Linkedin results seem poor and on its continued path to collapse.
- 3rd straight quarterly loss
- lowest ever revenue, member, mobile MAU, corporate solution customers, US, Europe, and APAC growth. 45% revenue growth.
- While there was small growth in engagement (a sharp contrast to no growth in last 2 quarters), its total quarter over quarter revenue growth was under 6%. Other social media stocks reported jumps in revenues per user/views. Marketing solutions was under 3% growth over last quarter. If LNKD executed as well on pricing as its social media competitors, these numbers should have been better. Sponsored updates is a hyped product, and these results suggest it may be overhyped.
- Operating expenses in the quarter grew faster than Revenue over last quarter. Sales and Marketing having the highest growth, eating $15M of the $34M revenue growth. Though all expense categories increased more than the 6% sales growth.
- Continued shift towards more field sales (expensive) than online sales. Staying at record high levels.
- They claim 50% growth in Chinese users, but page views appear to be in the 10% growth range
- They are forecasting a $10M loss next quarter.
- They expect a record low 35% quarterly and 42.5% yearly revenue growth.
- Depreciation and stock compensation estimates are even higher than they were forecast to be last quarter at $71M and $96M respectively.
- Have increased the number of expected shares outstanding by 1M to 127M total.
- Guidance includes more projects for costly field sales team.
comparison to twitter
Twitter spends almost $1.50 for every $1 of revenue. Linkedin isn't quite as bad, but they do spend $1 for every $1 of revenue. While they set revenue and ebitda (fake profit) guidance 4 or 5% below what they typically achieve, their results (over guidance) are consistently accompanied by offsetting expense increases that keep the $1 cost for every $1 in revenue.