Congratulating LinkedIn on fantastic quarterly financial results is like a broken record

This is becoming a rather re-occurring theme where we give a brief commentary immediately after LinkedIn reports their quarterly financial numbers (which consistently impress!).  So, in true broken-record fashion, let’s say it again:  “Congratulations to LinkedIn on another fabulous quarter.”

Before we get into some of the numbers I would just like to make one general comment about this Company and their CEO, Jeff Weiner, specifically.  While LinkedIn has been experiencing terrific growth over the past few years and the stock market ‘experts’ continue to apply pressure to Jeff to provide more aggressive guidance into future revenues, he continues to temper what are probably unrealistic expectations and keeps everything in perspective.  It’s a typical under-promise and over-deliver.  While some may feel that this is ‘sand-bagging’, I disagree.  We have seen it time-after-time before where Companies tend to let Wall Street dictate potential future revenue expectations with each of their individual opinions of “Price Targets” based on a good or bad earnings report.  Jeff is having none of it and continues to guide this Company with a solid growth strategy.

Reading this full article and the comments from the analysts shows some of the frustration among the Wall Street pundits at Jeff’s ‘low-balling’:  LinkedIn Surges: What Wall Street’s Saying (http://www.thestreet.com/story/11997644/1/linkedin-surges-what-wall-streets-saying.html?puc=yahoo&cm_ven=YAHOO)

So, let’s dig into some of the numbers:

  • $363.7 million in revenue, a 59% increase on the same period a year ago.
    • Thomson Reuters were expecting … revenue of $353.8 million.
  • LinkedIn expects revenue between $367 million and $373 million,
    • …below the $383.3 million expected by a Bloomberg survey.
  • For the full year, the professional networking site raised its revenue guidance to a range between $1.46 billion and $1.48 billion, up from a prior range of $1.43 billion to $1.46 billion.
  • CEO Jeff Weiner pointed out that LinkedIn has 238 million users worldwide

Finally, just to put some icing on this cake where Wall Street has to provide one more little digg, here you go.  A direct quote from the article:

Though the company raised full-year revenue guidance, the next quarter’s guidance, as has become customary, was lower than expected.”

Leave a Reply