Last Thursday LinkedIn Corporation (NYSE: LNKD) announced its third quarter financials for 2016. For the quarter ended September 30, 2016, total revenue was $960 million, representing a 23 percent increase year-over-year. Premium subscription revenue was $162 million, a 17 percent increase year-over-year. Other highlights include:
- Cumulative members grew 18 percent, year-over-year, to 467 million.
- Unique visiting members grew 6 percent to an average of 106 million members a month.
- Member page views grew 27 percent during the quarter and 20 percent year-over-year.
- Mobile usage grows at double the rate of overall member activity, representing more than 60 percent of traffic.
- Talent Solutions revenue was $623 million, a 24 percent increase year-over-year.
- Marketing Solutions revenue was $175 million, a 26 percent increase year-over-year.
“In Q3, continued product investments across our platform drove another quarter of strong engagement and financial performance,” said Jeff Weiner, CEO of LinkedIn, in a press release. “As we look forward, our combination with Microsoft creates the opportunity for us to dramatically increase the impact and scale with which we deliver value to our members and customers.”
According to TechCrunch, third quarter financials exceeded analyst projections.
This summer Microsoft and LinkedIn announced a merger where Microsoft would acquire the world's largest professional network for $196.00 per share in an all-cash transaction, which equates to approximately $26.2 billion. Both company boards unanimously approved the deal. The merger is expected to be completed by year end, though Salesforce has voiced antitrust concerns with the European Union over the proposed merger. According to the Wall Street Journal, the deal has already been approved in the United States, Canada and Brazil.
Because of the pending merger, LinkedIn's financial report was basic, not including forward-looking statements of guidance. TechCrunch says LinkedIn also skipped the standard earnings call that often goes hand-in-hand with the release of quarterly and year-end financials.
On October 27, when LinkedIn reported its Q3 financials, its common stock price per share closed at $188.63. As of 4:04 PM on November 1, the stock price remained steady at $188.98. That's a huge drop from the stock price per share this time last year. On November 2, 2015, LinkedIn common stock was worth $240.50 per share.
Though LinkedIn has had some positive momentum this year with its most recent earnings report, its new mobile app and the launch of its subscription-only online skills training platform, its stock price indicates that investors are losing faith. Fortunately, with the acquisition by Microsoft and Microsoft's commitment to help LinkedIn fulfill its mission and vision, LinkedIn can forge ahead without the black cloud hanging over its head. The two companies will partner, bringing out the best in each other.