annual report linkedin

7/17/2019 Annual Report Linkedin

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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 2054

!ORM "0#$

Ma&' On()

ANNUA* RE+ORT +URSUANT TO SECTION " OR "5%-) O! THE SECURITIES EXCHANGE AC

O! "4

!o& th( is/a 1(a& (n-(-D(/(3(& ", 20"

o&

TRANSITION RE+ORT +URSUANT TO SECTION " OR "5%-) O! THE SECURITIES EXCHANG

ACT O! "4!o& th( t&ansition (&io- &o to

Coission !i( N3(&6 00"#5"78

*in'(-In Co&o&ation%E9a/t na( o &(gist&ant as s(/ii(- in its /ha&t(&)

D(a:a&( 4;#0"202%Stat( o& oth(& i(:, CA 404%A--&(ss o &in/ia (9(/ti?( oi/(s) %@i Co-()

%750) 78;#700%R(gist&ants t((hon( n3(&, in/-ing a&(a /o-()

S(/&iti(s &(gist(&(- &sant to S(/tion "2%3) o th( A/t6

Tit( o Ea/h Cass Na( o Ea/h E9/hang( on Whi/h R(gist(&(-

Class A Common Stock, par value $0.0001 per share New York Stock Echan!eS(/&iti(s &(gist(&(- &sant to S(/tion "2%g) o th( A/t6

Non(

"n#cate b% check mark f the re!strant s a well&known seasone# ssuer, as #efne# n 'ule (0) of the Securtes Act. Yes No

"n#cate b% check mark f the re!strant s not re*ure# to fle reports pursuant to Secton 1+ or Secton 1)#- of the Act. Yes No

"n#cate b% check mark whether the re!strant 1- has fle# all reports re*ure# to be fle# b% Secton 1+ or 1) #- of the Securtes Echan!e Act of 1+( #urn! the prece/ months or for such shorter pero# that the re!strant was re*ure# to fle such reports-, an# /- has been subect to such fln! re*urements for the past 0 #a%s. Yes

"n#cate b% check mark whether the re!strant has submtte# electroncall% an# poste# on ts corporate eb ste, f an%, ever% "nteractve 2ata 3le re*ure# to be submtt

n# poste# pursuant to 'ule (0) of 'e!ulaton S&T 4/+/.(0) of ths chapter- #urn! the prece#n! 1/ months or for such shorter pero# that the re!strant was re*ure# to subn# post such fles-. Yes No


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"n#cate b% check mark f #sclosure of #eln*uent flers pursuant to "tem (0) of 'e!ulaton S&5 4//.(0) of ths chapter- s not contane# heren, an# wll not be contao the best of re!strant6s knowle#!e, n #efntve pro% or nformaton statements ncorporate# b% reference n 7art """ of ths 3orm 10&5 or an% amen#ment to ths 3orm 10&

"n#cate b% check mark whether the re!strant s a lar!e accelerate# fler, an accelerate# fler, a non&accelerate# fler, or a smaller reportn! compan%. See the #efntons lar!e accelerate# fler,9 8accelerate# fler9 an# 8smaller reportn! compan%9 n 'ule 1/b&/ of the Echan!e Act.

:ar!e accelerate# fler Accelerate# flerNon&accelerate# fler 2o not check f a smaller reportn! compan%- Smaller reportn! compan%

"n#cate b% check mark whether the re!strant s a shell compan% as #efne# n 'ule 1/b&/ of the Echan!e Act-. Yes No

As of ;une /,?0>,(/1,)11 .

As of 3ebruar% ), /01( , there were 10+,)>>,,>+,


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Ta3( o Cont(nts

+ag(

+ART I

tem 1. =usnesstem 1A. 'sk 3actors

tem 1=. nresolve# Staff Commentstem /. 7ropertestem +. :e!al 7rocee#n!stem (. @ne Safet% 2sclosures

+ART II

tem ).

@arket for 'e!strant6s Common E*ut%, 'elate# Stockhol#er @atters an# "ssuer 7urchases of E*ut%Securtes

tem >. Selecte# 3nancal 2atatem ?. @ana!ement6s 2scusson an# Anal%ss of 3nancal Con#ton an# 'esults of Bperatonstem ?A. uanttatve an# ualtatve 2sclosures About @arket 'sktem

tem 1). Ehbts, 3nancal Statement Sche#ules


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S(/ia Not( R(ga&-ing !o&:a&- *oo'ing Stat((nts

Ths Annual 'eport on 3orm 10&5 contans 8forwar#&lookn! statements9 wthn the meann! of Secton /1E of the Securtes EchaAct of 1+(, as amen#e#, or the Echan!e Act, partcularl% n 7art ", "tem 1 8=usness,9 7art ", "tem 1A 8'sk 3actors9 an# 7art /, "tem ?@ana!ement6s 2scusson an# Anal%ss of 3nancal Con#ton an# 'esults of Bperatons.9 These statements are often #entfe# b% the us

wor#s such as 8ma%,9 8wll,9 8epect,9 8beleve,9 8antcpate,9 8nten#,9 8coul#,9 8shoul#,9 8estmate,9 or 8contnue,9 an# smlar epressr varatons. All statements other than statements of hstorcal fact coul# be #eeme# forwar#&lookn!, nclu#n!, but not lmte# to

our ablt% to tmel% an# effectvel% scale an# a#apt our estn! technolo!% an# network nfrastructureF

our ablt% to ncrease en!a!ement of our solutons b% our members, enterprses an# professonal or!anGatonsF our ablt% to #evelop effectve solutons for moble #evcesF our ablt% to protect our users6 nformaton an# a#e*uatel% a##ress

prvac% concernsF our ablt% to mantan an a#e*uate rate of revenue !rowthF the effects of ncrease# competton n our marketF our ablt% to effectvel% mana!e our !rowthF our ablt% to retan our estn! subscrbers an# our Talent Solutons an# @arketn! Solutons customersF our ablt% to successfull% enter new markets an# mana!e our

nternatonal epansonF our ablt% to mantan, protect an# enhance our bran# an# ntellectu

propert%F costs assocate# wth #efen#n! ntellectual propert% nfrn!ement a

other clamsF our nvestment phlosoph% for /01(F our epectatons for our fnancal performance n /01(, nclu#n! our revenues, cost of revenues, epenses an# epecte# ta benef

an# the attracton an# retenton of *ualfe# emplo%ees an# ke% personn

3or a #scusson of some of the factors that coul# cause actual results to #ffer materall% from our forwar#&lookn! statements, see thscusson on rsk factors that appears n 7art ", "tem 1A 8'sk 3actors9 of ths Annual 'eport on 3orm 10&5 an# other rsks an# uncertanetale# n ths an# our other reports an# fln!s wth the Securtes an# Echan!e Commsson, or SEC. The forwar#&lookn! statements n

Annual 'eport on 3orm 10&5 represent our vews as of the #ate of ths Annual 'eport on 3orm 10&5. e antcpate that subse*uent eventsevelopments wll cause our vews to chan!e. However, whle we ma% elect to up#ate these forwar#&lookn! statements at some pont n thuture, we have no current ntenton of #on! so ecept to the etent re*ure# b% applcable law. You shoul#, therefore, not rel% on theseorwar#&lookn! statements as representn! our vews as of an% #ate subse*uent to the #ate of ths Annual 'eport on 3orm 10&5.

& + &


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+ART I

t( ". Business

O?(&?i(:

e are the worl#6s lar!est professonal network on the "nternet wth appromatel% /?? mllon members n over /00 countres an#errtores as of the #ate of ths Annual 'eport on 3orm 10&5. e beleve we are the most etensve, accurate an# accessble network focusn professonals.

Bur platform enables members to become more successful n ther careers throu!h three value propostons mana!n! an# sharn! whe% are throu!h ther #!tal professonal #entt%F en!a!n! an# epan#n! who the% know throu!h ther professonal networkF an#scovern! professonal knowle#!e an# ns!hts makn! them better at what the% #o. Bur members create the core of our platform, an# weurn, prov#e members wth applcatons an# tools to help them compete more effectvel%, make better #ecsons faster an# mana!e ther cao acheve ther full potental. The cornerstone of our busness strate!% s to focus on our members frst. e prov#e the maort% of ourolutons to our members at no cost. e beleve ths approach prov#es the best wa% to contnue to bul# a crtcal mass of members, resultn benefcal network effects that promote !reater utlGaton of our network, h!her levels of en!a!ement an#, ultmatel%, ncrease# value ff our members.

e !enerate revenue across three #stnct pro#uct lnes Talent Solutons, @arketn! Solutons, an# 7remum Subscrptons. All threero#uct lnes are sol# throu!h two channels, an offlne fel# sales or!anGaton whch en!a!es wth both lar!e an# small enterprse customes well as an onlne, self&serve channel where we !enerate revenue from both enterprse customers an# n#v#ual members purchasn!ubscrptons. e strve to ensure that our Talent Solutons, @arketn! Solutons an# 7remum Subscrptons pro#ucts prov#e both a h!h lf value for our customers an# also a h!h #e!ree of relevance for our members. e beleve ths monetGaton strate!% properl% al!nsbectves amon! members, customers an# our entre network an# supports our fnancal obectve of sustanable revenue an# earnn!s !rowver the lon! term.

e were ncorporate# n 2elaware n @arch /00+ un#er the name :nke#"n, :t#. an# chan!e# our name to :nke#"n Corporaton nanuar% /00). Bur prncpal eecutve offces are locate# at /0/ Sterln Court, @ountan Iew, CA (0(+, an# our telephone number s>)0- >


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our communcatons capabltes. Iral !rowth s a crtcal element n our msson to connect the worl#6s professonals. Serve as the Professional Profile of Record.=% mantann! the trust we have #evelope# wth our members an# throu!h

contnue# mprovements, such as enhancn! our profle tools an# search en!ne optmGaton, we seek to be the professonal prfor ever% professonal worl#w#e. e ncreasn!l% !ve members the ablt% to represent ther #enttes n the form of a #%namportfolo versus a statc resume throu!h rch me#a an# other pro#uct enhancements. sn! our platform, an% member can fn#other professonals on :nke#"n, connect wth members relevant to ther professonal network, an# be foun# b% other professoon the "nternet.

Become the Definitive Professional Publishing Platform.

As the amount of nformaton share# across the "nternet rap#l%epan#s, we strve to #elver members relevant ns!hts at the r!ht tme to make members better at what the% #o. =% creatn! tweb6s #efntve professonal publshn! platform, :nke#"n wll help members #scover, consume, an# publsh relevantprofessonal content at !lobal scale, ultmatel% makn! n#v#ual members more pro#uctve an# successful. :nke#"n6s publshplatform encompasses pro#ucts nclu#n! Droups, the :nke#"n homepa!e, our 7ulse news pro#uct an# "nfluencer pro!ram, thSl#eshare platform, an# more recentl% the 7ulse news rea#er moble app.

E!and Our "nternational Presence.e have seen s!nfcant !rowth n our nternatonal member base an# have establshe#operatons aroun# the worl#, nclu#n! Europe, Asa, South Amerca an# the @##le East. e nten# to contnue to !row ournternatonal member base b% makn! our platform avalable n more lan!ua!es, b% further #evelopn! our bran# across varounternatonal !eo!raphes, an# b% epan#n! our sales, techncal an# support operatons n a##tonal nternatonal locatons.

