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“Helping idating businesses grow”

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WELCOME1Monday, September 16, 13

2Monday, September 16, 13

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CEO Interviews


Grow industry

Full Disclosure: Cupid Dating FactoryPOFTwooWhite Label Dating


All media is biased

These are companies I’ve worked with.

[email protected]



Irena knows how to say no to me. Less bias. She looks after OPW. I look after Courtland Brooks clients.

Key Metrics & Rankings & Revenues

Mobile Key Metrics & Rankings

Industry Reputation

Interesting News

The Future

How To Value Your Company

The Innovation of Loneliness


Some Key Metrics


10,000

20,000

30,000

40,000

50,000

60,000

UK Germany France Spain Italy

EU5 Online Dating AudienceUniques (000), YOY Growth

ComScore, July 2013

-25%

+4%

+2%

-27%

-1%

+.03%

+3%

-8%

+11%

+56%

Total InternetOnline Personals


Last year, I said Italy was a big opportunity.

More people are accessing dating sites via mobile. YOY growth in %

Biggest Growth: ItalyBiggest Market: France, 8M iDatingBiggest Penetration: France 17.4%Biggest Opportunity: Italy?

_PenetrationUK 10.6%Germany 8.8%France 17.4%Spain 10.1%Italy 8.2%

50,000

100,000

150,000

200,000

250,000

USA EU5

USA vs EU5Unique visitors (000)

-23%

Total Internet Online Personals

ComScore, June 2013

+1% +3%

-16%


USA 223M, 21M, mobile

EU5 207M, 23M

__

% = YOY change

Time Spent & Avg Visits per Visitor to Online Dating Sites - EU5

ComScore, July 2013

+4%

+2%

-1%

+3%

+11%

15-24 25-34 35-44 45-54 55+

98775

8083

7270

43

Avg Minutes per Visitor Avg Visits per Visitor


45-54 highest engagement

___

The 45-54 age group showed the highest engagement with online dating sites, spending an average of 83.4 minutes per visitor during the month. On average people in this age group returned 8.2 times to sites in this category during the month.

The only age group that had a higher visits per visitor metric, were Europeans aged 55 and over with an average of 8.7 visits per visitor in December 2012.

Why? - Younger people use smartphones.

Rankings


POF

Meetic/Match.com

Zoosk.com

Oasis Dating Network

Guardian Soulmates 149

178

609

758

1,200

Top UK Dating SitesUnique visitors (000)

ComScore, July 2013

-15%

+26%

+52%

-47%

N/A


Guardian new

Top 4 same as last year

POF - 3m uniques a day

Meetic - in 16 countries, 13 languages, 81% Match, 7% Simoncini

Zoosk - $40m in Q1, mobile focus

__

Guardian Soulmates was not in top 10 last year. The rank for the top 4 is the same as last year, except of uniques change.

POF - 3M people use the site every day, Uniques down 15% YOY, 70% via mobile

Meetic/Match - Meetic has 5M active users, in 16 countries and 13 languages now, Match.com bought 81% of shares, 6.9% still owns Marc Simoncini, 4.3% free float, 6.2% FMT/Fidelity, 0.7% employees

Zoosk - $40M revenue in Q1 2013, mobile visitors doubled in 1 year, its focus is on mobileOasis Dating Network - free dating siteGuardian Soulmates - owned by Guardian News & Media, newspaper publisher.

Meetic/Match.com

AdopteUnMec.com

EasyFlirt Group

Amoureux.com

Bazoocam.org 455

619

792

881

2,650

Top French Dating SitesUnique visitors (000)

ComScore, July 2013

+127%

+22%

-29%

+80%

-5%


Adoptunmec #4 last year, 16M Euros in 2012, 650k monthly actives

Amoureaux free, #10 last year

Bazoocam is video chat with random people?

