I’m one of those weird guys who likes to pour through documents like the 182-page LinkedIn S-1 Registration Statement (while flying to Salt Lake City for a trip with high-school buddies!).
An S-1 is what a company files in preparation for “going public.”
Here are some highlights:
This excludes what looks like an $8.2 million payout to preferred shareholders
* 2009 to 2010 reflects just 9 month periods.
Hiring Solutions: 44% — Recruiters (3,900 of them in 2010) pay LinkedIn to access and market to its database of users. This includes 69% of the Fortune 100.
Advertising: 31% — Marketers (33,000 in 2010) run ads on LinkedIn’s page views.
Subscriptions: 25% — LinkedIn members can use much of LinkedIn for free but there are additional things that users must pay for (such as seeing more than 100 results at a time or being able to filter your searches by seniority of a LinkedIn member).
*Breakdown as of quarter ended Sept. 30, 2010
“LinkedIn is not as automated a business as some may think…over half their revenue comes from Field Sales.”
Due in part to LinkedIn’s money spent on a sales team in the field, their profit margins are lower than Google’s and Facebook’s.
“I bet that Groupon’s profit margins will be closer to LinkedIn’s than they are to Google or Facbeook when Groupon files its S-1…due to the large field sales team they employ. “
Did anyone notice that I just quoted myself? I’m just trying to break up the text components here!
* For the 9 months ended Sept. 30, 2010
*As of December 31, 2010
LinkedIn is currently being valued at around $2.9 billion according to the latest shares being sold on SharesPost (note: this is not in the S-1 Registration).
A LinkedIn IPO could value the company at a great price than the $2.9 billion based on those recent privately-traded LinkedIn shares.
Of course, the LinkedIn valuation could change big time if we have an Internet bubble burst before they go public.