LinkedIn Business Update November 2011

8/3/2019 LinkedIn Business Update November 2011

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No

Business Update

November 2011


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Safe harbor

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This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this

presentation, including statements regarding LinkedIn Corporations (LinkedIn or the Company) future results of operationsand financial position, including the scalability and growth of our business, our long term target model, financial targets,

business strategy, plans and objectives for future operations are forward-looking statements. The Company has based theseforward-looking statements largely on its estimates of its financial results and its current expectations and projections about

future events and financial trends that it believes may affect its financial condition, results of operations, business strategy, shortterm and long-term business operations and objectives, financial needs and market conditions as of the date of thispresentation. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including

those described under the heading Risk Factors in the Companys public filings with the Securities and ExchangeCommission (the SEC). Moreover, the Company operates in a very competitive and rapidly changing environment. New risks

emerge from time to time. It is not possible for Company management to predict all risks, nor can the Company assess the

impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results todiffer materially from those contained in any forward-looking statements the Company may make. In light of these risks,

uncertainties and assumptions, the forward-looking events and circumstances discussed in this presentation may not occur andactual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Although the Company believes that theexpectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee that the future results,

levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved oroccur.

Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Except as required by law, the Company undertakes no obligation to update publicly any forward-looking

statements for any reason after the date of this presentation, to conform these statements to actual results or to changes in theCompanys expectations.

The Company regularly makes filings with the SEC, which contain more complete information about the Company. You mayget these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov.


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The LinkedIn opportunity

Fundamentally transforming the way the world works

Connect talent with opportunity at massive scale

+

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Our mission

Connect the worlds professionals to makethem more productive and successful

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The value we bring to our members

IdentityConnect, find and be foundLinkedIn Profile, Address Book, Search

InsightsBe great at what you doHomepage, LinkedIn Today, Groups

Work wherever our members workEverywhereMobile, APIs, Plug-InsDesktop

Rolodex, Resume,Business Card

Newspapers,

Trade Magazines, Events

Opportunities that will transform the trajectory of your career

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Member growthand engagement

Relevant andvaluable products

& services

Critical massof dataTechnology

platform

The power of LinkedIns network effects


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The worlds largest professional networkGrowing faster than two members / second

1 Q3 11 end vs. Q3 10 end | 2 As of November 3, 2011 | 3 Q311 end vs. Q111 end

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135M+

1

+63% y/y growth

2

+523M

88M Avg Monthly Users in Q31164% y/y growth 1

Page Views in Q311

51% y/y growth7.6B 1

+12.5MSinceIPO

Since

IPO

+33M MembersSince IPO1

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3


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Worldwide Labor Force

3,300M+2

Huge global market opportunity in members

1 LinkedIn members as of November 3, 2011 | 2 International Planning & Research

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Worldwide Professionals

640M+2

LinkedIn Members135M+

1


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Huge global market opportunity in monetization

Worldwide talent acquisitionand staffing services

$85B

Worldwide Internetadvertising spend

9

$69BTotal

B2B

$25BAddressable

Today

$27B1

2

1

2

1 LinkedIn estimates | 2 IDC

Total


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Our member value propositionIdentity | Insights | Everywhere


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The professional profile of recordExpanding focus on new professionals

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Connect

Summary:career and

professional

highlights

Experience /Education

Professionaldetails

Recommendations

Skills / Education /Groups


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Increasing the frequency of profile updates: LinkedIn Skills

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AndroidAdd Skill


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The definitive professional search engine

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1st

1 As of September 30, 2011


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Replacing the rsum: Apply with LinkedIn


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Replacing the business card: CardMunch


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Replacing the rolodex: LinkedIn Connections


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Insights


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Context

Data

Connections

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Critical mass

Your personal trade magazine: LinkedIn Today180K+ publishers leveraging LinkedIn share buttons


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Your source for professional knowledge: LinkedIn GroupsNow over 1M+ professional groups on LinkedIn

Start theconversation

Share news &discussions

Participate

Influence

Engagewith Polls


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Connect

Opening doors with professional connections: Alumni

Location

Companies

Function


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Everywhere


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Working everywhere our members work: MobileAt 400% y/y growth, Mobile is LinkedIns fastest growing service

Internal data Q3 11 vs Q3 10 Y/Y

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3rd parties increasingly leveraging LinkedIns APIs2B+ API calls per month / 40K developers


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The business of connectingtalent with opportunity


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Three diverse, scalable and growing business linesFive consecutive quarters of 100%+ y/y top line growth

LTM y/y growth

HiringSolutions

MarketingSolutions

PremiumSubscriptions

171%

104%

59%

$212M

$134M

$90M

25

117%$436MTotal1 LTM as of September 30, 2011

1


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Transforming the world of recruiting80 of the Fortune 100 use LinkedIn Hiring Solutions

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(thousands)

Corporate Solutions Customers

2009 2010 2011

No more post-and-pray. Wefind better depth and breadthof candidates, plus we'resaving over $1 millionthis year.

