LinkedIn 2011 Annual Report Download - page 2

Download and view the complete annual report

Please find page 2 of the 2011 LinkedIn annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 112

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

Everywhere – We want LinkedIn to work everywhere our members work and no longer expect our users to be
tethered to their desktops or LinkedIn.com. Along those lines, in August we introduced new smartphone apps for
iOS and Android, as well as a new mobile website. The simplified experience sparked an acceleration in
engagement by mobile users, and Apple honored us by making LinkedIn a featured app of the week and top
social app of 2011. Subsequently, mobile became our fastest growing product or service by a substantial margin.
We also want to extend members’ Linkedin experience beyond our core site, and in the spring we opened up full
access to our platform. We now have more than 50,000 developers leveraging LinkedIn APIs who are powering
the professional web.
The Business of Connecting Talent with Opportunity – In addition to our members, our business grew at a
healthy pace in 2011. Total revenue increased 115% year over year, to $522 million, accelerating versus the prior
year. Through the end of Q4, revenue grew greater than 100% for six consecutive quarters, underscoring the
business’s rapid pace of expansion. Hiring Solutions, our largest and fastest growing business, grew 156% to
$261 million. Marketing Solutions also experienced strong traction in 2011, growing 97% to $156
million. Premium Subscriptions outpaced our expectations in 2011 by a wide margin, growing 70% to $105
million.
Talent isn’t just the business we’re in, it’s also the company’s top operating priority, and our ongoing growth
enables us to continue investment in 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
22 cities around the world. We are encouraged by the team’s continued ability to maintain our values and culture
in each of those new offices, as well as our ability to achieve high recruiting yields and close rates with new
candidates. We also had great success in establishing our internship and university recruiting programs, thus
building a strong long-term foundation for future recruiting efforts as well.
Despite the magnitude of investment we made in 2011, bottom line performance outpaced our own expectations.
Adjusted EBITDA ended the year at $99 million, a 19% margin.1
It was an exciting year for our company, and we are proud of our accomplishments. We’d like to thank our
members, employees and investors for their support throughout the year, and we look forward to the
opportunities ahead.
Sincerely,
Jeffrey Weiner
Chief Executive Officer
1To 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 2011
was approximately $11.9 million. For a full reconciliation of net income and adjusted EBITDA, please see page
41 of the annual report attached to this letter.