eHarmony CEO Says Almost Sold Company, Plan To Split The Business 10 Ways


Dave Evans from Online Dating Insider has received an interesting letter, sent from eHarmony CEO Neil Clark Warren to staff in the company for their 14th anniversary.

Warren talks about the state the company was in when he returned to take it over, how they streamlined the team to 190 staff, brought in executives including COO Armen Avedissian and changed their business strategy.

Interestingly Warren says their new strategy is to build ten separate relationship businesses with ten different revenue streams, which he hopes will cut their huge marketing expenses.

He also gives figures around the state they were in, compared to their performance now:

“Instead of losing 100,000 end of period subscribers each year, suffering EBITDA losses of 50% every single year, our EBITDA for 2014 will literally be dramatic and the cash in the bank increasing substantially each month.

“EBITDA is currently running $9.4M ahead of plan as we work with our forecasts. Our end of period paying subscriber count has hit its all-time high, our spend on growth products is robust, and our vision for the future is brimming with hope.”

Read the full letter here.