Feeds

LinkedIn whips out begging cap, asks for $500m

Please, sir, can I have some more?

Beginner's guide to SSL certificates

LinkedIn is looking for a few million dollars more from the market so it can increase its capital and its public float.

The social business network wants to raise the funds with a secondary offering of around $100m worth of its own shares, with another $400m or so coming in from stocks sold by existing holders.

"The proceeds of the primary portion of the offering will be used to provide additional working capital for LinkedIn, including further expansion of its product development and field sales organisations, for capital expenditures and potential strategic acquisitions or investments," LinkedIn said in a canned statement.

LinkedIn, which went public in May, has had a fairly tumultuous time on the open market so far. Its shares, initially priced at $45, soared on debut to $94.25, fell back to under $64 in June and soared again to $109 in July before settling to a more-than-respectable value of between $85 and $92 in the last three months.

The web company has just released its financial results for the third quarter of this year, featuring a net loss of $1.6m, despite revenues that had increased 126 per cent to $139.5m.

LinkedIn makes its money from its premium user subscriptions and from helping companies on the network hire staff and market themselves.

Its hiring solutions made the lion's share of its revenues in the three months ending in September, bagging $70.9m, while marketing solutions earned $40m and subscriptions made $28.4m.

LinkedIn said it was predicting revenue in the fourth quarter of between $154m and $158m and full-year revenue to be $508m to $512m, but it didn't make any predictions on its net income or loss for these periods.

The networking firm preferred, as companies often do, to concentrate its expectations on adjusted EBITDA, an accounting term that basically means earnings before taxes, interest payments on loans or the reduction in the value of its assets. By that metric, the firm actually made $24.7m in the third quarter instead of losing $1.6m.

LinkedIn is forecasting adjusted EBITDA of $19m to $21m next quarter and $83m to $85m for the full year. ®

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.