LinkedIn Swung to Profit, Doubled Revenue in 2010Brian Womack
LinkedIn Corp. the largest professional social-networking site, more than doubled revenue and swung to a profit last year as it readied for an initial public offering.
LinkedIn had revenue of $243 million in 2010, up from $120 million in the previous year, according to a regulatory filing today. The company had net income of $15.4 million compared with a loss of $4 million for the year-ago period.
The IPO could raise as much as $175 million in what will likely be the first public offering of a major U.S. social-networking site. LinkedIn hired Morgan Stanley, Bank of America Corp. and JPMorgan Chase & Co. to lead the sale.
LinkedIn is among a growing number of dot-com companies that have filed to go public. Last month Pandora Media Inc., the biggest Internet-radio company, registered with the SEC in August to sell shares to the public. Skype Technologies SA, an online video-and-voice service, filed to go public in August.
LinkedIn’s profit came after two years of losses of more than $8 million. Revenue more than tripled from 2008 to 2010. The company on Jan. 27 filed to go public with a statement that gave only financial results through the first three quarters of last year.
The company has more than 1,000 employees and 90 million users in more than 200 countries. Members use the site to search for jobs, recruit employees and find industry experts.
While users can create personal profiles for free, LinkedIn introduced paid subscriptions in 2005, giving recruiters more access to job candidates and providing business professionals ways to communicate with one another. The company also makes money by selling ads on the site.
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