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Q4’12 Results




LinkedIn Confidential ©2013 All Rights Reserved
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 2013 and the full fiscal year 2013. 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 short-term 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 that was filed for the year ended December 31, 2011, as well as the company’s most recent Quarterly Report on Form
10-Q for the quarter ended September 30, 2012, and additional information will also be set forth in our Form 10-K that will be filed for
the year ended December 31, 2012, which should be read in conjunction with these financial results. These documents are 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 release and in the attachments is as of February 7, 2013, and LinkedIn undertakes no duty to update this information.
Jeff Weiner
Chief Executive Officer
LinkedIn




Steve Sordello
Chief Financial Officer
LinkedIn




                          3
Key Metrics

240	
                                                                                   140	
                                                                                                12	
  


                                                                              202	
                                                                                                                                                                                            9.8	
  
200	
                                                                                   120	
                                                                                      116	
     10	
                                                         9.4	
  9.3	
  
                                                                         187	
  
                                                                                                                                                                             110	
                                                                                      8.9	
  
                                                                    174	
                                                                                               106	
  
                                                                                                                                                                     103	
  
                                                               161	
  
160	
                                                                                   100	
                                                                                                  8	
                                           7.6	
  7.6	
  
                                                          145	
                                                                                                 92	
                                                           7.1	
  7.1	
  
                                                                                                                                                       88	
  
                                                     131	
  
                                                                                                                                              82	
  
                                                116	
                                                                                                                                          6	
                       5.5	
  
120	
                                                                                     80	
                                       75	
  
                                           102	
                                                                                                                                                                  5.0	
  
                                      90	
                                                                                  65	
  
                             81	
                                                                                                                                                                           3.9	
  
  80	
              72	
                                                                  60	
                                                                                                 4	
   3.6	
  
           64	
                                                                                                    53	
  
                                                                                                   46	
   45	
  

  40	
                                                                                    40	
                                                                                                 2	
  




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                                                                                                                                                                                                       Q1'11	
  
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                                                                                                                                                                                                       Q4'11	
  
                                                                                                                                                                                                       Q1'12	
  
                                                                                                                                                                                                       Q2'12	
  
                                                                                                                                                                                                       Q3'12	
  
                                                                                                                                                                                                       Q4'12	
  
                                                                                                   Q1'10	
  
                                                                                                   Q2'10	
  
                                                                                                   Q3'10	
  
                                                                                                   Q4'10	
  
                                                                                                   Q1'11	
  
                                                                                                   Q2'11	
  
                                                                                                   Q3'11	
  
                                                                                                   Q4'11	
  
                                                                                                   Q1'12	
  
                                                                                                   Q2'12	
  
                                                                                                   Q3'12	
  
                                                                                                   Q4'12	
  
           Q1'10	
  
           Q2'10	
  
           Q3'10	
  
           Q4'10	
  
           Q1'11	
  
           Q2'11	
  
           Q3'11	
  
           Q4'11	
  
           Q1'12	
  
           Q2'12	
  
           Q3'12	
  
           Q4'12	
  




                                         Members	
  (mn)	
                                              Unique	
  Visitors,	
  comScore	
  (mn)*	
                                                                    Page	
  Views,	
  comScore	
  (bn)*	
  




     *comScore metrics reflect LinkedIn site only, not including SlideShare                                                                                                                                                                                                              4
Revenue
        $350                                                                                                                           160%
                                                                                                                              $304
        $300                                                                                                                           140%

                                                                                                                     $252
        $250                                                                                                $228                       120%


        $200                                                                                       $188                                100%
                                                                                         $168

        $150                                                                    $139                                                   80%
                                                                       $121
                                                              $94
        $100                                         $82                                                                               60%
                                  $55        $62
                       $45
           $50                                                                                                                         40%


             $0                                                                                                                        20%
                        Q1'10


                                   Q2'10


                                             Q3'10


                                                     Q4'10


                                                               Q1'11


                                                                        Q2'11


                                                                                 Q3'11


                                                                                          Q4'11


                                                                                                    Q1'12


                                                                                                             Q2'12


                                                                                                                      Q3'12


                                                                                                                               Q4'12
                                                             Net Revenue ($mn)                    % Y/Y


Note: 4Q12 includes $4.4M in gross revenue                                                                                                    5
Revenue by Product
        $350
                                                                                                                              $304
        $300
                                                                                                                              20%
                                                                                                                     $252
        $250                                                                                                $228
                                                                                                                     20%

