LinkedIn 2011 Annual Report Download

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April 2012
To Our Stockholders:
2011 was a significant and memorable year for LinkedIn for many reasons, including our becoming publicly
traded and welcoming many new investors to the company. Despite many exciting changes, at least one thing
remains the same: our unwavering focus on developing the core of LinkedIn’s platform.
At heart, LinkedIn connects talent with opportunity at massive scale. We believe this is an unprecedented
opportunity made possible by the convergence of two trends. First, the existence of scalable infrastructure that
allows hundreds of millions, if not billions, of people to connect in mere milliseconds; and second, the behavioral
changes taking place as a result of this infrastructure – the way people now go online to represent their identities;
connect with friends, family and colleagues; and share ideas, information, knowledge and opinions. It is
fundamentally changing the world – the way we live, the way we play, and, in the case of LinkedIn, the way the
world works.
LinkedIn brings this dynamic to life through our mission statement: to connect the world’s professionals to make
them more productive and successful. This mission statement manifests itself in everything we do, from our
member value propositions of Professional Identity, Insights and Everywhere; to the value we create for our
customers across our three product segments: Hiring Solutions, Marketing Solutions, and Premium
Subscriptions.
At LinkedIn, we put our members first, and during the year, we increased both the value delivered to each of our
members and the overall reach and power of our platform. We added 55 million new members, growing our
member base by 60% to 145 million. The LinkedIn membership is truly global with more than 60% of members
coming from outside the United States. LinkedIn is now available in 17 languages and used by people in more
than 200 countries and territories. In addition to the growth of our member base, we also witnessed record levels
of engagement. According to comScore, in 2011 unique visitors to LinkedIn grew by 62% (with an average of
92 million users visiting over the fourth quarter) and page views grew by an even greater 63%, reaching 29
billion for the year excluding mobile usage.
Over the course of the year, we launched and improved several key products around our three core member value
propositions:
Identity– LinkedIn solidified its position as a leading destination on the Internet for professionals to connect, find
and be found. In 2011, members performed over four billion professionally oriented searches on our platform,
reinforcing LinkedIn’s position as the definitive professional search engine. These searches were not just
comprised of recruiters looking for the ideal candidate or job seekers looking for their dream job; they’re also
entrepreneurs seeking to raise financing, investors looking for the ideal investment vehicle, sales people looking
to convert cold calls into warm prospects, and general professionals looking to tap each other’s expertise in order
to be great at the jobs they are already in.
Major identity-based initiatives in 2011 included revamping our profile page, adding profile fields like volunteer
experiences and skills, creating products specific to college students and recent alums, our fastest growing
demographic, and continuing to improve the relevancy and value of our search capability.
Insights – We are committed to delivering unique and valuable business intelligence that can only be found by
leveraging the power of the LinkedIn platform. This starts with the LinkedIn Home Page, increasingly our
members’ professional dashboard, where they take the pulse of their network and companies they follow. In
March 2011, we took another major step towards this goal by introducing our professionally focused social news
product, LinkedIn Today, and it has quickly become a central way for members to read news relevant to their
professional identities and networks. The product is also evolving into a major traffic driver to business focused
Web publishers. LinkedIn Groups also remains a strong source of insights for members, and we now have more
than one million professionally oriented groups on LinkedIn.

Table of contents

  • Page 1
    ...This mission statement manifests itself in everything we do, from our member value propositions of Professional Identity, Insights and Everywhere; to the value we create for our customers across our three product segments: Hiring Solutions, Marketing Solutions, and Premium Subscriptions. At LinkedIn...

  • Page 2
    ... building a world-class team. In 2011, we increased our employee base by 114% to over 2,100, with investment focused specifically on scaling our product and engineering organization, as well as growing our sales force on a global basis. We finished the year with local sales and marketing offices in...

  • Page 3
    ... (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...

  • Page 4
    ...Item 9A. Controls and Procedures ...Item 9B. Other Information ...PART III Item 10. Item 11. Item 12. Item 13. Item 14. Directors, Executive Officers and Corporate Governance ...Executive Compensation ...Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters...

  • Page 5
    ... technology and network infrastructure; our ability to increase engagement of our solutions by our members, enterprises and professional organizations; our ability to protect our users' information and adequately address privacy concerns; our ability to maintain an adequate rate of revenue growth...

