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Q4’13 Results
February 2014

2
Safe harbor
“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation contains
forward-looking statements about our products, including our investments in products, technology and other key
strategic areas, certain non-financial metrics, such as member growth and engagement, and our expected financial
metrics such as revenue, adjusted EBITDA, depreciation and amortization and stock-based compensation for the first
quarter of 2014 and the full fiscal year 2014. The achievement of the matters covered by such forward-looking
statements involves risks, uncertainties and assumptions.  If any of these risks or uncertainties materialize or if any of
the assumptions prove incorrect, the company’s results could differ materially from the results expressed or implied
by the forward-looking statements the company makes.
The risks and uncertainties referred to above include - but are not limited to - risks associated with: our limited
operating history in a new and unproven market; engagement of our members; the price volatility of our Class A
common stock; general economic conditions; expectations regarding the return on our strategic investments;
execution of our plans and strategies, including with respect to mobile products and features; security measures and
the risk that they may not be sufficient to secure our member data adequately or that we are subject to attacks that
degrade or deny the ability of members to access our solutions; expectations regarding our ability to timely and
effectively scale and adapt existing technology and network infrastructure to ensure that our solutions are accessible
at all times with short or no perceptible load times; our ability to maintain our rate of revenue growth and manage our
expenses and investment plans; our ability to accurately track our key metrics internally; members and customers
curtailing or ceasing to use our solutions; our core value of putting members first, which may conflict with the shortterm interests of the business; privacy and changes in regulations in the United States, Europe or elsewhere, which
could impact our ability to serve our members or curtail our monetization efforts; litigation and regulatory issues;
increasing competition; our ability to manage our growth; our ability to recruit and retain our employees; the
application of US and international tax laws on our tax structure and any changes to such tax laws; acquisitions we
have made or may make in the future; and the dual class structure of our common stock.
Further information on these and other factors that could affect the company’s financial results is included in filings it
makes with the Securities and Exchange Commission from time to time, including the section entitled “Risk Factors” in
the company’s Annual Report on Form 10-K for the year ended December 31, 2012, as well as the company’s most
recent Quarterly Report on Form 10-Q for the quarter ended September 30, 2013, and additional information will
also be set forth in our Form 10-K that will be filed for the year ended December 31, 2013, which should be read in
conjunction with these financial results.  These documents are or will be available on the SEC Filings section of the
Investor Relations page of the company's website at http://investors.linkedin.com/.  All information provided in this
presentation is as of February 6, 2014, and LinkedIn undertakes no duty to update this information.

3
Who we are

4
Our mission

Connect the world’s professionals
to make them more productive
and successful

5
Our vision

Create economic opportunity for
every member of the global
workforce

6
What we do

7
Our member value propositions

Professional Identity

Network

Knowledge

Be the professional
profile of record

Connect all of the
world's professionals

Be the definitive professional
publishing platform
Growing global network

1

>2 New

Members worldwide

Members per second

277M

1

187M

2

Monthly unique visitors

1 As of 12/31/13 based on internal estimates | 2 Average monthly number of unique visitors for Q4’13 according to comScore using
LinkedIn + SlideShare

9
Our customer value propositions

Hire

Market

Sell

Power 50% of the
world’s hires

Be the most effective
platform with marketers
to engage with

Be the start of every
sales opportunity

10
Our operating priorities

Talent

Technology

Product

Monetization

Build a world
class team

Create data driven
development at scale

Develop products
our members love

Scale profitable
business lines

11
Key metrics and results

12
Engagement metrics

277
259
143 142

238

139

132

218

11.711.6
11.1

202

10.6

116

187
174

103

106

110

9.8
9.4 9.3

161
145

88

8.9

92

82

131

7.6 7.6

75

116

7.1 7.1

Members (mn)

Unique visitors, comScore (mn)

1

1 comScore metrics reflect LinkedIn site only, not including SlideShare

Page views, comScore (bn)

Q4’13

Q3’13

Q2’13

Q1’13

Q4’12

Q3’12

Q2’12

Q1’12

Q4’11

Q3’11

Q2’11

Q1’11

Q4’13

Q3’13

Q2’13

Q1’13

Q4’12

Q3’12

Q2’12

Q1’12

Q4’11

Q3’11

Q2’11

Q1’11

Q4’13

Q3’13

Q2’13

Q1’13

Q4’12

Q3’12

Q2’12

Q1’12

Q4’11

Q3’11

Q2’11

Q1’11

102

1

13
Revenue
$447
$393

160%

140%

$364
$304

120%

$325

100%

$252
$228
$168
$121

$45

$55

$62

$82

80%

$188

60%

$139
40%

$94
20%

Net revenue ($mn)

