then decreased to 19.9% in 3Q15.

Facebook is part of the iShares S&P GSTI (TM) Technology ETF (IGM) and the First Trust ISE Cloud Computing Index ETF (SKYY). Facebook accounts for 5.3% and 4.9% of these ETFs, respectively.

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