  • Page 6
    ...Our principal executive offices are located at 2029 Stierlin Court, Mountain View, CA 94043, and our telephone number is (650) 687-3600. Our website address is www.linkedin.com. We completed our initial public offering in May 2011 and our Class A common stock is listed on the New York Stock Exchange...

  • Page 7
    ... power of our network. Our Strategy Our mission is to connect the world's professionals to make them more productive and successful. The key elements of our strategy are: • Foster Viral Member Growth. With 145 million members as of December 31, 2011 and over 150 million members currently, we will...

  • Page 8
    ... Premium Subscriptions LinkedIn Corporate Solutions/Recruiter LinkedIn Referral Engine LinkedIn Recruitment Media LinkedIn Career Pages LinkedIn Jobs Talent Basic, Talent Finder, Talent Pro Job Seeker Basic, Job Seeker, Job Seeker Plus * beta product Free Solutions LinkedIn Ads Display Ads Custom...

  • Page 9
    ... • LinkedIn Connections. Once two members are connected, their profile information is shared and, subject to privacy settings, each member has access to the other member's list of connections for further networking. Connections across the network are classified to three degrees: first degree...

  • Page 10
    ...available for the iPhone. Robust set of APIs. We believe that every modern business application is more useful and productive if it is personalized according to a professional's profile and his or her network of connections. In 2009, we launched a public website that allows any developer to agree to...

  • Page 11
    ...'s employees, enabling them to make referrals they think are appropriate in just a few clicks. LinkedIn Recruitment Media. Enterprises and professional organizations can target career-related messaging to qualified candidates. We provide promotional material in the form of advertisements, videos...

  • Page 12
    ...products enables members to stand out to recruiters and hiring managers via the Job Seeker badge, which is visible on their profile and in search results, Featured Applicant status in the applicant list for jobs they apply to, and InMail. • Marketing Solutions The goal of our marketing solutions...

  • Page 13
    ... and Customer Support Depending on the specific product, we sell our hiring and marketing solutions offline through our field sales organization or online on our website. We sell our premium subscriptions primarily online on our website. Our field sales organization uses a direct sales force to...

  • Page 14
    ... their accounts and how to use our features and products. Self-service support is available through our website and customers can also contact us via e-mail. We have specific premium support teams dedicated to premium subscribers, online advertisers, and our hiring solutions customers. Customers Our...

  • Page 15
    ... members, enterprises and professional organizations. Our website and related infrastructure are hosted on a network located in multiple third-party facilities. Our material data center facilities are provided by Equinix Operating Co., Inc. pursuant to a master service agreement with Equinix dated...

  • Page 16
    ... online professional networking solutions, as well as Internet companies in the customer relationship management market, such as salesforce.com (Chatter and Jigsaw). Because membership on our website is available at no cost, we don't compete for members on the basis of price. Instead, we compete...

  • Page 17
    ...the use of social networking technologies for illegal conduct, such as the unauthorized dissemination of national security information, money laundering or supporting terrorist activities may in the future produce legislation or other governmental action that could require changes to our products or...

  • Page 18
    ... cycles and sales of our marketing solutions to be weaker in the third quarter of the year as Internet usage during the summer months generally slows. Available Information Our website is located at www.linkedin.com, and our investor relations website is located at http:// investors.linkedin.com...

  • Page 19
    ... notifications of new information posted on our investor relations website in real time by signing up for email alerts and RSS feeds. Further corporate governance information, including our certificate of incorporation, bylaws, governance guidelines, board committee charters, and code of conduct...

  • Page 20
    successfully compete with other companies that are currently in, or may in the future enter, the online professional network space; hire, integrate and retain world class talent; halt the operations of websites that aggregate our data as well as data from other companies, or copycat websites that ...

  • Page 21
    ... in enterprises and professional organizations blocking access to our website or refusing to purchase our hiring or marketing solutions or premium subscriptions. Our decisions may not result in the long-term benefits that we expect, in which case our member engagement, business and operating results...

  • Page 22
    ... solutions to our members and customers, thereby harming our business. The regulatory framework for privacy issues worldwide is currently in flux and is likely to remain so for the foreseeable future. Practices regarding the collection, use, storage, transmission and security of personal information...

  • Page 23
    ...on a quarterly and annual basis, which may result in a decline in our stock price if such fluctuations result in a failure to meet the expectations of securities analysts or investors. Our revenue and operating results could vary significantly from quarter-to-quarter and year-to-year and may fail to...

