LINKEDIN CORPORATION TRENDED CONDENSED …...LINKEDIN CORPORATION TRENDED CONDENSED CONSOLIDATED...

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LINKEDIN CORPORATION TRENDED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) As of September 30, 2014 December 31, 2014 March 31, 2015 June 30, 2015 September 30, 2015 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 526,837 $ 460,887 $ 1,017,287 $ 450,991 $ 631,725 Marketable securities 1,736,958 2,982,422 2,512,588 2,582,435 2,457,607 Accounts receivable 344,773 449,048 424,787 449,500 457,975 Deferred commissions 40,810 66,561 60,259 58,585 56,453 Prepaid expenses 55,571 52,978 62,800 75,669 72,752 Other current assets 79,795 110,204 141,798 118,718 136,225 Total current assets 2,784,744 4,122,100 4,219,519 3,735,898 3,812,737 Property and equipment, net 557,017 740,909 755,396 793,034 906,189 Goodwill 356,369 356,718 359,739 1,492,972 1,508,946 Intangible assets, net 140,802 131,275 122,826 456,233 418,050 Other assets 67,080 76,255 80,684 78,645 70,788 TOTAL ASSETS $ 3,906,012 $ 5,427,257 $ 5,538,164 $ 6,556,782 $ 6,716,710 LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 106,658 $ 100,297 $ 85,104 $ 109,715 $ 123,329 Accrued liabilities 188,983 260,189 206,826 256,958 296,794 Deferred revenue 463,576 522,299 585,812 629,671 621,411 Total current liabilities 759,217 882,785 877,742 996,344 1,041,534 CONVERTIBLE SENIOR NOTES, NET 1,081,553 1,092,715 1,104,010 1,115,439 DEFERRED TAX LIABILITIES 41,327 55,100 46,645 OTHER LONG-TERM LIABILITIES 105,043 132,100 143,704 180,101 185,187 Total liabilities 905,587 2,096,438 2,114,161 2,335,555 2,388,805 COMMITMENTS AND CONTINGENCIES REDEEMABLE NONCONTROLLING INTEREST 5,327 5,427 5,536 25,784 26,296 STOCKHOLDERS’ EQUITY: Class A and Class B common stock 12 13 13 13 13 Additional paid-in capital 2,957,524 3,285,705 3,420,045 4,268,731 4,405,911 Accumulated other comprehensive income (loss) 685 (198 ) 1,085 (2,877) 6,632 Accumulated earnings (deficit) 36,877 39,872 (2,676 ) (70,424 ) (110,947 ) Total stockholders’ equity 2,995,098 3,325,392 3,418,467 4,195,443 4,301,609 TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY $ 3,906,012 $ 5,427,257 $ 5,538,164 $ 6,556,782 $ 6,716,710

Transcript of LINKEDIN CORPORATION TRENDED CONDENSED …...LINKEDIN CORPORATION TRENDED CONDENSED CONSOLIDATED...

Page 1: LINKEDIN CORPORATION TRENDED CONDENSED …...LINKEDIN CORPORATION TRENDED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months

LINKEDIN CORPORATION TRENDED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands) (Unaudited)

