LinkedIn 2013 Annual Report Download - page 22

We do not carry business interruption insurance sufficient to compensate us for the potentially
significant losses, including the potential harm to the growth of our business that may result from
interruptions in our service as a result of system failures.
If our security measures are compromised, or if our websites are subject to attacks that degrade or deny the
ability of members or customers to access our solutions, or if our member data is compromised, members and
customers may curtail or stop use of our solutions.
Our solutions involve the collection, processing, storage, sharing, disclosure and usage of members’
and customers’ information and communications, some of which may be private. We are vulnerable to
computer viruses, break-ins, phishing attacks, attempts to overload our servers with denial-of-service or
other attacks and similar disruptions from unauthorized use of our computer systems, any of which could
lead to interruptions, delays, or website shutdowns, causing loss of critical data or the unauthorized
disclosure or use of personally identifiable or other confidential information. For example, in June 2012,
approximately 6.5 million of our members’ encrypted passwords were stolen and published on an
unauthorized website. We also work with third party vendors to process credit card payments by our
customers and are subject to payment card association operating rules. If we experience compromises to
our security that result in website performance or availability problems, the complete shutdown of our
websites, or the loss or unauthorized disclosure of confidential information, such as credit card
information, our members or customers may be harmed or lose trust and confidence in us, and decrease
the use of our website and services or stop using our services in their entirety, and we would suffer
reputational and financial harm.
In addition, we are, and in the future could be, subject to regulatory investigations and litigation in
connection with a security breach or related issue, and we could also be liable to third parties for these
types of breaches. Such litigation, regulatory investigations and our technical activities intended to prevent
future security breaches are likely to require additional management resources and expenditures. If our
security measures fail to protect this information adequately or we fail to comply with the applicable
credit card association operating rules, we could be liable to both our customers for their losses, as well as
the vendors under our agreements with them, we could be subject to fines and higher transaction fees, we
could face regulatory action, and our customers and vendors could end their relationships with us, any of
which could harm our business and financial results.
Our core value of putting our members first may conflict with the short-term interests of our business.
One of our core values is to make decisions based on the best long-term interests of our members,
which we believe is essential to our success in increasing our member growth rate and engagement and in
serving the best, long-term interests of the company and our stockholders. Therefore, in the past, we have
forgone, and may in the future forgo, certain expansion or short-term revenue opportunities that we do
not believe are in the best interests of our members, even if our decision negatively impacts our operating
results in the short term. In addition, as part of our philosophy of putting our members first, as long as
our members are adhering to our terms of service, this philosophy may cause disagreements, or negatively
impact our relationships, with our existing or prospective customers. This could result in enterprises and
professional organizations blocking access to our services or refusing to purchase our Talent or Marketing
Solutions or Premium Subscriptions. Our decisions may not result in the long-term benefits that we
expect, in which case our member engagement, business and operating results could be harmed.
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