Contributed by: ElyseRomano on Monday, June 01 2015 @ 06:42 am
Last modified on
It's been a year of bumps and bruises for Zoosk.
After reaching 26 million users in 2014, the online dating network announced plans for a $100 million IPO. It was major news, but now Zoosk has submitted a regulatory filing to withdraw its plan to go public.
In an email to VentureBeat[*1] , Zoosk chief executive Kelly Steckelberg offered the following explanation:
“Since the time we filed, the market condition around comparables that would be used to help value our company, like Angie’s List and Care.com, have not performed well. While the overall market might seem receptive to a public offering, subscription businesses have suffered.”
The canceled IPO isn't the only wound Zoosk has suffered recently. The company's founders, Shayan Zadeh and Alex Mehr, abruptly handed over executive control to former CFO Steckelberg at the end of 2014, leaving some to wonder what happens when a founder-led company loses its founders.
In the wake of those major developments, Zoosk implemented a new strategy focused on its customer base and on attracting fresh talent behind the scenes. The company reduced its workforce by approximately 15 percent to better align with its new strategy, leaving morale at an all-time low. The company was in desperate need of reevaluation.
Vice President of Marketing, Carol Mahoney, worked with a team of 3 human resources professionals to identify four areas of improvement. First, to serve customers better. Second, to boost engagement of employees. Third, to get clear on the company's vision and mission. Fourth, to achieve sustainable growth.
According to CIO.com[*2] , Mahoney found that transparency was a key issue. Employees were desperate to know what was happening in the midst of such upheaval and sought open communication from top-level executives.
"We realized we had to over-communicate about everything that was happening to make sure people knew we cared about their fears and their anxieties,” Mahoney says. “Now, we talk about our profits, our subscription base, hiring, attrition -- everything. People need to trust that we're honest about the ups and downs of the business if they're going to stay.”
Zoosk also highlights company culture to set it apart from the fierce competition in its native San Francisco. Dogs are allowed in the office. Weekly happy hours are hosted with beer on tap. Employees are encouraged to volunteer in the city's most disadvantaged areas. Three-day hackathons are held to develop new ideas.
Although Mahoney says there's still work do be done, she's feeling positive about the future. “We've made huge strides and we're going to be stronger than ever because of the emphasis we've placed on retaining our talent," she says.