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Q3’13 Earnings
October 2013

2
Safe harbor
“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation contains
forward-looking statements about our products, including our investments in products, technology and other key
strategic areas, certain non-financial metrics, such as member growth and engagement, and our expected financial
metrics such as revenue, adjusted EBITDA, depreciation and amortization and stock-based compensation for the
fourth quarter of 2013 and the full fiscal year 2013. The achievement of the matters covered by such forward-looking
statements involves risks, uncertainties and assumptions.  If any of these risks or uncertainties materialize or if any of
the assumptions prove incorrect, the company’s results could differ materially from the results expressed or implied
by the forward-looking statements the company makes.
The risks and uncertainties referred to above include - but are not limited to - risks associated with: our limited
operating history in a new and unproven market; engagement of our members; the price volatility of our Class A
common stock; general economic conditions; expectations regarding the return on our strategic investments;
execution of our plans and strategies, including with respect to mobile products and features; security measures and
the risk that they may not be sufficient to secure our member data adequately or that we are subject to attacks that
degrade or deny the ability of members to access our solutions; expectations regarding our ability to timely and
effectively scale and adapt existing technology and network infrastructure to ensure that our solutions are accessible
at all times with short or no perceptible load times; our ability to maintain our rate of revenue growth and manage our
expenses and investment plans; our ability to accurately track our key metrics internally; members and customers
curtailing or ceasing to use our solutions; our core value of putting members first, which may conflict with the shortterm interests of the business; privacy and changes in regulations in the United States, Europe or elsewhere, which
could impact our ability to serve our members or curtail our monetization efforts; litigation and regulatory issues;
increasing competition; our ability to manage our growth; our ability to recruit and retain our employees; the
application of US and international tax laws on our tax structure and any changes to such tax laws; acquisitions we
have made or may make in the future; and the dual class structure of our common stock.
Further information on these and other factors that could affect the company’s financial results is included in filings it
makes with the Securities and Exchange Commission from time to time, including the section entitled “Risk Factors” in
the company’s Annual Report on Form 10-K that was filed for the year ended December 31, 2012, and additional
information will also be set forth in our Form 10-Q that will be filed for the quarter ended September 30, 2013, which
should be read in conjunction with these financial results.  These documents are or will be available on the SEC Filings
section of the Investor Relations page of the company's website at http://investors.linkedin.com/.  All information
provided in this release and in the attachments is as of October 29, 2013, and LinkedIn undertakes no duty to update
this information.

3
Who we are

4
Our mission

Connect the world’s professionals
to make them more productive
and successful

5
Our vision

Create economic opportunity for
every member of the global
workforce

6
What we do

7
The value we create for our members

Identity

Insights

Everywhere

The professional
profile of record

The definitive
professional publishing
platform

Work wherever our
members work

8
Growing global network

1

259M+

>2 New

Members worldwide

Members per second

1

184M

2

Monthly unique visitors

1 As of 9/30/13 based on internal estimates | 2 Average monthly number of unique visitors for Q3’13 according to comScore using LinkedIn +
SlideShare

9
The value we create for our customers

Hire

Market

Sell

Enable passive recruiting
at massive scale

Most effective way for
companies to engage
with professionals

Transform cold calls
into warm prospects

10
Our operating priorities

Talent

Technology

Product

Monetization

Build a world
class team

Create data driven
development at scale

Develop products
our members love

Scale profitable
business lines

11
Key metrics and results

12
Engagement metrics

259
143 142

238
132

218

11.711.6
11.1

202
116

187
174

103

161
145

88

131

106

110

9.8
9.4 9.3
8.9

92

82

7.6 7.6

75

116

7.1 7.1

Members (mn)

Unique visitors, comScore (mn)

1

1 comScore metrics reflect LinkedIn site only, not including SlideShare

Page views, comScore (bn)

Q3’13

Q2’13

Q1’13

Q4’12

Q3’12

Q2’12

Q1’12

Q4’11

Q3’11

Q2’11

Q1’11

Q3’13

Q2’13

Q1’13

Q4’12

Q3’12

Q2’12

Q1’12

Q4’11

Q3’11

Q2’11

Q1’11

Q3’13

Q2’13

Q1’13

Q4’12

Q3’12

Q2’12

Q1’12

Q4’11

Q3’11

Q2’11

Q1’11

102

1

13
Revenue
$393
$364

160%

140%

$325
$304

120%

$252

100%

$228
$168
$121

$45

$55

$62

$82

80%

$188

60%

$139

40%

$94

20%

Net revenue ($mn)