___

AdopteUnMec.com (English version - AdoptAGuy) - women shop for guys, 16M Eur in revenue in 2012. 5.7M registered users, 650K active members every month. One year ago it was #4. Today is #2. EasyFlirtGroup - Amoureux.com - free dating site, it was #10 last year, today #4Bazoocam.org - video chat with random people

Meetic/Match.com

FriendScout24

Lovoo.net

DateDienst.de

ElitePartner 338

341

448

532

637

Top German Dating SitesUnique visitors (000)

ComScore, July 2013

-7%

-39%

N/A

N/A

-17%


Friendscout, 130 people, subsidiary Deutsche Telecom

Lovoo is social discovery, 1.4m MAU

DateDienst DF site

ElitePartner affluent singles

___FriendScout24, 130 people, subsidiary of Deutsche Telecom.Lovoo.net - social discovery site, claims 4M registered users and 1.4M monthly active usersDateDienst.de - dating site powered by Dating FactoryElitePartner - for affluent singles

___

Meetic/Match.com

Twoo

Zoosk.com

c-Date

POF 146

148

188

235

430

Top Spanish Dating SitesUnique visitors (000)

ComScore, July 2013

+26%

-8%

-32%

+4%

N/A


Twoo owned by Meetic

Meetic/Match.com

Twoo.com

C-Date

Zoosk.com 307

313

352

556

Top Italian Dating SitesUnique visitors (000)

ComScore, July 2013

+208%

+99%

N/A

+17%


___

Bazoocam.org - Video chat site that pairs users with complete strangers to chat withLikeYou.it - casual dating site

Industry Leaders Revenues


20

40

60

80

100

120

140

160

180

200

2009 2010 2011 2012 2013

(Mill

ion €

)

H1 Revenue 89 Million

H1 Profit 6 Million

Revenue Profit Estimate


est. 190m Euro revenue, profit declining

Acquired Twoo, Pastas Party and Spraydate in the last year

Twoo 5.1m Euro revenue

Spending more on marketing and product development

___

Pastas Party? Twoo

Revenue is growing, estimated 190M, profit is going downTwoo contribution, in H1 Twoo contributed 5.1M Eur revenue

Meetic has increased marketing expenses, H1 2013 marketing expenses were 41M Eur, compared to 39M Eur in the same period in 2012. Meetic had higher product development cost in H1 2013. 8% increase in subscribersMeetic acquired Spraydate (April 2013), Twoo (Dec 2012) and Pastas Party (May 2013).

Sep 11 Dec 11 Mar 12 June 12 Sep 12 Dec 12 Mar 13 June 13 Sep 13

Stock Closing Prices (€)

Meetic

SBF250


Sep 2011 - 14.09Sep 2013 - 12.55

____

SBF 250 - French Stock MarketSeptember 2011 - 2233.9September 2013 - 3061.16

100

200

300

400

500

600

700

800

2009 2010 2011 2012 2013

(Mill

ion

$)

H1 Profit 99 Million

H1 Revenue 383 Million

EstimateRevenue Profit


Size does matter

15% subscriber growth

$1B revenue 2015

___

Why? Meetic and growth of Match.com (15% increase in subscribers YOY)

Prediction - linear trendline, more acquisitions

1 billion revenue in 2015?

10

20

30

40

50

60

70

80

90

100

2009 2010 2011 2012

(Mill

ion £)

Revenue Profit


Edison Investments predicted 95M GBP revenues in 2013, with 27.5M profits

Panorama news story negatively impacted

Reuters, June: halved their Q1 bottom line to 2.5M GBP from 5.9M GBP last year

H1 results 24th Sep

___

Prediction by Edison Investment Researchhttp://c3352932.r32.cf0.rackcdn.com/pdf2e76e3fdacc6f579a8ed8cc62cb63852.pdf

Edison predicts 2012 revenue 75.9, with 21.4M profit,

2013 revenue 94.7M with 27.5M profit.

Industry Reputation


Unique event

Stock Closing Prices (£)


On March 22 - Panorama - WLD pseudos and Cupid fakesters

____

Cupid PlcSeptember 2011 - £221.50September 2013 - £63

FTSESeptember 2011 - £5128September 2013 - £6547

Sep 11 Feb 12 July 12 Dec 12 May 13

Stock Closing Prices (£)

FTSE

Cupid Plc


Stock price dropped from 114 Pounds to 49 Pounds over night

Clearly, investors > users

Association?