Q4’13

Q3’13

Q2’13

Q1’13

Q4’12

Q3’12

Q2’12

Q1’12

Q4’11

Q3’11

Q2’11

Q1’11

Q4’10

Q3’10

Q2’10

Q1’10

0%

% Y/Y
14
Revenue by product
$447
$393

20%

$364
$304

$325

20%
20%
25%

20%

Talent Solutions

54%

Marketing Solutions

57%

55%

Q3’13

51%

51%

53%

Q4’12

48%

30%
53%

55%

56%

Q3’12

44%

49%

57%

25%

Q2’12

29%

27%

28%

Q1’12

Q3’10

29%

Q3’11

Q2’10

34%

32%

Q2’11

44%

25%
30%

21%

Q1’11

30%
32%
38%

27%
33%
40%

22%

20%

Q4’10

$45

$55

Q1’10

$62

$82

$94

20%

23%

25%

20%

20%

Q4’11

$121

$139

19%

Q1’13

$168

20%

Q2’13

$188

24%

Q4’13

$228

$252

23%

20%

Premium Subscriptions
15
Revenue by geography
$447
7%

$393
$364
$304
$252
$228

EMEA

7%
7%

8%

24%

8%
23%
23%

23%
23%
61%

22%
62%
62%

23%

21%

62%

62%

64%

APAC

Q4’13

Q3’13

Q2’13

Q1’13

65%

Q4’12

67%

64%

Q3’12

Q3’10

Q4’10

US

68%

8%

$325

22%

Q2’12

74%

69%

6%
7%

Q1’12

73%

71%

67%

Q3’11

20%

Q1’11

20%
73%

Q2’10

20%

18%

Q1’10

$62
$45 $55

5%
5%
21%

5%
5%
21%

Q2’11

$82

$94

6%
6%
21%

6%
6%

Q4’11

$121

$139

$168

$188

7%
7%

7%
7%

7%

7%

7%

8%

Other Americas
16
Revenue by channel
$447
$393
$364
$304

$325
42%

39%

42%

$252
$228
$168

Field

Q4’13

Q3’13

Q2’13

57%

Q1’13

Q1’11

57%

54%

Q4’12

Q4’10

55%

57%

57%

Q2’12

54%

53%

61%

58%

47%

Q1’12

55%

59%

58%

59%

Q4’11

53%

54%

43%

43%

Q3’11

46%

Q2’11

45%

47%

45%

43%

46%

46%

Q3’10

41%

Q2’10

$62

$94

Q1’10

$45

$55

$82

41%

Q3’12

$121

$139

$188

43%

Online
17
1

Adjusted EBITDA

$111

$89
$79

30%

$93

$83

20%

$56
$50
$34
$26
$9

$11

$11

$16

$38
10%

$25

$13

Adj EBITDA ($mn)

Q4’13

Q3’13

Q2’13

Q1’13

Q4’12

Q3’12

Q2’12

Q1’12

Q4’11

Q3’11

Q2’11

Q1’11

Q4’10

Q3’10

Q2’10

Q1’10

0%

% of revenue

1 Adjusted EBITDA is a Non-GAAP financial measure. For a reconciliation of Adjusted EBITDA to net income please see slide 21.
The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information
prepared and presented in accordance with GAAP

18
Net income (loss) & cash flow
Q4 2013

GAAP EPS

2

2

Non-GAAP EPS
Operating cash flow
Free cash flow

1

1, 3

Cash, cash equivalents &
marketable securities
1

$11.5

$48

$47

$40

($0.03)

$0.10

$0.39

$0.35

$126

$69

$25

1

($3.4)

$82

Non-GAAP net income

$3.8

$0.39

GAAP net income (loss)

Q4 2012

$0.03

1

Q3 2013

$43

$37

$2,329

$2,272

$750

1 In $ millions | 2 EPS is based on fully-diluted weighted share count | 3 Free cash flow is calculated by subtracting purchases of property and equipment
from operating cash flow

