LinkedIn's gross profit for the
three
months ended in Sep. 2016 was €748 Mil. LinkedIn's gross profit for the trailing twelve months (TTM) ended in Sep. 2016 was €2,821 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. LinkedIn's gross profit for the
three
months ended in Sep. 2016 was €748 Mil. LinkedIn's Revenue for the
three
months ended in Sep. 2016 was €855 Mil. Therefore, LinkedIn's Gross Margin % for the quarter that ended in Sep. 2016 was 87.52%.
LinkedIn had a gross margin of 87.52% for the quarter that ended in Sep. 2016 => Durable competitive advantage
LinkedIn Gross Profit Historical Data
The historical data trend for LinkedIn's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Internet Content & Information subindustry, LinkedIn's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
LinkedIn's Gross Profit Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, LinkedIn's Gross Profit distribution charts can be found below:
* The bar in red indicates where LinkedIn's Gross Profit falls into.
LinkedIn Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
LinkedIn's Gross Profit for the fiscal year that ended in Dec. 2015 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Sep. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was €2,821 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
LinkedIn (FRA:LKI) Gross Profit Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
LinkedIn had a gross margin of 87.52% for the quarter that ended in Sep. 2016 => Durable competitive advantage
LinkedIn Gross Profit Related Terms
Thank you for viewing the detailed overview of LinkedIn's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
LinkedIn Corp was incorporated in Delaware on March 6, 2003, under the name LinkedIn, Ltd. and changed its name to LinkedIn Corporation in January 2005. The Company operates an online professional network on the Internet through which the Company's members are able to create, manage and share their professional identities online, build and engage with their professional networks, access shared knowledge and insights, and find business opportunities, enabling them to be more productive and successful. The Company currently has approximately over 400 million members in over 200 countries and territories. The Company offers free solutions including Stay Connected & Informed, Advance My Career and Ubiquitous Access; and Monetized Solutions including Talent Solutions, Marketing Solutions, and Premium Subscriptions. Its comprehensive platform provides members with solutions, including applications and tools, to search, connect and communicate with business contacts, learn about attractive career opportunities, join industry groups, research organizations and share information. The Company provides the following key benefits to their members: ability to manage their professional identity, enhanced ability to build and engage with their professional network, access to knowledge, insights and opportunities, aid in matching talent with opportunity, an efficient marketing channel, targeted advertising, and an increase in employee productivity. In addition, its core value of putting members first may conflict with the short-term interests of its business, the number of its registered members is higher than the number of actual members, and a substantial majority of its page views are generated by a minority of its members. Finally, it expects to face increasing competition in the market for online professional networks. The Company is subject to a number of foreign and domestic laws and regulations that affect companies conducting business online, many of which are still evolving and could be interpreted in ways that could harm its business.
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