LoopNet's IPO is the first of the last six to be priced above the bottom of its established range. Following the first-day dive of Vonage on May 24, six straight IPOs--MasterCard, Mueller Water Products, CTC Media, Town Sports International and Luna Innovations—were priced either below or at the low-end of their established range. At $12, LoopNet was in the middle of its $11-$13 range.In the quarter ended March 31, 2006, LoopNet reported net income of $3 million and revenue of $10.2 million, compared with net income of $1.9 million and revenue of $6.2 million in the first three months of 2005. For all of 2005, revenue hit nearly $31 million, an 82% increase over 2004. Operating cash flow has increased 119% to $12.4 million, with a 40% profit margin.
LoopNet was launched in 1997. The company now has 1.3 million basic members--who pay no fee for limited access and functionality--and 65,000 premium members who pay $49.95 per month for enhanced listings and more advanced search capabilities. The company generates 80% of its revenue from those premium members. The other 20% of its revenue is generated by advertising and by licensing its technology to third party commercial real estate sites.
LoopNet is run by chief executive Richard Boyle. Boyle joined LoopNet in 1999 as Vice President, and was in charge of product and technology development and operations prior to being named President & CEO in 2001.For Tuesday's IPO preview article, click here.
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