Standards > Association > ODA

Detractors


My example

Advocates


On a scale of 1 to 10, how likely is that you will recommend us?

9-10 > Advocates

Uber story


Google reputation analysis

Mobile Key Metrics


Mobile Audience in EU5

EU5

Germany

UK

Italy

France

Spain 35M

48M

48M

50M

61M

241M241M

ComScore, Dec 2012


T> We make our money on smartphones

55 %smartphonepenetration

57 %smartphonepenetration

ComScore, Dec 2012


EU higher, but USA growing faster

May overtake in 2014

As of June 2013, USA is 59%

___

EU has higher smartphone penetration but US is catching up fast, growing 30% YOY.

UP 21% YOY in EU (47% in 2012)UP 30% YOY in USA (42% in 2012)

we don’t have the EU smartphone penetration from June, but US has now 59% penetration.

In Dec 2012, 75% of Newly Acquired Phones in EU5were Smartphones

Dec 2011 Dec 2012

75%66%

ComScore, Dec 2012


EU5 Smartphone penetration was 57% in Dec 2012, but 75% of phones acquired in December 2012 were smartphones.

Smartphone Penetration Growth% of mobile subscribers

Germany France Italy UK Spain

66%64%

53%53%51%

40%39%38%

30%28%

ComScore MobiLens, Dec 2012

Apr 2011 Dec 2012


Spain has greatest penetration

Most Popular mInternet Activities EU5Smartphone Users

60M

69M

70M

71M

81M

ComScore MobiLens, Dec 2012


1. Email2. Weather Information3. Social Networking & Blogs - this category includes online dating4. IM5. Search

Followed by News and Maps

Top Smartphone OSEU5

ComScore, June 2012


2007 2008 2010 2012 2013

$1.2 B

Juniper Research

$330 M

Global Mobile Dating Revenue

$550 M

$1 B

$1.4 B


2012/2013 predicted

40% of Match logins are from

mobile

May ’1245Monday, September 16, 13

50% OKcupid

___

“Nearly 40% of Match.com logins are from mobile”

70% of POF use is from mobile

May 201346Monday, September 16, 13

___

-according to Frind’s letter to members in May 2013.

Top Grossing iPhone Apps


2. Badoo

1. Lovoo

3. Zoosk

5. Grindr

1. Match

2. Zoosk

4. Badoo

3. Grindr

5. Are You Interested?

2. Badoo

3. Meetic

5. Zoosk

4. Grindr

1. Adopte UnMec

1. Badoo

2. Meetic

4. Zoosk

5. Grindr

5. Scruff

1. Badoo

3. Meetic

4. Zoosk

2. Grindr

5. Twoo

5. POF

4. Friend Scout24

App Annie Sep 2013


Not much changed

Badoo has 191M users worldwide

Badoo overtaken by local players in UK, Germany and France

Grindr has 6M users, in 192 countries, so almost worldwide

___

not much has changed YOY. Badoo was overtaken by local players in France and Germany. UK

Match -Zoosk - $40M revenue in Q1 2013, mobile visitors doubled in 1 year, its focus is on mobileGrindr - 6M users, in 192 countries, so almost worldwideBadoo - 191M users worldwidePOF - 3M people use the site every day, Uniques down 20% YOY, 70% via mobile

Top Free iPhone Apps


Free For All?


