Last week, the 7th of June, LoopNet went public (and raised $72 million) by offering 6 million shares at $12 per share. A proposed market cap of $485 million which is more than 10 times its current revenue run rate.
After the offering, the company expects to have 34.8 million shares outstanding. Executives and directors, who didn't sell any shares in the IPO, continue to own 43 percent of the company's stock.
The first day generated an increase of close 30% but hos gone back to around $15.
LoopNet reported net income of $18.9 million on $31 million revenue in 2005.
Revenue has almost tripled in the past three years.
The company has been profitable since the second quarter of 2003. Its revenue in the first quarter rose 65 percent to $10.2 million, and net income rose 59 percent to $2.97 million, compared with the same period in 2005.
The company makes money mostly (80%) through premium subscriptions to the site. The remainder of the company's revenue comes from advertising revenue from the site and certain product licensing fees.
Number of users
The site has 1.2 million registered members, with 64,000 of them paying a monthly subscription rate of $39.95 to $49.95 for premium service. The site averages more than 590,000 visitors per month, according to ComScore/MediaMetrix. Thirty percent of the company's paid subscriber base is concentrated in California
Number of listed properties
At the end of March, LoopNet listed 360,000 properties totaling 2.8 billion square feet worth more than $296 billion.
The IPO Prospectus
Is found here.