  • Page 24
    ... existing customers renew their agreements with us and the timing and terms of those renewals; and general industry and macroeconomic conditions. Given our short operating history and the rapidly evolving market of online professional networks, our historical operating results may not be useful...

  • Page 25
    ... networking solutions, as well as Internet companies in the customer relationship management market, such as salesforce.com (Chatter and Jigsaw). Our competitors may announce new products, services or enhancements that better address changing industry standards or the needs of members and customers...

  • Page 26
    ... beneficial aspects of our corporate culture. In particular, we intend to continue to make substantial investments to expand our engineering, research and development, field sales, and general and administrative organizations, and our international operations. To attract top talent, we have had to...

  • Page 27
    ..., our ability to manage our expected growth and comply with the rules and regulations that are applicable to publicly reporting companies will be impaired. Our international operations are subject to increased challenges and risks. We have offices around the world and our website is available in...

  • Page 28
    ... social networking activities, our brand and our business could be harmed. Maintaining, protecting and enhancing the "LinkedIn" brand is critical to expanding our base of members, enterprises, advertisers, corporate customers and other partners, and increasing their engagement with our website, and...

  • Page 29
    ... or the market price of our Class A common stock. If we do not continue to attract new customers, or if existing customers do not renew their subscriptions, renew on less favorable terms, or fail to purchase additional solutions, we may not achieve our revenue projections, and our operating results...

  • Page 30
    ... pricing. In particular, our hiring solutions customers will discontinue their purchases of our solutions if we fail to effectively connect them with the talent they seek, and our premium subscribers will discontinue their subscriptions if they do not find the networking and business opportunities...

  • Page 31
    ...-to-date information, the value of our network could be negatively impacted, which would adversely affect our ability to offer compelling hiring and marketing solutions and subscriptions to our members, enterprises, professional organizations and customers. If Internet search engines' methodologies...

  • Page 32
    ... and customers to access the internet. The adoption of any laws or regulations that adversely affect the growth, popularity or use of the Internet, including laws limiting Internet neutrality, could decrease the demand for our subscription service and increase our cost of doing business. For example...

  • Page 33
    ... our financial position and results of operations. The current administration has made public statements indicating that it has made international tax reform a priority, and key members of the U.S. Congress have conducted hearings and proposed new legislation. Changes to U.S. tax laws, including...

  • Page 34
    ...on acceptable terms, if at all. We intend to continue to make investments to support our business growth and may require additional funds to respond to business challenges, including the need to develop new features and products or enhance our existing solutions, improve our operating infrastructure...

  • Page 35
    ... price include issuance of new or updated research or reports by securities analysts; fluctuations in the valuation of companies perceived by investors to be comparable to us; fluctuations in certain valuation metrics such as our price to earnings ratio; sales of our Class A or Class B common stock...

  • Page 36
    ... operating metrics, including number of registered members, unique visitors and page views; changes in projected operational and financial results; addition or loss of significant customers; changes in laws or regulations applicable to our solutions, including changes related to privacy issues...

  • Page 37
    ... reports about our business, our share price and trading volume could decline. The trading market for our Class A common stock depends, to some extent, on the research and reports that securities or industry analysts publish about us or our business. We do not have any control over these analysts...

  • Page 38
    ...of our future earnings for use in the development of our business and for general corporate purposes. Any determination to pay dividends in the future will be at the discretion of our board of directors. Accordingly, investors must rely on sales of their Class A common stock after price appreciation...

  • Page 39
    ... additional sales and marketing and customer support offices in Chicago, New York, Omaha, San Francisco, San Mateo and Santa Monica. We lease our international headquarters office in Dublin, Ireland and lease additional sales and marketing offices in Australia, Brazil, Canada, France, Germany, India...

  • Page 40
    ... Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our Class A common stock has been listed on the New York Stock Exchange LLC ("NYSE") under the symbol "LNKD" since May 19, 2011. Prior to that date, there was no public trading market for our Class A common stock. There...

  • Page 41
    ... Sales of Equity Securities and Use of Proceeds a) Use of Proceeds from Public Offering and Follow-on Offering of Common Stock On May 24, 2011, we closed our IPO, in which we sold 6,003,804 shares of Class A common stock at a price to the public of $45.00 per share. The aggregate offering price...

  • Page 42
    ..., sales and marketing activities, including further expansion of our product development and field sales organizations and general corporate purposes. We have broad discretion over the uses of the net proceeds and may use a portion for the acquisition of, or investment in, technologies, solutions or...

