Match

IAC Reports Q1 2014 Results

Match
  • Saturday, May 10 2014 @ 09:46 am
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IAC has released its first quarter 2014 financial results. All in all, the company reports $740.2 million in revenue for Q1 2014, more or less on par with the $742.2 million in revenue of Q1 2013.

Websites revenue increased thanks to the acquisition of the “Owned & Operated” website businesses of ValueClick (which the company acquired in January of this year), the contribution of CityGrid Media, and growth at About.com. On the other hand, applications revenue decreased, primarily due to lower queries in B2B. Adjusted EBITDA decreased as well, as a result of lower revenue in B2B and higher marketing expense in B2C.

The Match Group – which includes Match.com, Chemistry, People Media, OkCupid, and other dating businesses – saw 9% growth in dating revenue (broken down into 7% growth in North America and 12% growth in International). Non-dating revenue grew 53%. Despite the higher revenue, driven mostly by increased subscribers, IAC’s profits declined due to a significant increase in marketing expenses for certain businesses.

Dating revenue for North America totaled $134.5 million in Q1 2014, up 7% from $125.6 million in Q1 2013. International dating revenue jumped 12% to $70.5 million in Q1 2014 from $63.2 million in Q1 2013. Combining both, IAC’s total dating revenue for Q1 2014 is $205 million, an increase of 9% from $188.9 million in Q1 2013.

The question now, of course, is what does the rest of 2014 have in store for IAC?

One major change that stands to make a huge impact on IAC's bottom line is the monetization of Tinder. Though IAC has declined to specify its exact ownership stake in the company, it has said that Tinder is now completely owned by IAC and Tinder executives, with CEO Sean Rad at the helm. The hugely popular mobile dating app is the hottest company in IAC's portfolio, but it doesn't yet generate any revenue. IAC has announced that 2014 will be the year that changes, though they've been vague so far about the exact way that monetization will take place.

The most obvious strategy would be to run ads on the service. In fact, it wouldn't be the first time it's happened. Fox used fake profiles to promote The Mindy Project, as did the USA Network program Suits, though they did not bring Tinder or IAC any revenue and a company spokesperson maintains that the campaigns were "strategic partnerships" rather than advertising.

Happily ad-free Tinder users should enjoy the experience while it lasts – with all the money-making potential the app packs, it’s probably only a matter of time before ads become the new norm.

How Do I Choose an Online Dating Site?

Match
  • Thursday, May 08 2014 @ 06:59 am
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Many singles have tried at least one online dating site. Some have found success right away while others get frustrated and wonder why they decided to try online dating in the first place. Unfortunately, many people don’t know all of the options available, or one dating site might work better for them than another.

There is a lot of competition among online dating sites, but most people flock to the few they know, like Match.com. But it’s important to first ask yourself before you sign up: what do I want out of my dating experience?

People date for different reasons, and the same goes for online dating. Not every member is interested in finding a long-term relationship. So it’s good to ask yourself if you just want to date and have fun, or if you’re looking to meet someone special and settle down. Your intention is an important part of your dating experience.

Next, you have to know yourself. Are you very shy? Are you more at ease on a date where you’re doing something together rather than sitting across the table from each other? Or are you really confident and slightly intimidating? Do you know what you want and you’re not afraid to say it?

People date differently – some go into it like a job interview, asking questions and checking boxes off of their “must-haves” list. People place importance on different things – like religious beliefs, career, location, or even how close you are with your family. Others are a little less choosy, and go from date to date unsure of what they want but recognizing that they aren’t meeting the “right one.”

This is why it’s important to ask yourself these questions. From there, you can try a few different dating sites to see what’s right for you.

If you’re looking for a serious relationship, then eHarmony or Chemistry are your best bet. They have a significant number of members to choose from, and you have to go through a pretty rigorous and time-consuming sign-up process before you can search through matches. So from the start, people on the site are a little more serious than your average online dater. But I would also suggest Christian Mingle or a niche dating site if you have particular beliefs that are most important to you when looking for a partner. Again: know yourself and what you want.

If you’re looking to dip your toe back in the dating pool after a long absence, but aren’t sure if you want a long-term relationship, then sites like Match and OkCupid are a little less intense than the relationship-focused sites. They also have a large subscriber base and so you can meet a variety of people. Keep your options open if you’re unsure. Date outside of your “type.”

