Online dating service Zoosk plans $100M US IPO
Zoosk, an online dating site and app creator that claims to have 26 million members worldwide, plans a listing on the New York stock exchange that would raise up to $100 million.
In a filing with the U.S. Securities Exchange Commission, the company said its app was the highest grossing dating app on iPhone in 2013.
The prospectus claims it matches couples by looking for complementary interest through their patterns of mobile phone and internet use. Members can communicate with each other from their mobile phones, tablets or personal computers.
Zoosk operates in 80 countries and 25 languages, with about 62 per cent of its members outside the U.S.
Its financial reports show it has not made a profit in the last three years. It had a net loss of $2.6 million US last year, compared to $20.7 million in 2012.
During the same period total revenues grew by 63 per cent from $178.2 million in 2013 from $109.1 million in 2012, while the number of members grew from 18 million to more than 26 million. Much of the boost was supported by a strong marketing campaign.
The U.S. online dating market is estimated to be $2 billion, according to market research firm IBISWorld, which says Zoosk has about eight per cent of the U.S. market. It faces competitors such as eHarmony, Tinder and IAC.
The San Franciso-based company, created in 2007, wants to list in New York under the symbol “ZSK.” It did not release timing on the IPO or the share price.
