LinkedIn Files To Raise Up To $175 Million In An IPO

LinkedIn

After years of buzz that its IPO was on the way, LinkedIn is finally going to go public. The professional social network said today that it hopes to raise as much as $175 million by selling its stock. A filing with the SEC discloses for the first time details about the company’s financial performance, including its sales and how much it paid for some recent acquisitions. Read on for highlights.

Financial performance: The company’s sales totaled $161 million during the first nine months of 2010, double the $80.8 million the company reported during the same period the year before. Sales quadrupled between 2007 and 2009. LinkedIn is also profitable, reporting net income of $10.1 million, up from a loss of $3.38 million during the first nine months of 2009.

Forty-one percent of the social network’s revenue comes from job-related products that allow companies to search for possible hires on the site. Thirty-two percent of sales come from ad sales, while the remaining 27 percent comes from premium subscriptions. The percentage of sales from job-related products has increased substantially since 2007, while the percentage from premium subscriptions has slipped.

Cash: LinkedIn is certainly not short of cash right now. The company says it has $89.6 million in cash and cash equivalents.

Use of funds: The company says, however, that it will use the proceeds from the offering “for general corporate purposes, including working capital, sales and marketing activities, general and administrative matters and capital expenditures.” The company also says it may use the cash for acquisitions. Just yesterday, LinkedIn purchased business card scanning iPhone app CardMunch.

Acquisitions: In the filing, the company reveals for the first time how much it paid for some other companies it has purchased over the last year. For instance, LinkedIn says it spent $736,000 to purchase personalization startup mSpoke in July and $4.989 million to buy b-to-b rating startup ChoiceVendor in September.

Ownership: The company had raised more than $80 million in funding, including $53 million in a round led by Bain Capital in June 2008. The filing shows that founder Reid Hoffman owns 21.4 percent of the company. Other major shareholders include Sequoia Capital (18.9 percent), Greylock Partners (15.8 percent) and Bessemer Venture Partners (5.1 percent).

Stock: Underwriters include Morgan Stanley, Merrill Lynch, JP Morgan, Allen & Co. and UBS Securities. LinkedIn will be listing its stock on the New York Stock Exchange.

Here’s the filing:

LinkedIn Form S-1 Jan. 27 2011

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