"ncrease Moneti#ation $hile %reating Value for Our Members.e nten# to levera!e our un*ue busness mo#el to furthermonetGe our platform whle a##n! value to members, enterprses an# professonal or!anGatons on a !lobal bass. 3or eampb% prov#n! our members wth better tools to share ther professonal sklls an# ns!hts, our Talent Solutons can more effcean# effectvel% #entf% specfc passve an# actve can##ates for a partcular opportunt% resultn! n benefts for both membean# customers. A core part of our strate!% s makn! our solutons more relevant for both our members an# customers b%s!nfcantl% nvestn! n tar!etn! capabltes an# anal%tcs.

O& Sotions

Bur solutons are #es!ne# to make professonals more pro#uctve an# successful an# to connect talent wth opportunt% at massve sTo #ate our focus has been to #evelop pro#ucts that enable our members to create, mana!e an# share ther professonal #enttes onlne, bun# en!a!e wth ther professonal networks, access share# knowle#!e an# busness ns!hts, an# fn# busness opportuntes.

& ) &


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Bur prncpal free an# monetGe# solutons are #escrbe# below

!&(( Sotions

A3iit1 to Manag(+&o(ssiona I-(ntit1

Enhan/(- A3iit1 to Bi-

an-

Engag( :ith+&o(ssiona N(t:o&'s

A//(ss to $no:(-g(,

Insightsan- Oo&tniti(s U3iitos A//(ss

7rofle7ublc 7rofle

hoJs Iewe# Your 7rofle'ch @e#a Sharn!SkllsKEn#orsements

:nke#"n Connectons"nvtatons

Search:nke#"n Contacts

"ntro#uctons7eople You @a% 5nowA##ressbook "mporter

7eople 3ollown!

Network p#ates7ulse

"nfluencersDroups

Compan% 7a!esAppl% wth :nke#"n nverst%

7a!es:nke#"n Alumn

Sl#eshare7ersonalGaton 7latform

@obleA7"s

#!ets

Mon(ti=(- Sotions

Ta(nt Sotions Ma&'(ting Sotions +&(i S3s/&itions:nke#"n Corporate

Solutons 'ecruter, ;ob Slots, 'ecrutment@e#a, Career 7a!es, Talent 7pelne-

:nke#"n ;obs'ecruter :teKTalent =ascKTalent

3n#erKTalent 7ro;ob Seeker =ascK;ob SeekerK

;ob Seeker 7lus

2spla% A#sSponsore# "n@alsSponsore# p#ates

:nke#"n A#sA#s A7"

=usness=usness 7lus

Eecutve"n@al

Sales Nav!atorTeam:nk

:ea# =ul#er

Free Solutions

@ost of our member solutons are avalable at no cost an# are #es!ne# to prov#e compelln! professonal benefts.

&bilit' to Manage Professional "dentit'

Profile(Bur core offern! prov#es ever% member an onlne professonal profle. A member6s profle s accessble to all membeon our network an# nclu#es user&!enerate# nformaton nclu#n! current ob ttle an# emplo%er, e#ucaton, career hstor%, #omepertse, accomplshments, sklls an# a##tonal professonal nformaton such as honors, awar#s, assocaton membershps,patents, publcatons, certfcatons an# lan!ua!es spoken. @embers populate ther own profle nformaton, enabln! them toensure ther professonal #entt% s accurate, current an# un#er ther control. "n a##ton, we6re plotn! 2rect&to&7rofleCertfcatons allown! members to up#ate ther 7rofles wth certfcatons of courses complete# throu!h partner stes.

$ho)s Viewed *our Profile(The ho6s Iewe# Your 7rofle mo#ule prov#es real&tme anal%tcs to help members better manather professonal profle nclu#n! nformaton on who has vewe# ther profle, top search ke%wor#s use# to reach ther proflan# other #etals an# tren#s on the #emo!raphcs of the au#ence that has vewe# ther profle. A##tonal features of ths pro#u

are avalable for members wth 7remum Subscrptons. Rich Media+S,ills+Endorsements(@embers can prov#e eamples of ther work an# sklls b% sharn! rch me#a content n the

profles. A##tonall%, members are able to both specf% sklls on ther professonal profles an# search for sklls an# epertseacross our network, whch surfaces ke% people wthn a communt%, top locatons, relate# companes, relevant obs, an# !roupswhere members can nteract wth lke&mn#e# professonals. "n a##ton, En#orsements enables members to en#orse ther frst#e!ree connectons for sklls wth one clck.

Enhanced &bilit' to Build and Engage with Professional -etwor,s

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.in,ed"n %onnections(Bnce two members are connecte#, ther profle nformaton s share# an#, subect to prvac% settn!s, emember has access to the other member6s lst of connectons for further networkn!. Connectons across the network are classto three #e!rees frst #e!ree connectons are members who a!ree to connect, secon# #e!ree connectons are members who shaone or more mutual connectons, an# thr# #e!ree connectons are relate# va two connectons. @embers can retreve the contanformaton of ther frst #e!ree connectons an# browse ther secon# an# thr# #e!ree connectons n or#er to fn# a##tonalopportuntes to network an# connect.

"nvitations(@embers can epan# ther networks b% sen#n! nvtatons. An% non&member acceptn! an nvtaton smultaneoubecomes a :nke#"n member, connecte# to the sen#er, after completn! the re!straton process.

Search(Bur propretar% search technolo!% allows users to con#uct real&tme, multln!ual searches of our rch #ataset n acompletel% personalGe# manner, as a member6s profle an# network affect relevance an# rankn! of results. Bur search covers

+(o(.3acete#, structure# search across all member profles. o3 +ostings.3acete#, structure# search across all of the avalable

lste# on our network. Coani(s.3acete#, structure# search of enterprses an# professo

or!anGatons. G&os.Search all professonal !roups on our network. N(t:o&' U-at(s.Search our network6s share# content up#ates. In3o9 M(ssag(s.Search nbo messa!es. A--&(ss3oo'.2etale#, structure# search across all of the connect

a member has on :nke#"n. In(n/(& Cont(nt.Search "nfluencer posts on :nke#"n b% topc

"nfluencer name. Uni?(&siti(s.Search all unverstes on our network.

.in,ed"n %ontacts(@embers can brn! all of ther contacts from ther a##ress books, emal accounts, an# calen#ars to!ether akeep them up to #ate n one place. Contacts s avalable both on :nke#"n.com as well as a stan#alone app for the 7hone.

e also prov#e other pro#ucts to help our members #evelop ther professonal networks nclu#n! "ntro#uctons, whch allows onemember to re*uest an ntro#ucton to another member throu!h a mutual connectonF 7eople You @a% 5now, whch recommen#s memberswhom %ou ma% alrea#% know an# wth whom %ou ma% want to create a frst #e!ree connectonF A##ressbook "mporter, whch allows memo *uckl% an# easl% mport contact nformaton from ther estn! #!tal a##ress books to :nke#"nF an# 7eople 3ollown!, whch allows

members to follow n#v#uals or !roups on :nke#"n.

&ccess to /nowledge0 "nsights and O!!ortunities

-etwor, 1!dates(Network p#ates prov#e a real&tme stream of #ata from professonals an# professonal sources, personalGfor each member. The stream allows each member to control an# select #ata b% relevanc% an# reman up&toate on what shappenn! n ther professonal worl#.

Pulse(7ulse enables our members to be better nforme# n ther ever%#a% obs b% shown! them relevant news that has beencollecte# an# or!anGe# b% the members n ther networks an# fellow professonals n ther n#ustres.

"nfluencers(:nke#"n "nfluencers prov#es a publshn! platform for thou!ht lea#ers to post un*ue knowle#!e an# professonns!hts on :nke#"n. @embers can follow these n#v#uals to receve relevant content #rectl% n ther Network p#ates an#emal. @embers can LlkeL an# comment #rectl% on posts an# share these ns!hts wth ther networks.

Grou!s(Droups prov#e a forum for our members to #scuss topcs of nterest an# meet an# nteract wth other professonals wshare those nterests an# have opnons an# #oman epertse n specfc areas. Droup members are able to #scuss, share, comman# make ther !roup membershps part of ther profles.

%om!an' Pages(Compan% 7a!es prov#e members wth a holstc vew of a compan%. =% a!!re!atn! #ata across the memberemplo%e# at a partcular compan%, we can show whch members have recentl% one# a compan%, recentl% chan!e# ther ttle atcompan% or recentl% left a compan%. @embers can also see who the% know at a partcular compan%. Companes can a##nformaton to ther profles nclu#n! nformaton about careers at the compan% an# can h!hl!ht specfc bran#s an# pro#ucts

Showcase 7a!es. @embers can follow companes an# automatcall% receve recent up#ates an# recommen# pro#ucts an# serv &!!l' with .in,ed"n(Appl% wth :nke#"n enables members to submt ther profles for ob applcatons b% clckn! the 8Appl

wth :nke#"n9 button on compan% webstes. @embers can choose to up#ate ther profles n

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real tme, an# members wll also be shown ther professonal connectons who work at the compan% where the profle s submt 1niversit' Pages(nverst% 7a!es prov#e stu#ents, prospectve stu#ents, an# alumn access to ns!hts an# nformaton on m

than 1,)00 unverstes !loball%. @embers can receve up#ates on campus news an# actvtes from the schools themselves an#en!a!e wth both the campus communt% an# alumn of schools.

.in,ed"n &lumni(:nke#"n Alumn prov#es our members wth ns!hts about the alumn of ther schools, enabln! members easl% eplore alumn career tren#s, make connectons, an# fn# opportuntes. The pro#uct allows members to #%namcall%anal%Ge the career tren#s of ther fellow alumn b% prov#n! an nteractve tool to vew alumn b% locaton, compan%, an# ob

functon. Slideshare(Sl#eshare prov#es our members wth access to the worl#6s lar!est communt% for sharn! presentatons on the"nternet. Sl#eshare supports a w#e varet% of rch me#a nclu#n! presentaton fles, #ocuments, 723s, v#eos an# webnars.

e also prov#e other pro#ucts to help our members access knowle#!e, ns!hts an# opportuntes nclu#n! the 7ersonalGaton 7latfwhch has a number of anal%tcall% #rven customGe# pro#ucts, such as ;obs You @a% =e "ntereste# "n, Droups You @a% :ke, Companes

ollow, 7eople ho Iewe# Ths 7rofle Also Iewe# an# 7eople ho Iewe# Ths ;ob Also Iewe#.

1bi2uitous &ccess

=ecause professonals constantl% re*ure access to crtcal nformaton, our platform s accessble onlne an%tme an# an%where,nclu#n! on moble #evces.

.in,ed"n Mobile(:nke#"n moble applcatons are prov#e# across a ran!e of platforms an# lan!ua!es, nclu#n! BS for 7han# 7a#, An#ro#, =lackberr%, Noka Asha, an# n#ows @oble.

