At the bottom of the current range, LinkedIn is being valued at $3 billion. Their latest quarter was a $93M print. We won't use trailing 4 quarter revenue (as we should) to be nice, but even if we annualize the $93M over a year that's under $400M per year, or nearly a 10x sales value. For a company growing the bottom line under 15%. And we can be sure this is one of those stocks that will pop 50%+ on IPO day so that $3B valuation is going to be $4.5B or $5B. Oh well - compared to RenRen (RENN) or Youku.com (YOKU) I guess it's a "steal" at these prices. Party on Garth.
- LinkedIn increased its IPO plans Monday, saying it intends to raise a maximum of $315.6 million by offering 7.84 million shares at $32 to $35 per share, according to an amended S-1 filing.
- The total offering (NYSE: LNKD) would raise a maximum of $315.6 million at the top of the range, not including fees. The company expects net proceeds of $146.6 million at the midpoint of that range. If underwriters increase the offering LinkedIn could raise up to $183.2 million.
- The $315.6 million number is way up from LinkedIn’s previous filing in January, when it said it planned to raise $175 million.
- The company will have 94.5 million shares in total after the IPO, giving the company a valuation above $3 billion even at the low end of the IPO range.
- For the quarter that ended March 31, LinkedIn reported net revenue up 110% to $93.9 million, from $44.7 million in the year-ago period. The company has three main revenue lines: hiring solutions, marketing solutions and premium subscriptions. Hiring solutions is the largest piece, at $46 million in revenue in the quarter–it also grew the fastest, up 174% from the year-ago period.
- Net income in that most recent quarter was $2.1 million, up 14% from $1.8 million in the year-ago period.
- LinkedIn’s largest shareholders are founder and chairman Reid Hoffman with 21.2%, Sequoia Capital with 18.7%, Greylock Partners (where Hoffman is now a venture capitalist) with 15.6%, and Bessemer Venture Partners with 5.1%. They are all selling very small pieces of their stakes. Morgan Stanley, Merrill Lynch and J.P. Morgan are leading the deal.