19
1

Non-GAAP reconciliations
Three months

Three months

Twelve months

Twelve months

ended dec 31
2013

ended dec 31
2012

ended dec 31
2013

ended dec 31
2012

$3,782

$11,508

$26,769

$21,610

Add back: stock-based compensation

57,177

27,572

193,915

86,319

Add back: amortization of intangibles

4,056

2,943

16,406

9,872

(16,776)

(1,809)

(45,198)

(17,464)

Non-GAAP NET INCOME

$48,239

$40,214

$191,892

$100,337

GAAP and NON-GAAP DILUTED SHARES

124,438

114,095

118,944

112,844

$0.39

$0.35

$1.61

$0.89

$3,782

$11,508

$26,769

$21,610

9,477

15,234

22,459

35,504

Other income, net

(1,820)

(24)

(1,416)

(252)

Depreciation and amortization

42,750

24,297

134,516

79,849

Stock-based compensation

57,177

27,572

193,915

86,319

$111,366

$78,587

$376,243

$223,030

Non-GAAP net income and net income per share
GAAP net income

Income tax effect of non-GAAP adj.

NON-GAAP DILUTED NET INCOME PER SHARE

Adjusted EBITDA
GAAP net income
Provision for income taxes

ADJUSTED EBITDA

1 In thousands, except per share data

20
1

Non-GAAP adjusted EBITDA reconciliation
(In millions) (Unaudited)

Q1’10

Q2’10

Q3’10

Q4’10

Q1’11

Q2’11

Q3’11

Q4’11

Q1’12

Q2’12

Q3’12

Q4’12

Q1’13

Q2’13

Q3’13

Q4’13

GAAP net income
(loss)

$1.8

$4.3

$4.0

$5.3

$2.1

$4.5

($1.6)

$6.9

$5.0

$2.8

$2.3

$11.5 $22.6

$3.7

($3.4)

$3.8

Provision (benefit)
for income taxes

1.0

0.7

0.5

1.4

(0.3)

5.4

4.4

1.5

5.8

10.0

4.4

15.2

0.7

4.1

8.2

9.5

Other (income)
expense, net

0.3

0.4

(0.4)

0.3

(0.4)

0.0

1.8

1.6

(0.2)

0.7

(0.7)

0.0

0.3

0.3

(0.2)

(1.8)

Depreciation and
amortization

3.9

4.2

4.8

6.6

8.2

9.6

11.6

13.8

14.9

17.5

23.1

24.3

25.8

32.2

33.8

42.8

Stock-based
compensation

1.9

2.0

2.2

2.7

3.8

6.8

8.5

10.6

12.6

19.3

26.8

27.6

33.9

48.4

54.4

57.2

Adjusted EBITDA

$9.1

$11.5 $11.1 $16.3 $13.3 $26.3 $24.7 $34.4 $38.1 $50.4 $56.0 $78.6 $83.4 $88.6 $92.8 $111.4

1 Adjusted EBITDA is a Non-GAAP financial measure. The presentation of this financial information is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared and presented in accordance with GAAP

21
Guidance

1, 2

Q1 2014

FY 2014

Revenue

$455-460

$2,020-2,050

Adjusted EBITDA

$106-108

~$490

Depreciation & amortization

~$48

~$225

Stock-based compensation

~$68

~$325

1 All guidance figures are approximate values | 2 Values are in $ millions

22
Thank you

23
©2013 LinkedIn Corporation. All Rights Reserved.

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LinkedIn Q4 2013 Earnings Call

