LinkedIn 2014 Annual Report Download - page 30

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we expect that due to increased expenses, in particular, stock-based compensation, depreciation and
amortization and provision for income taxes, we may incur a GAAP loss during future periods including
the first quarter of 2015. If we fail to continue to grow our revenue and overall business, our operating
results and business would be harmed.
We face competition in the market for online professional networks from social networking sites
and Internet search companies, among others, as well as continued competition for customers.
We face significant competition in all aspects of our business, and we expect such competition to
increase, particularly in the market for online professional networks and engagement of professionals.
Our industry is evolving rapidly and is becoming increasingly competitive. Larger and more
established companies may focus on our market and could directly compete with us. Smaller
companies, including application developers, could also launch new products and services that
compete with us and that could gain market acceptance quickly. We may also face competition if we
shift our focus of development to new or different products or separate areas of our business.
We expect our existing competitors in the markets for Talent Solutions, Marketing Solutions,
Premium Subscriptions (including Sales Solutions) to continue to focus on these areas. A number of
these companies may have greater resources than us, which may enable them to compete more
effectively. Specifically, we are investing significantly in our Marketing Solutions products with respect
to content and mobile solutions, and we may not be as successful as our competitors in generating
revenue through new forms of content marketing or mobile advertising. Additionally, users of social
networks may choose to use, or increase their use of, those networks for professional purposes, which
may result in those users decreasing or eliminating their use of LinkedIn. Companies that currently
focus on social networking could also expand their focus to professionals. We and other companies
have historically established alliances and relationships with some of these companies to allow broader
exposure to users and access to data on the Internet. We may also, in the future, establish alliances or
relationships with other competitors or potential competitors. To the extent companies terminate such
relationships and establish alliances and relationships with others, our business could be harmed.
Additionally, other companies that provide content for professionals could develop more compelling
offerings than ours. This could impact the engagement of our members, and could also compete with
our Premium Subscriptions and adversely impact our ability to sell and renew subscriptions to our
members. Specifically, we compete for members, enterprises and professional organizations as
discussed below.
Members-professional networks. The space for online professional networks is rapidly evolving.
Other companies such as Facebook, Google, Microsoft and Twitter are developing or could develop
solutions that compete with ours. Further, some of these companies are partnering with third parties to
offer products and services that could compete with ours. Additionally, we face competition from a
number of companies outside the United States that provide online professional networking solutions.
We also compete against smaller companies that focus on groups of professionals within a specific
industry or vertical. Our competitors may announce new products, services or enhancements that better
address changing industry standards or the needs of members and customers, such as mobile access
or different market focus. Any such increased competition could cause pricing pressure, loss of
business or decreased member activity, any of which could adversely affect our business and operating
results. Internet search engines could also change their methodologies in ways that adversely affect
our ability to optimize our page rankings within their search results.
Enterprises and professional organizations-Talent Solutions. With respect to our Talent Solutions,
we compete with online recruiting companies, talent management companies and larger companies
that are focusing on talent management and human resource services, job boards and traditional
recruiting firms. Additionally, other companies, including newcomers to the recruiting industry, may
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