Director of Talent Acquisition,U.S. Cellular


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Rob Le

Transforming recruiting (again): Talent PipelineEvolving LinkedIn Recruiter from product to platform

Talent Pipeline

Multiple lead sources Easily organized

David Chang

Vanessa Johnson


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LinkedIn Marketing SolutionsTargeting one of the most influential and affluent audiences on the web

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Self-Service Platform

Need a Financial Advisor?Professional planning and tax

preparation for 2012

www.mackenziedrake.com

From: Makenzie Drake

LinkedIn Company Pages

Display / Social Ads

Custom groups / Sponsorship


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536,866 followers

Providing marketers 1:1 relationships with their followers


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Newly launched LinkedIn Certified Developer Program

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Accelerating growth in premium subscriptions throughenhanced targeting by customer segment

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Subscription targeted tomember based on profiledata and activity

Diana LeedsBusiness Development Director

Greater Chicago Area | Consumer Goods

Recommendedsubscription forthe individual


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Sales Force

493 705 S&M Employee growth between Q111(IPO) and Q311

Generating significant returns in key investment areas

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Infrastructure Faster development cycles More robust API offering Improved site performance Increased scalability

Mobile AppsApply with LinkedIn Alumni

Product Development Talent PipelineHiring Manager Company Status Updates

Skills Events Group Polls

International Growth 5 new languages launched 4 new offices abroad 59% international members, +83% y/y growth 33% international revenue, +183% y/y growth

As of September 30, 2011, Q3 11 vs Q3 10 Y/Y

1

1


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The talent to make it happen

Mike GamsonSenior Vice President,Global Saleswww.linkedin.com/ in / mikegamson

Deep NisharSenior Vice President, Productsand User Experiencewww.linkedin.com/ in / deepnishar

Robby KwokHead of Corporate Developmentwww.linkedin.com / in / robbykwok

Erika RottenbergVice President, General Counseland Secretarywww.linkedin.com / in / erikarottenberg

Steve SordelloChief Financial Officerwww.linkedin.com / in / stevesordello

David HenkeSenior Vice President, Operationsand Engineeringwww.linkedin.com / in / drhenke

Steve CadiganVice President, People Operationswww.linkedin.com / in / cadigan

Nick Besbeas

Vice President, Marketinghttp://www.linkedin.com / in / nickbesbeas

Jeff WeinerChief Executive Officerwww.linkedin.com / in / jeffweiner08

Shannon StuboVice President, CorporateCommunicationswww.linkedin.com / in / shannonstubo

Kevin ScottVice President, Engineeringwww.linkedin.com / in / jkevinscott


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Rapid growth in key metricsWorldwide

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1 At period end2 Average monthly number over the three months ended

3 In the three months ended

4 comScore data unless otherwise notedSource: comScore

(Millions) 1 (Millions) 2(Billions) 3

Cumulative Registered Members63% y/y growth

Average Monthly Unique Visitors64% y/y growth

Total Page Views51% y/y growth 4

89% y/y growth (internal data)


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($ millions) Quarterly Revenue

Robust revenue growth

-----------2011-----------

First 9 Months: $354M

+120% y/y

----------------2008----------------

2008: $79M 2009: $120M

+52%

2010: $243M

+102%

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----------------2009---------------- ----------------2010----------------

Hiring Solutions Marketing Solutions Premium Subscriptions


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Payments Platform

Corporate Solutions

RecruiterJobs

Recruitment Media

Job Postings

SubscriptionsTalent Finder

Display Ads

LinkedIn Ads

Business Subscription

HiringSolutions

PremiumSubscriptions

MarketingSolutions

SaaS business built on a consumer web platformOnline / offline mix results in monthly recurring revenue and high

margin self-serve business

Field

Sales

OnlineSales

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Demonstrated outperformance vs. expectations

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Factset Consensus Actual

Q2 2011 Q3 2011 Q2 2011 Q3 2011

($ millions) ($ millions)Revenue Adjusted EBITDA


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Attractive financial model

Strong revenue growth Diversified and proven revenue models Visibility into future revenues Significant operating leverage Investing aggressively for growth Strong balance sheet


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2009 2010 First 9 Mo. 2011

Revenue $120.1 $243.1 $354.4

Cost of Revenue (GAAP) 25.9 44.8 57.3

Stock-based compensation included in cost of revenue 0.4 0.4 1.0

Cost of revenue (Non-GAAP) 25.5 44.4 56.3

Gross margin % (Non-GAAP) 79% 82% 84%

Sales and marketing (GAAP) 26.8 59.0 111.5

Stock-based compensation included in sales and marketing 0.7 1.2 5.8

Sales and marketing (Non-GAAP) 26.2 57.8 105.7

Sales and marketing as a % of revenue (Non-GAAP) 22% 24% 30%

Research and development (GAAP) 39.4 65.1 90.2

Stock-based compensation included in research and development 2.3 3.2 8.2

Research and development (Non-GAAP) 37.1 61.9 82.0

Research and development as a % of revenue (Non-GAAP) 31% 25% 23%

General and administrative (GAAP) 19.5 35.1 50.4

Stock-based compensation included in general and administrative 2.8 3.9 4.2

General and administrative (Non-GAAP) 16.7 31.1 46.2

General and administrative as a % of revenue (Non-GAAP) 14% 13% 13%

Reconciliation of GAAP to Non-GAAP expenses

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($ millions)


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$ millions) 2009 2010 Q2 2011 Q3 2011First 9 Mo.2011

Net income (loss) ($4.0) $15.4 $4.5 ($1.6) $5.0

Provision for income taxes 0.8 3.6 5.4 4.4 9.5

Other (income) expense, net (0.2) 0.6 (0.0) 1.8 1.3

Depreciation and amortization 11.9 19.6 9.6 11.6 29.3

Stock-based compensation 6.2 8.8 6.8 8.5 19.2

Adjusted EBITDA 14.7 48.0 26.3 24.7 64.3

Reconciliation of Adjusted EBITDA

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($ millions)

LinkedIn Business Update November 2011

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