LinkedIn to raise $175 million in IPO
29 Jan 2011
Investors are closely studying the financial details disclosed by LinkedIn Corp in its IPO filing, to determine the company's real worth. The company filed to raise $175 million in an IPO on Thursday.
The company is attracting significant interest as the first social networking company to initiate the process of becoming publicly traded, though financial attractiveness of investing in it is an open question.
According to analysts, it is only recently that the site's earnings have turned positive.
The company has reported increasing revenue over each of the past seven quarters and has posted several quarterly losses during that period -- $2.9 million in the March 2009 quarter.
However, it has been profitable for the past two quarters, its filing with the US Securities and Exchange Commission shows.
According to LinkedIn, it expects its rate of revenue growth to fall and does not expect it to be profitable on a GAAP basis in 2011 due to investment in its growth.