  • 1.
  • 3. Safe harbor “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements about our products, including our investments in products, technology and other key strategic areas, certain non-financial metrics, such as member growth and engagement, and our expected financial metrics such as revenue, adjusted EBITDA, depreciation and amortization and stock-based compensation for the first quarter of 2014 and the full fiscal year 2014. The achievement of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions.  If any of these risks or uncertainties materialize or if any of the assumptions prove incorrect, the company’s results could differ materially from the results expressed or implied by the forward-looking statements the company makes. The risks and uncertainties referred to above include - but are not limited to - risks associated with: our limited operating history in a new and unproven market; engagement of our members; the price volatility of our Class A common stock; general economic conditions; expectations regarding the return on our strategic investments; execution of our plans and strategies, including with respect to mobile products and features; security measures and the risk that they may not be sufficient to secure our member data adequately or that we are subject to attacks that degrade or deny the ability of members to access our solutions; expectations regarding our ability to timely and effectively scale and adapt existing technology and network infrastructure to ensure that our solutions are accessible at all times with short or no perceptible load times; our ability to maintain our rate of revenue growth and manage our expenses and investment plans; our ability to accurately track our key metrics internally; members and customers curtailing or ceasing to use our solutions; our core value of putting members first, which may conflict with the shortterm interests of the business; privacy and changes in regulations in the United States, Europe or elsewhere, which could impact our ability to serve our members or curtail our monetization efforts; litigation and regulatory issues; increasing competition; our ability to manage our growth; our ability to recruit and retain our employees; the application of US and international tax laws on our tax structure and any changes to such tax laws; acquisitions we have made or may make in the future; and the dual class structure of our common stock. Further information on these and other factors that could affect the company’s financial results is included in filings it makes with the Securities and Exchange Commission from time to time, including the section entitled “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended December 31, 2012, as well as the company’s most recent Quarterly Report on Form 10-Q for the quarter ended September 30, 2013, and additional information will also be set forth in our Form 10-K that will be filed for the year ended December 31, 2013, which should be read in conjunction with these financial results.  These documents are or will be available on the SEC Filings section of the Investor Relations page of the company's website at http://investors.linkedin.com/.  All information provided in this presentation is as of February 6, 2014, and LinkedIn undertakes no duty to update this information. 3
  • 5. Our mission Connect the world’s professionals to make them more productive and successful 5
  • 6. Our vision Create economic opportunity for every member of the global workforce 6
  • 8. Our member value propositions Professional Identity Network Knowledge Be the professional profile of record Connect all of the world's professionals Be the definitive professional publishing platform
  • 9. Growing global network 1 >2 New Members worldwide Members per second 277M 1 187M 2 Monthly unique visitors 1 As of 12/31/13 based on internal estimates | 2 Average monthly number of unique visitors for Q4’13 according to comScore using LinkedIn + SlideShare 9
  • 10. Our customer value propositions Hire Market Sell Power 50% of the world’s hires Be the most effective platform with marketers to engage with Be the start of every sales opportunity 10