  • Page 43
    .... 2011 Year Ended December 31, 2010 2009 2008 (in thousands, except per share data) 2007 Consolidated Statements of Operations Data: Net revenue ...Costs and expenses: Cost of revenue (exclusive of depreciation and amortization shown separately below) ...Sales and marketing ...Product development...

  • Page 44
    ... compensation included in the statements of operations data above was as follows: 2011 Year Ended December 31, 2010 2009 2008 (in thousands) 2007 Cost of revenue ...Sales and marketing ...Product development ...General and administrative ...Total stock-based compensation ... $ 1,678 8,074 13,625...

  • Page 45
    ...companies in our industry, may calculate adjusted EBITDA differently, which reduces its usefulness as a ...metrics, net income (loss) and our other GAAP results. The following table presents a reconciliation of adjusted EBITDA for each of the periods indicated: 2011 Year Ended December 31, 2010 2009...

  • Page 46
    ... increased sales of our hiring solutions, marketing solutions and premium subscriptions to new and existing customers. In 2012, our philosophy is to continue to invest for long-term growth. We expect to continue to invest heavily in our product development efforts to enable our members and customers...

  • Page 47
    ... sales of our hiring and marketing solutions and premium subscriptions, as customers will have access to a larger pool of professional talent. Growth in unique visitors will be driven by our international expansion, growth in the number of registered members and improvements to features and products...

  • Page 48
    ... LinkedIn Recruiter, Job Slots, LinkedIn Referral Engine (beta), LinkedIn Recruitment Media and LinkedIn Career Pages. We believe the number of LinkedIn Corporate Solutions customers is a key indicator of our market penetration in the online recruiting market, the productivity of our field sales...

  • Page 49
    ...to our online channel. Our online sales channel allows members to purchase solutions directly on our website. Members can purchase premium subscriptions as well as certain lower priced products in our hiring and marketing solutions, such as job postings and self-service advertising. This channel is...

  • Page 50
    ... the specific solution when sold separately. In determining VSOE, we require that a substantial majority of the selling prices for these services fall within a reasonably narrow pricing range. We have not historically priced our marketing solutions or certain products in our hiring solutions within...

  • Page 51
    ... per share fair value of our common stock underlying those options on the date of grant. Upon completion of our initial public offering on May 19, 2011, our Class A common stock was valued by reference to its publicly traded price. Expected Term. The expected term was estimated using the simplified...

  • Page 52
    ...taking the average historic price volatility for industry peers based on daily price observations over a period equivalent to the expected term of the stock option grants. Industry peers consist of several public companies in the technology industry similar in size, stage of life cycle and financial...

  • Page 53
    ... Expected lease term. The expected lease term is used in determining whether the lease is accounted for as an operating lease or a capital lease. A lease is considered a capital lease if the lease term exceeds 75% of the leased asset's useful life. The expected lease term is also used in determining...

  • Page 54
    ... September 2011, the FASB issued new authoritative guidance that gives companies the option to make a qualitative evaluation about the likelihood of goodwill impairment. Companies will be required to perform the two-step impairment test only if it concludes that the fair value of a reporting unit is...

  • Page 55
    ... our LinkedIn Corporate Solutions and LinkedIn Jobs products. We recognize the net revenue from sales of LinkedIn Corporate Solutions ratably over the subscription period, which is typically 12 months and billed annually, quarterly or monthly. We also sell LinkedIn Jobs on our website to enterprises...

  • Page 56
    ...the productivity of our expanded field sales organization and growth in our self service advertising solutions, both of which are positively impacted by increases in the number of our registered members and page views on our website. During the same period, net revenue from our premium subscriptions...

  • Page 57
    ... employees. In addition, sales and marketing expenses include customer acquisition marketing, branding, advertising and public relations costs, as well as allocated facilities and other supporting overhead costs. We plan to continue to invest heavily in sales and marketing to expand our global...

  • Page 58
    ..., marketing and public relations expenses of $3.1 million, and consulting and outside services expenses of $1.5 million. Product Development Our product development expenses primarily consist of salaries, benefits and stock-based compensation for our engineers, product managers and developers. In...

  • Page 59
    ... and stock-based compensation for our executive, finance, legal, information technology, human resources and other administrative employees. In addition, general and administrative expenses include outside consulting, legal and accounting services, and facilities and other supporting overhead costs...

