Yesterday, LinkedIn (LNKD), the online professional networking service, priced a secondary offering of 8.8 million shares at $71 per share after reporting its first quarterly loss since its IPO back in May 2011.
So let’s review some numbers here because I am having a tough time with this one.
As of September 30, the company’s last 12-months (LTM) Revenues were $435MM and LTM Net Income of just over $10MM. With add-backs from depreciation and amortization the company generated Earnings-before-interest-taxes-depreciation-amortization (EBITDA) of about $25MM.
LinkedIn’s May IPO raised $352.8 million for the company ($248 million in net proceeds) and and as of September 30, the company still has $387MM in cash and short-term investments on its balance sheet and no real debt.
LinkedIn offers three major products
- Hiring Solutions: Revenue derived primarily from the sale of LinkedIn Corporate Solutions and LinkedIn Jobs products, selling LinkedIn Jobs on their website to enterprises and professional organizations.
- Marketing Solutions: Revenue derived primarily from fees received from marketers, principally advertising agencies, direct advertisers and user created ads that are displayed on their website.
- Premium Subscriptions: Revenue derived primarily from online sales of our Business, Business Plus and Executive subscription products. These are monthly