I suggest trying two or three sites and seeing which format you like best. Most sites offer a free trial period so you can at least set up a profile and check matches. It’s worth the time to really look and see what’s right for you.

Is Privacy a Thing of the Past When it Comes to Online Dating?

Match
  • Wednesday, April 23 2014 @ 07:08 am
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  • Views: 1,339

We’ve been warned of scandals when it comes to online dating. Some people post fake profiles and create stories of financial hardship to extract money or financial information from other users, hoping to cash in on someone’s vulnerability or desire for love. This can compromise our security, but it’s within our control to not respond or to report the abuse. But what about the information we voluntarily offer without even knowing how it will be used?

Mobile dating and location-based apps operate and match you with others according to where you physically are, which means they need to collect data from you, usually through your phone’s GPS. But then what happens to the information? Is it used only for matching purposes to benefit the users of the site, or are companies using this valuable information in other ways?

New legislation aims to protect users from themselves and the online dating sites who collect location and other personal information. Senator Al Franken is leading the charge, advocating for more privacy for users.

"This stuff is advancing at a faster and faster rate, and we've got to try and catch up," Franken tells USA Today. "This is about Americans' right to privacy and one of the most private things is your location."

Considering how many people have used online dating sites – a recent Pew report indicated 38% of singles – it makes sense that companies offering services for daters operate with security and privacy in mind. Unfortunately, most people don’t realize how much information they are voluntarily sharing when they sign up and post photos on their phone.

Members also might not realize what information a dating website or app is collecting about them and their social media networks, say if a Facebook login is used to sign up. Though most companies will outline what information they can collect about you and your friends, the fine print is often overlooked by users just trying to download and check out a new app.

A few states require online dating sites to disclose whether they conduct criminal background checks on members, including Illinois, New York, New Jersey and Texas. eHarmony, Match, and Sparks Networks signed an agreement with the California District Attorney’s office in 2012 to check subscribers against national sex offender registries and provide a rapid abuse reporting system for members. Security precautions are being taken to protect users, but legislators like Al Franken and privacy advocates don’t think it’s enough.

Rainey Reitman of the San Francisco, Calif.-based Electronic Frontier Foundation, a nonprofit that advocates for user privacy amid technology development, told USA Today: "People don't realize how much information they're exposing even by doing something as slight as uploading a photograph. Many online apps are very cavalier about collecting that information and perhaps exposing it in a way that would make you uncomfortable."

Match & MLB.com Are Teaming Up To Find Love For Single Baseball Fans

Match
  • Friday, April 18 2014 @ 09:48 am
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  • Views: 3,473

Single baseball fans are about to hit a home run.

If you’ve checked out the homepage of pretty much any Major League Baseball team recently, you probably saw a few ads advertising other single sports fans. On Athletics.com, for instance, ads on each side of the page featured an attractive group of potential matches and text that read "Meet other single Athletics fans.” A banner ad across the top said “Take them out to the Athletics game.”

What’s going on?

With baseball's regular season here, Match and MLB.com are coming together to give singles another reason to cheer this season. Baseball fanatics on Match.com will have the opportunity to connect online through 29 different fan pages (one for every U.S. team) for the duration of the 2014 MLB season – meaning they have way more to look forward to this year than their team making it to the World Series.

To get started, Match members can announce their allegiance to their favorite team (or teams, if they’re the indecisive type) by adding its logo to their profile. Match members can also search for other fans using a new community search tool that allows them to easily connect with members who have also added their favorite team to their profiles.

On the other side of things, MLB.com will be promoting 29 different MLB Club portals where singles can search for and connect with other fans of their favorite teams. When you find a fellow fan who tickles your fancy, you can take them out to the ballgame for the perfect first date.

Noah Garden, Major League Baseball Advanced Media's executive vice president of revenue, said "the Match.com conversation is one we've had on and off over the years to see if there's something we could do together." MLB hopes the promotion will give ticket sales a boost. "The idea is put like people together with similar interest and passion," he said. "There's still always room for more butts in the seats."

It sounds a little blunt, but I guess you've gotta appreciate the guy's honesty. And I'm sure there are plenty of die-hard baseball fans who will be pleased about having an easy way to weed out rivals. In fact, Match.com President Amarnath Thombre said the first question self-identified Yankees fans often ask of singles on the site is: "Who hates the Red Sox?"

