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Match and SNAP Interactive Financials

Reading IAC quarterly financials:

– New user conversion to payers is up double digits at Match, driven primarily by improvements in the mobile product. Nontraditional products. The user growth here has been phenomenal, up 90% year-over-year to over 16.5 million monthly users.

– What’s so interesting about all these monetization experiments is what it’s teaching us about dynamic pricing, or the ability to collect a lot of money from those willing to pay a lot, and a little or no money from those not willing to pay at all. For perspective, on one of these newer services, we’ve had someone pay us over $1,800 over the last 3 months.

SNAP, on the other hand, is trending in the opposite direction.

On a sequential basis, total revenues for the third quarter of 2013
decreased 5% to $3.0 million from $3.2 million for the second quarter of
2013;
—  On a sequential basis, bookings for the third quarter of 2013 decreased
7% to $2.9 million from $3.1 million for the second quarter of 2013;
—  Total revenues decreased 31% to $3.0 million for the third quarter of
2013 from $4.3 million for the comparable period in 2012;
—  Quarterly bookings decreased 27% to $2.9 million for the third quarter
of 2013 from $4.0 million for the comparable period in 2012;
—  Net loss was $1.7 million, or $0.04 per basic and diluted common share
for the third quarter of 2013 as compared with net income of $0.3
million, or $0.01 per basic and diluted common share, for the comparable
period in 2012;
—  Available sources of liquidity (including cash and cash equivalents and
restricted cash) totaled $1.9 million at September 30, 2013; and
—  Significant progress was made during the third quarter of 2013 with
regards to net subscriber growth, cost reductions and our conversion
rate.

Always interesting to compare Zoosk with SNAP’s Are You Interested. they both launched around the same time, took advantage of the Wild West days of early Facebook viral marketing, grew leaps and bounds and now we have Zoosk pulling  $40M per quarter.

As for Match, it’s $1 billion or bust, how are they going to get there? Dynamic pricing, converting free members to freemium/paid or another acquisition?

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Comments

  1. Fernando Ardenghi says:

    “As for Match, it’s $1 billion or bust, how are they going to get there? Dynamic pricing, converting free members to freemium/paid or another acquisition?”

    Not sure if you are well aware about the “Yuliana Avalos and others against IAC (Match and others) collective lawsuit”

    More info here
    http://www.nydailynews.com/news/national/celeb-pics-fake-accounts-match-lawyer-article-1.1534885
    http://www.nydailynews.com/news/national/photos-posted-match-led-suicide-model-article-1.1527230

    It seems fake profiles in Online Dating sites will be a hot topic for lawyers this busy season in the Online Dating Industry (20th Dec 2013 to 20th Feb 2014)
    Imagine a NEW Legislation for Online Dating Sites to force them disclose how many active members they have (Premium members: paid or with gift subscriptions) ?
    And also force them to conduct ID verification ? A variety of new laws, or new interpretations of existing laws, could subject dating sites to claims or otherwise harm their business. (extracted from IAC SEC filing)

    ALL Online Dating Industry companies operating Worldwide, are under the scrutiny of consumers and lawyers now.

  2. I don’t see how scammers using fake photos has anything to do with this. There are always a few lawsuits around pertaining to profiles, it’s pretty common.

    Fake profiles will never be a hot topic, neither will disclosure and ID verification. This has been discussed, hashed out, argued and ignored for years.

    You see a sketchy profile, you ignore it, buyer beware. I’m on tons of sites, it’s the casual dating ones that are the scammiest and have the most fakes (my experience).

    Scrutiny is good, but in the case of dating, doesn’t affect the market much at all.

    Dating is always going to be a mix of trustworthy entrepreneurs, bad actors and scammers, not much to be done about it.

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