As of

September 30,

2014 December 31,

2014 March 31,

2015 June 30,

2015 September 30,

2015

ASSETS CURRENT ASSETS: Cash and cash equivalents $ 526,837 $ 460,887 $ 1,017,287 $ 450,991 $ 631,725 Marketable securities 1,736,958 2,982,422 2,512,588 2,582,435 2,457,607 Accounts receivable 344,773 449,048 424,787 449,500 457,975 Deferred commissions 40,810 66,561 60,259 58,585 56,453 Prepaid expenses 55,571 52,978 62,800 75,669 72,752 Other current assets 79,795 110,204 141,798 118,718 136,225 Total current assets 2,784,744 4,122,100 4,219,519 3,735,898 3,812,737 Property and equipment, net 557,017 740,909 755,396 793,034 906,189 Goodwill 356,369 356,718 359,739 1,492,972 1,508,946 Intangible assets, net 140,802 131,275 122,826 456,233 418,050 Other assets 67,080 76,255 80,684 78,645 70,788 TOTAL ASSETS $ 3,906,012 $ 5,427,257 $ 5,538,164 $ 6,556,782 $ 6,716,710 LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 106,658 $ 100,297 $ 85,104 $ 109,715 $ 123,329 Accrued liabilities 188,983 260,189 206,826 256,958 296,794 Deferred revenue 463,576 522,299 585,812 629,671 621,411 Total current liabilities 759,217 882,785 877,742 996,344 1,041,534 CONVERTIBLE SENIOR NOTES, NET — 1,081,553 1,092,715 1,104,010 1,115,439 DEFERRED TAX LIABILITIES 41,327 — — 55,100 46,645 OTHER LONG-TERM LIABILITIES 105,043 132,100 143,704 180,101 185,187 Total liabilities 905,587 2,096,438 2,114,161 2,335,555 2,388,805 COMMITMENTS AND CONTINGENCIES REDEEMABLE NONCONTROLLING INTEREST 5,327 5,427 5,536 25,784 26,296 STOCKHOLDERS’ EQUITY: Class A and Class B common stock 12 13 13 13 13 Additional paid-in capital 2,957,524 3,285,705 3,420,045 4,268,731 4,405,911

Accumulated other comprehensive income (loss) 685 (198 ) 1,085 (2,877 ) 6,632 Accumulated earnings (deficit) 36,877 39,872 (2,676 ) (70,424 ) (110,947 )

Total stockholders’ equity 2,995,098 3,325,392 3,418,467 4,195,443 4,301,609 TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY $ 3,906,012

$ 5,427,257

$ 5,538,164

$ 6,556,782

$ 6,716,710

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LINKEDIN CORPORATION TRENDED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data) (Unaudited)

Three Months Ended

September 30, 2014 December 31,

2014 March 31, 2015 June 30,

2015 September 30, 2015

Net revenue $ 568,265 $ 643,432 $ 637,687 $ 711,735 $ 779,595 Costs and expenses: Cost of revenue (exclusive of depreciation and amortization shown separately below) 74,904

86,902

88,406

100,086

111,368

Sales and marketing 199,168 224,227 229,636 261,271 265,454 Product development 136,542 150,289 165,580 190,133 202,682 General and administrative 89,266 96,722 97,313 142,389 118,871 Depreciation and amortization 59,782 71,118 73,972 99,004 117,901

Total costs and expenses 559,662 629,258 654,907 792,883 816,276 Income (loss) from operations 8,603 14,174 (17,220 ) (81,148 ) (36,681 ) Other income (expense), net:

Interest income 1,413 1,223 1,985 2,017 2,798 Interest expense — (6,797 ) (12,597 ) (12,694 ) (12,773 )

Other, net (1,261 ) (1,731 ) (4,035 ) (1,723 ) (3,784 )

Other income (expense), net 152 (7,305 ) (14,647 ) (12,400 ) (13,759 ) Income (loss) before income taxes 8,755 6,869 (31,867 ) (93,548 ) (50,440 ) Provision (benefit) for income taxes 12,917 3,774 10,572 (26,048 ) (10,429 )

Net income (loss) (4,162 ) 3,095 (42,439 ) (67,500 ) (40,011 ) Accretion of redeemable noncontrolling interest (101 ) (100 ) (109 ) (248 ) (512 )

Net income (loss) attributable to common stockholders $ (4,263 ) $ 2,995

$ (42,548 ) $ (67,748 ) $ (40,523 )

Net income (loss) per share attributable to common stockholders: Basic $ (0.03 ) $ 0.02 $ (0.34 ) $ (0.53 ) $ (0.31 )

Diluted $ (0.03 ) $ 0.02 $ (0.34 ) $ (0.53 ) $ (0.31 ) Weighted-average shares used to compute net income (loss) per share attributable to common stockholders: Basic 123,427 124,590 125,471 128,241 130,716 Diluted 123,427 127,338 125,471 128,241 130,716

