LinkedIn 2012 Annual Report Download - page 45

Stock-based compensation included in the statements of operations data above was as follows:
Year Ended December 31,
2012 2011 2010 2009 2008
(in thousands)
Cost of revenue ................................ $ 6,416 $ 1,678 $ 439 $ 370 $ 298
Sales and marketing ............................. 17,726 8,074 1,225 657 513
Product development ............................ 46,026 13,625 3,248 2,346 1,214
General and administrative ....................... 16,151 6,391 3,920 2,779 2,580
Total stock-based compensation ................... $86,319 $29,768 $8,832 $6,152 $4,605
As of December 31,
2012 2011 2010 2009 2008
(in thousands)
Consolidated Balance Sheet Data:
Cash and cash equivalents ................ $ 270,408 $339,048 $ 92,951 $ 89,979 $ 80,495
Short-term investments .................. 479,141 238,456 — — —
Property and equipment, net .............. 186,677 114,850 56,743 25,730 21,724
Working capital ........................ 603,418 499,268 66,734 71,885 71,486
Total assets ........................... 1,382,330 873,697 238,188 148,559 122,062
Redeemable convertible preferred stock ...... — — 87,981 87,981 87,981
Convertible preferred stock ............... — — 15,846 15,413 15,413
Total stockholders’ equity ................. 908,424 624,979 36,249 9,082 5,230
Adjusted EBITDA
To provide investors with additional information regarding our financial results, we have disclosed in
the table below and within this Annual Report on Form 10-K adjusted EBITDA, a non-GAAP financial
measure. We have provided a reconciliation below of adjusted EBITDA to net income (loss), the most
directly comparable GAAP financial measure.
We have included adjusted EBITDA in this Annual Report on Form 10-K because it is a key
measure used by our management and board of directors to understand and evaluate our core operating
performance and trends, to prepare and approve our annual budget and to develop short- and long-term
operational plans. In particular, the exclusion of certain expenses in calculating adjusted EBITDA can
provide a useful measure for period-to-period comparisons of our core business. Additionally, adjusted
EBITDA is a key financial measure used by the compensation committee of our board of directors in
connection with the payment of bonuses to our executive officers. Accordingly, we believe that adjusted
EBITDA provides useful information to investors and others in understanding and evaluating our
operating results in the same manner as our management and board of directors.
Our use of adjusted EBITDA has limitations as an analytical tool, and you should not consider it in
isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations
are:
• although depreciation and amortization are non-cash charges, the assets being depreciated and
amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash
capital expenditure requirements for such replacements or for new capital expenditure
requirements;
• adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
• adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation;
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