Robust set of &P"s(e beleve that ever% mo#ern busness applcaton s more useful an# pro#uctve f t s personalGe# accorto a professonal6s profle an# hs or her network of connectons. "n /00, we launche# a publc webste that allows an% #evelopto a!ree to a stan#ar# set of !u#elnes an# terms an# then nte!rate our content an# servces nto ther applcatons levera!n!stan#ar#s&base# technolo!%. These applcatons can be hoste# on thr#&part% webstes or #eplo%e# on our platform. "n late /011announce# a Certfe# 2eveloper 7ro!ram, whch s a network of #evelopers screene# to help marketers, a!ences an# companuse :nke#"n to connect wth ther au#ences. Thr# partes are ncreasn!l% levera!n! our A7"s.

$idgets(e prov#e a set of smple, embe##able w#!ets for stan#ar# features to allow an% web #eveloper to nclu#e rch contfrom our network nto ther webste or applcaton wthout comple pro!rammn!. e currentl% prov#e the follown! w#!ets

+&oi( Wi-g(t.2spla%s the publc profle of a !ven member. Coan1 Insi-(&.2spla%s nformaton about whom the member

knows at a partcular compan%. Sha&ing.2spla%s a smple button to help members easl% share

content wth ther network. R(/o(n-ation. 2spla%s a smple button to help members easl% recommen# a pro#uct or servce offere# b% a com

to ther network. AniWi-g(t.7rov#es nformaton about whom the member knows from a partcular e#ucatonal nsttuton.

Moneti#ed Solutions

"n a##ton to our free solutons, we also char!e for certan solutons that prov#e members, enterprses an# professonal or!anGatonwth enhance# functonalt% an# a##tonal benefts.

3alent Solutions

Bur Talent Solutons nclu#e :nke#"n Corporate Solutons, :nke#"n ;obs an# Subscrptons. Bur solutons am to be the most effectwa% for enterprses an# professonal or!anGatons to effcentl% #entf% an# ac*ure the r!ht talent for ther nee#s.

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LinkedIn Corporate Solutions. :nke#"n Corporate Solutons nclu#e the follown! pro#ucts .in,ed"n Recruiter.Bur fla!shp talent soluton enables enterprses an# professonal or!anGatons to fn#, contact an# hre

h!hl% *ualfe# passve an# actve can##ates. e beleve that a substantal maort% of our members are passve n that the% arnot actvel% lookn! to chan!e obs. 'ecruter prov#es premum functonalt% nclu#n!

A-?an/(- S(a&/h(s.Ablt% to search an# vew ever% profle on our network, !vn! most recruters access to tens ofmllons more profles than the% woul# have avalable wth our free offern!. A#vance# searches can be con#ucte# usnke%wor#s foun# an%where n a memberJs profle, such as schools atten#e# an# lan!ua!es spoken, or b% #ata #erve# fro

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Enterprise Solutions. These pro#ucts tar!et lar!er a#vertsers whch receve #e#cate# account mana!ement an# have access to##tonal @arketn! Solutons

Dis!la'&ds.A#vertsers can use the same tar!etn! en!ne use# for :nke#"n A#s to serve a#s n a varet% of sGes an# formatnclu#n! rch me#a. A##tonal :nke#"n&specfc formats are also avalable, nclu#n! 3ollow A#s, 7oll A#s, an# Sl#eShareContent A#s.

S!onsored"nMails.A#vertsers can #rectl% reach ther tar!et au#ence wth lon!&form, customGe# messa!es throu!h :nke#"n@al functonalt%.

Sponsored Updates.Avalable va both Enterprse an# self&servce channels, Sponsore# p#ates are content&rch promote# up#ates thnable a#vertsers to share an# amplf% content marketn! messa!es to a tar!ete# au#ence. Sponsore# p#ates appear n the #esktop an#

moble streams of tar!ete# members.

LinkedIn Ads.Bur self&servce platform enables a#vertsers to bul# an# tar!et ther a#vertsement to our members base# on nformatn ther profle. :nke#"n A#s nclu#es the follown! features

3argeting(A#s are tar!ete# to specfc members base# on ther profle nformaton. Tar!etable attrbutes nclu#e the memberJs functon, emplo%er, n#ustr% an# !eo!raph%.

Dail' %am!aign Budgets(A mamum #al% bu#!et can be set fora#vertsements.

%am!aign Management(A#vertsers can set up an# mana!e multple campa!ns as well as multple a# unts per campa!n. Re!orting(A#vertsers can contnuousl% montor clcks, mpressons, clck&throu!h rates, avera!e cost&per&clck an# total bu#!

spent b% a#.

Ads API.:nke#"n6s A#s A7" pro!ram enables our socal a# partners to bul# custom solutons for creatn!, mana!n!, an# optmGn:nke#"n A#s an# Sponsore# p#ates campa!ns at scale.

Premium Subscri!tions

Bur 7remum Subscrpton servces tar!et small& an# me#um&sGe# enterprses an# professonal or!anGatons, n#v#ual members ausness !roups n lar!er enterprses. Bur =usness, =usness 7lus an# Eecutve subscrpton packa!es are #es!ne# for !eneral professono mana!e ther professonal #entt%, !row ther busness an# connect wth talent. These subscrptons bun#les are sol# at #fferent prce po

5e% features foun# n the subscrpton bun#les nclu#e 8rd Degree -ame Visibilit'(Epan#s network vsblt% of the searcher b% eposn! full names for thr# #e!ree members. "nMail. A messa!e that can be sent #rectl% to a member to whom

sen#er s not connecte#. $ho)s Viewed *our Profile Pro.@embers see more nformaton about who s vewn! ther profle, the ke%wor#s use# b% oth

members to arrve at ther profle, an# the number of tmes the% have shown up n search results. Premium Search Filters.A#vance# flters for narrown! a search

base# on #erve# #ata. Saved Searches. @embers can save a search an# be notfe# when

profles that ft ther crtera are foun#. Profile Organi#er.A pro#uctvt% sute allown! members to save

cate!orGe profles an# a## notes. Sales -avigator( :nke#"n Sales Nav!ator s a premum socal selln! soluton that prov#es sales professonals wth the abl

*uckl% fn#, *ualf% an# create new opportuntes an# helps sales mana!ement accelerate the socal selln! capabltes of thersales or!anGaton. "t nclu#es the follown! features

T(a*in'.Allows sales professonals to broa#en ther network to nclu#e ever%one on ther team, ncreasn! the numbof reachable prospects an# allown! them to focus on the best prospects.

*(a- Bi-(& F +&(i S(a&/h.Create lea# lsts usn! custom crtera to fn# new accounts or uploa# name# accouhelpn! sales professonals fn# the r!ht people faster.

CRM int(g&ation.Turn contact recor#s nto rch profles b% seen! :nke#"n nformaton #rectl% n Salesforce.com or@crosoft 2%namcs.

a(s, Ma&'(ting an- Csto(& So&t

2epen#n! on the specfc pro#uct, we sell our Talent an# @arketn! Solutons offlne throu!h our fel# sales or!anGaton or onlne our webste. e sell our 7remum Subscrptons prmarl% onlne on our webste. Bur fel# sales or!anGaton uses a #rect sales force to soustomers an# a!ences. "n the nte# States, our fel# sales or!anGaton s

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ocate# n Chca!o, New York an# the San 3rancsco =a% Area. Buts#e of the nte# States, we have a##tonal fel# sales offces aroun# tworl#, nclu#n! Europe, Asa, South Amerca an# the @##le East.

3or our Talent Solutons, we #v#e our fel# sales or!anGaton between account eecutves who are responsble for new busness an#elatonshp mana!ers who focus on renewn! an# selln! a##tonal seats an# solutons to estn! customers. Some of our Talent Solutonro#ucts, such as 'ecruter :te, Talent 3n#er an# ;ob Seeker, are sol# throu!h our webste.

3or our @arketn! Solutons, our fel# sales or!anGaton focuses on a#vertsn! a!ences, lar!e bran# a#vertsers an# performance

#vertsers that want to tar!et professonals on our webste. e also sell our @arketn! Solutons to onlne a#vertsers that use our automatenlne self&servce s%stem to establsh accounts, create a#s, tar!et members, an# launch an# mana!e ther a#vertsn! campa!ns.

To #ate, our member base has !rown vrall% base# on members nvtn! other members to on our network. Throu!h ths wor#&of&momarketn!, we have been able to bul# our bran# wth relatvel% low marketn! costs. e use the *ualt% of our own pro#ucts an# solutons

ur most effectve marketn! tool, an# wor#&of&mouth momentum contnues to #rve member awareness an# trust worl#w#e.

e beleve that customer support s crtcal to retann! an# epan#n! both our member base an# customers. Bur !lobal customerperatons !roup respon#s to both busness an# techncal n*ures from n#v#ual members, enterprses an# professonal or!anGatons relo ther accounts an# how to use our features an# pro#ucts. Self&servce support s avalable throu!h our webste an# customers can also cons va emal. e have specfc premum support teams #e#cate# to premum subscrbers, onlne a#vertsers, an# our Talent Solutonsustomers.

Csto(&s

Bur customers nclu#e n#v#uals, enterprses, an# professonal or!anGatons. No n#v#ual customer represente# more than 10M oet revenue n /01+, /01/ or /011.

T(/hnoog1 In&ast&/t&(

Bur technolo!% platform s #es!ne# to create an en!a!n! professonal networkn! eperence for our members an# s bult to enableuture !rowth at scale. e emplo% technolo!cal nnovatons whenever possble to ncrease effcenc% an# scale our busness.

Bur pro#ucts rel% upon an# levera!e the massve amounts of #ata n our network. Ths rch #ataset has !rown eponentall%, re*urncalable computn! resources. e wll contnue to nvest n bul#n! propretar% technolo!es an# usn! open source# technolo!es for our earch an# solutons. Bur pro#uct #evelopment epense was $+).> mllon , $/)?./ mllon an# $1+/./ mllon n /01+, /01/ an# /011,espectvel%.

Bur ke% technolo!% platforms are #escrbe# below Professional Gra!h.Bur full% #strbute# s%stem s comprse# of a !raph en!ne where no#es can represent n#v#uals,

companes, schools an# other enttes an# e#!es can be a connecton, a 8follow,9 or an emplo%ee at a !ven compan%. Theprofessonal !raph hol#s an n#v#ual6s real&tme network an# enables a varet% of comple calls lke establshn! the #e!ree bwhch two no#es are connecte# e.!., /n# #e!ree vs. +r# #e!ree-.

O!en Sourced 3echnologies.e #eplo% aspects of our technolo!% nto the open source communt% to help ncrease the spee#whch the technolo!% can mature. The combnaton of open source an# propretar% technolo!es use# n our platforms ncreasespee# at whch we can #eplo% our pro#ucts at scale. 3or eample, Ha#oop s an open source proect use# to batch compute #ata#fferent features on our webste base# on our members6 #ata an# traffc patterns. Ha#oop enables us to scale our calculatons oepan#n! set of #ata an# to perform these calculatons more fre*uentl%.

Search.Bur propretar% search technolo!% combnes structure# an# free&form content to allow users to search across numerouparameters. Bur search s powere# b% our rch #ataset base# on facets an# ke%wor#s an# s fun#amentall% personalGe# as allsearch re*uests use a member6s network to affect relevance an# rankn!. Bur search s real tme, #strbute# an# multln!ual anserves the nee#s of both members an# enterprses an# professonal or!anGatons.

