LinkedIn 2014 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2014 LinkedIn annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 131

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131

Results of Operations
The following tables set 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,
2014 2013 2012
(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) .................................................... 13 13 13
Sales and marketing ............................................ 35 34 33
Product development ........................................... 24 26 26
General and administrative ....................................... 15 15 13
Depreciation and amortization ..................................... 11 9 8
Total costs and expenses ...................................... 98 97 94
Income from operations ........................................... 2 3 6
Other income (expense), net ........................................ — — —
Income before income taxes ........................................ 1 3 6
Provision for income taxes ......................................... 2 1 4
Net income (loss) ............................................... (1) 2 2
Accretion of redeemable noncontrolling interest .......................... — — —
Net income (loss) attributable to common stockholders ..................... (1)% 2% 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. Revenue from Talent Solutions is derived primarily from providing access to the
LinkedIn Recruiter product and job postings. We provide access to our 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.
We also earn revenue from the placement of job postings on our website, which generally run for
30 days. Independent recruiters can pay to post job openings that are accessible through job searches
or targeted job matches. Revenue from job postings is recognized as the posting is displayed or at the
expiration of the contract period, if unutilized.
Marketing Solutions. Revenue from Marketing Solutions is earned from the display of
advertisements (both graphic and text link) on our website primarily based on a cost per advertisement
model. Revenue from Internet advertising is recognized as the online advertisements are displayed on
our website. The typical duration of our advertising contracts is approximately two months.
58