Money continues to fall out of trees for IAC’s Match.com empire. Revenue up 20% last quarter to $116.4M. They are making some very smart business deals and acquisitions and it shows on their balance sheets.
Match customer acquisition costs seem to be dropping, although I wonder about “lower customer acquisition costs as a percentage of revenue.” I want to know if they are paying something like $35 CAC on a per-user basis and that number is getting lower because they are getting more efficient.
Match revenue benefited from strong growth within its Core(1) and Developing(2) operations. Core revenue increased 22% to $97.6 million driven by a 17% increase in subscribers. The growth in Developing revenue was primarily due to display advertising revenue from OkCupid, which was acquired in January 2011 and was not in the year ago period. Profits were favorably impacted by higher revenue, lower customer acquisition costs as a percentage of revenue and operating expense leverage.
Customer acquisition costs as a percentage of revenue in the current year period benefited from reduced spending within Developing operations, partially offset by an increase in spending in Core operations. Revenue and profits in 2010 were negatively impacted by the write-off of $2.2 million in deferred revenue associated with the formation of our venture with Meetic in Latin America and the Singlesnet acquisition. Operating income in 2011 reflects a decrease of $2.5 million in amortization of intangibles.
Match launched a tender offer for the 73% of Meetic that it does not already own; Core subscribers grew 17%; OkCupid grew active users 14% since its acquisition in Q1 2011; OkCupid founders formed M-8, an internal group that will develop new products to help people meet online.
“Meet people online” covers a lot of ground. Sam, what are you guys up to?
