LinkedIn has today submitted its S-1 filing with the US Securities and Exchange Commission, indicating its wish to IPO.
In documents filed by LinkedIn, the professional social network proposed a total offer price of $175m, although this is just a placeholder amount – once LinkedIn formally files for an IPO, this will be much greater.
Along with the document, LinkedIn disclosed that in the nine months ended September 30, 2010, LinkedIn’s net revenue increased to $161m – double the $80.6m it had reported for the same period the previous year.
We’ve read through LinkedIn’s IPO filing – read the best bits here.
Meanwhile, the documents also reveal that LinkedIn’s total net revenue in 2009 was $120m, which the company beat in 2010. The numbers also show how 2010 was LinkedIn’s first profitable year.
You can view LinkedIn’s full S-1 filing here.
Tech blog TechCrunch highlights an interesting passage from LinkedIn’s filing, with regard to the risks facing LinkedIn:
“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.”
Hmm… Probably not the best opening lines for a company about to go public, but investors are probably confident enough in LinkedIn’s future to have a punt.
The devil is in the detail, as always. LinkedIn goes on to explain how, from 2007 to 2009, LinkedIn’s net revenue grew from $32.5m to $120.1m, which represents a compounded annual growth rate of approximately 92 per cent. It would be difficult to keep that level of growth up..!
Besides, the member numbers behind LinkedIn are strong enough for investors: the company boasts some 90 million members across more than 200 countries worldwide.
We’ve read through LinkedIn’s IPO filing – read more detailed analysis, stats and quotes from LinkedIn’s IPO filing here.