Q3’13

Q2’13

Q1’13

Q4’12

Q3’12

Q2’12

Q1’12

Q4’11

Q3’11

Q2’11

Q1’11

Q4’10

Q3’10

Q2’10

Q1’10

0%

% Y/Y
14
Revenue by product
$393
$364
$325
$304

20%
20%

20%

$252
$228
$188

Talent Solutions

57%
53%

51%

54%

Marketing Solutions

53%

55%

Q3’13

49%

56%

Q1’13

44%

51%

57%

Q4’12

44%

48%

25%

Q3’12

40%

Q4’10

30%

27%

30%

32%

29%

23%

28%

Q1’12

34%

20%

25%

Q4’11

25%

27%
33%

29%

Q3’11

22%

21%

20%

20%

Q2’11

$62

Q3’10

Q1’10

30%
32%
38%

$55

Q2’10

$45

$94

Q1’11

$82

20%

20%

24%

19%

Q2’12

$121

$139

23%

Q2’13

$168

20%

Premium Subscriptions
15
Revenue by geography
$393
$364
$325
$304
7%

$252
$228
$188
$168

US

8%
23%

23%
23%

22%
22%

62%
62%
62%

62%

64%

EMEA

APAC

Q3’13

Q2’13

Q1’13

Q4’12

67%

65%

Q3’12

67%

64%

Q2’12

74%

68%

8%

23%

8%

23%

Q1’12

73%

69%

7%

7%

21%

Q4’11

73%

71%

Q4’10

20%

Q3’10

18%

Q2’10

20%

$62

Q1’10

20%

$55

5%
5%
21%

Q2’11

$45

$94

Q1’11

$82

5%
5%
21%

6%
6%
21%

Q3’11

$121

$139

6%
6%

6%
7%

7%
7%

7%
7%

7%

7%

Other Americas
16
Revenue by channel
$393
$364
$325
$304
42%
42%

$252
43%

$228
41%

$188
43%

$168

45%

Field

Q3’13

Q2’13

Q1’13

Q4’10

Q3’12

Q3’10

57%

57%

Q2’12

54%

53%

54%

Q1’12

55%

55%

Q2’11

53%

54%

57%

57%

46%

46%
59%

59%

Q4’11

41%

Q2’10

45%

$62

Q1’10

47%

$55

58%

47%

Q1’11

$45

$94

46%
43%

Q3’11

$82

58%

Q4’12

$121

$139

43%

Online
17
1

Adjusted EBITDA

$89
$79

$93
30%

$83

$56

20%

$50

$34
$26
$16
$9

$11

$11

$38
10%

$25

$13

Adj EBITDA ($mn)

Q3’13

Q2’13

Q1’13

Q4’12

Q3’12

Q2’12

Q1’12

Q4’11

Q3’11

Q2’11

Q1’11

Q4’10

Q3’10

Q2’10

Q1’10

0%

% of revenue

1 Adjusted EBITDA is a Non-GAAP financial measure. For a reconciliation of Adjusted EBITDA to net income please see slide 21.
The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information
prepared and presented in accordance with GAAP

18
Net income (loss) & cash flow
Q3 2013

Non-GAAP net income
GAAP EPS

2

Non-GAAP EPS
Operating cash flow
Free cash flow

1

1, 3

Cash, cash equivalents &
short-term investments
1

$2.3

$47

$44

$25

$0.03

$0.02

$0.38

$0.22

$124

$88

$43

2

$3.7

$126

1

($3.4)

$0.39

GAAP net income (loss)

Q3 2012

($0.03)

1

Q2 2013

$31

$54

$2,272

$873

$677

1 In millions | 2 EPS is based on fully-diluted weighted share count | 3 Free cash flow is calculated by subtracting purchases of property and equipment from
operating cash flow

19
1

Non-GAAP reconciliations
Three Months
Ended Sep 30
2013
Non-GAAP net income and net income
per share
GAAP net income (loss)