1. Lovoo

3. Down3. Badoo

2. POF

1. Tinder

2. Badoo

3. Zoosk

1. Adopte UnMec

1. Badoo

3. Zoosk

1. Badoo

3. Zoosk

2. Skout

2. Adopta UnTio

2. Friend Scout24


In UK Tinder pushed POF to #2

Adoptunmec leads in France, is free for women and has 50/50 male female ratio - We’ll interview CEO by the end of the year. Expanding across Europe

Down made it to top 3 in Germany (Down=BangWithFriends)

___

In UK Tinder pushed POF to #2. Badoo is starting to loose traction.Down made it to top 3 in Germany (Down=BangWithFriends)

News from May 2013 AdopteUnMec.com, the French version of CheckHimOut.com where women are in full control, generated revenue of Eur 16M according to its director of marketing Thomas Pawlowski. The site has 5.7M registered users and 650K active members every month. AdopteUnMec.com is free for women and the male/female ratio is 50/50.

Interesting News


Meetic bought Swedish SprayDate


12 years

Meetic bought it, Match to continue

___

February 2013, Meetic has signed an agreement for the acquisition of SprayDate, Swedish dating site owned by Keynote Media Group. SprayDate started 12 years ago and was the Swedish pioneer of online dating. The cost of the acquisition has not been disclosed. Philippe Chainieux, Meetic's CEO said in a statement: "The acquisition will consolidate Meetic Group's leading position in Sweden, where online dating service will be continued through the Match.com brand.

Meetic bought Massive Media (Twoo)


Massive Media > Netlog > Twoo (April 2011)

Twoo in 38 languages, 9M uniques a month

18.9M Euros cash

___

December 2012 - Meetic has signed an agreement for the acquisition of Massive Media, the company behind Twoo.com. Twoo is a social discovery service. Since launching in April 2011, Twoo has leveraged their organic and viral growth to build a global audience of 9.6M unique visitors1 in October 2012 and is available in 38 languages worldwide. Meetic will acquire 100% of the Company's capital and voting rights for 18.9M Euro cash. IAC/InterActiveCorp is Meetic's main shareholder, with an 81% stake.

Channel 4‘s Big Breakfast bought Gaydar

Channel 4 Big Breakfast

Gaydar


May

Creator, Charlie Parsons

eDarling buys itself back from eHarmony


2 years, bought 30% with an option to buy

___

A two-year affair between eDarlingand eHarmony is over. eHarmony purchased a 30% stake in eDarling with an option to buy the rest if all went well. Now that offer is off the table and eDarling has bought back its shares from eHarmony. Rumours put the cost of the buyback at $30M with talk it will be followed by an eDarling launch in the UK. The company behind eDarling, Affinitas, reported a €9.2M loss for 2011, an improvement on the €13.6M loss it reported for 2010. In May last year, it said it expected slightly positive EBITDA on a boosted €50M turnover for 2012. It’s unclear who led the break-up – but it seems both firms were more than ready for a refresh in strategy.

10

20

30

40

50

60

2009 2010 2011 2012

Profit Loss

(est)

(Mill

ion €

)

Deutsche-Startups.de Infographic


50M Euros revenue 2012, slightly profitable

Rumors say $30M, which would value eDarling at a little over $90M USD

I think eHarmony could use the cash, they want to focus on US, and perhaps they’ll still buy them later on

eDarling entering UK and Ireland


Then they moved right into UK & Ireland

eHarmony territory

Probably good to have compeitor, to drive awareness

___

Shortly after eDarling bought back its shares from eHarmony (May 2013) comes the news that the German company will be expanding to the UK and Ireland. Until now, the dating service had avoided expanding to areas where eHarmony was already active. The new UK and Irish versions of the company will be called “EliteSingles”, similar to Hamburg-based service ElitePartner. Both dating sites connect singles that have certain academic qualifications. eDarling is keen to move forward under the generic Affinitas brand, which explains the new name for the UK and Irish branches. eDarling is planning on funding it via its own operative cash flow.

BBC Panorama exposes the tricks of the UK online dating industry.


Cupid fakesters & WLD pseudos

Cupid sold casual dating sites for £43 Million


Max Polyakov, bought BeNaughty back for 43m GBP

Cupid keeps Cupid, LoveAgain, UniformDating

T> Lets see how the market reacted. Positive effect?