                                                                                                   $188     19%               27%
        $200
                                                                                          $168
                                                                                                   20%               25%
        $150                                                                     $139     20%               28%
                                                                        $121
                                                                                 20%               25%
                                                               $94      20%               30%
        $100                                         $82                         29%
                                                               21%                                                            53%
                                             $62     22%                32%
                                   $55                                                                               55%
                       $45                                     29%                                          53%
           $50                               25%     34%                                           54%
                                   27%                                                    51%
                       30%                   30%                                 51%
                                   33%                                  48%
                       32%                                     49%
                                             44%     44%
                       38%         40%
             $0
                        Q1'10


                                    Q2'10


                                             Q3'10


                                                     Q4'10


                                                                Q1'11


                                                                         Q2'11


                                                                                  Q3'11


                                                                                           Q4'11


                                                                                                    Q1'12


                                                                                                             Q2'12


                                                                                                                      Q3'12


                                                                                                                               Q4'12
                                Talent Solutions             Marketing Solutions           Premium Subscriptions



Note: 4Q12 includes $4.4M in gross revenue                                                                                             6
Revenue by Geography
         $350

                                                                                                                                  $304
         $300                                                                                                                     7%

                                                                                                                         $252     8%

         $250                                                                                                   $228     7%

                                                                                                                7%       7%       23%

                                                                                                       $188     7%
         $200
                                                                                                                         22%
                                                                                              $168     6%
                                                                                                       7%       22%
                                                                                              6%
         $150                                                                        $139     6%
                                                                                                       23%
                                                                            $121     6%
                                                                                              21%
                                                                                     6%
                                                                            5%
                                                                    $94     5%       21%
         $100                                             $82       5%      21%                                                   62%
                                                                    5%
                                                                                                                         64%
                                             $62                    21%                                         65%
                                    $55                   20%
                        $45                                                                   67%      64%
            $50                     20%
                                             18%
                                                                            68%
                                                                                     67%
                        20%                                         69%
                                                          71%
                                    73%      74%
                        73%
              $0
                         Q1'10


                                     Q2'10


                                             Q3'10


                                                          Q4'10


                                                                    Q1'11


                                                                             Q2'11


                                                                                      Q3'11


                                                                                               Q4'11


                                                                                                        Q1'12


                                                                                                                 Q2'12


                                                                                                                          Q3'12


                                                                                                                                   Q4'12
                                                     US           EMEA      APAC         Other Americas


Note: 4Q12 includes $4.4M in gross revenue                                                                                                 7
Revenue by Channel
        $350
                                                                                                                      $304
        $300

                                                                                                              $252
        $250                                                                                          $228            41%


        $200                                                                                  $188            43%
                                                                                      $168            43%

        $150                                                                  $139
                                                                                              46%
                                                                      $121            43%

                                                             $94              47%
        $100                                         $82              45%                                             59%
                                             $62             46%                                              57%
                                   $55               41%                                              57%
                       $45
           $50                     45%       46%                                      57%     54%
                       47%                                            55%     53%
                                                     59%     54%
                       53%         55%       54%
             $0
                        Q1'10


                                    Q2'10


                                             Q3'10


                                                     Q4'10


                                                              Q1'11


                                                                      Q2'11


                                                                              Q3'11


                                                                                      Q4'11


                                                                                              Q1'12


                                                                                                      Q2'12


                                                                                                              Q3'12


                                                                                                                      Q4'12
                                                             Field Sales      Online Sales


Note: 4Q12 includes $4.4M in gross revenue                                                                                    8
Adjusted EBITDA & Margin
  $100                                                                                                      40%


                                                                                                    $79
   $80
                                                                                                            30%


   $60                                                                                      $56
                                                                                    $50
                                                                                                            20%
                                                                            $38
   $40                                                              $34

                                                    $26     $25
                                                                                                            10%
   $20                           $16
                                            $13
                 $11     $11
         $9


    $0                                                                                                      0%
         Q1'10


                 Q2'10


                         Q3'10


                                 Q4'10


                                            Q1'11


                                                    Q2'11


                                                            Q3'11


                                                                    Q4'11


                                                                            Q1'12


                                                                                    Q2'12


                                                                                            Q3'12


                                                                                                    Q4'12
                                         Adj EBITDA ($mn)           % Margin



