LinkedIn (LNKD) PT Trimmed at RBC Capital Post Q1

RBC Capital analyst Mark Mahaney reiterated an Outperform rating on LinkedIn (NYSE: LNKD) but cut his price target to $230.00 (from $250.00) following Q1 results, noting deceleration but at a very modest pace.

Highlighting key points, Mahaney noted:

Beat Q1 EPS Results – Revenue of $473MM again beat RBC/The Street at $460MM/$467MM. The modest upside sources were Talent Solutions and Premium Subscriptions. And EBITDA of $117MM also again beat RBC/The Street at $108MM/$112MM. LNKD modestly increased its Revenue and EBITDA Guides for the year.

Solid Fundies – Total Revenue growth decelerated very modestly from 47% Y/Y in Q4 to 46% in Q1, while EBITDA margin of 24.7% was down 100 bps Y/Y. Guidance (likely somewhat conservative) implies 35% Revenue and EBITDA growth for 2014. The

Keys – Positives: 1) All Three Segments Showed Almost Negligible Deceleration – 50% Y/Y for Talent Solutions (down from 53% in Q4), 36% for Marketing Solutions (same as Q4), and 46% for Premium Subscriptions (down from 48%); and 2) Robust User & Engagement Growth – Registered Members (36% Y/Y), Visiting Members (26% Y/Y), and Page Views (43% Y/Y).

Negatives: 1) Corporate Customer Net Adds Down Y/Y – 1,400 added in Q1 vs. 1,700 in Q1:13 – first Y/Y decline LNKD has reported, tho its large base of almost 26,000 customers makes Big Adds decreasingly likely.

The firm's 2014 Revenue is increased by 1% to $2.08B, and EBITDA is increased by 4% to $509MM.

For an analyst ratings summary and ratings history on LinkedIn click here. For more ratings news on LinkedIn click here.

Shares of LinkedIn closed at $161.22 yesterday.

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