LinkedIn 2015 Annual Report Download - page 33

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manage this growth, we will need to continue to improve our operational, financial and management
controls, and our reporting systems and procedures by, among other things:
• improving our information technology infrastructure to maintain the effectiveness of our solutions;
• enhancing information and communication systems to ensure that our employees and offices
around the world are well-coordinated and can effectively communicate with each other and our
growing base of members, enterprises and professional organizations;
• enhancing our internal controls to ensure timely and accurate reporting of all of our operations;
and
• appropriately documenting our information technology systems and our business processes.
These systems enhancements and improvements will require significant capital expenditures and
allocation of valuable management and employee resources. If we fail to implement these
improvements effectively, our ability to manage our expected growth and comply with the rules and
regulations that are applicable to publicly reporting companies will be impaired.
We depend on world class talent to grow and operate our business, and if we are unable to
hire, retain and motivate our personnel, we may not be able to grow effectively.
Our future success will depend upon our continued ability to identify, hire, develop, motivate and
retain world class talent. Our ability to execute efficiently is dependent upon contributions from all of
our employees, in particular our senior management team. Key institutional knowledge remains with a
small group of long-term employees whom we may not be able to retain. We may not be able to retain
the services of any of our long-term employees or other members of senior management in the future.
We do not have employment agreements other than offer letters with any of our key employees, and
we do not maintain key person life insurance for any employee. In addition, from time to time, there
may be changes in our senior management team that may be disruptive to our business. If our senior
management team, including any new hires that we may make, fails to work together effectively and to
execute our plans and strategies on a timely basis, our business could be harmed.
Our growth strategy also depends on our ability to expand and retain our organization with world
class talent. Identifying, recruiting, training and integrating qualified individuals will require significant
time, expense and attention. In addition to hiring new employees, we must continue to focus on
retaining our best talent. Competition for these resources, particularly for engineers, is intense, and
competition for the facilities to house our employees is also intense, specifically in the San Francisco
Bay Area, where our headquarters is located. We may need to invest significant amounts of cash and
equity for new and existing employees and we may never realize returns on these investments, and we
also are investing heavily in our facilities. If we are not able to effectively increase and retain our talent,
our ability to achieve our strategic objectives will be adversely impacted, and our business will be
harmed.
Our international operations account for a significant portion of our revenue and are subject to
increased challenges and risks.
We have offices around the world and our websites and mobile applications are available in
numerous languages. For the year ended December 31, 2015, international revenue represented 38%
of our total revenue. We expect to continue to expand our international operations in the future by
opening offices in different countries and expanding our offerings in new languages. Our ability to
manage our business and conduct our operations internationally, including in emerging markets,
requires considerable management attention and resources and is subject to the particular challenges
of supporting a rapidly growing business in an environment of multiple languages, cultures, customs,
legal systems, alternative dispute resolution systems, regulatory systems and commercial
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