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Zoosk Files for $100m IPO

zoosk

After much speculation, on Wednesday Zoosk filed to go public, looking to raise $100m in its initial public offering.

The online dating company filed their S-1 registration statement with the US Securities and Exchange Commission, to trade on the New York Stock Exchange under the symbol ZSK.

Their filing with the SEC did not reveal how many shares the company intends to sell, or the expected price.

The San Francisco-based company revealed in the statement that they have 26m members, with 650,000 subscribers in over 80 countries.

This increased from 18m members and 483,000 subscribers the year before.

In 2013, their revenue rose 63% to $178.2m, up from $109.1m the year before.

Their paying subscribers contributed $153.8m of this revenue, but 13% came from their virtual currency business.

This lets users pay to do things like promote their profiles, and this revenue stream has grown considerably – rising from $5.4m in 2012, to $24.3m last year.

They also reduced their losses by 87% to $2.6m, down from $20.7m the year before.

Zoosk was launched in 2007 by co-founders Shayan Zadeh and Alex Mehr, who met at Tehran’s Sharif University of Technology.

They have a big international user base – 62% of their members come from outside the US, and they account for 49% of revenue.

The document also revealed that 41% of first-time subscribers paid through a mobile device, up from 22% in 2012.

BofA Merrill Lynch, Citigroup and RBC Capital Markets are acting as joint bookrunning managers for the proposed offering. 

Oppenheimer & Co. and William Blair are acting as co-managers.

Zoosk has so far raised $61.6m in venture capital, from firms including Canaan VIII LP, ATA Ventures and Bessemer Venture Partners.

Simon Edmunds

Simon is the former editor of Global Dating Insights. Born in Newcastle, he has an English degree from Queen Mary, London and after working for the NHS, trained as a journalist with the Press Association. Passionate about music, journalism and Newcastle United.

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