LinkedIn’s Q4 2011 Earnings Announcement

Q4’11 Results

Safe HarborThis presentation contains forward-looking statements about expected future events and financial results, including statements regarding ourmember growth, our products and product strategy, including our Talent Pipeline Solution, our employees and recruiting efforts, includinginvestments in our sales force, the markets we serve, our planned investments in key strategic areas, and our expected financial metrics such asrevenue, adjusted EBITDA, depreciation and amortization and stock-based compensation for the first quarter of 2012 and the full fiscal year2012. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. Ifany such risks or uncertainties materialize or if any of the assumptions prove incorrect, the company’s results could differ materially from theresults 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: the company’s short operating history in anew and unproven market; engagement of its members; the price volatility of our Class A common stock, including in connection with the releaseof any restrictions on trading in the company’s stock; general economic conditions; expectations regarding the return on our strategicinvestments; execution of our plans and strategies; expectations regarding the company’s ability to timely and effectively scale and adaptexisting technology and network infrastructure to ensure that its website is accessible at all times with short or no perceptible load times; securitymeasures and the risk that the company’s website may be subject to attacks that degrade or deny the ability of members to access thecompany’s solutions; members and customers curtailing or ceasing to use the company’s solutions; the company’s core value of puttingmembers first, which may conflict with the short-term interests of the business; privacy issues; increasing competition in the market for onlineprofessional networks; and the dual class structure of the company’s 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 Securitiesand Exchange Commission from time to time, including the section entitled “Risk Factors” in the company’s Form 10-Q that was filed for thequarter ended September 30, 2011, and additional information will also be set forth in our Annual Report on Form 10-K for the year endedDecember 31, 2011. These documents are available on the SEC Filings section of the Investor Information section of the company’s website athttp://investors.linkedin.com/. All information provided in this release and in the attachments is as of February 9, 2012, and LinkedIn undertakesno duty to update this information.To supplement its consolidated financial statements, which are prepared and presented in accordance with GAAP, the company uses thefollowing non-GAAP financial measures: adjusted EBITDA, non-GAAP net income, and non-GAAP EPS (collectively the “non-GAAP financialmeasures”), which exclude certain items such as stock-based compensation expense, amortization of intangible assets and the tax impact ofthese adjustments. 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. The company uses these non-GAAP financial measures for financialand operational decision making and as a means to evaluate period-to-period comparisons. The company believes that they provide usefulinformation about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greatertransparency with respect to key metrics used by management in its financial and operational decision making. As required by SEC rules, wehave provided a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable GAAPmeasures. This presentation, including the reconciliation, will be available on the investor relations portion of our website at www.linkedin.com. 2

Jeff Weiner 1stChief Executive Officer at LinkedInSan Francisco Bay Area | Internet Send Message View Profile Steve Sordello 1st Chief Financial Officer at LinkedIn San Francisco Bay Area | Internet Send Message View Profile 3

Key Metrics (Millions) (Millions) (Billions)160 100 145 8 7.6 7.6 92 88 7.1 7.1140 131 82120 116 80 75 6 5.5 102 5.0100 65 90 60 3.9 81 4 3.6 80 53 72 64 46 45 60 40 2 40 20 20 0 Q210 Q410 Q211 Q411 Q110 Q310 Q111 Q311 Q110 Q111 Q411 Q210 Q310 Q410 Q211 Q311 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Members (MM) Unique Visitors, comScore (MM) Page Views, comScore (BN) 4

Revenue (Millions)$180 130% $168$160 120% $139 110%$140 $121 100%$120 90%$100 $94 80% $82$80 70% $62$60 $55 60% $45 $39$40 50% $28 $30 $23$20 40% Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Net Revenue ($MM) % y/y 5

(Millions) Revenue by Product$180 $168$160 20% $139$140 20% $121 30%$120 20% 29%$100 $94 32% $82 21% $80 50% 22% $62 30% 51% $60 $55 34% 25% $45 48% $39 27% $40 30% 31% 49% $28 $30 32% 33% $23 44% 38% 32% $20 39% 37% 44% 47% 40% 26% 32% 30% 38% 27% 29% 31% 32% $- Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Premium Subscriptions Marketing Solutions Hiring Solutions 6

(Millions) Revenue by Geography$180 $168$160 33% $139$140 33% $121$120 32% 67%$100 $94 $82 31% 67% $80 68% 29% $62 $60 $55 69% 26% $45 27% 71% $39 $40 27% 74% $28 $30 28% 73% $23 27% 25% 73% $20 25% 72% 73% 75% 75% $- Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 International US 7

(Millions) Revenue by Channel$180 $168$160 43% $139$140 47% $121$120 45%$100 $94 $82 46% 57% $80 41% $62 53% $60 $55 55% 46% $45 45% $39 54% $40 59% 47% $28 $30 43% $23 54% 46% 50% 55% $20 50% 53% 57% 54% 50% 50% $- Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Online Sales Field Sales 8

Adjusted EBITDA & Margin(Millions)$35 $34.4 25%$30 $26.3 20% $24.7$25 15%$20 $16.3$15 $13.3 10% $11.5 $11.1$10 $9.1 $5.3 5% $4.4 $5 $3.7 $1.3 $0 0% Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Adjusted EBITDA Margin% 9

Net Income & Cash Flow Highlights Q4 2011 Q3 2011 Q4 2010 Net Income (Loss) $mn, GAAP $6.9 $(1.6) $5.3 Net Income $mn, Non-GAAP $13.3 $6.6 $5.2 EPS, GAAP Fully-Diluted Weighted Shares * Excludes both net income attributable to preferred shareholders & $0.06 $(0.02) $0.03 preferred shares in share count EPS, Non-GAAP Fully-Diluted Weighted Shares $0.12 $0.06 $0.05 Operating Cash Flow (OCF) $24.2 $46.7 $16.4 Free Cash Flow, $mn (OCF – Purchases of PPE) $3.5 $17.9 $2.6 Cash, Cash Equivalents, & ST Investments, $mn $577.5 $387.7 $93.0For additional reconciliation of our non-GAAP measures, please see the “Selected Company Metrics and Financials” page on LinkedIn’s InvestorRelations site. 10

Guidance Q1 2012 FY 2012 Revenue, $mn $170-175 $840-860 Adjusted EBITDA, $mn $25-27 $155-165Depreciation & Amortization, $mn $15-17 $70-80Stock-Based Compensation, $mn $13-14 $65-75 11

Non-GAAP Reconciliations 12

Thank You

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LinkedIn’s Q4 2011 Earnings Announcement

by LinkedIn on Feb 09, 2012

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LinkedIn’s Q4 2011 Earnings Announcement — Presentation Transcript