LinkedIn 2014 Annual Report Download - page 24

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While the number of registered members represents what we believe to be reasonable estimates of our
member base, there are inherent challenges in ensuring that the number of registered members
presents an accurate reflection of our member network. For example, we do not have a reliable system
for identifying and counting duplicate or fraudulent accounts, or deceased, incapacitated or other
non-members and so we rely on estimates and assumptions, which may not be accurate. In addition,
our methodology for measuring our membership numbers, and specifically for making estimates
regarding non-members who should not be included as registered members, has changed over time
and may continue to change from time to time. While we are using what we believe to be reasonable
and appropriate methods of measuring the number of registered members, there are no methodologies
available that would provide us with an exact number of non-actual member types of accounts.
Therefore, we cannot assure you that our current or future methodologies are accurate, and we will
need to continue to adjust them in the future from time to time, which could result in the number of
registered members being lower or higher than expected. Further, a substantial majority of our
members do not visit our websites on a monthly basis, and a substantial majority of our desktop and
mobile traffic is generated by a minority of our members. If the number of our actual members does not
meet our expectations, if the rate at which we add new members slows or declines or if we are unable
to increase the breadth and frequency of our visiting members, then our business may not grow as fast
as we expect.
The tracking of certain of our performance metrics is done with internal tools and is not
independently verified. Certain of our performance metrics are subject to inherent challenges in
measurement, and real or perceived inaccuracies in such metrics may harm our reputation and
negatively affect our business.
We track certain performance metrics, including number of registered members, unique visiting
members and member page views, with internal tools, which are not independently verified by any third
party. Our internal tools have a number of limitations and our methodologies for tracking these metrics
may change over time, which could result in unexpected changes to our metrics, including the metrics
we report. If the internal tools we use to track these metrics undercount or overcount performance or
contain algorithm or other technical errors, the data we report may not be accurate. In addition,
limitations or errors with respect to how we measure data may affect our understanding of certain
details of our business, which could affect our longer term strategies. If our performance metrics are
not accurate representations of our member base or traffic levels, or if we discover material
inaccuracies in our metrics, our reputation may be harmed and our operating and financial results could
be adversely affected, causing our stock price to decline. In addition, historically, we reported
information regarding certain of our internal metrics based on data provided by comScore, a leading
provider of digital marketing intelligence. We recently began disclosing certain of these internal metrics,
as opposed to reporting the comScore information, and inconsistency between these internal metrics
and comScore data regarding our metrics could confuse investors or lead to questions about the
integrity of our internal data.
If our members’ profiles are out-of-date, inaccurate or lack the information that users and
customers want to see, we may not be able to realize the full potential of our network, which
could adversely impact the growth of our business.
If our members do not update their information or provide accurate and complete information when
they join LinkedIn, or do not establish sufficient connections, the value of our network may be
negatively impacted because our value proposition as a professional network and as a source of
accurate and comprehensive data will be weakened. For example, customers of our Talent Solutions
may not find members that meet their qualifications or may misidentify a candidate as having such
qualifications, which could result in mismatches that erode customer confidence in our solutions.
Similarly, incomplete or outdated member information would diminish the ability of our Marketing or
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