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Today in Social

Kayak, the travel search company, re-filed for a long-delayed IPO. It hopes to raise up to $100 million in a valuation that, at the high end of its pricing, would approach $965 million. Will a successful consumer Internet IPO wipe out the bad taste of Facebook’s profitable but non-popping debut? Kayak is one of the few examples of vertical search that seems successful outside of a retail or content context. Its sales – a mix of advertising and distribution fees – grew 32 percent in 2011 to $225 million, and 38 percent in Q1 to $73 million. It is profitable on an operating basis. But Kayak has some cautions. Sixty-three percent of its revenue came from its top 10 customers, with Expedia alone accounting for 23 percent and Orbitz and Priceline 10 percent each. Its IPO was delayed for nearly 2 years to combat Google’s acquisition of ITA that supplies much of Kayak’s data. A consent decree continues that license through 2016, and Kayak doesn’t appear too dependent on search results for traffic. However, that’s partly because it spent $58 million on brand advertising last year (on top of $46 million in search and contextual ads).