Linkedin shares soar on opening

Shares of LinkedIn Corporation, which priced its initial public offering of 7,840,000 shares to the public of $45 per share, soared at one point yesterday to $122.70, a rise of 172.7%. They closed at $94.25 up 109.4%.

In 2010, net revenue was $243.1 million, which represented an increase of 102% from 2009. In 2010, LinkedIn generated $15.4 million of net income and $48.0 million of adjusted EBITDA, which represented an increase of 487% and 227%, respectively, from 2009. For the three months ended March 31, 2011, net revenue was $93.9 million, which represented an increase of 110% from the three months ended March 31, 2010. For the three months ended March 31, 2011, LinkedIn generated $2.1 million of net income and $13.3 million of adjusted EBITDA, which represented an increase of 14% and 46%, respectively, from the three months ended March 31, 2010.

LinkedIn.com launched their webste in May 2003, and by the end of 2003 had 14 employees and over 78,000 members. In September 2004, LinkedIn began generating revenue on their website. They launched LinkedIn Jobs, which is currently a component of LinkedIn hiring solutions, and began generating revenue from it in March 2005. Later that year, LinkedIn launched their first premium subscription product and began generating revenue from it in August 2005. In March 2008, they launched LinkedIn Corporate Solutions, a key component of hiring solutions, further diversifying LinedIn’s sources of revenue. As of December 31, 2010, LinkedIn had 990 employees and over 90 million members. As of March 31, 2011, They had 1,288 employees and over 100 million members.

LinkedIn are headquartered in Mountain View, California. Their international headquarters is located in Dublin, Ireland. They have sales and marketing offices in Australia, Canada, France, India, the Netherlands and the United Kingdom. For 2010, 27% of net revenue was derived from customers located outside the United States. For the three months ended March 31, 2011, 31% of net revenue was derived from customers located outside the United States. LinkedIn expect the percentage of total net revenue derived from outside the United States to increase in future periods as they continue to expand international operations.

The bookrunning managers of the offering were Morgan Stanley & Co. Incorporated, BofA Merrill Lynch and J.P. Morgan Securities LLC. Allen & Company LLC and UBS Securities LLC are the co-managers. The stock is traded on the New York Stock Exchange (NYSE) under the symbol “LNKD.”

USA, Mountain View, CA

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