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| 8-K - FORM 8-K - LINKEDIN CORP | d8k.htm |
 Exhibit 99.1 |
 Safe
harbor 2
This presentation contains forward-looking statements. All statements other than
statements of historical facts contained in this presentation,
including
statements
regarding
LinkedIn
Corporation’s
(“LinkedIn”
or
the
“Company”)
future
results
of
operations
and
financial
position,
including
preliminary financial results for the quarter ended March 31, 2011, financial
targets, business strategy, plans and objectives for future operations, are
forward-looking statements. The Company has based these forward-looking statements largely on its current estimates of its
financial results and its current expectations and projections about future events
and financial trends that it believes may affect its financial condition,
results of operations, business strategy, short term and long-term business operations and objectives, and financial needs as of the
date of this presentation. These forward-looking statements are subject to a
number of risks, uncertainties and assumptions, including those described
under the heading “Risk Factors” in the Company’s filings
with the Securities and Exchange Commission (the “SEC”). Moreover, the
Company operates
in
a
very
competitive
and
rapidly
changing
environment.
New
risks
emerge
from
time
to
time.
It
is
not
possible
for
Company
management
to
predict
all
risks,
nor
can
the
Company
assess
the
impact
of
all
factors
on
its
business
or
the
extent
to
which
any
factor,
or
combination of factors, may cause actual results to differ materially from those
contained in any forward-looking statements the Company may make. In
light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this presentation may
not occur and actual results could differ materially and adversely from those
anticipated or implied in the forward-looking statements. You
should
not
rely
upon
forward-looking
statements
as
predictions
of
future
events.
Although
the
Company
believes
that
the
expectations
reflected in the forward-looking statements are reasonable, the Company cannot
guarantee that the future results, levels of activity, performance or events
and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither the Company nor any
other person assumes responsibility for the accuracy and completeness of the
forward-looking statements. Except as required by law, the Company
undertakes no obligation to update publicly any forward-looking statements for any reason after the date of this presentation, to
conform these statements to actual results or to changes in the Company’s
expectations. The Company’s filings with the Securities and Exchange
Commission are available to you and you should read the documents the Company
has filed with the SEC for more complete information about the Company. You
may get these documents for free by visiting EDGAR on the SEC Web site at
www.sec.gov. |
 3
LinkedIn Overview |
 What is the single most important driver of
long-term value creation within a company?
4 |
 5 |
 Jim Collins, “Good to Great”
“
Great talent builds great companies
6
If I were running a company
today, I would have one priority
above all others: to acquire as
many of the best people as
I could.
I'd put off everything
else to fill my bus. |
 The
LinkedIn opportunity Fundamentally transforming the way the world
works Fundamentally transforming the way the world works
Connect talent with opportunity at massive scale
7 |
 Our mission
Connect the world’s professionals to make
them more productive and successful
8 |
 The
value we bring to our members Identity
Connect, find and be found
LinkedIn Profile, Address Book, Search
Insights
Be great at what you do
Homepage, LinkedIn Today, Groups
Work wherever our members work
Everywhere
Mobile, APIs, Plug-Ins
Desktop
Rolodex, Resume,
Business Card
Newspapers,
Trade Magazines, Events
Opportunities that will transform the trajectory of your career
Opportunities that will transform the trajectory of your career
9 |
 10
The power of LinkedIn’s network effects
Member growth
and engagement
Relevant and
valuable products
& services
Critical mass
of data
Technology
platform |
 11
The world’s largest professional network
International now comprises over 50% of total membership
1 Internal data as of March 31, 2011; 2 comScore data as of March 31, 2011
1
75M
Avg Monthly Users in Q1’11
65% y/y growth
2
Page Views in Q1’11
96% y/y growth
7B+
2
Searches in Q1’11
70% y/y growth
~1B
1
100M+ |
 Three diverse, scalable and growing business lines
2010
y/y growth
Providing passive recruiting at scale and adding
social relevancy to active job searches
Hiring Solutions
Delivering marketers targeted access to one of the most
influential, affluent and educated audiences on the web
Marketing Solutions
Enabling professionals to be more productive with
premium tools tailored by customer segment
Premium Subscriptions
182%
107%
35%
$102M
$79M
$62M
12
102%
$243M
Total |
 Worldwide Labor Force
3,300M+
2
Huge global market opportunity in members
1 LinkedIn members as of March 31, 2011 | 2 Source: International
