Kayak Software IPO watch: Kayak Software was founded by the co-founder of travel booking sites – Expedia, Travelocity and Orbitz in 2004, and is primarily focusing on providing price comparison services on ticket and hotel accommodation of hundreds of websites to users through website and mobile applications. After users find the satisfying flights, Kayak will direct users to their favorite sites to complete the booking transactions. Users usually can directly complete hotel reservations on Kayak.
Kayak Software has raised $22 million through several rounds of financing. Kayak Software said in the prospectus submitted in November 2010 that it planned to raise $50 million. Kayak Software IPO was postponed at the end of September last year, because the stock market environment was sluggish at that time. Kayak Software’s chief marketing officer Robert Birge said that the stock market environment was too capricious, and this did not achieve the company’s expectation. When the market environment is conducive to the IPO, they will restart the public offering.
Kayak Software’s revenues come from the referral services to the travel agencies and providers, and advertising also contributes part of their income.The ordinary user is free of charge to use the services of the company.
Kayak Software said in the regulatory filing submitted to the Securities and Exchange Commission in early May of this year the company had turned loss into profit in the first quarter. For the first quarter ended March 31, the company posted a net profit of $4.15 million, or $0.11 earnings per share, better than a net loss of $6.91, or per share diluted loss of $1.33 for the same period last year. Kayak Software’s first quarter revenue reached $73.3 million, 39% higher from a year earlier. Sources revealed that Kayak Software plans to raise about $150 million through the IPO and the company is currently valued at $1 billion.
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