%ustomi#ed %ontent0 Matching0 3argeting and Recommendations. e have #evelope# a propretar% ntell!ence an#

recommen#aton en!ne for etractn! professonal ns!hts b% utlGn! our rch #ataset. Ths en!ne enables us to prov#e ourusers wth customGe# content an# recommen#atons. 3or eample, base# on a member6s profle, ther secon# an# thr# #e!reeconnectons, ther vewn! an# clckn! hstor%, an# a host of other crtera, our al!orthms can prov#e ntell!ence an#recommen#atons aroun# Talent @atch, 7eople You @a% 5now, Droups You @a% :ke, ;obs You @a% =e "ntereste# "n, SponsContent or Companes You @a% =e "ntereste# "n. Bur

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tar!etn! an# recommen#aton technolo!es contnue be%on# ust a member6s profle b% prov#n! ntell!ence aroun# smlarprofle vews an# smlar ob vews.

&d 3argeting Platform.e use a combnaton of tra#tonal an# propretar% a# tar!etn! an# #elver% technolo!es. Thecombnaton s optmGe# to work wth our respectve partners to prov#e the optmal user eperence. Bur propretar% s%stemslevera!e our feature etracton, nformaton retreval, an# matchn! s%stems to prov#e the most relevant a#s.

Document%onversion 3echnologies. e use a combnaton of open source an# propretar% technolo!es to convert #ocumentvarous formats e.g., p#f, #oc, ppt- nto HT@:), a mark&up lan!ua!e for structurn! an# presentn! content on the "nternet, s

that the #ocument can be #spla%e# on :nke#"n.com an# Sl#eshare.net, an# embe##e# throu!hout the "nternet. Service "nfrastructure. e have nveste# an# are contnun! to nvest n up#atn! our onlne applcatons to our new servcenfrastructure, whch we beleve wll mprove #eveloper pro#uctvt%, a!lt%, operablt% an# accelerate our moble strate!%.

O(&ations

e have #evelope# our webste an# relate# nfrastructure wth the !oal of mamGn! the avalablt% of our platform to our membernterprses an# professonal or!anGatons. Bur webste an# relate# nfrastructure are hoste# on a network locate# n multple thr#&part%acltes, an# we lease #ata center facltes n varous locatons.

nt((/ta +&o(&t1

e protect our ntellectual propert% r!hts b% rel%n! on fe#eral, state an# common law r!hts, as well as contractual restrctons. eontrol access to our propretar% technolo!%, n part, b% entern! nto conf#entalt% an# nventon ass!nment a!reements wth our emplo%n# contractors, an# conf#entalt% a!reements wth thr# partes.

"n a##ton to these contractual arran!ements, we also rel% on a combnaton of tra#e secrets, cop%r!hts, tra#emarks, tra#e #ress, #omames an# patents to protect our ntellectual propert%. e pursue the re!straton of our #oman names, tra#emarks, an# servce marks n th

nte# States an# n certan locatons outs#e the nte# States. Bur tra#emarks an# re!stere# tra#emarks n the nte# States an# otherountres nclu#e 8:nke#"n9 an# the 8n9 #es!n mark, as well as others. As of 2ecember +1, /01+, we owne# + ssue# .S. patents an# essue# fore!n patentsKutlt% mo#els, whch epre between /01? an# /0+/, as well as +?1 pen#n! patent applcatons n the nte# States nternatonall%.

Crcumstances outs#e our control coul# pose a threat to our ntellectual propert% r!hts. 3or eample, effectve ntellectual propert%rotecton ma% not be avalable n the nte# States or other countres n whch our pro#ucts an# solutons are #strbute#. Also, the effortsave taken to protect our propretar% r!hts ma% not be suffcent or effectve. An% s!nfcant mparment of our ntellectual propert% r!htsoul# harm our busness or our ablt% to compete. Also, protectn! our ntellectual propert% r!hts s costl% an# tme&consumn!. An%nauthorGe# #sclosure or use of our ntellectual propert% coul# make t more epensve to #o busness an# harm our operatn! results.

Companes n the "nternet, socal me#a technolo!% an# other n#ustres ma% own lar!e numbers of patents, cop%r!hts, an# tra#emar

n# ma% fre*uentl% re*uest lcense a!reements, threaten lt!aton, or fle sut a!anst us base# on alle!atons of nfrn!ement or other volaf ntellectual propert% r!hts. 3rom tme to tme, we face, an# we epect to face n the future, alle!atons that we have nfrn!e# thera#emarks, cop%r!hts, patents an# other ntellectual propert% r!hts of thr# partes, nclu#n! our compettors an# non&practcn! enttes.

we face ncreasn! competton an# as our busness !rows, we wll lkel% face more ntellectual propert% clams.

Co(tition

e face s!nfcant competton n all aspects of our busness. "n partcular, we compete for members, an# we also compete for customor our @arketn! an# Talent Solutons, whch are t%pcall%, enterprses an# professonal or!anGatons. The bases upon whch we competeffer amon! these areas as #scusse# below.

Members5Professional -etwor,s(The market for onlne professonal networks s new an# rap#l% evolvn!. Bther companes as 3acebook, Doo!le, @crosoft an# Twtter are #evelopn! or coul# #evelop competn! solutons. 3urther, some of thesecompanes are partnern! wth thr# partes to offer pro#ucts an# servces that coul# compete wth ours. e face competton fra number of smaller companes n nternatonal markets, such as n! n Derman&speakn! re!ons an# Ia#eo n 3rance, thatprov#e onlne professonal networkn! solutons, as well as "nternet companes n the customer relatonshp mana!ement markA##tonall%, we compete a!anst smaller companes that focus on !roups of professonals wthn a specfc n#ustr% or vertcalBur compettors ma% announce new pro#ucts, servces or enhancements that better a##ress chan!n! n#ustr% stan#ar#s or thenee#s of members an# customers, such as moble access. An% such ncrease# competton coul# cause prcn! pressure, loss

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of market share or #ecrease# member en!a!ement, an% of whch coul# a#versel% affect our busness an# operatn! results. "ntesearch en!nes coul# also chan!e ther metho#olo!es n wa%s that a#versel% affect our ablt% to optmGe our pa!e rankn!s wther search results.

Enter!rises and Professional Organi#ations53alent Solutions(th respect to our Talent Solutons, we compete wth establshonlne recrutn! companes, such as @onster, Career=ul#er, an# "n#ee#.com owne# b% 'ecrut.net-, talent mana!ementcompanes an# lar!er companes that are focusn! on talent mana!ement an# human resource servces, such as Bracle, SA7 an"=@, an# tra#tonal recrutn! frms. A##tonall%, other companes, nclu#n! newcomers to the recrutn! n#ustr%, ma% partn

wth "nternet companes, nclu#n! socal networkn! companes, to prov#e servces that compete wth our solutons, ether onther own or as thr# part% applcatons. "f the effcenc% an# usefulness of our pro#ucts to enterprses an# professonalor!anGatons #o not contnue to ecee# those prov#e# b% compettors, we wll not be able to compete successfull%. These factare nfluence# b% the number an# en!a!ement of our members.

Enter!rises and Professional Organi#ations5Mar,eting Solutions(th respect to our @arketn! Solutons, we compete wthonlne an# offlne outlets that !enerate revenue from a#vertsers an# marketers. To the etent compettors are better able to procustomers wth cost&effectve access to attractve #emo!raphcs, ether throu!h new busness mo#els or ncrease# user volume,ma% not be successful n retann! our estn! a#vertsers or attractn! new a#vertsers.

A##tonall%, other companes that prov#e content for professonals coul# #evelop more compelln! offern!s that compete wth ourremum Subscrptons an# a#versel% mpact our ablt% to sell an# renew subscrptons to our members. 3nall%, we are #evelopn! our salolutons pro#ucts an# we ma% not be able to compete effectvel% n ths area.

e beleve that we have compettve stren!ths that poston us favorabl% n our markets. However, our n#ustr% s evolvn! rap#l% an

ecomn! ncreasn!l% compettve. :ar!er an# more establshe# companes ma% focus on professonal networkn! an# coul# #rectl% compwth us. Smaller companes coul# also launch new pro#ucts an# servces that we #o not offer an# that coul# !an market acceptance *uckl%

Go?(&n(nt R(gation

e are subect to a number of fore!n an# #omestc laws an# re!ulatons that affect companes con#uctn! busness onlne, man% ofwhch are stll evolvn! an# coul# be nterprete# n wa%s that coul# harm our busness. "n the nte# States an# abroa#, laws relatn! to theablt% of prov#ers of onlne servces for actvtes of ther users an# other thr# partes are currentl% ben! teste# b% a number of clams,nclu#n! actons base# on nvason of prvac% an# other torts, unfar competton, cop%r!ht an# tra#emark nfrn!ement, an# other theorease# on the nature an# content of the materals searche#, the a#s poste#, or the content prov#e# b% users. An% court ruln! or otherovernmental acton that mposes lablt% on prov#ers of onlne servces for the actvtes of ther users an# other thr# partes coul# harm usness. "n a##ton, rsn! concern about the use of socal networkn! technolo!es for lle!al con#uct, such as the unauthorGe# #ssemnf natonal securt% nformaton, mone% laun#ern! or supportn! terrorst actvtes, ma% n the future pro#uce le!slaton or otherovernmental acton that coul# re*ure chan!es to our pro#ucts or servces, restrct or mpose a##tonal costs upon the con#uct of our busn

r cause users to aban#on materal aspects of our servce.

"n the area of nformaton securt% an# #ata protecton, most states have passe# laws re*urn! notfcaton to users when there s aecurt% breach for personal #ata, such as the /00/ amen#ment to Calforna6s "nformaton 7ractces Act, or re*urn! the a#opton of mnmnformaton securt% stan#ar#s that are often va!uel% #efne# an# #ffcult to practcall% mplement. The costs of complance wth these law

ma% ncrease n the future as a result of chan!es n nterpretaton. 3urthermore, an% falure on our part to compl% wth these laws ma% subes to s!nfcant labltes.

e are also subect to fe#eral, state, an# fore!n laws re!ar#n! prvac% an# protecton of member #ata. Bur prvac% polc% an# user!reement #escrbe our practces concernn! the use, stora!e, transmsson an# #sclosure of member #ata. An% falure b% us to compl% wthhese terms or prvac% relate# laws an# re!ulatons coul# result n procee#n!s a!anst us b% !overnmental authortes or others, whch coularm our busness. "n a##ton, the nterpretaton of prvac% an# #ata protecton laws, an# ther applcaton to onlne servces s unclear,volvn! an# n a state of flu. There s a rsk that these laws ma% be nterprete# an# apple# n conflctn! wa%s from state to state, countr%ountr%, or re!on to re!on, an# n a manner that s not consstent wth our current #ata protecton practces, or that new re!ulatons wll benacte#. Compl%n! wth these var%n! #omestc an# nternatonal re*urements coul# cause us to ncur a##tonal costs an# chan!e ourusness practces. 3urther, an% falure b% us to a#e*uatel% protect our members6 prvac% an# #ata coul# result n a loss of member conf#enn our servces an# ultmatel% n a loss of members an# customers, whch coul# a#versel% affect our busness.

