Linkedin 10-K

26APR201314060142 April 2013 To Our Shareholders: 2012 was a transformative year for LinkedIn. We exited 2011 having successfully revamped our product development infrastructure, and 2012 was a year of accelerated product innovation based on that investment. The products we delivered throughout the year drove record levels of member engagement and financial results. LinkedIn remains focused on its mission to connect the world’s professionals to make them more productive and successful. Our vision, to create economic opportunity for each of the world’s more than three billion professionals, galvanizes our employees and our culture. That culture remains one of our strongest competitive advantages and fuels our product strategy to help members connect, find, and be found through their professional identities; provide valuable insights making members more successful in their careers; and enable LinkedIn to work everywhere our member work. By leveraging our new development infrastructure, we set out to make products that would simplify the member experience on LinkedIn, grow our platform, and create daily value for LinkedIn members. Strong member engagement metrics emphasizes the value we continue to create throughout the ecosystem. In 2012, we added 57 million new members, ending the year with approximately 202 million members in total, and maintaining our pace of adding approximately two members per second to LinkedIn. We celebrated passing the 200 million member milestone in December, up from less than 100 million members just two years ago. As measured by comScore, excluding Slideshare, unique visitors to LinkedIn grew 29% versus 2011 to an average of 109 million. Pageviews, as measured by comScore and excluding Slideshare and mobile member engagement, rose 27% versus 2011 to 37 billion, and when including mobile engagement, our growth was substantially higher. Our Simplify, Grow, Everyday strategy led to one of the most dynamic periods of product development in our history, culminating in stronger engagement growth in the fourth quarter. Simplify: In 2012, we made great strides towards making it easier for members to unlock value from our core products and services. In the spring, we introduced a more visual version of People You May Know. This was the first refresh of many of our pillar products throughout the year. In July, we redesigned the Homepage, leading to all-time highs in status updates and social activity, including comments, shares and likes. During the fall, we introduced a new version of the LinkedIn Profile, the professional profile of record, and in the fourth quarter, on average, the number of members updating their profiles doubled versus the fourth quarter of 2011. Grow: Grow embodies two priorities: expanding our global membership and extending our monetization efforts to benefit both members and customers. Product localization continued to drive strong member growth in 2012. LinkedIn is now available in 19 languages around the world, and more than 64% of all LinkedIn members now come from outside the U.S. In terms of monetization, we increased the value delivered to corporate Talent Solutions customers by improving the Recruiter platform. We launched and subsequently witnessed strong uptake of Talent Pipeline, allowing vastly improved candidate search and organization. Recruiter is also now available for the first time in multiple languages with the addition of French, German, and Portuguese. Also, reflecting the larger engagement shift to mobile, we made jobs on mobile available to LinkedIn members yielding strong results. More than 20% of jobs views and nearly 30% of jobs viewers came from mobile devices in the fourth quarter. In Marketing Solutions, we introduced several new products, including simplified and redesigned Company Pages, Targeted Status Updates, and new analytics and APIs for customers. These changes drove greater company engagement on LinkedIn with Company Status Updates to followers, increasing more than seven-fold in 2012. Within Premium Subscriptions, we focused on creating value for specific verticals, including outbound sales professionals. Our Sales Solutions suite of products, which include Sales Navigator, is still nascent, but represents our fastest-growing premium subscription offering. Everyday: Our third product theme is delivering value to our members everyday by helping them build out their professional identities and gain valuable insights. We introduced Endorsements, which allows members to easily recognize the skills of their colleagues, and we ended 2012 with nearly one billion endorsements generated. We also introduced LinkedIn Influencers, furthering our efforts to develop LinkedIn as a professional publishing platform. The success of the Influencer program has helped drive an eightfold increase in traffic to content on LinkedIn over the last year. In 2012, our business benefited from the strength of our growing and increasingly engaged member base. Total revenue increased 86% year over year to $972 million, and we witnessed strong performance across all three of our product lines. Talent Solutions expanded 101% year over year to $524 million, Marketing Solutions grew 66% year over year to $258 million, and Premium Subscriptions grew 81% year over year to $190 million. Of course, none of this could have happened without the dedication of our growing team all over the world. We ended 2012 with nearly 3,500 employees, all focused on delivering our ultimate vision. The vibrant culture that shapes LinkedIn will continue to serve us well in 2013 and beyond. Our organizational talent and focus drove bottom line results greatly surpassing our own expectations. LinkedIn generated $223 million in Adjusted EBITDA representing a 23% margin versus $99 million and a 19% margin just one year prior.1 Despite record profitability, we remain committed to investing in the long-term success of our company. As we move into 2013, our strategy remains the same. For our members, we will continue to build great products that bring more value to their professional lives. And for our global enterprise customers, we will focus on transforming the way they Hire, Market, and Sell. Lastly, we wanted to thank you, our shareholders, for being part of this journey with us. We are looking forward to another great year of innovation and continued success. Sincerely, 26APR201302202521 Jeffrey Weiner Chief Executive Officer 1 To supplement its consolidated financial statements, which are prepared and presented in accordance with GAAP, LinkedIn uses certain non-GAAP financial measures, including adjusted EBITDA. Net income for 2012 was approximately $21.6 million. For a full reconciliation of net income and adjusted EBITDA, please see page 44 of the annual report attached to this letter. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ፤ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2012 or អ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35168 LinkedIn Corporation (Exact name of registrant as specified in its charter) Delaware 47-0912023 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 2029 Stierlin Court Mountain View, CA 94043 (Address of principal executive offices) (Zip Code) (650) 687-3600 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Name of Each Exchange on Which Registered Class A Common Stock, par value $0.0001 per share New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ፤ No អ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes អ No ፤ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ፤ No អ Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ፤ No អ Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. អ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of ‘‘large accelerated filer,’’ ‘‘accelerated filer’’ and ‘‘smaller reporting company’’ in Rule 12b-2 of the Exchange Act. Large accelerated filer ፤ Accelerated filer អ Non-accelerated filer អ Smaller reporting company អ (Do not check if a smaller reporting company) Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes អ No ፤ As June 30, 2012 (the last business day of the registrant’s most recently completed second fiscal quarter), the aggregate market value of voting stock held by non-affiliates of the registrant was $8,462,286,157. As of February 8, 2013, there were 89,527,298 shares of the registrant’s Class A common stock outstanding and 19,526,386 shares of the registrant’s Class B common stock outstanding.

Load more