Kayak Travel Search Engine Going Public Next Week
You might remember Kayak, a popular travel search site, filed for an IPO back at the end of 2010, but poor market conditions caused them to hold off. As Robert Birge, Kayak’s chief marketing officer put it, “some companies have no choice but to move forward into…unsettled markets, we are happy to wait; it’s just that simple”.
Apparently things must be looking better because Kayak has just announced they are ready to go forward with their public offering in the next week or two. It sounds like they are planning to catch some momentum off of tomorrows Facebook IPO. Whether that is a good strategy, only time can tell, but conditions do seem favorable at Kayak.
Their first quarter 2012 financial report reveals a net income of $4.1 million and a 39% increase in revenue when compared with the same quarter last year. Revenue reached over $73 million for this quarter. With the IPO Kayak plans to raise about $150 million. According to CNBC, part of the renewed interest in the offering comes from competition by ITA. ITA is a similar travel search site recently purchased by Google, which poses a considerable risk to Kayak.
We will be watching the Kayak IPO closely as it is one of the first tech IPO’s to follow the much anticipated Facebook IPO which begins tomorrow. Check back regularly for updates on Kayak and Facebook.