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LINKEDIN CORPORATION TRENDED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands) (Unaudited)

Three Months Ended

September 30, 2014 December 31,

2014 March 31, 2015 June 30,

2015 September 30, 2015

OPERATING ACTIVITIES: Net income (loss) $ (4,162 ) $ 3,095 $ (42,439 ) $ (67,500 ) $ (40,011 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization 59,782 71,118 73,972 99,004 117,901 Provision for doubtful accounts and sales returns 3,805 2,216 1,795 3,280 3,373 Amortization of investment premiums, net 3,457 4,309 5,514 5,001 5,362 Amortization of debt discount and transaction costs — 5,916 11,189 11,322 11,456 Stock-based compensation 82,910 93,626 103,109 145,491 126,874 Excess income tax benefit from stock-based compensation (13,114 ) (51,512 ) (18,198 ) 18,198 1,726 Changes in operating assets and liabilities:

Accounts receivable 15,657 (103,002 ) 29,489 (21,887 ) (9,168 )

Deferred commissions 4,836 (29,073 ) 7,067 1,535 3,094 Prepaid expenses and other assets (15,605 ) (4,383 ) (34,629 ) (1,957 ) (9,568 )

Accounts payable and other liabilities 54,017 89,656 (40,725 ) 55,959 51,954 Income taxes, net 8,248 (10,258 ) 5,629 (22,876 ) (15,659 )

Deferred revenue (18,605 ) 58,723 63,359 72 (7,739 )

Net cash provided by operating activities 181,226 130,431 165,132 225,642 239,595 INVESTING ACTIVITIES:

Purchases of property and equipment (120,721 ) (241,611 ) (90,121 ) (72,462 ) (166,653 )

Purchases of investments (501,074 ) (1,542,950 ) (454,281 ) (632,774 ) (809,448 )

Sales of investments 53,511 50,924 438,409 141,452 391,914 Maturities of investments 429,641 238,283 482,840 417,115 536,891 Payments for intangible assets and acquisitions, net of cash acquired (160,894 ) (2,783 ) (4,161 ) (650,681 ) (20,030 )

Changes in deposits and restricted cash (20,504 ) 5,499 (1,382 ) (1,877 ) 10,461 Net cash provided by (used in) investing activities (320,041 ) (1,492,638 ) 371,304 (799,227 ) (56,865 )

FINANCING ACTIVITIES: Net cash provided by financing activities (1) 24,864 1,299,746 26,739 3,364 1,255

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (4,304 ) (3,489 ) (6,775 ) 3,925

(3,251 )

CHANGE IN CASH AND CASH EQUIVALENTS (118,255 ) (65,950 ) 556,400 (566,296 ) 180,734 CASH AND CASH EQUIVALENTS—Beginning of period 645,092 526,837 460,887 1,017,287 450,991 CASH AND CASH EQUIVALENTS—End of period $ 526,837 $ 460,887 $ 1,017,287 $ 450,991 $ 631,725 ______________ (1) In the fourth quarter of 2014, we received net proceeds from our convertible senior notes offering, after deducting initial purchasers' discount and debt issuance costs, of approximately $1,305.4 million. Concurrently with the issuance of the notes, we used approximately $248.0 million of the net proceeds of the offering of the notes to pay the cost of convertible note hedge transactions, which was offset by $167.3 million in proceeds from warrants we sold.

Page 4: LINKEDIN CORPORATION TRENDED CONDENSED …...LINKEDIN CORPORATION TRENDED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months

LINKEDIN CORPORATION

TRENDED SUPPLEMENTAL REVENUE INFORMATION (In thousands) (Unaudited)

Three Months Ended

September 30, 2014 December 31,

2014 March 31, 2015 June 30,

2015 September 30, 2015

Revenue by product: Talent Solutions Hiring $ 344,568 $ 369,348 $ 396,375 $ 425,812 $ 460,838 Learning & Development — — — 17,558 41,273

