LinkedIn Presented At The JP Morgan Conference; Here's What Happened

In a report published Tuesday, JP Morgan analyst Doug Anmuth discussed

's presentation at the J.P. Morgan Global Technology, Media and Telecom Conference. "Management sounded positive on the outlook for its three main businesses, including progress in overcoming the talent solutions sales force reorganization, optimism around the Lynda acquisition, and Sales Navigator momentum," Anmuth wrote. "We do believe there is concern, however, about some Lynda-related shares coming out, which could happen over the next few weeks."

According to Anmuth, LinkedIn's management provided commentary around its original realignment objective which was a proactive effort to move away from a "one-size-fits-all" model toward a model that better serves the different needs of LinkedIn's large and diverse customer base. Management sounded "optimistic" on its realignment plans and its conviction in the decision "remains strong" even though the company acknowledged a lack of communication with the Street prior to the change.

Anmuth continued, noting that management also sounded "optimistic" on Lynda.com's potential over time. The company highlighted the leverage from distributing Lynda's "quality" content across LinkedIn's "significant" individual and enterprise reach. On the individual side, LinkedIn can use its breadth and depth of user data to help its user base at critical career moments (such as job seeking, promotion) by communicating specific missing skills and certifications. On the enterprise side, LinkedIn can focus on cross-selling into its 35,000 talent solutions customers given the fact that many companies make learning & development buys through their respective human resource departments. Of note, around 48 percent of the $1.5 billion price tag to acquire Lynda was done in cash, and it closed last week.

LinkedIn's management explained its Sales Navigator is a "win-win-win" solution for users, sales professionals and their companies given its ability to reduce or eliminate the "highly inefficient, expensive and painful reality" of cold calling. The company also discussed the true value of the product that provides clients with guidance on 1) who to call, 2) how to get a warm introduction, and 3) how to communicate and connect with the right person.