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Seeking Alpha has an article about the planned Zoosk IPO. A couple of datapoints for those tracking this evolving situation.

High Operating Expenses Raise Red Flag: The extremely high operating expenses (72% of revenue in fiscal 2013) raise concerns that this is a company simply buying its users with little network effects and/or organic growth.

Based on options granted in April 2014 at an exercise price of $7.72, we can assume the pricing discussions are in the range of $8-$16. The question arises though: Is any price in that range a good incentive to purchase shares, or could this be a short candidate once it goes public?

IBISWorld estimates only six online dating companies, including Zoosk, with 1% or greater estimated market share, with only 2 companies having greater than 10% market share.

The company is the number one gross dating app and a top 25 grossing app on the iPhone in the United States.

Read more at Seeking Alpha.

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