Thursday, May 1, 2014

More Big Losses from Zoosk Q1 2014

(Is Tinder demolishing Zoosk?)

From Zoosk Amendment No. 2 Registration No. 333-195320

NET LOSS: USD 6.7 million Q1 2014!
Revenue: USD 50.12 million during Q1 2014 (USA USD 26.71 million, International USD 23.40 million)
721,000 subscribers
27 million registered members
Working capital (deficit) of USD 33.5 million!
Total accumulated deficit of USD 102.28 million.

721,000 subscribers / 27 million registered members == 2.7% conversion rate.
(Profitable sites operate with a 5% conversion rate)
Zoosk subscription plans are terrible expensive ("in the United States range from approximately USD 30 for our one-month plan to approximately USD 75 for our six-month plan.")
Prospective daters can use Tinder or PlentyOfFish (POF) for free.

Many online dating sites have Behavioral Matchmaking engines like Zoosk. Synapse from Match, UltraMatch from PlentyOfFish (POF) and they can not outperform personality matching methods like the one used at eHarmony.

Moreover, since Zoosk was founded and funded, never made a dime in profit. Since 2007 operating at a loss!
Astonished to see how they try to sell a failure as a big success citing rubbish statistics from IBISWorld report.

Please see:
Report about Q1 2014, IAC (nasdaq IACI)

ZOOSK Amendment #02 1stMay2014

No comments:

Post a Comment