                                                                                                                  9
Net Income & Cash Flow Highlights

                                   Q4 2012   Q3 2012   Q4 2011


      Net Income $mn, GAAP         $11.5      $2.3      $6.9

    Net Income $mn, Non-GAAP       $40.2     $25.1     $13.3

             EPS, GAAP
   Fully-Diluted Weighted Shares   $0.10     $0.02     $0.06

          EPS, Non-GAAP
   Fully-Diluted Weighted Shares   $0.35     $0.22     $0.12

  Operating Cash Flow (OCF), $mn   $69.3     $87.6     $24.2

       Free Cash Flow, $mn
     (OCF – Purchases of PPE)      $37.1     $54.0      $3.5
    Cash, Cash Equivalents, &
      ST Investments, $mn          $749.5    $676.6    $577.5
Guidance


                                    Q1 2013      FY 2013


          Revenue, $mn              $305-310   $1,410-1,440


      Adjusted EBITDA, $mn           $67-69     $315-330


 Depreciation & Amortization, $mn    $25-27     $130-135


 Stock-Based Compensation, $mn       $32-34     $160-165
Non-GAAP Reconciliation
                                                  LINKEDIN CORPORATION
                                 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
                                              (In thousands, except per share data)
                                                          (Unaudited)

                                                          Three Months Ended                 Twelve Months Ended
                                                             December 31,                        December 31,
                                                        2012              2011              2012              2011

Non-GAAP net income and net income per share:
 GAAP net income                                    $      11,508    $        6,919     $      21,610    $       11,912
 Add back: stock-based compensation                        27,572            10,612            86,319            29,768
 Add back: amortization of intangible assets                2,943             1,155             9,872             3,635
 Income tax effect of non-GAAP adjustments                 (1,809)           (5,358)          (17,464)           (8,827)
NON-GAAP NET INCOME                                 $      40,214    $       13,328     $     100,337    $       36,488

GAAP AND NON-GAAP DILUTED SHARES                          114,095           108,612           112,844           104,118

NON-GAAP DILUTED NET INCOME PER SHARE               $        0.35    $           0.12   $        0.89    $           0.35

Adjusted EBITDA:
 Net income                                         $      11,508    $        6,919     $      21,610    $       11,912
 Provision for income taxes                                15,234             1,534            35,504            11,030
 Other (income) expense, net                                  (24)            1,575              (252)            2,903
 Depreciation and amortization                             24,297            13,784            79,849            43,100
 Stock-based compensation                                  27,572            10,612            86,319            29,768
ADJUSTED EBITDA                                     $      78,587    $       34,424     $     223,030    $       98,713