Planning & Research 13
Worldwide Professionals
640M+
2
LinkedIn Members
100M+
1 |
 Huge
global market opportunity in monetization Worldwide talent acquisition
and staffing services
$85B
Worldwide Internet
advertising spend
14
$69B
Total
B2B
$25B
Addressable
Today
$27B
1
2
1
2
1 LinkedIn estimates 2 Source: IDC
Total |
 Our
strategy Global Monetization
Professional Insights &
Knowledge Sharing
Professional Identity Ecosystem
Viral Growth Engine
15
Technology Infrastructure
Data |
 Scale &
Redundancy
APIs
Professional
Graph
Security
Data
Infrastructure
Service
Infrastructure
Technology infrastructure
Building an industry-leading, global platform for developing scalable,
data-fueled professional networking applications
16 |
 Technology infrastructure
Developing an open platform for third-party developers and publishers
17
Already generating as many API calls off LinkedIn as page views on LinkedIn
Already generating as many API calls off LinkedIn as page views on LinkedIn
|
 Our
strategy Viral Growth Engine
Global Monetization
Professional Insights &
Knowledge Sharing
Professional Identity Ecosystem
18
Data |
 Viral growth engine
Increasing the number of member invitations and connections
19
Weekly Member Invitations
6/1/09 9/1/09
12/1/09 3/1/10 6/1/10
9/1/10
12/1/10 3/1/11 |
 Our
strategy Professional Identity Ecosystem
Viral Growth Engine
Global Monetization
Professional Insights &
Knowledge Sharing
20 |
 Connect
Summary:
Career and
Professional
Highlights
Experience /
Education
Professional identity ecosystem
The professional profile of record
Professional
Details
Groups /
Associations
Recommendations
21 |
 Professional identity ecosystem
The definitive professional search engine
22 |
 Our
strategy Professional Insights &
Knowledge Sharing
Professional Identity Ecosystem
Viral Growth Engine
Global Monetization
23
Data |
 Critical
Mass
Connections
Context
Data
Professional insights and knowledge sharing
Your professional dashboard
24 |
 Context
Data
Connections
Professional insights and knowledge sharing
Your essential source for business intelligence
25
Critical Mass |
 Our
strategy Professional Identity Ecosystem
Viral Growth Engine
26
Data |
 Global monetization: Hiring Solutions
-
An unprecedented opportunity: passive recruiting at scale
-
73 of the Fortune 100 are using LinkedIn Hiring Solutions
27
Sherri Wang
Michael Cho
LinkedIn Recruiter: Search Results (113) Save
this search Keyword: (mergers OR arbitrage) -
Location: Hong Kong, China -
Industry: Financial Services |
 Global monetization: Marketing Solutions
Targeting one of the most affluent and influential audiences on the web
28
Self-Service Platform
Custom groups / Sponsorship
LinkedIn Company Pages
Display / Social Ads |
 Global monetization: Subscriptions
Premium tools tailored by customer segment
Subscription targeted to
member based on profile
data and activity
Recommended
subscription for
the individual
Product feature
list is presented
dynamically
29 |
 Blue-chip enterprise companies and thousands of SMB
customers derive value from LinkedIn on a global basis
150K+
27%
International
Revenue
Small Business
Customers
TECHNOLOGY
30
PROFESSIONAL
SERVICES
CONSUMER
HEALTH CARE
FINANCIAL |
 Our
strategy 31
Global Monetization
Professional Insights &
Knowledge Sharing
Professional Identity Ecosystem
Viral Growth Engine
Data |
 Increasing investment for long-term growth
Scale hardware and
software to enhance site
performance and accelerate
development cycles
Execute robust product
roadmap to enhance growth,
engagement and
monetization
Infrastructure
Product Development
Expand global footprint by
launching new languages
and sales offices
International Growth
Meet increasing demand
across multiple business
lines
Sales Force
32 |
 The
talent to make it happen Steve Cadigan
Vice President, People Operations
www.linkedin.com / in / cadigan
Mike Gamson
Senior Vice President,
Global Sales
www.linkedin.com/ in / mikegamson
Steve Sordello
Chief Financial Officer
www.linkedin.com / in / stevesordello
Deep Nishar
Senior Vice President, Products
and User Experience
www.linkedin.com/ in / deepnishar
Erika Rottenberg
Vice President, General Counsel
and Secretary
www.linkedin.com / in / erikarottenberg
David Henke
Senior Vice President, Operations
and Engineering
www.linkedin.com / in / drhenke
Nick Besbeas
Vice President, Marketing
http://www.linkedin.com / in / nickbesbeas
Jeff Weiner
Chief Executive Officer
www.linkedin.com / in / jeffweiner08
Robby Kwok
Head of Corporate Development
www.linkedin.com / in / robbykwok
33 |
 Steve Sordello
Chief Financial Officer at LinkedIn
San Francisco Bay Area | Internet
34
Financial Overview
1st
Send Message
Send Message
View Profile |
 Rapid growth in key metrics
Worldwide
35
1 At period end
2 Average monthly number over the three months ended
3 Over the three months ended
Source: comScore
(Millions)
(Millions)
(Billions)
Cumulative Registered Members
59% y/y growth
Average Monthly Unique Visitors
65% y/y growth
Total Page Views
96% y/y growth
2
1
3 |
 ($
millions) Quarterly Revenue