Three Months
Ended Sep 30
2012

Nine Months
Ended Sep 30
2013

Nine Months
Ended Sep 30
2012

($3,363)

$2,302

$22,987

$10,102

Add back: stock-based compensation

54,445

26,798

136,738

58,747

Add back: amortization of intangibles

3,832

3,770

12,350

6,929

(8,120)

(7,732)

(28,422)

(15,655)

NON-GAAP NET INCOME

$46,794

$25,138

$143,653

$60,123

GAAP diluted shares

113,940

113,618

117,090

112,420

119,188

113,618

117,090

112,420

$0.39

$0.22

$1.23

$0.53

($3,363)

$2,302

$22,987

$10,102

Provision for income taxes

8,155

4,406

12,982

20,270

Other (income) expense, net

(156)

(672)

404

(228)

Depreciation and amortization

33,767

23,122

91,766

55,552

Stock-based compensation

54,445

26,798

136,738

58,747

$92,848

$55,956

$264,877

$144,443

Income tax effect of non-GAAP adj.

Add back: dilutive shares under
treasury stock method
NON-GAAP DILUTED SHARES
NON-GAAP DILUTED NET INCOME
PER SHARE

5,248

Adjusted EBITDA
GAAP net income (loss)

Adjusted EBITDA

1 In thousands, except per share data

20
1

Non-GAAP adjusted EBITDA reconciliation
(In millions) (Unaudited)

Q1’10

Q2’10

Q3’10

Q4’10

Q1’11

Q2’11

Q3’11

Q4’11

Q1’12

Q2’12

Q3’12

Q4’12

Q1’13

Q2’13

Q3’13

$1.8

$4.3

$4.0

$5.3

$2.1

$4.5

($1.6)

$6.9

$5.0

$2.8

$2.3

$11.5 $22.6

$3.7

($3.4)

Provision for income
taxes

1.0

0.7

0.5

1.4

(0.3)

5.4

4.4

1.5

5.8

10.0

4.4

15.2

0.7

4.1

8.2

Other (income)
expense, net

0.3

0.4

(0.4)

0.3

(0.4)

0.0

1.8

1.6

(0.2)

0.7

(0.7)

0.0

0.3

0.3

(0.2)

Depreciation and
amortization

3.9

4.2

4.8

6.6

8.2

9.6

11.6

13.8

14.9

17.5

23.1

24.3

25.8

32.2

33.8

Stock-based
compensation

1.9

2.0

2.2

2.7

3.8

6.8

8.5

10.6

12.6

19.3

26.8

27.6

33.9

48.4

54.4

GAAP net income
(loss)

Adjusted EBITDA

$9.1

$11.5 $11.1 $16.3 $13.3 $26.3 $24.7 $34.4 $38.1 $50.4 $56.0 $78.6 $83.4 $88.6 $92.8

1 Adjusted EBITDA is a Non-GAAP financial measure. The presentation of this financial information is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared and presented in accordance with GAAP

21
Guidance

1, 2

Q4 2013

FY 2013

Revenue

$415-420

~$1,500

Adjusted EBITDA

$98-100

~$364

Depreciation & amortization

$43-45

~$136

Stock-based compensation

$55-57

~$193

1 All guidance figures are approximate values | 2 In millions

22
Thank you

23
©2013 LinkedIn Corporation. All Rights Reserved.

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LinkedIn Q3 2013 Earnings Call

