LinkedIn Files For IPO

[Sneha Chowdary]

[img]http://tctechcrunch.files.wordpress.com/2011/01/linkedin-picture.png[/img]

Professional social network LinkedIn has just submitted its [url=http://www.sec.gov/Archives/edgar/data/1271024/000119312511016022/ds1.htm]S-1 filing[/url] with the SEC, indicating that it will file for a public offering. The maximum proposed total offering price is $175 million but this is just a placeholder amount. In terms of revenue, in the nine months ended September 30, 2010, LinkedIn’s net revenue increased $80.6 million to $161 million for the same period. Net income for the same period came in at $10 million.
LinkedIn’s total net revenue in 2009 was $120 million, which LinkedIn obviously surpassed in 2010. The company took a $3.9 million loss in terms of net income, with 2010 as the first profitable year for the network. The company currently has 990 employees and over 90 million members.
Other interesting things to note from the filing, with regard to LinkedIn’s risks:
“We expect our revenue growth rate to decline, and as we continue to invest for future growth, we do not expect to be profitable on a GAAP basis in 2011.”
“The number of our registered members is higher than the number of actual members, and a substantial majority of our page views are generated by a minority of our members… If the number of our actual members does not meet our expectations or we are unable to increase the breadth and frequency of our visiting members, then our business may not grow as fast as we expect, which will harm our operating and financial results and may cause our stock price to decline.”
In terms of competition, LinkedIn says this in the document:

[peru_edaite_enti]

!q# !q#.....papam...

[chotu gadu]

Probably a good move...

[Sneha Chowdary]

[quote author=chotu gadu link=topic=148309.msg1716442#msg1716442 date=1296166607]
Probably a good move...
[/quote] i dont think so....... sCo_hmmthink sCo_hmmthink  ...... vadi reputation poddi anukunta.....monetary losses ekkuvautai funding vachina kuda...i dont think it will be good for the company....

[chotu gadu]

[quote author=Duvva Abbulu link=topic=148309.msg1716464#msg1716464 date=1296166732]
i dont think so....... sCo_hmmthink sCo_hmmthink  ...... vadi reputation poddi anukunta.....monetary losses ekkuvautai funding vachina kuda...i dont think it will be good for the company....
[/quote]Reputation damage avvadu ane anukuntunna mama...though goin fr an ipo is risky business, it can help pool in more funds to retain the best available resources...i dnt think monetary losses wud be alarming...