Total Talent Solutions 344,568 369,348 396,375 443,370 502,111 Marketing Solutions 109,231 152,729 119,192 140,037 139,549 Premium Subscriptions 114,466 121,355 122,120 128,328 137,935

Total $ 568,265 $ 643,432 $ 637,687 $ 711,735 $ 779,595 Revenue by geographic region: United States $ 343,132 $ 388,194 $ 389,258 $ 444,531 $ 484,300 International Other Americas (1) 36,538 39,238 38,066 39,904 43,505 EMEA (2) 139,702 162,064 156,563 168,771 187,286 APAC (3) 48,893 53,936 53,800 58,529 64,504

Total International revenue 225,133 255,238 248,429 267,204 295,295 Total revenue $ 568,265 $ 643,432 $ 637,687 $ 711,735 $ 779,595

Revenue by geography, by product:

United States Talent Solutions $ 208,635 $ 222,670 $ 240,752 $ 277,772 $ 309,935 Marketing Solutions 68,767 94,991 77,412 91,761 93,362 Premium Subscriptions 65,730 70,533 71,094 74,998 81,003

Total United States revenue $ 343,132 $ 388,194 $ 389,258 $ 444,531 $ 484,300 International Talent Solutions 135,933 146,678 155,623 165,598 192,176 Marketing Solutions 40,464 57,738 41,780 48,276 46,187 Premium Subscriptions 48,736 50,822 51,026 53,330 56,932

Total International revenue $ 225,133 $ 255,238 $ 248,429 $ 267,204 $ 295,295 Total revenue $ 568,265 $ 643,432 $ 637,687 $ 711,735 $ 779,595

Revenue by channel: Field sales $ 341,691 $ 413,867 $ 393,251 $ 440,476 $ 479,547 Online sales 226,574 229,565 244,436 271,259 300,048 Total $ 568,265 $ 643,432 $ 637,687 $ 711,735 $ 779,595 ______________ (1) Canada, Latin America and South America

(2) Europe, the Middle East and Africa (“EMEA”)

(3) Asia-Pacific (“APAC”)

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LINKEDIN CORPORATION

TRENDED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share data)

(Unaudited)

Three Months Ended

September 30, 2014 December 31,

2014 March 31, 2015 June 30,

2015 September 30, 2015

Non-GAAP net income and net income per share: GAAP net income (loss) attributable to common stockholders $ (4,263 ) $ 2,995

$ (42,548 ) $ (67,748 ) $ (40,523 )

Add back: stock-based compensation 82,910 93,626 103,109 145,491 126,874 Add back: non-cash interest expense related to convertible senior notes —

5,916

11,189

11,322

11,456

Add back: amortization of intangible assets 9,986 12,612 11,778 29,474 46,466 Add back: accretion of redeemable noncontrolling interest 101

100

109

248

512

Income tax effects and adjustments (1) (22,661 ) (37,884 ) (11,096 ) (47,378 ) (41,331 )

NON-GAAP NET INCOME $ 66,073 $ 77,365 $ 72,541 $ 71,409 $ 103,454 GAAP diluted shares 123,427 127,338 125,471 128,241 130,716

Add back: dilutive shares under the treasury stock method 3,046

2,827

2,224

1,825

NON-GAAP DILUTED SHARES 126,473 127,338 128,298 130,465 132,541 NON-GAAP DILUTED NET INCOME PER SHARE $ 0.52 $ 0.61 $ 0.57 $ 0.55 $ 0.78

Adjusted EBITDA: Net income (loss) $ (4,162 ) $ 3,095 $ (42,439 ) $ (67,500 ) $ (40,011 ) Provision (benefit) for income taxes 12,917 3,774 10,572 (26,048 ) (10,429 ) Other (income) expense, net (152 ) 7,305 14,647 12,400 13,759 Depreciation and amortization 59,782 71,118 73,972 99,004 117,901 Stock-based compensation 82,910 93,626 103,109 145,491 126,874 ADJUSTED EBITDA $ 151,295 $ 178,918 $ 159,861 $ 163,347 $ 208,094 ______________ (1) Excludes accretion of redeemable noncontrolling interest