  • Page 60
    ..., and changes in the fair value of a warrant during 2010 and 2009. Year Ended December 31, 2011 2010 2009 (in thousands) Interest income ...Gain (loss) on foreign exchange ...Net realized gain on sales of short-term investments ...Other non-operating expense net ...Total other income (expense), net...

  • Page 61
    ... Weighted-average shares used to compute net income (loss) per share attributable to common stockholders: Basic ...Diluted ...(1) Stock-based compensation included in above line items: Cost of revenue ...Sales and marketing ...Product development ...General and administrative ...Total stock-based...

  • Page 62
    ...31, 2011 2011 2011 2011 2010 2010 2010 2010 (as a percentage of revenue) Consolidated Statements of Operations Data: (1) Net revenue ...Costs and expenses: Cost of revenue ...Sales and marketing ...Product development ...General and administrative ...Depreciation and amortization ...Total costs and...

  • Page 63
    ... Liquidity and Capital Resources Year Ended December 31, 2011 2010 2009 (in thousands) Consolidated Statements of Cash Flows Data: Purchases of property and equipment ...Depreciation and amortization ...Cash flows provided by operating activities ...Cash flows used in investing activities ...Cash...

  • Page 64
    ... technology hardware to support our growth, software to support website functionality development, website operations and our corporate infrastructure. Purchases of property and equipment may vary from period to period due to the timing of the expansion of our operations and website and internal-use...

  • Page 65
    ... Obligations We lease our facilities in Mountain View, California under operating leases that we expect to expire in 2023. We lease other facilities around the world, the longest of which expires in 2020. We have several material long-term purchase obligations outstanding with third parties. We do...

  • Page 66
    .... All balance sheet hedges are marked-to-market through earnings each period. We do not enter into foreign currency forward contracts for speculative or trading purposes. As of December 31, 2011, the Company had five outstanding forward contracts with a total notional amount of $34.1 million...

  • Page 67
    ... Supplementary Data LINKEDIN CORPORATION INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Independent Registered Public Accounting Firm ...Consolidated Balance Sheets ...Consolidated Statements of Operations ...Consolidated Statements of Redeemable Convertible Preferred Stock, Stockholders...

  • Page 68
    REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of LinkedIn Corporation Mountain View, California We have audited the accompanying consolidated balance sheets of LinkedIn Corporation and subsidiaries (the "Company") as of December 31, 2011 and 2010,...

  • Page 69
    ... common stock, $0.0001 par value-40,637,575 Class A and 60,842,819 Class B shares issued and outstanding at December 31, 2011 and none issued and outstanding at December 31, 2010 ...Additional paid-in capital ...Accumulated other comprehensive income (loss) ...Accumulated earnings (deficit) ...Total...

  • Page 70
    ... per share data) Year Ended December 31, 2011 2010 2009 Net revenue ...Costs and expenses: Cost of revenue (exclusive of depreciation and amortization shown separately below) ...Sales and marketing ...Product development ...General and administrative ...Depreciation and amortization ...Total costs...

  • Page 71
    ..., STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME (LOSS) FOR THE YEARS ENDED DECEMBER 31, 2011, 2010 AND 2009 (In thousands, except shares) Stockholders' Equity Accumulated Other CompreAdditional hensive Accumulated Common Stock Paid-In Income Earnings Shares Amount Capital (Loss) (Deficit) 41,913,101...

  • Page 72
    ... with follow-on offering, net of offering costs 2,583,755 Issuance of common stock upon exercise of employee stock options 3,665,152 Issuance of common stock in connection with employee stock purchase plan 164,367 Issuance of common stock related to acquisitions 129,203 Vesting of early...

  • Page 73
    ... from initial public offering, net of offering costs ...Proceeds from follow-on offering, net of offering costs ...Proceeds from issuance of common stock ...Proceeds from early exercise of employee stock options ...Proceeds from the issuance of the employee stock purchase plan ...Proceeds from...

  • Page 74
    ... technology and network infrastructure; protection of customers' information and privacy concerns; security measures related to the Company's website; rates of revenue growth; engagement and usage of the Company's solutions; management of the Company's growth; new markets and international expansion...

  • Page 75
    ... of purchase. As of December 31, 2011 and 2010, cash equivalents consisted of money market funds. Short-term Investments Short-term investments consist of U.S. treasury securities and agency securities and are classified as available-for-sale securities. The Company may or may not hold securities...