___

Cupid sold its BeNaughty.com, Flirt.com and other casual dating sites to Grendall Investment for £43.1M (€50M). The company would retain Cupid.com, LoveAgain.com and UniformDating.com. It also signed a software licensing agreement with Grendall that would generate £2M of revenue over four years. Grendall Investment is managed by Max Polyakov, co-founder of Cupid, who also holds a 15% stake in the company.


Rumored in June, and happened mid-July

Initial rise, but flat, which is good!


On a lighter note

Trends


Offline Again...



Matchlive, last summer Stir.com mixers

Meetic soirees launched in December 2012, 300 events in the first 3 months with 35K people.

PreDating

Expect to see more M&A

Pastas party, 100k singles, France

Pasta, champagne, photo shoots

___

Match.com New ‘Stir’ Events For Singles

PR WEB - July 30 - Last summer Match.com launched a new program they call ‘The Stir,’ local mixers and events that take place in real-time versus the virtual landscape. ‘The Stir’ invites individuals who are part of Match.com’s online database to attend events like a Tequila tasting, a cooking class, bowling or a Happy Hour, all things that a lot of singles are familiar with doing as part of their daily lives. Everyone there is single and looking to meet someone.

Meetic soirees launched in December 2012, 300 events in the first 3 months with 35K people.

Meetic has acquired the assets of Pastas Party, the leading French website for singles events. Created in 2007 by Héloïse Dion, Pastas Party has developed a range of singles events across France and runs a community of ~100K singles. In December 2012 Meetic launched a complementary offline event service - Meetic Soirées. Already ~ 300 Soirées have been organised. Héloïse Dion and her team will be responsible for creating Soirées in each European country covered by the Meetic group.

Pastas Party - It was usually on Sunday evening. Singles met for a meal of pasta in a restaurant. Now it includes champagne or wine tasting, professional photo shootings, etc.

MySingleFriend launches dating events “Date MySingleFriend”


MSF follows suit in August

Wingmen/women

___

MySingleFriend.com, UK dating site where singles are recommended to potential love interests by friends, has launched a series of dating events (Date MySingleFriend) where singletons can bring a trusted wingman or woman along for an evening of dating and match making. Wingmen/women are responsible for filling out scorecards and taking note of good matches, leaving singletons more time to enjoy their dates.

Social matchmaking


Serendipity

Social discovery

{Engage, Hinge}


Hatch Labs > IAC incubator, Oct 2012

Seeded on sampus

Addictive, av. users checks 11x a day

#1 in UK in app store, passing POF (the point)

Sam vs Markus

___

Launched in October 2012It was born out of Hatch Labs, a startup incubator financed by IACTook off in colleges campusesFounded by Sean Rad and Justin MateenHighly addictive, average users checks tinder 11x a day nowNumber of UK users is growing 7% a day now. It is #1 app in iOS app store.


Now ‘Down’

__

Similar concept as Tinder but more hookup orientedFounders: Colin Hodge and Omri MorThere were rumors that FB and Yahoo wanted to buy it ($30 M?)Launched in January 2013Raised 1Million in May ’13iOS app launched in May but was quickly banned from the appstore for its brazen approach, now it is back under new name “DOWN”1M users


Like Tinder

You select people you find attractive and add them to your locker if they then choose you, you both get notified.

Old concept. Hotornot

__

Same concept as Tinder. You select people you find attractive and add them to your locker. There will be stored in the locker until some of them chose you as well. Then you both get notified.

The Future


Social + Mobile + Location?


Vicinity based servicesvs

Location based services



Privacy will be less important


Singularity University

Courtland Brooks Think


Team

Think Direct Carrier Billing


No-brainer. Found money from people without cc.

___

Direct carrier billing is a no-brainer for any mobile app or platform. Capture the users who don't have or don't want to use a their credit card. People don't always pay their credit card bills, but people always pay their phone bills. Fees are getting much better and closing the gap on CC. Proper integration can yield nearly the same frictionless billing as in-app billing on iTunes and Android and it's not tied to a CC. Must have for HTML5 sites. Entering a CC on a phone is clunky. - Courtland Brooks Team Analyst

Think Microtransactions


Zynga 2011 revenues $1.1B.