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"n a##ton, because our servces are accessble worl#w#e, certan fore!n urs#ctons have clame# an# others ma% clam that we ae*ure# to compl% wth ther laws, nclu#n! wth respect to the stora!e, use an# #sclosure of member nformaton, even n urs#ctons w

we have no local entt%, emplo%ees, or nfrastructure.

O& >a(s an- Coan1 Ct&(

Bur values an# un*ue compan% culture serve as the foun#aton to our success. Bur values are the prncples b% whch we mana!e ou

a%&toa% busness an# facltate #ecson&makn!. Bur core values are Our Members %ome First(e encoura!e emplo%ees to know an# un#erstan# our members an# to ensure that we foster the lonterm vtalt% of the :nke#"n ecos%stem.

Relationshi!s Matter(=% fostern! trust wth collea!ues an# partners, we all succee#. e fun#amentall% beleve that #on! whr!ht s more mportant than ben! r!ht. e mana!e compassonatel% b% reco!nGn! that people have eperences an#perspectves that ma% #ffer from our own.

Be O!en0 9onest and %onstructive(e epect our emplo%ees to communcate wth clart% an# prov#e fee#back wth conssten a constructve wa%.

Demand Ecellence(Bur emplo%ees are encoura!e# to lea# b% eample, seek to solve b! challen!es, set measureable an#actonable !oals, an# contnuousl% learn, terate an# mprove.

3a,e "ntelligent Ris,s(Takn! ntell!ent rsks has been paramount n bul#n! the compan% to #ate. No matter how lar!e thecompan% becomes we strve to never lose our startup mentalt%.

&ct .i,e an Owner(Talent s our most mportant asset. e epect emplo%ees to act as an owner n each #ecson the% make, nomatter how b! or small.

Bur compan% culture reflects who we are an# the compan% we aspre to be. Bur culture s shape# n lar!e part b% our values an# s beefne# b%

3ransformation(7eople who work at :nke#"n are here because the% seek to make a postve an# lastn! mpact on the worl#, realGe the full potental of :nke#"n an# fun#amentall% alter the traector% of ther careers.

"ntegrit'(e #on6t beleve the en#s ustf% the means. 'ather, we epect emplo%ees to #o the r!ht thn! no matter what. %ollaboration(@uch lke the network effects nherent n our busness mo#el, we beleve that as valuable as we are as n#v#ua

we are all eponentall% more valuable when al!ne# an# workn! to!ether. 9umor(3ulflln! our msson an# vson re*ures an ntense focus, so we beleve t s mportant to not take ourselves too sero

an# tr% to have some fun whle #on! t. Results(e set clear, actonable !oals an# have h!h epectatons for our performance. e count on our emplo%ees to consste

#elver ecellent results, seek levera!e throu!h !reater effcenc% an# effectveness, an# #emonstrate lea#ershp at all levelsthrou!hout the or!anGaton.

e beleve we have assemble# an etremel% talente# !roup of emplo%ees an# strve to hre the best emplo%ees to solve ver% s!nfcahallen!es. As of 2ecember +1, /01+, we ha# ),0() emplo%ees, consstn! of /,1?1 emplo%ees n en!neern!, pro#uct #evelopment an#ustomer operatons, /,1) emplo%ees n sales an# marketn!, an# ?1) emplo%ees n !eneral an# a#mnstratve.

hle we encoura!e collaboraton, we also embrace n#v#ual thnkn! an# creatvt%. 3or eample, one of our ke% approaches tottractn! an# retann! techncal talent an# fostern! contnue# nnovaton s throu!h our compan%&sponsore# 8n2a%s9 an# 8hack#a%s9 whur emplo%ees are encoura!e# to take the tme to eplore an# mplement new #eas. 7artcpants then present ther #eas n front of the whoompan% wth prGes awar#e# for the best #eas. Some of our s!nfcant new pro#ucts have been #evelope# as a result of n2a%s an# hack#

no&ation a3ot S(g(nt an- G(og&ahi/ R(?(n(

"nformaton about se!ment an# !eo!raphc revenue s set forth n Note 1+ of the Notes to Consol#ate# 3nancal Statements un#ertem < of ths Annual 'eport on 3orm 10&5.

(asonait1

Bur busness s affecte# b% both c%clcalt% n busness actvt%, an# seasonal fluctuatons n "nternet usa!e. e beleve our rap# !rowas maske# the c%clcalt% an# seasonalt% of our busness. As our revenue !rowth rate slows, we epect that the c%clcalt% an# seasonalt%ur busness ma% become more pronounce# an# ma% n the future cause our operatn! results

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o fluctuate. "n partcular, we epect new busness an# renewals of Talent Solutons to be stron!er n the fourth *uarter of the %ear #ue tou#!etar% c%cles an# our @arketn! Solutons busness to be stron!er n the secon# an# fourth *uarter of the %ear n al!nment wth n#ustr#vertsn! spen#n!.

A?aia3( Ino&ation

Bur webste s locate# at www.lnke#n.com, an# our nvestor relatons webste s locate# at httpKKnvestors.lnke#n.comK. The followln!s are avalable free of char!e throu!h our nvestor relatons webste after we fle them wth the SEC Annual 'eports on 3orm 10&5,

uarterl% 'eports on 3orm 10&, an# our 7ro% Statements for our annual meetn!s of stockhol#ers.

e webcast our earnn!s calls an# certan events we partcpate n or host wth members of the nvestment communt% on our nvestoelatons webste. A##tonall%, we prov#e notfcatons of news or announcements re!ar#n! our fnancal performance, nclu#n! SEC flnvestor events, press an# earnn!s releases, an# blo!s as part of our nvestor relatons webste. "nvestors an# others can receve notfcatonew nformaton poste# on our nvestor relatons webste n real tme b% s!nn! up for emal alerts an# 'SS fee#s. 3urther corporateovernance nformaton, nclu#n! our certfcate of ncorporaton, b%laws, !overnance !u#elnes, boar# commttee charters, an# co#e ofon#uct, s also avalable on our nvestor relatons webste un#er the hea#n! 8Corporate Dovernance.9 The contents of our webstes are nonten#e# to be ncorporate# b% reference nto ths Annual 'eport on 3orm 10&5 or n an% other report or #ocument we fle wth the SEC, ann% references to our webstes are nten#e# to be nactve tetual references onl%.

t( "A. Ris, Factors

Investing in our Class A common stock involves a high degree of risk. ou should carefull! consider the risks and uncertainties descrelo"# together "ith all of the other information in this Annual $eport on %orm &'()# including our consolidated financial statements andelated notes# before deciding "hether to purchase shares of our Class A common stock. If an! of the follo"ing risks are reali*ed# our busin

perating results and prospects could be materiall! and adversel! affected. In that event# the price of our Class A common stock could decl

nd !ou could lose part or all of !our investment.

Ris's R(at(- to O& Bsin(ss

$e have a limited o!erating histor' in new and un!roven mar,ets0 which ma,es it difficult to evaluate our future !ros!ects and ma'

ncrease the ris, that we will not be successful(

e have a lmte# operatn! hstor% n new an# unproven markets that ma% not #evelop as epecte#. Ths lmte# operatn! hstor% mt #ffcult to effectvel% assess or forecast our future prospects. You shoul# cons#er our busness an# prospects n l!ht of the rsks an#ffcultes we encounter or ma% encounter n these rap#l% evolvn! markets. These rsks an# #ffcultes nclu#e our ablt% to, amon! othe

hn!s

hre, nte!rate an# retan worl# class talentF contnue to earn an# preserve our members6 trust wth respect to ther professonal reputaton an# nformatonF #evelop an# mantan scalable, h!h&performance technolo!% nfrastructure that can effcentl% an# relabl% han#le ncrease# mem

usa!e !loball% whle also mplementn! approprate localGaton, as well as the #eplo%ment of new features an# pro#uctsF avo# nterruptons or #sruptons n our servce or slower than epecte# loa# tmes for our servcesF ncrease our number of members an# member en!a!ementF responsbl% use the #ata that our members share wth us to prov#e solutons that make our members more pro#uctve an# success

an# that are crtcal to the talent, marketn! an# sales nee#s of enterprses an# professonal or!anGatonsF process, store, protect an# use personal #ata n complance wth !overnmental re!ulatons, contractual obl!atons an# other le!al

obl!atons relate# to prvac% an# securt%F halt the operatons of webstes that a!!re!ate our #ata as well as #ata from other companes, or cop%cat webstes that have

msapproprate# our #ataF ncrease revenue from the solutons we prov#eF successfull% a#apt to moble markets an# optmGe servces for mob

#evcesF successfull% epan# our busness n markets outs#e the nte# Sta successfull% compete wth other companes that are currentl% n, or ma% n the future enter, the onlne professonal networkn! spa

an# #efen# ourselves a!anst lt!aton, re!ulator%, ntellectual propert%, prvac% an# other clams.

"f the market for onlne professonal networks #oes not #evelop as we epect, or f we fal to a##ress the nee#s of ths market, ourusness wll be harme#. e ma% not be able to successfull% a##ress these rsks an# #ffcultes or others, nclu#n! those #escrbe# elsewhn these rsk factors. 3alure to a#e*uatel% a##ress these rsks an# #ffcultes coul# harm our busness an# cause our operatn! results to suf


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$e ma' not timel' and effectivel' scale and ada!t our eisting technolog' and networ, infrastructure to ensure that our services and

olutions are accessible within an acce!table load time( &dditionall'0 natural disasters or other catastro!hic occurrences be'ond our co

ould interfere with access to our services(

A ke% element to our contnue# !rowth s the ablt% of our members, users whom we #efne as an%one who vsts one of our webstehrou!h a computer or applcaton on a moble #evce, re!ar#less of whether or not the% are a member-, enterprses an# professonalr!anGatons n all !eo!raphes to access our webstes, servces an# solutons wthn acceptable loa# tmes. e call ths webste performan

e have eperence#, an# ma% n the future eperence, servce #sruptons, outa!es an# other performance problems #ue to a varet% ofactors, nclu#n! nfrastructure chan!es, human or software errors, capact% constrants #ue to an overwhelmn! number of users accessn!ervces smultaneousl%, an# #enal of servce or frau# or securt% attacks. "n some nstances, we ma% not be able to #entf% the cause or caf these webste performance problems wthn an acceptable pero# of tme. e epect t wll become ncreasn!l% #ffcult to mantan an#

mprove our webste performance, especall% #urn! peak usa!e tmes an# as our solutons become more comple an# our total user traffcncreases. "f our servces are unavalable when users attempt to access them or the% #o not loa# as *uckl% as users epect, users ma% seek owebstes or servces to obtan the nformaton for whch the% are lookn!, an# ma% not return to our webste or use our servces as often n tuture, or at all. Ths woul# ne!atvel% mpact our ablt% to attract members,

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nterprses an# professonal or!anGatons an# ncrease en!a!ement of our members an# users. e epect to contnue to make s!nfcantnvestments to mantan an# mprove webste performance an# to enable rap# releases of new features an# pro#ucts. To the etent that we ot effectvel% a##ress capact% constrants, up!ra#e our s%stems as nee#e# an# contnuall% #evelop our technolo!% an# network archtectuccommo#ate actual an# antcpate# chan!es n technolo!%, our busness an# operatn! results ma% be harme#.

e have mplemente# a #saster recover% pro!ram, whch allows us to move pro#ucton to a back&up #ata center n the event of aatastrophe. Althou!h ths pro!ram s functonal, t #oes not %et prov#e a real&tme back&up #ata center, so f our prmar% #ata center shuts

own, there wll be a pero# of tme that our servces wll reman shut #own whle the transton to the back&up #ata center takes place.

