LinkedIn 2012 Annual Report Download - page 2

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26APR201302202521
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,
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 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.