99c to $9.99 in app purchases. Less resistance to microtransactions.

Hard to convince youngsters to pay $20-$40.

Same people will make multiple smaller purchases.

___

I think one of the best ways to make money from mobile is to embrace microtransactions. Zynga has proven the revenue power of the microtransaction model. 2011 revenues were $1.14 billion. Zynga makes their money off of $0.99 to $9.99 in app purchases. Dating companies tend to hold firm to subscription based models, but it's harder to convince someone to commit to $20-$40 per month recurring. But that same person will make multiple smaller purchases. There is less resistance to

microtransactions, so there's a higher likelihood of generating revenue from free users. - Courtland Brooks Team Analyst

Think Post-Date!


Think Tablets!



iPad growing three times faster than iPhone

Overtook sales of PC’s and laptops, Q4 2012

Vicinity Based ServicesSocial GraphBehavioral MatchmakingpreDatePost MatchBig PocketsSocial Discovery


preDate: Anonymous Calling + Questions + Date LocationsSD: Recommendations. Privacy. Brand advantage.

How To Value Your Company


How much would you pay?


1. Domain and Brand


1. What is the domain and brand worth? Is it trademarked? What have similar domains sold for?2. What is the team worth? What would it cost to headhunt the desirable members of the team?3. What's the SEO position worth? What's the cost to recreate the SEO position?4. How strong is the PPC program? What's the cost to recreate the PPC program?5. How strong are the ad partnerships? Are they CPM or largely CPA based? If you own a competing dating site, how much additional incentive would you need to pay to recruit similar ad partners, and what would the biz dev costs be?6. Do they have a quality Internet and mobile dating platform? What would it cost to reproduce quickly? 7. What's the opportunity cost of not acquiring them. What do you currently lose because of their existence, and what could you lose in the future?8. What's the potential for cost savings by acquiring and merging them? Can the teams be culled and integrated to create a stronger working group? Can fixed costs be reduced and operating costs streamlined between the companies? 9. Do they have intellectual property of value? What's their patents and know-how worth to you? And what would it cost you if your competitors acquired that IP?10. What's their hard assets worth? What would they cost for you to buy independently of the company?

Bonus consideration 11. What's the cost of their screw-ups? Business risk. Is litigation pending or likely? What's their business reputation like? Have they paid their taxes properly?

Consider these cost and worth items for YOU and YOUR COMPANY. These valuations change dramatically depending your resources and know-how. You also need to apply a factor to your overall value, based on their growth curve. The average of their past and predicted annual growth rate gives you a ballpark multiplier.

2. Team


2. What is the team worth? What would it cost to headhunt the desirable members of the team?

3. SEO position


3. What's the SEO position worth? What's the cost to recreate the SEO position?

4. PPC program


4. How strong is the PPC program? What's the cost to recreate the PPC program?

5. Ad Partners


5. How strong are the ad partnerships? Are they CPM or largely CPA based? If you own a competing dating site, how much additional incentive would you need to pay to recruit similar ad partners, and what would the biz dev costs be?

6. Platform


6. Do they have a quality Internet and mobile dating platform? What would it cost to reproduce quickly?

7. Opportunity Cost


7. What's the opportunity cost of not acquiring them. What do you currently lose because of their existence, and what could you lose in the future?

8. Potential For Cost Savings


8. What's the potential for cost savings by acquiring and merging them? Can the teams be culled and integrated to create a stronger working group? Can fixed costs be reduced and operating costs streamlined between the companies?

9. Intellectual Property


9. Do they have intellectual property of value? What's their patents and know-how worth to you? And what would it cost you if your competitors acquired that IP?

10. Assets


10. What's their hard assets worth? What would they cost for you to buy independently of the company?

11. Business Risk


11. What's the cost of their screw-ups? Business risk. Is litigation pending or likely? What's their business reputation like? Have they paid their taxes properly?


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