Bur s%stems are also vulnerable to #ama!e or nterrupton from catastrophc occurrences such as earth*uakes, floo#s, fres, power loselecommuncaton falures, terrorst attacks an# smlar events. Bur .S. corporate offces an# certan of the facltes we lease to house ouomputer an# telecommuncatons e*upment are locate# n the San 3rancsco =a% Area an# Southern Calforna, both re!ons known foresmc actvt%. 2espte an% precautons we ma% take, the occurrence of a natural #saster or other unantcpate# problems at our hostn!acltes coul# result n len!th% nterruptons n our servces.

e #o not carr% busness nterrupton nsurance suffcent to compensate us for the potentall% s!nfcant losses, nclu#n! the potentarm to the !rowth of our busness that ma% result from nterruptons n our servce as a result of s%stem falures.

f our securit' measures are com!romised0 or if our websites are sub:ect to attac,s that degrade or den' the abilit' of members or custo

o access our solutions0 or if our member data is com!romised0 members and customers ma' curtail or sto! use of our solutions(

Bur solutons nvolve the collecton, processn!, stora!e, sharn!, #sclosure an# usa!e of members6 an# customers6 nformaton an#ommuncatons, some of whch ma% be prvate. e are vulnerable to computer vruses, break&ns, phshn! attacks, attempts to overloa# oervers wth #enal&of&servce or other attacks an# smlar #sruptons from unauthorGe# use of our computer s%stems, an% of whch coul# o nterruptons, #ela%s, or webste shut#owns, causn! loss of crtcal #ata or the unauthorGe# #sclosure or use of personall% #entfable other conf#ental nformaton. 3or eample, n ;une /01/, appromatel% >.) mllon of our members6 encr%pte# passwor#s were stolen anublshe# on an unauthorGe# webste. e also work wth thr# part% ven#ors to process cre#t car# pa%ments b% our customers an# are subo pa%ment car# assocaton operatn! rules. "f we eperence compromses to our securt% that result n webste performance or avalablt%roblems, the complete shut#own of our webstes, or the loss or unauthorGe# #sclosure of conf#ental nformaton, such as cre#t car#nformaton, our members or customers ma% be harme# or lose trust an# conf#ence n us, an# #ecrease the use of our webste an# servcestop usn! our servces n ther entret%, an# we woul# suffer reputatonal an# fnancal harm.

"n a##ton, we are, an# n the future coul# be, subect to re!ulator% nvest!atons an# lt!aton n connecton wth a securt% breach elate# ssue, an# we coul# also be lable to thr# partes for these t%pes of breaches. Such lt!aton, re!ulator% nvest!atons an# our technctvtes nten#e# to prevent future securt% breaches are lkel% to re*ure a##tonal mana!ement resources an# epen#tures. "f our secur

measures fal to protect ths nformaton a#e*uatel% or we fal to compl% wth the applcable cre#t car# assocaton operatn! rules, we couable to both our customers for ther losses, as well as the ven#ors un#er our a!reements wth them, we coul# be subect to fnes an# h!heransacton fees, we coul# face re!ulator% acton, an# our customers an# ven#ors coul# en# ther relatonshps wth us, an% of whch coul# ur busness an# fnancal results.

Our core value of !utting our members first ma' conflict with the short5term interests of our business(

Bne of our core values s to make #ecsons base# on the best lon!&term nterests of our members, whch we beleve s essental to ouuccess n ncreasn! our member !rowth rate an# en!a!ement an# n servn! the best, lon!&term nterests of the compan% an# ourtockhol#ers. Therefore, n the past, we have for!one, an# ma% n the future for!o, certan epanson or short&term revenue opportuntes th

we #o not beleve are n the best nterests of our members, even f our #ecson ne!atvel% mpacts our operatn! results n the short term. "n##ton, as part of our phlosoph% of puttn! our members frst, as lon! as our members are a#hern! to our terms of servce, ths phlosoph

ma% cause #sa!reements, or ne!atvel% mpact our relatonshps, wth our estn! or prospectve customers. Ths coul# result n enterprsen# professonal or!anGatons blockn! access to our servces or refusn! to purchase our Talent or @arketn! Solutons or 7remumubscrptons. Bur #ecsons ma% not result n the lon!&term benefts that we epect, n whch case our member en!a!ement, busness an#peratn! results coul# be harme#.

3he number of our registered members is higher than the number of actual members and a substantial ma:orit' of our !age views are

enerated b' a minorit' of our members( Our business ma' be adversel' im!acted if we are unable to attract and

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etain additional members who activel' use our services( "n addition0 the trac,ing of certain of our !erformance metrics is done with

nternal tools and is not inde!endentl' verified(

The number of re!stere# members n our network s h!her than the number of actual members because some members have multple!stratons, other members have #e# or become ncapactate#, an# others ma% have re!stere# un#er fcttous names or create# frau#ulenccounts. hle the number of re!stere# members represents what we beleve to be reasonable estmates of our member base, there arenherent challen!es n ensurn! that the number of re!stere# members presents an accurate reflecton of our member network. 3or eample

o not have a relable s%stem for #entf%n! an# countn! #uplcate or frau#ulent accounts, or #ecease#, ncapactate# or other non&memben# so we rel% on estmates an# assumptons. "n a##ton, our metho#olo!% for measurn! our membershp numbers, an# specfcall% for

makn! estmates re!ar#n! non&members who shoul# not be nclu#e# as re!stere# members, has chan!e# over tme an# ma% contnue tohan!e from tme to tme. hle we are usn! what we beleve to be accurate metho#s of measurn! the number of re!stere# members, there no metho#olo!es avalable that woul# prov#e us wth an eact number of non&actual member t%pes of accounts. Therefore, we cannotssure %ou that our current or future metho#olo!es are accurate, an# we wll nee# to contnue to a#ust them n the future from tme to tme

whch coul# result n the number of re!stere# members ben! lower or h!her than epecte#. 3urther, a substantal maort% of our memberot vst our webste on a monthl% bass, an# a substantal maort% of our pa!e vews are !enerate# b% a mnort% of our members.

"f the number of our actual members #oes not meet our epectatons, f the rate at whch we a## new members slows or #eclnes or fre unable to ncrease the brea#th an# fre*uenc% of our vstn! members, then our busness ma% not !row as fast as we epect. "n a##ton,rack certan performance metrcs wth nternal tools, whch are not n#epen#entl% verfe# b% an% thr# part%. The trackn! of ths nformatas a number of lmtatons, nclu#n! relance on estmates an# assumptons, whch ma% not be accurate. Bur metho#olo!es for trackn! t

metrcs ma% also chan!e over tme, whch coul# result n unepecte# chan!es to our metrcs. "f the nternal tools we use to track these metr

n#ercount or overcount performance, the #ata we report ma% not be accurate. Ths ma% harm our operatn! an# fnancal results an# ma%ause our stock prce to #eclne.

f our members) !rofiles are out5of5date0 inaccurate or lac, the information that users and customers want to see0 we ma' not be able t

eali#e the full !otential of our networ,0 which could adversel' im!act the growth of our business(

"f our members #o not up#ate ther nformaton or prov#e accurate an# complete nformaton when the% on :nke#"n, or #o notstablsh suffcent connectons, the value of our network ma% be ne!atvel% mpacte# because our value proposton as a professonal netwn# as a source of accurate an# comprehensve #ata wll be weakene#. 3or eample, customers of our Talent Solutons ma% not fn# membhat meet ther *ualfcatons or ma% ms#entf% a can##ate as havn! such *ualfcatons, whch coul# result n msmatches that ero#eustomer conf#ence n our solutons. Smlarl%, ncomplete or out#ate# member nformaton woul# #mnsh the ablt% of our @arketn!olutons customers to reach ther tar!et au#ences an# our ablt% to prov#e our customers wth valuable ns!hts. Therefore, we must proveatures an# pro#ucts that #emonstrate the value of our network to our members an# motvate them to contrbute a##tonal, tmel% an#

ccurate nformaton to ther profle an# our network. "f we fal to successfull% motvate our members to #o so, our busness an# operatn!esults coul# be a#versel% affecte#.

Man' individuals use mobile devices to access online services( "f users of these devices do not widel' ado!t solutions we develo! for the

devices0 our business could be adversel' affected(

The number of people who access onlne servces throu!h moble #evces, as oppose# to personal computers, such as smart phones,an#hel# tablets an# moble telephones, has ncrease# #ramatcall% n the past few %ears an# s proecte# to contnue to ncrease. "f the mobolutons we have #evelope# #o not meet the nee#s of our members or customers, the% ma% re#uce ther usa!e of our platform an# our busoul# suffer. A##tonall%, we are #epen#ent on the nteroperablt% of :nke#"n wth popular moble operatn! s%stems that we #o not contuch as An#ro# an# BS, an# an% chan!es n such s%stems an# terms of servce that #e!ra#e our solutons6 functonalt%, !ve preferentalreatment to compettve pro#ucts or prevent our ablt% to promote a#vertsn! coul# a#versel% affect en!a!ement an# monetGaton on moevces. As new #evces an# new platforms are contnuall% ben! release#, t s #ffcult to pre#ct the challen!es we ma% encounter nevelopn! versons of our solutons for use on these alternatve #evces, an# we are #evotn! s!nfcant resources to the support an#

mantenance of such #evces.

Growth in access to .in,ed"n)s services through mobile devices as a substitute for access on !ersonal com!uters ma' negativel' affect

evenue and financial results(

=ecause access to onlne servces throu!h moble #evces s !rown!, our members are ncreasn!l% accessn! :nke#"n on mobleevces. hle man% of our members who use our onlne servces on moble #evces also access :nke#"n throu!h personal computers, as wave #evelope# our moble solutons, we have seen substantal !rowth n moble usa!e, an# we antcpate that the rate of !rowth n moblesa!e wll contnue to !row. A#vertsn! s a source of revenue for us, an# t s not

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lear that we wll be able fn# wa%s for our @arketn! Solutons pro#uct to be effectvel% use# on moble #evces. Hstorcall%, our @arketolutons pro#ucts have not been ma#e w#el% avalable on moble pro#ucts, an# subse*uentl% have not !enerate# a materal amount ofevenue. e are #evotn! valuable resources to solutons relate# to monetGaton of moble usa!e, an# have onl% recentl% launche# theseolutons. e cannot assure %ou that these solutons wll be successful. "f our members ncreasn!l% use moble #evces as a substtute forccess to our onlne servces as oppose# to personal computers, an# f we are unable to successfull% mplement monetGaton strate!es for olutons on moble #evces, or these strate!es are not as successful as our offern!s for personal computers, or f we ncur ecessve epenn ths effort, our fnancal performance an# ablt% to !row revenue woul# be ne!atvel% affecte#.