  • Page 76
    ... $11.6 million for the years ended December 31, 2011, 2010 and 2009, respectively. Website and Software Development Costs The Company capitalizes its costs to develop its website and internal-use software when preliminary development efforts are successfully completed, management has authorized and...

  • Page 77
    ...adverse change in customer demand or business climate that could affect the value of goodwill or a significant decrease in expected cash flows. In September 2011, the Financial Accounting Standards Board ("FASB") issued new authoritative guidance that gives companies the option to make a qualitative...

  • Page 78
    .... Marketing Solutions-The Company earns revenue from the display of advertisements (both graphic and text link) on its website primarily based on a cost per advertisement model. Revenue from internet advertising is recognized net of any related agency commissions as the online advertisements are...

  • Page 79
    ... substantial majority of the selling prices for these services fall within a reasonably narrow pricing range. The Company has not historically priced its marketing solutions or certain products of its hiring solutions within a narrow range. As a result, the Company has only used VSOE to allocate the...

  • Page 80
    ... September 2011, the FASB issued new authoritative guidance that gives companies the option to make a qualitative evaluation about the likelihood of goodwill impairment. Companies will be required to perform the two-step impairment test only if it concludes that the fair value of a reporting unit is...

  • Page 81
    ...fair value hierarchy as of December 31, 2011 and 2010, are summarized as follows (in thousands): Level 1 December 31, 2011 Level 2 Level 3 Total Level 1 December 31, 2010 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds ...Short-term investments: U.S. treasury securities ...Agency...

  • Page 82
    ...-for-sale investments for the periods presented (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Market Value December 31, 2011: Cash ...Cash equivalents: Money market funds ...Short-term investments: U.S. treasury securities ...Agency securities ...Total...

  • Page 83
    ... of other intangible assets for the periods presented (dollars in thousands): Gross Carrying Amount Net Carrying Amount WeightedAverage Remaining Life $ - 12,249 $12,249 Accumulated Amortization December 31, 2011: Patent ...Developed technology ...Non-compete agreements ...Workforce in place...

  • Page 84
    ... for the periods presented (in thousands): December 31, 2011 2010 Accrued vacation and employee-related expenses ...Exercise of unvested stock options ...Accrued incentives ...Accrued sales tax and value-added taxes ...Other accrued expenses ...Total ... $15,709 4,806 24,600 5,839 7,690 $58...

  • Page 85
    ... The Company considered its preferred stock to be participating securities and, in accordance with the two-class method, earnings allocated to preferred stock and the related number of outstanding shares of preferred stock have been excluded from the computation of basic and diluted net income (loss...

  • Page 86
    ... used in basic calculation ...Weighted average effect of dilutive securities Add: Conversion of preferred stock in connection with initial public offering ...Conversion of Class B to Class A common shares outstanding ...Employee stock options ...Restricted stock units ...Employee stock purchase plan...

  • Page 87
    ... payments under non-cancelable operating leases for office facilities having initial terms in excess of one year as of December 31, 2011, are as follows (in thousands): Year Ending December 31, Operating Leases (1) 2012 ...2013 ...2014 ...2015 ...2016 ...Thereafter ...Total minimum lease payments...

  • Page 88
    ... Class B common stock. Warrant In connection with the line of credit agreement, on September 20, 2004, the Company issued a warrant to purchase 70,365 shares of Series A convertible preferred stock with an exercise price of $0.32 per share. The fair value of the warrant, based on an option valuation...

  • Page 89
    ... end of one year and the remaining vest quarterly thereafter. Early Exercise of Stock Options The Company typically allows employees to exercise options granted under the 2003 Plan prior to vesting. The unvested shares are subject to the Company's repurchase right at the original purchase price. The...

  • Page 90
    ...the exercise price of outstanding, in-the-money options. The Company's closing stock price as reported on the New York Stock Exchange as of December 31, 2011 was $63.01. The total intrinsic value of options exercised was approximately $177.5 million, $6.0 million and $0.7 million for the years ended...

  • Page 91
    ... summarizes information about outstanding and vested stock options as of December 31, 2011: Options Outstanding Weighted Average Numbers of Remaining Shares Contractual Weighted Average Outstanding Life (Years) Exercise Price Options Vested and Exercisable Exercise Price Number of Shares Weighted...

