Coatue Management increases stake in LinkedIn


Market Realist

Overview of Coatue Management’s third-quarter 13F filing (Part 7 of 13)

(Continued from Part 6)

Coatue Management and LinkedIn

In 3Q14, Coatue Management added to its position in LinkedIn Corp. (LNKD). The stock accounted for 7.36% of the fund’s portfolio for the quarter, which ended in September.

LinkedIn in brief

LinkedIn Corp. operates a professional networking website. The company’s website allows members to post profiles detailing their work-related expertise and accomplishments.

Product growth drives strong 3Q14 revenue

LinkedIn’s revenue for the third quarter was $568 million, an increase of 45% compared to $393 million in the third quarter of 2013. Growth across all product lines drove this increase. Non-GAAP (generally accepted accounting principles) net income for 3Q14 was $66 million, compared to $47 million for the third quarter of 2013.

Talent Solutions products saw a revenue increase of 45% as compared to 3Q13. This represented 61% of total revenue in 3Q14, compared to 60% of total revenue in 3Q13.

Revenue from Marketing Solutions products increased by 45% as compared to 3Q13. This growth represented 19% of total revenue in the third quarter of 2014. Premium Subscriptions revenue increased by 43% and represented 20% of total revenue in the third quarter of 2014.

US revenue represented 60% of total revenue in the third quarter of 2014.

Revenue from the field sales channel represented 60% of total revenue in the third quarter of 2014. The
remaining 40% came from the direct sales channel online.

Product launch and acquisitions during 3Q14

LinkedIn increased the scale and relevance of job listings by expanding “Limited Listings” offerings to a broad base of US and global companies.

The company officially launched its Sales Navigator, which empowers sales professionals to establish and grow relationships with prospects and customers.

Also, LinkedIn announced the acquisition of Bizo. The transaction will accelerate LinkedIn’s ability to develop an end-to-end B2B marketing platform. Bizo’s team and technology will help LinkedIn to leverage current content marketing products and offer a wider range of solutions to meet customers’ marketing objectives.

Coatue’s other third-quarter positions

Coatue Management’s 13F filing for 3Q14 revealed new positions in Level 3 Communications Inc. (LVLT) and Zillow Inc. (Z). The fund sold its positions in Inc. (CRM), 21Vianet Group Inc. (VNET), and Lululemon Athletica (LULU). Coatue also added to its positions in Baidu Inc. (BIDU), eBay Inc. (EBAY), and Facebook Inc. (FB). The fund reduced its stakes in Charter Communications (CHTR), Liberty Global plc (LBTYA), and CBS Corp. (CBS).

The next article in this series will highlight the fund’s added position in Baidu.

Continue to Part 8