$e collect0 !rocess0 store0 share0 disclose and use !ersonal information and other data0 which sub:ects us to governmental regulations

ther legal obligations related to !rivac' and securit'0 and our actual or !erceived failure to com!l' with such obligations could harm

usiness(

e collect, process, store, share, #sclose an# use nformaton from an# about our members, customers an# users, nclu#n! personalnformaton an# other #ata, an# we enable our members to passvel% an# proactvel% share ther personal nformaton wth each other an# whr# partes an# to communcate an# share news an# other nformaton nto an# across our platform. There are numerous fe#eral, state an#ocal laws aroun# the worl# re!ar#n! prvac% an# the collecton, storn!, sharn!, usn!, processn!, #sclosn! an# protectn! of personalnformaton an# other #ata from an# about our members, the scope of whch are chan!n!, subect to #ffern! nterpretatons, an# whch me costl% to compl% wth an# ma% be nconsstent amon! countres an# urs#ctons or conflct wth other rules. "n a##ton, !overnmental!ences ma% re*uest or take member or customer #ata for securt% or nformatonal purposes. e !enerall% compl% wth n#ustr% stan#ar#n# are subect to the terms of our prvac% polces an# prvac%&relate# obl!atons to thr# partes nclu#n! voluntar% thr#&part% certfcato#es such as T'STe-. e strve to compl% wth applcable laws, polces, an# le!al obl!atons an# certan applcable n#ustr% co#es of

on#uct relatn! to prvac% an# #ata protecton. However, these obl!atons ma% be nterprete# an# apple# n new wa%s an#Kor n a manners nconsstent from one urs#cton to another an# ma% conflct wth other rules or our practces. "n a##ton, prvac% an# #ata securt% s actve area an# new re!ulatons are lkel% to be enacte#.

An% falure or perceve# falure b% us to compl% wth our prvac% polces, our prvac%&relate# obl!atons to members, customers orther thr# partes, or our prvac%&relate# le!al obl!atons, or an% compromse of securt% that results n the unauthorGe# release or transfeersonal or other nformaton, whch ma% nclu#e personall% #entfable nformaton or other member #ata, ma% result n !overnmentalnforcement actons, lt!aton or publc statements a!anst us b% consumer a#vocac% !roups or others an# coul# cause our members an#ustomers to lose trust n us, whch coul# have an a#verse effect on our busness. A##tonall%, f thr# partes we work wth, such as customen#ors or #evelopers, volate applcable laws, our polces or other polc%&relate# obl!atons, such volatons ma% also put our members6nformaton at rsk an# coul# n turn have an a#verse effect on our busness.

Public scrutin' of "nternet !rivac' and securit' issues ma' result in increased regulation and different industr' standards0 which cou

deter or !revent us from !roviding our current !roducts and solutions to our members and customers0 thereb' harming our business(

The re!ulator% framework for prvac% an# securt% ssues worl#w#e s evolvn! an# s lkel% to reman n flu so for the foreseeableuture. 7ractces re!ar#n! the collecton, use, stora!e, #spla%, processn!, transmsson an# securt% of personal nformaton b% companesffern! onlne servces have recentl% come un#er ncrease# publc scrutn%. The .S. !overnment, nclu#n! the hte House, the 3e#eral

Tra#e Commsson, the 2epartment of Commerce an# man% state !overnments, are revewn! the nee# for !reater re!ulaton of the collectse an# stora!e of nformaton concernn! consumer behavor wth respect to onlne servces, nclu#n! re!ulaton ame# at restrctn! certaar!ete# a#vertsn! practces an# collecton an# use of #ata from moble #evces. The 3TC n partcular has approve# consent #ecreesesolvn! complants an# ther resultn! nvest!atons nto the prvac% an# securt% practces of a number onlne, socal me#a companes.mlar actons ma% also mpact :nke#"n #rectl%. "n a##ton, the European non s n the process of promul!atn! a new Deneral 2atarotecton 'e!ulaton, whch ma% result n s!nfcantl% !reater complance bur#ens for companes wth users an# operatons n Europe.

Iarous !overnment an# consumer a!ences have also calle# for new re!ulaton an# chan!es n n#ustr% practces. 'ecentl%, the State ofCalforna an# other states passe# laws relatn! to #sclosure of companes6 practces wth re!ar# to 2o&Not&Track s!nals from "nternet

rowsers, the ablt% to #elete nformaton of mnors, an# new #efntons that ma% mpact #ata breach notfcaton re*urements. Calforna

everal other states have also a#opte# prvac% !u#elnes wth respect to moble applcatons. "n a##ton, !overnment a!ences an# re!ulatoave revewe#, are revewn! an# wll contnue to revew, our prvac% polc% an# practces. These revews can an# have resulte# necommen#e# chan!es to our pro#ucts, an# coul# result n a##tonal recommen#atons n the future. "f we are unable to compl% wth suchecommen#atons, or f the recommen#e# chan!es result n #e!ra#aton of our pro#ucts, our busness coul# be harme#.

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Bur busness, nclu#n! our ablt% to operate an# epan# nternatonall% or on new technolo!% platforms, coul# be a#versel% affecte#e!slaton or re!ulatons are a#opte#, nterprete#, or mplemente# n a manner that s nconsstent wth our current busness practces an# the*ure chan!es to these practces, the #es!n of our webstes, moble applcatons, pro#ucts, features or our prvac% polc%. "n partcular, thuccess of our busness has been, an# we epect wll contnue to be, #rven b% our ablt% to responsbl% use the #ata that our members shar

wth us. Therefore, our busness coul# be harme# b% an% s!nfcant chan!e to applcable laws, re!ulatons or n#ustr% stan#ar#s or practcee!ar#n! the stora!e, use or #sclosure of #ata our members choose to share wth us, or re!ar#n! the manner n whch the epress or mplonsent of consumers for such use an# #sclosure s obtane#. Such chan!es ma% re*ure us to mo#f% our pro#ucts an# features, possbl% n

materal manner, an# ma% lmt our ablt% to #evelop new pro#ucts an# features that make use of the #ata that we collect about our membe

Our business is sub:ect to a variet' of 1(S( and foreign laws0 man' of which are unsettled and still develo!ing and which could sub:ect

laims or otherwise harm our business(

e are subect to a varet% of laws n the nte# States an# abroa#, nclu#n! laws re!ar#n! prvac%, #ata protecton, #ata securt%, #etenton an# consumer protecton an# the provson of onlne pa%ment servces that are contnuousl% evolvn! an# #evelopn!. "n a##tonome of our members are subect to laws an#Kor lcensn! or certfcaton obl!atons that ma% restrct ther ablt% to en!a!e wth :nke#"nnlne servces. The scope an# nterpretaton of the laws an# other obl!atons that are or ma% be applcable to us or certan !roups of our

members are often uncertan an# ma% be conflctn!, partcularl% laws an# other obl!atons outs#e the nte# States. 3or eample, lawselatn! to the lablt% of prov#ers of onlne servces for actvtes of ther users an# other thr# partes are currentl% ben! teste# pursuant tctons base# on, amon! other thn!s, nvason of prvac% an# other torts, unfar competton, cop%r!ht an# tra#emark nfrn!ement, an# otheores base# on the nature an# content of the materals searche#, the a#s poste#, or the content prov#e# b% users.O. "n a##ton, re!ulatoruthortes aroun# the worl# are cons#ern! a number of le!slatve an# re!ulator% proposals concernn! prvac%, #ata stora!e, #ata protect

n# other matters that ma% be applcable to our busness. Complance wth these laws ma% re*ure substantal nvestment or ma% prov#eechncal challen!es for our busness. "t s also lkel% that as our busness !rows an# evolves an# our solutons are use# n a !reater numberountres an# a##tonal !roups, we wll become subect to laws an# re!ulatons n a##tonal urs#ctons. 3urther, as our servces an#olutons epan# to nclu#e more content nclu#n! from thr# partes-, a##tonal laws an# re!ulatons ma% become applcable to our pro#n# offern!s nclu#n! laws re*urn! us to restrct the avalablt% of such content on a !eo!raphcal bass or to certan !roups of membersome cases, laws an# le!al obl!atons of varous urs#ctons ma% be amb!uous or conflct as to :nke#"n6s r!ht to #spla% an# #strbuteertan content as part of ts onlne servces. sers of our ste an# our solutons coul# also abuse or msuse our pro#ucts n wa%s that volateaws. "t s #ffcult to pre#ct how estn! laws wll be apple# to our busness an# the new laws an# le!al obl!atons to whch we ma% becubect.

"f we are not able to compl% wth these laws or other le!al obl!atons or f we or our members- become lable un#er these laws or lebl!atons, we coul# be #rectl% harme#, an# we ma% be force# to mplement new measures to re#uce eposure to ths lablt%. Ths ma%e*ure us to epen# substantal resources or to #scontnue certan solutons, whch woul# ne!atvel% affect our busness, fnancal con#to

n# results of operatons. "n a##ton, the ncrease# attenton focuse# upon lablt% ssues as a result of lawsuts an# le!slatve proposals coarm our reputaton or otherwse mpact the !rowth of our busness. An% costs ncurre# as a result of ths potental lablt% coul# harm ourusness an# operatn! results.

$e e!ect our o!erating results to fluctuate on a 2uarterl' and annual basis0 which ma' result in a decline in our stoc, !rice if such

luctuations result in a failure to meet the e!ectations of securities anal'sts or investors(

Bur revenue an# operatn! results coul# var% s!nfcantl% from *uarter&to&*uarter an# %ear&to&%ear an# ma% fal to match our pasterformance, our proectons or the epectatons of securtes anal%sts because of a varet% of factors, man% of whch are outs#e of our con

An% of these events coul# cause the market prce of our Class A common stock to fluctuate. 3actors that ma% contrbute to the varablt% operatn! results nclu#e

our ablt% to ncrease our member base an# member en!a!ementF #sruptons or outa!es n the avalablt% of our webstes or servces, actual or perceve# breaches of prvac%, an# compromse

our member #ataF our commtment to puttn! our members frst even f t means for!on! short&term revenue opportuntesF shfts n the wa% members an# users access our webstes an# servces from personal computers to moble #evcesF the unproven nature of our busness mo#elF chan!es n our prcn! polces or those of our compettorsF our ablt% to ncrease sales of our pro#ucts an# solutons to new customers an# epan# sales of a##tonal pro#ucts an# solut

to our estn! customersF the sGe an# seasonal varablt% of our customers6 recrutn! an#

marketn! bu#!etsF

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the etent to whch estn! customers renew ther a!reements wth us an# the tmn! an# terms of those renewalsF macroeconomc chan!es, n partcular, #eteroraton n labor markets, whch woul# a#versel% mpact sales of our Talent

Solutons, or economc !rowth that #oes not lea# to ob !rowth, for nstance ncreases n pro#uctvt%F the cost of nvestn! n our technolo!% nfrastructure, pro#uct ntatves an# nternatonal epanson ma% be !reater than we

antcpateF epenses relate# to hrn!, ncentvGn! an# retann! emplo%eesF the tmn! an# costs of epan#n! our fel# sales or!anGaton an# #ela%s or nablt% n achevn! epecte# pro#uctvt%F the tmn! of certan epen#tures, nclu#n! hrn! of emplo%ees a

captal epen#turesF the entrance of new compettors n our market whether b% establshe# companes or the entrance of new companesF an# !eneral n#ustr% an# macroeconomc con#tons.

