Linkedin seems to have benefited as other social media stocks from high advertising rates, and possibly benefited from a strong quarterly job market and economy, to post reasonable sales relative to expectations, but quarter highlights include:
- Yet another loss in "real" income terms.
- sharp drop in mobile unique visitor growth over the last 4 quarters from 129% to 46%
- Member page views that they report are down 2% over last quarter, and up only 22% over last year.
- 13% year over year growth in their reported unique visitors.
- Numbers from quantcast show even poorer results. They show 20% decline in year over year unique visitors, and over 1B fewer page views in the quarter, with over 15% decline in page views. Quantcast also counts people as visitors in an attempt to not double count desktop and mobile. There was 15% drop in unique people using the site over last year.
- No noticeable stickiness reported by Quantcast, in terms of visitors and page views for the China launch.
- Market Saturation and continued decreased growth rates were also shown in: Corporate Solutions Customers, Premium Subscriptions and Talent solutions especially in US, members, and surprisingly online sales (indicating that LNKD is working harder cold calling customers rather than raking in self serve customers).
- LNKD continues to spend about double on new equipment than it depreciates per quarter, and so long term profitability is further inhibited.
- 39% sales growth expected in Q3, and 33% sales growth in Q4. Sharp deceleration.
- Another loss is expected in Q3. It is unclear whether they expect a loss in Q4.
- For full year, depreciation will increase by 71% (10% of sales), and stock compensation by 57% (15%+ of sales), far outpacing sales growth and continuing to prevent profitability. Purchases of new equipment is likely to be double the depreciation charge (increasing depreciation in next years substantially).
- 126M diluted shares is going to be over 10% higher than Q3 last year, and 5% higher than Q4.