David Jackson, over at Internet Stock Blog, has taken a fascinating look at the Sparks Network IPO filing. He makes the point that Sparks will be closely watched by investors since its filings and earnings results should cast light on the online dating businesses run by Yahoo! and IAC.
Some of the key stats he mentions:
– Operating expenses (excluding direct marketing) were 70% of revenue, down from 80% in 2003.
Net loss was $11.6 million.
– Revenue mix: JDate accounted for $24 million, AmericanSingles.com for $35 million, and other web sites for $6 million.
– Average monthly subscriber churn for JDate.com was 25.8% and for AmericanSingles.com was 35.6%.
– 226,100 average paying subscribers, up 79.7% over 2003.
– Subscriber acquisition costs: JDate $8.09 (versus $4.39 in 2003), AmericanSingles.com $43.29 (versus $45.70 in 2003).
David has done a fantastic job of deciphering the filing documents. This is an absolute must-read article if you’re interested in PPC rates, customer acquisition costs and online dating site marketing costs.
