With more than 90 million users, LinkedIn, the social network that helps professionals connect, filed for an initial public offering. The site which is mainly used for business networking, didn’t reveal the number of shares it plans to offer or price range, but offers insights into its current financials and operations.
The fillings highlight how profitable the business of social networking can be. Currently, LinkedIn’s revenues come from three main sources — advertising, hiring solutions and premium subscriptions. According to the filling, it generated revenues of $120 million for 2009 and $161 million for the first 3 quarters of 2010. Its hiring solutions and advertising have become the company’s primary growth areas, comprising of 41% and 32% of revenue, respectively. It indicated it doesn’t expect profitability in 2011 because of investments in technology and a few other areas. It also disclosed that a “substantial majority” of its members don’t visit the site on a regular monthly basis.