LinkedIn 2011 Annual Report Download - page 47

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Key Metrics
We regularly review a number of metrics, including the following key metrics, to evaluate our business,
measure our performance, identify trends affecting our business, formulate financial projections and make
strategic decisions. We believe our number of registered members, unique visitors and page views were
positively impacted by the completion of our IPO in 2011.
•Number of Registered Members.We define the number of registered members in our network as the
number of individual users who have created a member profile on our website as of the date of
measurement. We believe the number of registered members is a key indicator of the growth of our
network and our ability to receive the benefits of the network effects resulting from such growth.
Growth in our member base depends, in part, on our ability to successfully develop and market our
solutions to professionals who have not yet become members of our network. Member growth will also
be contingent on our ability to include additional languages on our website and continued international
expansion of our member base. We typically experience slower member growth in the third quarter of
the year as a result of decreased Internet usage by professionals during the summer months. We believe
that a higher number of registered members will result in increased sales of our hiring and marketing
solutions and premium subscriptions, as customers will have access to a larger pool of professional
talent.
December 31, December 31,
2011 2010 % Change 2010 2009 % Change
(in thousands)
Number of registered members (1) .............. 144,974 90,437 60% 90,437 55,111 64%
(1) The number of registered members is higher than the number of actual members due to various factors. For
more information, see “Risk Factors—The number of our registered members is higher than the number of
actual members, and a substantial majority of our page views are generated by a minority of our members.”
The number of our registered members increased by 60% in 2011 compared to 2010, and by 64% in 2010
compared to 2009. Over these same periods, we experienced even greater increases in our net revenue.
While growth in the number of registered members is an important indicator of expected revenue growth, it
also informs our management’s decisions with respect to those areas of our business that will require further
investment to support expected future membership growth. For example, as the number of registered
members increases, we will need to increase our capital expenditures to improve our information technology
infrastructure to maintain the effectiveness of our solutions and the performance of our website for our
members.
•Unique Visitors.We define unique visitors as users who have visited our website at least once during a
month regardless of whether they are a member, based on data provided by comScore, a leading
provider of digital marketing intelligence. We view unique visitors as a key indicator of growth in our
brand awareness among users and whether we are providing our members with useful products and
features, thereby increasing member engagement. We believe that a higher level of member
engagement will result in increased 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 that drive member traffic to our website.
December 31,
2011 2010 % Change
(in millions)
Unique visitors (1) ...................................... 84 52 62%
(1) Worldwide data provided by comScore, a leading provider of digital marketing intelligence. Beginning in
August 2009, comScore changed the method by which it counts traffic, which makes prior data not
meaningful for period over period comparison purposes.
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