Better have your answer ready before you log on to Match.com, baseball fans, or you just might strike out. For more on this service you can read our Match.com review.

New Match.com Singles in America Study Released

Match
  • Sunday, March 30 2014 @ 10:27 am
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  • Views: 1,183

The results are in from Match.com and their annual Singles in America survey, and it seems that people are still looking for happily ever after when it comes to relationships.

Match.com surveyed over 5,000 singles to find out what they think about dating, love, sex and relationships today. The biggest find? Technology is changing how we meet each other and also how we date. The majority of singles met their last date online (31%) rather than through a friend (only 25%). Also, 29% of singles use video chat to communicate with a date. It turns out they want to see if there is a little virtual chemistry before they agree to meet in person.

It's no surprise however that women are pickier daters than men. The study found that the majority of men will date a woman who is more successful and makes more money than they do, or is more educated. However, the majority of women won't date a man who is less intellectual or shorter than they are.

What about turn-offs? Most singles judge their dates by how confident they are and by their teeth. It's also a turn-off if a potential date has bad grammar or uses text speak when sending an email. Most daters prefer someone who comes across as more educated.

A bit of advice for men: no sexy selfies! This is the number one turn-off for women. And for the guys? Don't text so often, ladies. If he doesn't respond, avoid sending two or three more texts to get his attention. This is the number one turn-off for guys.

Social media is another sticking point as far as turn-offs go. Avoid airing your dirty laundry and venting over Facebook, Twitter, or other social media platforms. It is the number one social media turn-off for both sexes!

Another big take-away from the study: be kind and respectful. One hundred percent of women and 98% of men value being treated with respect in a relationship and make it their number one priority. In addition, a whopping 97% of singles are turned off when a date is rude to the waitstaff at a restaurant and 96% are turned off by bad table manners. So mind your manners!

The best news? People are still romantics. Eighty-nine percent of singles surveyed agree that you can live happily ever after with a partner. And despite how much people seem to be hooking up, and the majority of singles are looking for commitment and want to get married.

For more information on the service that brought us this study you can read our review of Match.com.

IAC/InterActiveCorp Releases Fourth Quarter 2014 Financials

Match
  • Saturday, March 29 2014 @ 09:33 am
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  • Views: 2,004

File this one under “Not a surprise.” IAC/InterActiveCorp – owner of Match, OkCupid, Tinder, and more – has released its fourth quarter 2013 financial results, and things are looking good almost all the way across the bar.

IAC’s performance was strong in Q4 2013. Match closed up the year well with 12% revenue growth and 21% OIBA (Operating Income Before Amortization) growth in the fourth quarter. Total revenue for Q4 2013 was $203.9M, up from $182.6M in Q4 2012. For the year, Match grew revenue 10.5% and OIBA 16%, and the company predicts an even better year of growth in 2014.

After pulling out of European markets to focus on the United States in 2009, Match has managed to successfully grow in the US as well as across the globe. The company doesn’t hesitate to call itself “the unquestioned global leader in dating,” with 30 million active users and 3.4 million paying subscribers in 2013.

Core, Meetic and Developing revenues grew 4%, 8% and 69%, respectively, to $115.7 million, $58.9 million and $29.4 million. That growth was driven by an increase in subscribers and as well as the contribution of mobile app Twoo, which was not in the prior year period. On the whole, profits increased due to higher revenue and lower customer acquisition costs as a percentage of revenue.

The most interesting source of IAC’s potential growth is Tinder, the rapidly growing social dating app primarily owned by IAC. Tinder clocked in at 100M daily profile views in August 2013, and is expected to hit 1B daily profile views in April. That’s some serious swiping. Although Tinder's implied valuation today is low, it could prove to be worth more than IAC's current market cap of $6.4B.

Even for IAC’s traditional dating sites, mobile has been big. 50% of all communication for Match.com US is sent from mobile devices. At OkCupid, the number rises to over 60%. Those numbers were single digits as recently as 2010, and IAC says it has just barely scratched the surface where optimization for geo-specific features and mobile markets are concerned.

2014 promises to be full of mobile product enhancements across the board, so IAC expects to see even greater engagement and customer acquisition resulting from smartphones. These are the kind of changes that allow IAC’s portfolio to continuously thrive, despite the changing world around it. The future looks predictably bright for the company.

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