September 4, 2013
The professional network plans to sell 4.17 million shares of its Class A stock to increase the products it offers, grow its sales team and expand overseas, according to a U.S. Securities and Exchange Commission filing.
LinkedIn stock has done well since the company went public in May 2011 at $45 per share. The company’s stock now sits at just over $241 per share.
Some of LinkedIn’s main goals, according to the filing are:
• To hire, integrate and retain world class talent;
• Develop and maintain a scalable, high-performance technology infrastructure that can efficiently and reliably handle increased member usage globally while also implementing appropriate localization, as well as the deployment of new features and products;
• Avoid interruptions or disruptions in our service or slower than expected load times for our services;
• Increase number of members and member engagement;
• Successfully expand our business in markets outside the United States;
LinkedIn last month posted a second-quarter revenue of $363.7 million — a 59 percent hike in sales over the same period a year ago.
The professional social network’s profit rose 32 percent to $3.7 million and revenue from LinkedIn’s Talent Solutions, a batch of recruitment and hiring products to help companies find compatible employees, rose 69 percent from last year to $205.1 million.
The network also brought in $85.6 million from its marketing products and $73 million from the sales of premium member subscriptions.
The stellar second-quarter report sent investors into a delighted frenzy, causing shares to rise 12 percent to $227.98 in after-hours trading. Although shares have risen since LinkedIn’s last financial report to more than $241 a share, news of LinkedIn’s stock sale plan resulted in a 1.8 percent drop in after-hours trading Tuesday.
For its third quarter, LinkedIn is projecting revenue to range between $367 million and $373 million. For the full year, the company is forecasting revenue of between $1.455 billion and $1.475 billion.
LinkedIn’s membership now sits at a record 238 million people — a 37 percent increase from the same period in 2012.