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LinkedIn’s Revenues Rise 34% Year-over-Year in 4Q15

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Revenues for 4Q15

On February 4, 2016, LinkedIn (LNKD) announced its 4Q15 results and reported revenues of $862 million, a rise of 34% YoY (year-over-year). Revenues for 2015 also rose 35% YoY to $3.0 billion.

LNKD’s adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) was $249 million, or 29% of revenue in 4Q15. For 2015, its EBITDA stood at $780 million, or 26% of revenue.

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Net income and earnings per share

LinkedIn’s GAAP (generally accepted accounting principles) net loss was $8 million in 4Q15 and $166 million in 2015. Its GAAP-diluted earnings per share (or EPS) were -$0.06 in 4Q15 compared to $0.02 in 4Q14. GAAP-diluted EPS were -$1.29 in 2015 compared to -$0.13 in 2014.

The company’s non-GAAP net income was $126 million in 4Q15 and $373 million in 2015, whereas its non-GAAP diluted EPS were $0.94 in 4Q15 and $2.84 in 2015. In comparison, EPS stood at $0.61 in 4Q14 and $2.02 in 2014. Analysts estimated EPS of $0.78 for 4Q15.

Shares tumble on bleak guidance

Shares of LinkedIn fell 30% in after-hours trading following its results. It forecast a weaker-than-expected 2016. CEO Jeff Weiner stated, “Our strategy in 2016 will increasingly focus on a narrower set of high value, high impact initiatives with the goal of strengthening and driving leverage across our entire portfolio of businesses. Our roadmap will be supported by greater emphasis on simplicity, prioritization, and ultimate ROI and investment impact.”

Peer companies in the Internet software and services sector Twitter (TWTR) and China’s (FXI) Baidu (BIDU) will both be announcing their quarterly results on February 10, 2016. Monster Worldwide (MWW) will be announcing its 4Q15 results on February 11, 2016.

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