Accelerating revenue growth
Q1 2011
+110% y/y
2008: $79M
2009: $120M
+52%
2010: $243M
+102%
36 |
 Payments
Platform Corporate Solutions
Recruiter
Jobs
Recruitment Media
Job Postings
Subscriptions
Talent Finder
Display Ads
LinkedIn Ads
Business Subscription
Hiring
Solutions
Premium
Subscriptions
Marketing
Solutions
SaaS business built on a consumer web platform
Online / offline mix results in monthly recurring revenue and high margin
self-serve business
37 |
 Attractive financial model
Strong revenue growth
Diversified and proven revenue models
Visibility into future revenues
Significant operating leverage
Investing aggressively for growth
Strong balance sheet
38 |
 Our vision
Create economic opportunity for every
professional in the world
39 |
 |
 Adjusted EBITDA and Non-GAAP Expenses
41
To provide investors with additional information regarding our financial results, we
have disclosed adjusted EBITDA, a non-GAAP financial measure, and
certain expenses on a non-GAAP basis. We have provided below a reconciliation of adjusted EBITDA to net income (loss), the
most directly comparable GAAP financial measure, and a reconciliation of these
non-GAAP expenses to their most directly comparable GAAP financial
measure. We have included these non-GAAP financial measures because they
are key measures used by our management and board of directors to
understand
and
evaluate
our
core
operating
performance
and
trends,
to
prepare
and
approve
our
annual
budget
and
to
develop
short-
and
long-
term operational plans. In particular, the exclusion of certain expenses in
calculating adjusted EBITDA and these non-GAAP expenses can provide a
useful measure for period-to-period comparisons of our core business. Additionally, adjusted EBITDA is a key financial measure used
by the compensation committee of our board of directors in connection with the
payment of bonuses to our executive officers. Accordingly, we believe that
adjusted EBITDA and these non-GAAP operating expenses provide useful information to investors and others in understanding and
evaluating our operating results in the same manner as our management and board of
directors. Our use of adjusted EBITDA and non-GAAP expenses has
limitations as an analytical tool, and you should not consider it in isolation or as a
substitute for analysis of our results as reported under GAAP. Some of these
limitations are: •although depreciation and amortization are
non-cash charges, the assets being depreciated and amortized may have to be replaced in the
future, and adjusted EBITDA does not reflect cash capital expenditure requirements
for such replacements or for new capital expenditure requirements;
•adjusted EBITDA does not reflect changes in, or cash requirements for, our
working capital needs; •adjusted
EBITDA
and
non-GAAP
expenses
do
not
consider
the
potentially
dilutive
impact
of
equity-based
compensation.
Equity-based
compensation expenses are recurring and, for the foreseeable future, will continue
to be a significant recurring expense in our business as it represents
an
important
part
of
our
employees’
compensation
and
impacts
their
performance;
•adjusted
EBITDA
does
not
reflect
tax
payments
that
may
represent
a
reduction
in
cash
available
to
us;
and
•other companies, including companies in our industry, may calculate adjusted
EBITDA and non-GAAP expenses differently, which reduces their usefulness
as a comparative measure. Because of these limitations, you should consider
adjusted EBITDA and non-GAAP expenses alongside other financial performance measures,
including various cash flow metrics, net income (loss) and our other GAAP
results. |
 2007
2008
2009
2010
Q1'11
Revenue
$32.5
$78.8
$120.1
$243.1
$93.9
Cost of Revenue (GAAP)
7.4
18.6
25.9
44.8
16.8
SBC included in cost of revenue
0.1
0.3
0.4
0.4
0.2
Cost of revenue (Non-GAAP)
7.3
18.3
25.5
44.4
16.6
Gross margin % (Non-GAAP)
78%
77%
79%
82%
82%
Sales and marketing (GAAP)
5.0
17.0
26.8
59.0
29.4
SBC included in sales and marketing
0.2
0.5
0.7
1.2
1.1
Sales and marketing (Non-GAAP)
4.9
16.5
26.2
57.8
28.3
Sales and marketing as a % of revenue (Non-GAAP)
15%
21%
22%
24%
30%
Research and development (GAAP)
11.6
29.4
39.4
65.1
24.7
SBC included in research and development
0.6
1.2
2.3
3.2
1.6
Research and development (Non-GAAP)
11.0
28.2
37.1
61.9
23.1
Research and development as a % of revenue (Non-GAAP)
34%
36%
31%
25%
25%
General and administrative (GAAP)
6.8
13.0
19.5
35.1
13.6
SBC included in general and administrative
1.0
2.6
2.8
3.9
1.0
General and administrative (Non-GAAP)
5.9
10.4
16.7
31.1
12.7
General and administrative as a % of revenue (Non-GAAP)
18%
13%
14%
13%
13%
Reconciliation of GAAP to Non-GAAP expenses
42
($ millions) |
 $ millions)
2007
2008
2009
2010
Q1'11
Net income (loss)
$0.3
($4.5)
($4.0)
$15.4
$2.1
Provision (benefit) for income taxes
0.0
0.3
0.8
3.6
(0.3)
Other (income) expense, net
(0.8)
(1.3)
(0.2)
0.6
(0.4)
Depreciation and amortization
2.1
6.4
11.9
19.6
8.2
Stock-based compensation
1.8
4.6
6.2
8.8
3.8
Adjusted EBITDA
3.5
5.5
14.7
48.0
13.3
Reconciliation of Adjusted EBITDA
43
($ millions) |