Feeds

LinkedIn whips out begging cap, asks for $500m

Please, sir, can I have some more?

Combat fraud and increase customer satisfaction

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. ®

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.