                                                                                                                            12
Thank You




LinkedIn Confidential ©2013 All Rights Reserved               13

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Earnings deck 4_q12

  • 1. Q4’12 Results LinkedIn Confidential ©2013 All Rights Reserved
  • 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 2013 and the full fiscal year 2013. 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 short-term 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 that was filed for the year ended December 31, 2011, as well as the company’s most recent Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, and additional information will also be set forth in our Form 10-K that will be filed for the year ended December 31, 2012, which should be read in conjunction with these financial results. These documents are 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 release and in the attachments is as of February 7, 2013, and LinkedIn undertakes no duty to update this information.
  • 3. Jeff Weiner Chief Executive Officer LinkedIn Steve Sordello Chief Financial Officer LinkedIn 3
  • 4. Key Metrics 240   140   12   202   9.8   200   120   116   10   9.4  9.3   187   110   8.9   174   106   103   161   160   100   8   7.6  7.6   145   92   7.1  7.1   88   131   82   116   6   5.5   120   80   75   102   5.0   90   65   81   3.9   80   72   60   4   3.6   64   53   46   45   40   40   2   Q1'10   Q2'10   Q3'10   Q4'10   Q1'11   Q2'11   Q3'11   Q4'11   Q1'12   Q2'12   Q3'12   Q4'12   Q1'10   Q2'10   Q3'10   Q4'10   Q1'11   Q2'11   Q3'11   Q4'11   Q1'12   Q2'12   Q3'12   Q4'12   Q1'10   Q2'10   Q3'10   Q4'10   Q1'11   Q2'11   Q3'11   Q4'11   Q1'12   Q2'12   Q3'12   Q4'12   Members  (mn)   Unique  Visitors,  comScore  (mn)*   Page  Views,  comScore  (bn)*   *comScore metrics reflect LinkedIn site only, not including SlideShare 4
  • 5. Revenue $350 160% $304 $300 140% $252 $250 $228 120% $200 $188 100% $168 $150 $139 80% $121 $94 $100 $82 60% $55 $62 $45 $50 40% $0 20% Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Net Revenue ($mn) % Y/Y Note: 4Q12 includes $4.4M in gross revenue 5
  • 6. Revenue by Product $350 $304 $300 20% $252 $250 $228 20% $188 19% 27% $200 $168 20% 25% $150 $139 20% 28% $121 20% 25% $94 20% 30% $100 $82 29% 21% 53% $62 22% 32% $55 55% $45 29% 53% $50 25% 34% 54% 27% 51% 30% 30% 51% 33% 48% 32% 49% 44% 44% 38% 40% $0 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Talent Solutions Marketing Solutions Premium Subscriptions Note: 4Q12 includes $4.4M in gross revenue 6
  • 7. Revenue by Geography $350 $304 $300 7% $252 8% $250 $228 7% 7% 7% 23% $188 7% $200 22% $168 6% 7% 22% 6% $150 $139 6% 23% $121 6% 21% 6% 5% $94 5% 21% $100 $82 5% 21% 62% 5% 64% $62 21% 65% $55 20% $45 67% 64% $50 20% 18% 68% 67% 20% 69% 71% 73% 74% 73% $0 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 US EMEA APAC Other Americas Note: 4Q12 includes $4.4M in gross revenue 7
  • 8. Revenue by Channel $350 $304 $300 $252 $250 $228 41% $200 $188 43% $168 43% $150 $139 46% $121 43% $94 47% $100 $82 45% 59% $62 46% 57% $55 41% 57% $45 $50 45% 46% 57% 54% 47% 55% 53% 59% 54% 53% 55% 54% $0 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Field Sales Online Sales Note: 4Q12 includes $4.4M in gross revenue 8
  • 9. Adjusted EBITDA & Margin $100 40% $79 $80 30% $60 $56 $50 20% $38 $40 $34 $26 $25 10% $20 $16 $13 $11 $11 $9 $0 0% Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Adj EBITDA ($mn) % Margin 9
  • 10. Net Income & Cash Flow Highlights Q4 2012 Q3 2012 Q4 2011 Net Income $mn, GAAP $11.5 $2.3 $6.9 Net Income $mn, Non-GAAP $40.2 $25.1 $13.3 EPS, GAAP Fully-Diluted Weighted Shares $0.10 $0.02 $0.06 EPS, Non-GAAP Fully-Diluted Weighted Shares $0.35 $0.22 $0.12 Operating Cash Flow (OCF), $mn $69.3 $87.6 $24.2 Free Cash Flow, $mn (OCF – Purchases of PPE) $37.1 $54.0 $3.5 Cash, Cash Equivalents, & ST Investments, $mn $749.5 $676.6 $577.5
  • 11. Guidance Q1 2013 FY 2013 Revenue, $mn $305-310 $1,410-1,440 Adjusted EBITDA, $mn $67-69 $315-330 Depreciation & Amortization, $mn $25-27 $130-135 Stock-Based Compensation, $mn $32-34 $160-165
  • 12. Non-GAAP Reconciliation LINKEDIN CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share data) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2012 2011 2012 2011 Non-GAAP net income and net income per share: GAAP net income $ 11,508 $ 6,919 $ 21,610 $ 11,912 Add back: stock-based compensation 27,572 10,612 86,319 29,768 Add back: amortization of intangible assets 2,943 1,155 9,872 3,635 Income tax effect of non-GAAP adjustments (1,809) (5,358) (17,464) (8,827) NON-GAAP NET INCOME $ 40,214 $ 13,328 $ 100,337 $ 36,488 GAAP AND NON-GAAP DILUTED SHARES 114,095 108,612 112,844 104,118 NON-GAAP DILUTED NET INCOME PER SHARE $ 0.35 $ 0.12 $ 0.89 $ 0.35 Adjusted EBITDA: Net income $ 11,508 $ 6,919 $ 21,610 $ 11,912 Provision for income taxes 15,234 1,534 35,504 11,030 Other (income) expense, net (24) 1,575 (252) 2,903 Depreciation and amortization 24,297 13,784 79,849 43,100 Stock-based compensation 27,572 10,612 86,319 29,768 ADJUSTED EBITDA $ 78,587 $ 34,424 $ 223,030 $ 98,713 12
  • 13. Thank You LinkedIn Confidential ©2013 All Rights Reserved 13