  • 1.
  • 3. Safe harbor “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements about our products, including our investments in products, technology and other key strategic areas, certain non-financial metrics, such as member growth and engagement, and our expected financial metrics such as revenue, adjusted EBITDA, depreciation and amortization and stock-based compensation for the fourth quarter of 2013 and the full fiscal year 2013. The achievement of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions.  If any of these risks or uncertainties materialize or if any of the assumptions prove incorrect, the company’s results could differ materially from the results expressed or implied by the forward-looking statements the company makes. The risks and uncertainties referred to above include - but are not limited to - risks associated with: our limited operating history in a new and unproven market; engagement of our members; the price volatility of our Class A common stock; general economic conditions; expectations regarding the return on our strategic investments; execution of our plans and strategies, including with respect to mobile products and features; security measures and the risk that they may not be sufficient to secure our member data adequately or that we are subject to attacks that degrade or deny the ability of members to access our solutions; expectations regarding our ability to timely and effectively scale and adapt existing technology and network infrastructure to ensure that our solutions are accessible at all times with short or no perceptible load times; our ability to maintain our rate of revenue growth and manage our expenses and investment plans; our ability to accurately track our key metrics internally; members and customers curtailing or ceasing to use our solutions; our core value of putting members first, which may conflict with the shortterm interests of the business; privacy and changes in regulations in the United States, Europe or elsewhere, which could impact our ability to serve our members or curtail our monetization efforts; litigation and regulatory issues; increasing competition; our ability to manage our growth; our ability to recruit and retain our employees; the application of US and international tax laws on our tax structure and any changes to such tax laws; acquisitions we have made or may make in the future; and the dual class structure of our common stock. Further information on these and other factors that could affect the company’s financial results is included in filings it makes with the Securities and Exchange Commission from time to time, including the section entitled “Risk Factors” in the company’s Annual Report on Form 10-K that was filed for the year ended December 31, 2012, and additional information will also be set forth in our Form 10-Q that will be filed for the quarter ended September 30, 2013, which should be read in conjunction with these financial results.  These documents are or will be available on the SEC Filings section of the Investor Relations page of the company's website at http://investors.linkedin.com/.  All information provided in this release and in the attachments is as of October 29, 2013, and LinkedIn undertakes no duty to update this information. 3
  • 5. Our mission Connect the world’s professionals to make them more productive and successful 5
  • 6. Our vision Create economic opportunity for every member of the global workforce 6
  • 8. The value we create for our members Identity Insights Everywhere The professional profile of record The definitive professional publishing platform Work wherever our members work 8
  • 9. Growing global network 1 259M+ >2 New Members worldwide Members per second 1 184M 2 Monthly unique visitors 1 As of 9/30/13 based on internal estimates | 2 Average monthly number of unique visitors for Q3’13 according to comScore using LinkedIn + SlideShare 9
  • 10. The value we create for our customers Hire Market Sell Enable passive recruiting at massive scale Most effective way for companies to engage with professionals Transform cold calls into warm prospects 10
  • 11. Our operating priorities Talent Technology Product Monetization Build a world class team Create data driven development at scale Develop products our members love Scale profitable business lines 11