  • 11. Our operating priorities Talent Technology Product Monetization Build a world class team Create data driven development at scale Develop products our members love Scale profitable business lines 11
  • 12. Key metrics and results 12
  • 13. Engagement metrics 277 259 143 142 238 139 132 218 11.711.6 11.1 202 10.6 116 187 174 103 106 110 9.8 9.4 9.3 161 145 88 8.9 92 82 131 7.6 7.6 75 116 7.1 7.1 Members (mn) Unique visitors, comScore (mn) 1 1 comScore metrics reflect LinkedIn site only, not including SlideShare Page views, comScore (bn) Q4’13 Q3’13 Q2’13 Q1’13 Q4’12 Q3’12 Q2’12 Q1’12 Q4’11 Q3’11 Q2’11 Q1’11 Q4’13 Q3’13 Q2’13 Q1’13 Q4’12 Q3’12 Q2’12 Q1’12 Q4’11 Q3’11 Q2’11 Q1’11 Q4’13 Q3’13 Q2’13 Q1’13 Q4’12 Q3’12 Q2’12 Q1’12 Q4’11 Q3’11 Q2’11 Q1’11 102 1 13
  • 15. Revenue by product $447 $393 20% $364 $304 $325 20% 20% 25% 20% Talent Solutions 54% Marketing Solutions 57% 55% Q3’13 51% 51% 53% Q4’12 48% 30% 53% 55% 56% Q3’12 44% 49% 57% 25% Q2’12 29% 27% 28% Q1’12 Q3’10 29% Q3’11 Q2’10 34% 32% Q2’11 44% 25% 30% 21% Q1’11 30% 32% 38% 27% 33% 40% 22% 20% Q4’10 $45 $55 Q1’10 $62 $82 $94 20% 23% 25% 20% 20% Q4’11 $121 $139 19% Q1’13 $168 20% Q2’13 $188 24% Q4’13 $228 $252 23% 20% Premium Subscriptions 15
  • 18. 1 Adjusted EBITDA $111 $89 $79 30% $93 $83 20% $56 $50 $34 $26 $9 $11 $11 $16 $38 10% $25 $13 Adj EBITDA ($mn) Q4’13 Q3’13 Q2’13 Q1’13 Q4’12 Q3’12 Q2’12 Q1’12 Q4’11 Q3’11 Q2’11 Q1’11 Q4’10 Q3’10 Q2’10 Q1’10 0% % of revenue 1 Adjusted EBITDA is a Non-GAAP financial measure. For a reconciliation of Adjusted EBITDA to net income please see slide 21. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP 18
  • 19. Net income (loss) & cash flow Q4 2013 GAAP EPS 2 2 Non-GAAP EPS Operating cash flow Free cash flow 1 1, 3 Cash, cash equivalents & marketable securities 1 $11.5 $48 $47 $40 ($0.03) $0.10 $0.39 $0.35 $126 $69 $25 1 ($3.4) $82 Non-GAAP net income $3.8 $0.39 GAAP net income (loss) Q4 2012 $0.03 1 Q3 2013 $43 $37 $2,329 $2,272 $750 1 In $ millions | 2 EPS is based on fully-diluted weighted share count | 3 Free cash flow is calculated by subtracting purchases of property and equipment from operating cash flow 19
  • 20. 1 Non-GAAP reconciliations Three months Three months Twelve months Twelve months ended dec 31 2013 ended dec 31 2012 ended dec 31 2013 ended dec 31 2012 $3,782 $11,508 $26,769 $21,610 Add back: stock-based compensation 57,177 27,572 193,915 86,319 Add back: amortization of intangibles 4,056 2,943 16,406 9,872 (16,776) (1,809) (45,198) (17,464) Non-GAAP NET INCOME $48,239 $40,214 $191,892 $100,337 GAAP and NON-GAAP DILUTED SHARES 124,438 114,095 118,944 112,844 $0.39 $0.35 $1.61 $0.89 $3,782 $11,508 $26,769 $21,610 9,477 15,234 22,459 35,504 Other income, net (1,820) (24) (1,416) (252) Depreciation and amortization 42,750 24,297 134,516 79,849 Stock-based compensation 57,177 27,572 193,915 86,319 $111,366 $78,587 $376,243 $223,030 Non-GAAP net income and net income per share GAAP net income Income tax effect of non-GAAP adj. NON-GAAP DILUTED NET INCOME PER SHARE Adjusted EBITDA GAAP net income Provision for income taxes ADJUSTED EBITDA 1 In thousands, except per share data 20
  • 21. 1 Non-GAAP adjusted EBITDA reconciliation (In millions) (Unaudited) Q1’10 Q2’10 Q3’10 Q4’10 Q1’11 Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 Q3’12 Q4’12 Q1’13 Q2’13 Q3’13 Q4’13 GAAP net income (loss) $1.8 $4.3 $4.0 $5.3 $2.1 $4.5 ($1.6) $6.9 $5.0 $2.8 $2.3 $11.5 $22.6 $3.7 ($3.4) $3.8 Provision (benefit) for income taxes 1.0 0.7 0.5 1.4 (0.3) 5.4 4.4 1.5 5.8 10.0 4.4 15.2 0.7 4.1 8.2 9.5 Other (income) expense, net 0.3 0.4 (0.4) 0.3 (0.4) 0.0 1.8 1.6 (0.2) 0.7 (0.7) 0.0 0.3 0.3 (0.2) (1.8) Depreciation and amortization 3.9 4.2 4.8 6.6 8.2 9.6 11.6 13.8 14.9 17.5 23.1 24.3 25.8 32.2 33.8 42.8 Stock-based compensation 1.9 2.0 2.2 2.7 3.8 6.8 8.5 10.6 12.6 19.3 26.8 27.6 33.9 48.4 54.4 57.2 Adjusted EBITDA $9.1 $11.5 $11.1 $16.3 $13.3 $26.3 $24.7 $34.4 $38.1 $50.4 $56.0 $78.6 $83.4 $88.6 $92.8 $111.4 1 Adjusted EBITDA is a Non-GAAP financial measure. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP 21
  • 22. Guidance 1, 2 Q1 2014 FY 2014 Revenue $455-460 $2,020-2,050 Adjusted EBITDA $106-108 ~$490 Depreciation & amortization ~$48 ~$225 Stock-based compensation ~$68 ~$325 1 All guidance figures are approximate values | 2 Values are in $ millions 22
  • 24. ©2013 LinkedIn Corporation. All Rights Reserved.