Dven our lmte# operatn! hstor% an# the rap#l% evolvn! market of onlne professonal networks, our hstorcal operatn! results mot be useful to %ou n pre#ctn! our future operatn! results. e beleve our rap# !rowth has maske# the c%clcalt% an# seasonalt% of ouusness. As our revenue !rowth rate slows, we epect that the c%clcalt% an# seasonalt% n our busness ma% become more pronounce# an

ma% n the future cause our operatn! results to fluctuate. "n partcular, we epect sales of Talent Solutons to be weaker n the frst *uarter he %ear #ue to bu#!etar% c%cles an# sales of our @arketn! Solutons to be weaker n the thr# *uarter of the %ear as use of onlne servcesurn! the summer months !enerall% slows. "n a##ton, !lobal economc concerns contnue to create uncertant% an# unpre#ctablt% an# ask to our future outlook. Sovere!n #ebt ssues an# economc uncertant% n the nte# States, Europe an# aroun# the worl# rase concern

markets mportant to our busness. An economc #ownturn n an% partcular re!on n whch we #o busness or !loball% coul# result ne#uctons n sales of our Talent Solutons an# @arketn! Solutons, #ecrease# renewals of estn! arran!ements an# other a#verse effects

oul# harm our operatn! results.

$e e!ect our revenue growth rate to decline0 and0 as our costs increase0 we ma' not be able to generate sufficient revenue to sustain o

rofitabilit' over the long term(

3rom /00< to /01+ , our annual net revenue !rew from $?


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e face s!nfcant competton n all aspects of our busness, an# we epect such competton to ncrease, partcularl% n the market nlne professonal networks an# en!a!ement of professonals.

Bur n#ustr% s evolvn! rap#l% an# s becomn! ncreasn!l% compettve. :ar!er an# more establshe# companes ma% focus on ourmarket an# coul# #rectl% compete wth us. Smaller companes, nclu#n! applcaton #evelopers, coul# also launch new pro#ucts an# servhat compete wth us an# that coul# !an market acceptance *uckl%. e also epect our estn! compettors n the markets for Talent Solun# @arketn! Solutons to contnue to focus on these areas. A number of these companes ma% have !reater resources than us, whch ma%

nable them to compete more effectvel%. Specfcall%, we are nvestn! s!nfcantl% n our @arketn! Solutons pro#ucts wth respect tomoble solutons, an# we ma% not be successful n !eneratn! revenue throu!h a#vertsn! on moble #evces, especall% as compare# to ouompettors. A##tonall%, users of socal networks ma% choose to use, or ncrease ther use of, those networks for professonal purposes, w

ma% result n those users #ecreasn! or elmnatn! ther use of :nke#"n. Companes that currentl% focus on socal networkn! coul# alsopan# ther focus to professonals. e an# other companes have hstorcall% establshe# allances an# relatonshps wth some of theseompanes to allow broa#er eposure to users an# access to #ata on the "nternet. e ma% also, n the future, establsh allances or relatonsh

wth other compettors or potental compettors. To the etent companes termnate such relatonshps an# establsh allances an# relatonshwth others, our busness coul# be harme#. Specfcall%, we compete for members, enterprses an# professonal or!anGatons as #scusse#

elow.

+embers(professional net"orks. The market for onlne professonal networks s new an# rap#l% evolvn!. Bther companes such asacebook, Doo!le, @crosoft an# Twtter are #evelopn! or coul# #evelop competn! solutons. 3urther, some of these companes areartnern! wth thr# partes to offer pro#ucts an# servces that coul# compete wth ours. e face competton from a number of smallerompanes n nternatonal markets, such as n! n Derman&speakn! re!ons an# Ia#eo n 3rance, that prov#e onlne professonal

etworkn! solutons, as well as "nternet companes n the customer relatonshp mana!ement market. A##tonall%, we compete a!anst smompanes that focus on !roups of professonals wthn a specfc n#ustr% or vertcal. Bur compettors ma% announce new pro#ucts, servcnhancements that better a##ress chan!n! n#ustr% stan#ar#s or the nee#s of members an# customers, such as moble access. An% suchncrease# competton coul# cause prcn! pressure, loss of market share or #ecrease# member en!a!ement, an% of whch coul# a#versel%ffect our busness an# operatn! results. "nternet search en!nes coul# also chan!e ther metho#olo!es n wa%s that a#versel% affect our abo optmGe our pa!e rankn!s wthn ther search results.

Enterprises and professional organi*ations(,alent Solutions. th respect to our Talent Solutons, we compete wth establshe# onlnecrutn! companes, such as @onster, Career=ul#er, an# "n#ee#.com owne# b% 'ecrut.net-, talent mana!ement companes an# lar!erompanes that are focusn! on talent mana!ement an# human resource servces, such as Bracle, SA7 an# "=@, an# tra#tonal recrutn! f

A##tonall%, other companes, nclu#n! newcomers to the recrutn! n#ustr%, ma% partner wth "nternet companes, nclu#n! socaletworkn! companes, to prov#e servces that compete wth our solutons, ether on ther own or as thr# part% applcatons. "f the effcenn# usefulness of our pro#ucts to enterprses an# professonal or!anGatons #o not contnue to ecee# those prov#e# b% compettors, we w

ot be able to compete successfull%. These factors are nfluence# b% the number an# en!a!ement of our members.

Enterprises and professional organi*ations(+arketing Solutions. th respect to our @arketn! Solutons, we compete wth onlne afflne outlets that !enerate revenue from a#vertsers an# marketers. To the etent compettors are better able to prov#e customers wth cosffectve access to attractve #emo!raphcs, ether throu!h new busness mo#els or ncrease# user volume, we ma% not be successful netann! our estn! a#vertsers or attractn! new a#vertsers, an# our busness woul# be harme#.

A##tonall%, other companes that prov#e content for professonals coul# #evelop more compelln! offern!s that compete wth ourremum Subscrptons an# a#versel% mpact our ablt% to sell an# renew subscrptons to our members. 3nall%, we are #evelopn! our salolutons pro#ucts an# we ma% not be able to compete effectvel% n ths area.

f we fail to effectivel' manage our growth0 our business and o!erating results could be harmed(

e contnue to eperence rap# !rowth n our hea#count an# operatons, whch wll contnue to place s!nfcant #eman#s on our

mana!ement an# our operatonal an# fnancal nfrastructure. As of 2ecember +1, /01+, appromatel% +


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uture to use e*ut% compensaton to motvate, ncentvGe an# retan our emplo%ees. e face s!nfcant competton for talent from othernternet an# h!h&!rowth companes, whch nclu#e both publcl% tra#e# an# prvatel%&hel# companes. As we have transtone# from a prvompan% to a publc compan%, ths competton has become even more acute n assessn! approprate compensaton packa!es, partcularl%,etermnn! the m of cash an# e*ut% compensaton. The rsks of over&hrn! especall% !ven overall macroeconomc rsks- or over&ompensatn! an# the challen!es of nte!ratn! a rap#l% !rown! emplo%ee base nto our corporate culture are eacerbate# b% our nternatpanson, an# because of our !rowth, we have s!nfcantl% epan#e# our operatn! lease commtments, whch has ncrease# our epense

e ma% not be able to hre new emplo%ees *uckl% enou!h to meet our nee#s. "f we fal to effectvel% mana!e our hrn! nee#s an#

uccessfull% nte!rate our new hres, our effcenc% an# ablt% to meet our forecasts an# our emplo%ee morale, pro#uctvt% an# retenton cuffer, an# our busness an# operatn! results coul# be a#versel% affecte#.

A##tonall%, f we #o not effectvel% mana!e the !rowth of our busness an# operatons, the *ualt% of our solutons coul# suffer, whoul# ne!atvel% affect our bran#, operatn! results an# overall busness. 3urther, we have ma#e chan!es n the past, an# wll make chan!eshe future, to our features, pro#ucts an# servces that our members or customers ma% not lke, fn# useful or a!ree wth. e ma% also #ec#scontnue certan features, pro#ucts or servces, or char!e for certan features, pro#ucts or servces that are currentl% free or ncrease fees n% of our features, pro#ucts or servces. "f members or customers are unhapp% wth these chan!es, the% ma% #ecrease ther en!a!ement onte, or stop usn! features, pro#ucts or servces or the ste !enerall%. The% ma%, n a##ton, choose to take other t%pes of acton a!anst us ss or!anGn! pettons or bo%cotts focuse# on our compan%, our webste or an% of our servces, fln! clams wth the !overnment or othere!ulator% bo#es, or fln! lawsuts a!anst us. An% of these actons coul# ne!atvel% mpact our member !rowth an# en!a!ement an# ourran#, whch woul# harm our busness. To effectvel% mana!e ths !rowth, we wll nee# to contnue to mprove our operatonal, fnancal a

mana!ement controls, an# our reportn! s%stems an# proce#ures b%, amon! other thn!s

mprovn! our nformaton technolo!% nfrastructure to mantan the effectveness of our solutonsF enhancn! nformaton an# communcaton s%stems to ensure that our emplo%ees an# offces aroun# the worl# are well&

coor#nate# an# can effectvel% communcate wth each other an# our !rown! base of members, enterprses an# professonalor!anGatonsF

enhancn! our nternal controls to ensure tmel% an# accurate reportn! of all of our operatonsF an# appropratel% #ocumentn! our nformaton technolo!% s%stems an#

our busness processes.

These s%stems enhancements an# mprovements wll re*ure s!nfcant captal epen#tures an# allocaton of valuable mana!ement mplo%ee resources. "f we fal to mplement these mprovements effectvel%, our ablt% to mana!e our epecte# !rowth an# compl% wth thules an# re!ulatons that are applcable to publcl% reportn! companes wll be mpare#.

Our international o!erations are sub:ect to increased challenges and ris,s(

e have offces aroun# the worl# an# our webstes an# moble applcatons are avalable n numerous other lan!ua!es. 3or the %earn#e# 2ecember +1, /01+ , nternatonal revenue represente# +


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cre#t rsk an# h!her levels of pa%ment frau#F complance wth ant&brber% laws nclu#n!, wthout lmtaton, complance wth the 3ore!n Corrupt 7ractces Act an# the

Ant&=rber% ActF mplementn! an# mantann! effectve nternal processes an#

controlsF complance wth varous economc an# tra#e sanctons re!ulatons whch restrct certan con#uct of busnessF currenc% echan!e rate fluctuatonsF fore!n echan!e controls that m!ht prevent us from repatratn! cash earne# outs#e the nte# StatesF

fore!n echan!e controls that m!ht re*ure s!nfcant lea# tme n settn! up operatons an# bank accounts before monetGnour operatons n certan !eo!raphc terrtoresF

poltcal an# economc nstablt% n some countres, specfcall% n"relan#F

mo#fcatons we make to our ste n certan urs#ctons #ue to local laws an# re!ulatonsF #ouble taaton of our non&.S. earnn!s an# potentall% a#verse ta conse*uences #ue to chan!es n the ta

annual report linkedin

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