Road to profitability: In an updated SEC filing Tuesday, LinkedIn said it turned a profit of $2.1 million on revenue of $93.9 million in the first quarter. In 2010, the company's last full fiscal year, it earned $15 million in profit on sales of $243 million.
Prior to last year, the company had been in the red every year since its 2003 inception -- except for 2006, when it turned a slight profit on revenue of $32 million.
LinkedIn is one of the"Big 5" private tech companies that have attracted massive investor buzz as the tech IPO market thaws.
The other four -- Facebook, Twitter, Groupon and Zynga -- are still private. Investors will be looking to LinkedIn's stock performance as a possible indicator of when these four may also look to go public.
Bubble concerns: Even as LinkedIn shares surged, investors remain concerned about a tech bubble.
At a $10 billion valuation, LinkedIn is trading at nearly 670 times last year's earnings. As recently as spring 2009, LinkedIn valued itself at just $2.32 a share.
And some other splashy tech IPOs this year have started to fizzle
Online content company Demand Media (DMD) went public in January and rose 33% in its first day of trading. Demand shares drifted higher the next two months -- but then plummeted a whopping 30% in April.
The so-called Facebook of China, Renren (RENN), has also struggled.Shares rose 29% on its first day of trading earlier this month, but are now trading below their offering price.
Who's selling shares: LinkedIn itself sold about 4.83 million shares, and existing stockholders are selling about 3 million.
LinkedIn co-founder Reid Hoffman and his wife, Michelle Yee, sold about 115,000 shares. They still own more than 20% of the company's stock -- which is worth nearly $2 billion at $105 per share.
The company will not receive any proceeds from the sale of shares by the stockholders.
Other large shareholders include three big names in the venture capital world: Sequoia Capital, Greylock Partners and Bessemer Venture Partners. None of those firms sold shares in the IPO.