While discussing its 2016 guidance, LinkedIn (NYSE:LNKD)
says it expects its field sales hiring solutions business to see
mid-20% growth in 2016, after exiting 2015 at 30% growth. The outlook is
said to reflect "continued pressure in EMEA and APAC given current
global economic conditions," and single-digit growth for self-serve
products. It also doesn't assume "meaningful contribution" from
LinkedIn's Referrals and new Recruiter products.
Also: For its Marketing Solutions (ad) business, LinkedIn is shuttering its Lead Accelerator
product as a standalone offering, and incorporating its technology into
the Sponsored Updates ad product. The move is expected to have a
short-term revenue impact. Nonetheless, LinkedIn forecasts Marketing
Solutions will "accelerate in 2016."
Meanwhile,
spending will stay aggressive: Capex will equal a high-teens % of 2016
revenue, and aggressive investments will be made for LinkedIn's Sales
Solutions and Learning & Development (formerly Lynda.com) platforms.
Q4 sales/traffic details: Talent
Solutions revenue (62% of total) +45% Y/Y to $535M - hiring revenue
+32% to $487M, Learning & Development revenue totaled $49M. Over 3K
corporate solutions accounts were added, raising the total above 42K
(+29% Y/Y); LinkedIn won't disclose this metric going forward. The
add-on/renewal rate "decreased moderately" Y/Y.
Marketing Solutions +20% to $183M, with Sponsored Updates surpassing 50% of segment revenue and display ad sales dropping by a high-30s % amid ongoing "secular-driven headwinds." Premium Subscriptions +19% to $144M, with Sales Navigator providing a lift. LinkedIn notes general subscriptions are now growing only at a single-digit rate as subscribers migrate to products such as Job Seeker and Recruiter Lite.
Registered members rose by 18M Q/Q to 414M. Unique visiting members only rose 7% to 100M (57M mobile). Member page views +26% to 37B. The U.S. was 61% of revenue.
Marketing Solutions +20% to $183M, with Sponsored Updates surpassing 50% of segment revenue and display ad sales dropping by a high-30s % amid ongoing "secular-driven headwinds." Premium Subscriptions +19% to $144M, with Sales Navigator providing a lift. LinkedIn notes general subscriptions are now growing only at a single-digit rate as subscribers migrate to products such as Job Seeker and Recruiter Lite.
Registered members rose by 18M Q/Q to 414M. Unique visiting members only rose 7% to 100M (57M mobile). Member page views +26% to 37B. The U.S. was 61% of revenue.
Financials: 2015
free cash flow was $300M, up from just $21M in 2014. GAAP costs/expenses
rose 39% Y/Y in Q4 to $877.9M. On a non-GAAP basis, sales/marketing
spend was 31% of revenue, R&D 18%, G&A 11%, and cost of revenue
12%. LinkedIn ended 2015 with $3.1B in cash and $1.1B in convertible
debt.
In other news, LinkedIn has announced it's buying Connectifier,
a startup that has developed A.I.-based search technology for helping
recruiters find job candidates. LinkedIn, which bough job search
engine/listing platform Bright in 2014, says Connectifier will "further
strengthen our core products and accelerate our product roadmap,
leveraging powerful machine learning-based searching and matching
technology to help recruiters and hiring managers find the perfect
talent fit."
LinkedIn has tumbled to $139.46 after hours.
By: Eric Jhonsa.
Review:
Emerging Market Formulations & Research Unit, Flagship Records.
For
The #FacebookTeam