  • 12. Key metrics and results 12
  • 13. Engagement metrics 259 143 142 238 132 218 11.711.6 11.1 202 116 187 174 103 161 145 88 131 106 110 9.8 9.4 9.3 8.9 92 82 7.6 7.6 75 116 7.1 7.1 Members (mn) Unique visitors, comScore (mn) 1 1 comScore metrics reflect LinkedIn site only, not including SlideShare Page views, comScore (bn) Q3’13 Q2’13 Q1’13 Q4’12 Q3’12 Q2’12 Q1’12 Q4’11 Q3’11 Q2’11 Q1’11 Q3’13 Q2’13 Q1’13 Q4’12 Q3’12 Q2’12 Q1’12 Q4’11 Q3’11 Q2’11 Q1’11 Q3’13 Q2’13 Q1’13 Q4’12 Q3’12 Q2’12 Q1’12 Q4’11 Q3’11 Q2’11 Q1’11 102 1 13
  • 15. Revenue by product $393 $364 $325 $304 20% 20% 20% $252 $228 $188 Talent Solutions 57% 53% 51% 54% Marketing Solutions 53% 55% Q3’13 49% 56% Q1’13 44% 51% 57% Q4’12 44% 48% 25% Q3’12 40% Q4’10 30% 27% 30% 32% 29% 23% 28% Q1’12 34% 20% 25% Q4’11 25% 27% 33% 29% Q3’11 22% 21% 20% 20% Q2’11 $62 Q3’10 Q1’10 30% 32% 38% $55 Q2’10 $45 $94 Q1’11 $82 20% 20% 24% 19% Q2’12 $121 $139 23% Q2’13 $168 20% Premium Subscriptions 15
  • 18. 1 Adjusted EBITDA $89 $79 $93 30% $83 $56 20% $50 $34 $26 $16 $9 $11 $11 $38 10% $25 $13 Adj EBITDA ($mn) Q3’13 Q2’13 Q1’13 Q4’12 Q3’12 Q2’12 Q1’12 Q4’11 Q3’11 Q2’11 Q1’11 Q4’10 Q3’10 Q2’10 Q1’10 0% % of revenue 1 Adjusted EBITDA is a Non-GAAP financial measure. For a reconciliation of Adjusted EBITDA to net income please see slide 21. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP 18
  • 19. Net income (loss) & cash flow Q3 2013 Non-GAAP net income GAAP EPS 2 Non-GAAP EPS Operating cash flow Free cash flow 1 1, 3 Cash, cash equivalents & short-term investments 1 $2.3 $47 $44 $25 $0.03 $0.02 $0.38 $0.22 $124 $88 $43 2 $3.7 $126 1 ($3.4) $0.39 GAAP net income (loss) Q3 2012 ($0.03) 1 Q2 2013 $31 $54 $2,272 $873 $677 1 In millions | 2 EPS is based on fully-diluted weighted share count | 3 Free cash flow is calculated by subtracting purchases of property and equipment from operating cash flow 19
  • 20. 1 Non-GAAP reconciliations Three Months Ended Sep 30 2013 Non-GAAP net income and net income per share GAAP net income (loss) Three Months Ended Sep 30 2012 Nine Months Ended Sep 30 2013 Nine Months Ended Sep 30 2012 ($3,363) $2,302 $22,987 $10,102 Add back: stock-based compensation 54,445 26,798 136,738 58,747 Add back: amortization of intangibles 3,832 3,770 12,350 6,929 (8,120) (7,732) (28,422) (15,655) NON-GAAP NET INCOME $46,794 $25,138 $143,653 $60,123 GAAP diluted shares 113,940 113,618 117,090 112,420 119,188 113,618 117,090 112,420 $0.39 $0.22 $1.23 $0.53 ($3,363) $2,302 $22,987 $10,102 Provision for income taxes 8,155 4,406 12,982 20,270 Other (income) expense, net (156) (672) 404 (228) Depreciation and amortization 33,767 23,122 91,766 55,552 Stock-based compensation 54,445 26,798 136,738 58,747 $92,848 $55,956 $264,877 $144,443 Income tax effect of non-GAAP adj. Add back: dilutive shares under treasury stock method NON-GAAP DILUTED SHARES NON-GAAP DILUTED NET INCOME PER SHARE 5,248 Adjusted EBITDA GAAP net income (loss) Adjusted EBITDA 1 In thousands, except per share data 20
  • 21. 1 Non-GAAP adjusted EBITDA reconciliation (In millions) (Unaudited) Q1’10 Q2’10 Q3’10 Q4’10 Q1’11 Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 Q3’12 Q4’12 Q1’13 Q2’13 Q3’13 $1.8 $4.3 $4.0 $5.3 $2.1 $4.5 ($1.6) $6.9 $5.0 $2.8 $2.3 $11.5 $22.6 $3.7 ($3.4) Provision for income taxes 1.0 0.7 0.5 1.4 (0.3) 5.4 4.4 1.5 5.8 10.0 4.4 15.2 0.7 4.1 8.2 Other (income) expense, net 0.3 0.4 (0.4) 0.3 (0.4) 0.0 1.8 1.6 (0.2) 0.7 (0.7) 0.0 0.3 0.3 (0.2) Depreciation and amortization 3.9 4.2 4.8 6.6 8.2 9.6 11.6 13.8 14.9 17.5 23.1 24.3 25.8 32.2 33.8 Stock-based compensation 1.9 2.0 2.2 2.7 3.8 6.8 8.5 10.6 12.6 19.3 26.8 27.6 33.9 48.4 54.4 GAAP net income (loss) Adjusted EBITDA $9.1 $11.5 $11.1 $16.3 $13.3 $26.3 $24.7 $34.4 $38.1 $50.4 $56.0 $78.6 $83.4 $88.6 $92.8 1 Adjusted EBITDA is a Non-GAAP financial measure. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP 21
  • 22. Guidance 1, 2 Q4 2013 FY 2013 Revenue $415-420 ~$1,500 Adjusted EBITDA $98-100 ~$364 Depreciation & amortization $43-45 ~$136 Stock-based compensation $55-57 ~$193 1 All guidance figures are approximate values | 2 In millions 22
  • 24. ©2013 LinkedIn Corporation. All Rights Reserved.