  • Page 92
    ...related to stock-based awards to employees and nonemployees on the Company's consolidated statements of operations during the periods presented (in thousands): Year Ended December 31, 2011 2010 2009 Cost of revenue ...Sales and marketing ...Product development ...General and administrative ...Total...

  • Page 93
    ...: Year Ended December 31, 2011 2010 2009 U.S. federal taxes at statutory rate ...State income taxes, net of federal benefit ...Foreign rate differential ...Permanent differences ...Stock-based compensation ...Change in valuation allowance ...Research and development credits ...Other ...Total...

  • Page 94
    ... net operating loss carryforwards related to stock options is approximately $51.1 million tax-effected. As of December 31, 2011, the Company had net operating loss carryforwards for federal income tax purposes of approximately $148.3 million, which expire at various dates beginning in the year 2023...

  • Page 95
    ... by information about revenue by product line and geographic region for purposes of allocating resources and evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or...

  • Page 96
    ... 2010 2009 Net revenue by product: Hiring Solutions ...Marketing Solutions ...Premium Subscriptions ...Total ... $260,885 155,848 105,456 $522,189 $101,884 79,309 61,906 $243,099 $ 36,136 38,278 45,713 $120,127 Year Ended December 31, 2011 2010 2009 Net revenue by geographic location: United...

  • Page 97
    ... facilities in various locations. The longest lease expires in 2022 and aggregate future minimum lease payments are approximately $26.5 million. In February 2012, the Company entered into additional purchase commitments with a provider of data center space for total future minimum payments of...

  • Page 98
    ... and procedures as of December 31, 2011, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level. Changes in Internal Control over Financial Reporting There was no change in our...

  • Page 99
    PART III Item 10. Directors, Executive Officers and Corporate Governance The information required by this item will be contained in our definitive proxy statement to be filed with the Securities and Exchange Commission in connection with our 2012 annual meeting of stockholders (the "Proxy Statement...

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    ... Schedules Schedules not listed above have been omitted because the information required to be set forth therein is not applicable or is shown in the financial statements or notes herein. 3. Exhibits See the Exhibit Index immediately following the signature page of this Annual Report on Form 10...

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    ... 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. LINKEDIN CORPORATION Dated: March 1, 2012 By: /S/ JEFFREY WEINER Jeffrey Weiner Chief Executive Officer and Director POWER OF ATTORNEY...

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    ...Form of Stock Option Agreement under 2011 Equity Incentive Plan. Form of Indemnification Agreement by and between LinkedIn Corporation and each of its directors and executive officers. Offer Letter, between LinkedIn Corporation and Jeffrey Weiner, dated September 9, 2009, effective June 24, 2009, as...

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    ... 10.11+ 10.12 2010 Executive Bonus Compensation Plan. Membership Units Purchase Agreement by and between LinkedIn Corporation and Reid Hoffman, dated June 13, 2008. Master Services Agreement by and between LinkedIn Corporation and Equinix Operating Co., Inc., dated February 27, 2008. Amendment No...

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    ... Stock Unit Agreement under 2011 Equity Incentive Plan. List of subsidiaries. Consent of Deloitte & Touche LLP, independent registered public accounting firm. Power of Attorney (see the signature page to this Annual Report on Form 10-K). Certification of Principal Executive Officer Required...

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    ... a list of subsidiaries of LinkedIn Corporation as of December 31, 2011: Name of Subsidiary Jurisdiction of Incorporation or Organization LinkedIn Technology Limited LinkedIn Ireland Limited LinkedIn Australia Pty Limited LinkedIn Technology Canada Inc. LinkedIn Netherlands B.V. LinkedIn Technology...

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    ... REGISTERED PUBLIC ACCOUNTING FIRM We consent to the incorporation by reference in Registration Statement No. 333-174454 on Form S-8 of our report dated March 2, 2012, relating to the consolidated financial statements of LinkedIn Corporation and its subsidiaries appearing in the Annual Report...

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    ... and report financial information; and Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. b) Date: March 1, 2012 /s/ Jeffrey Weiner Jeffrey Weiner Chief Executive Officer

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    ... the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and Any fraud, whether or not material, that involves management or other employees who have...

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    ... and that information contained in such Annual Report on Form 10-K fairly presents, in all material respects, the financial condition and results of operations of LinkedIn Corporation. Date: March 1, 2012 By: /s/ Jeffrey Weiner Name: Jeffrey Weiner Title: Chief Executive Officer I, Steven Sordello...

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