Feeds

LinkedIn whips out begging cap, asks for $500m

Please, sir, can I have some more?

Remote control for virtualized desktops

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. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
BT said to have pulled patent-infringing boxes from DSL network
Take your license demand and stick it in your ASSIA
Right to be forgotten should apply to Google.com too: EU
And hey - no need to tell the website you've de-listed. That'll make it easier ...
prev story

Whitepapers

Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Managing SSL certificates with ease
The lack of operational efficiencies and compliance pitfalls associated with poor SSL certificate management, and how the right SSL certificate management tool can help.