Financial Accounting Company Case: Linkedin 10-K Review

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LinkedIn: Company Case

Contents
A.Overview3
B.Trend Analysis of Sales and Earnings Growth5
C.Analysis of Operating Efficiency, Liquidity, and Solvency7
D. Analysis of Cash Flows8
E. Own Question12
Appendix 1 – Calculations and ratios14

A.Overview
1.Company name and locations
Name: LinkedIn Corporation
Head office: Mountain View, California, USA.
Other primary locations: Amsterdam, The Netherlands; Delhi, India; Dublin, Ireland; Melbourne, Australia; Paris, France; Stockholm, Sweden; Omaha, New York, Chicago, and San Francisco, USA, Brazil, Germany, Italy, and Spain.

2.Where in the life cycle is LinkedIn?
LinkedIn Corporation is currently in its growth phase, it was co-founded in 2003 by former CEO and current chairman Reid Hoffman. In 2011 the company was the first major social networking company to file an IPO and the biggest internet IPO since Google. The company used the proceeds for more investment. Having built a competent management team led by former Yahoo! executive CEO Jeff Weiner, the company has in the last 2 years begun to go through a phase of small acquisitions, opening new sales office locations internationally as well as continuing to invest in R&D and member acquisition in order to attain a critical mass of member. More than half of its member base comes from outside the US, and it offers its services in half a dozen languages.| LinkedIn Corporation is currently in its growth phase, co-founded in 2003 by former CEO and current chairman Reid Hoffman. In 2011 the company was the first major social networking company to file an IPO and the biggest internet IPO since Google. The company used the proceeds for more investment. Having built a competent management team led by former Yahoo! executive CEO Jeff Weiner, the company has in the last 2 years begun to go through a phase of acquisitions, opening new sales office locations internationally as well as continuing to invest in R&D. More than half of its member base comes from outside the US, and it offers its services in half a dozen languages.|

3.Using its financial report, provide an overview of LinkedIn’s (a) Core activities:

LinkedIn generates revenues from enterprises and professional organizations by selling its hiring and marketing solutions both offline, through the company’s field sales organization, and online, through its the website. It also generates revenue from subscription service fees from members, who are either private individuals or enterprises, subscribing to LinkedIn premium services.

(b) Primary goal and the main strategies being pursued to achieve the goal(s);

LinkedIn’s mission is to “connect the world’s professionals and make them more productive and successful.” The firm proposes its solutions benefit professionals and seeks to connect them with enterprises and/or professional organizations seeking the world’s best talent. The 10-K also states the firm’s belief that its members come first and that this long-term approach enables the organization to invest, innovate and pioneer in unexplored segments of the industry in order to increase the value proposition of its proprietary platform and data.LinkedIn lists six key points as part of its core strategy. These include: viral growth, serve as the professional profile of record, be the essential source of professional insights, accessibility for members, increasing monetization while creating value for members, and also expanding internationally. The company says that it has seen significant growth in the international member base and has established operations in Australia, Brazil, Canada, France, Germany, India, Ireland, Italy, Japan, the Netherlands, Singapore, Sweden and the United Kingdom. It adds that it intends to expand sales, technical and support operations in additional locations, and expanding the member base by supporting local languages.

(c) Primary opportunities and risks associated...
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