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LinkedIn reported $534m in revenue, $145m in Ebitda and $0.51 in non-GAAP EPS, all above consensus estimates. The company addressed two key investor concerns into the quarter. First, Talent Solutions beat expectations and
revenue growth stabilized, on strong net customer adds and accelerated Arpu growth. Second, Marketing Solutions revenue growth also accelerated ahead of our anticipation as pricing improved meaningfully due to Sponsored Updates. As a result, management raised guidance ahead of consensus in 3Q and 2014. We think that fundamentals will get even stronger in 2H14 as the ad business kicks into high gear, especially in 4Q. Lastly, China provides a very attractive optionality for LNKD, in our view. We are raising our estimates and target price to $275 (from $265).