LinkedIn 2015 Annual Report Download - page 60

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Results of Operations
The following table sets forth our results of operations for the periods presented as a percentage
of net revenue for those periods. The period-to-period comparison of financial results is not necessarily
indicative of future results.
Year Ended
December 31,
2015 2014 2013
(as a percentage of
net revenue)
Consolidated Statements of Operations Data:(1)
Net revenue ................................................... 100%100%100%
Costs and expenses:
Cost of revenue (exclusive of depreciation and amortization shown separately
below) .................................................... 14 13 13
Sales and marketing ............................................ 35 35 34
Product development ........................................... 26 24 26
General and administrative ....................................... 16 15 15
Depreciation and amortization ..................................... 14 11 9
Total costs and expenses ...................................... 105 98 97
Income (loss) from operations ....................................... (5) 2 3
Other income (expense), net:
Interest income ............................................... — — —
Interest expense ............................................... (2) — —
Other, net ................................................... (1) — —
Other income (expense), net .................................... (2) — —
Income (loss) before income taxes ................................... (7) 1 3
Provision (benefit) for income taxes ................................... (2) 2 1
Net income (loss) ............................................... (6) (1) 2
Accretion of redeemable noncontrolling interest .......................... — — —
Net income (loss) attributable to common stockholders ..................... (6)% (1)% 2%
(1) Certain items may not total due to rounding.
Net Revenue
We generate revenue from Talent Solutions, Marketing Solutions, and Premium Subscriptions.
Talent Solutions. Talent Solutions revenue is comprised of Hiring and Learning & Development
products. Hiring products primarily consist of LinkedIn Recruiter, Job Slots, Career Pages, Job
Postings, Job Seeker subscriptions and Recruiter Lite subscriptions. The Company provides access to
its professional database of both active and passive job candidates with LinkedIn Recruiter, which
allows corporate recruiting teams to identify candidates based on industry, job function, geography,
experience/education, and other specifications. Revenue from the LinkedIn Recruiter product is
recognized ratably over the subscription period, which consists primarily of annual subscriptions that
are billed monthly, quarterly, or annually. The Company also earns revenue from Job Slots, which
enable an enterprise or professional organization to post jobs on its website, and allows the job that is
posted to be changed, updated or modified over the life of the contract. Revenue from Job Slots is
recognized ratably over the contract, typically 12 months. Career Pages give enterprises and
58