You saw it coming a mile away. Zoosk, the troubled online dating service beleaguered by layoffs and poor financial performance, has kissed goodbye its plans for an initial-public offering. But the company also retreated from the public market because it s currently in such a state of shambles that likely investors wouldn t touch it with a stick.
And in January, the company laid off 15 percent of its staff. Subscription businesses β Zoosk s business model β have not performed well in the last year, Steckelberg told TechCrunch last year.
Most of Zoosk s revenue comes from subscription fees, which made up 86 percent of its business in Despite showing steady revenue growth, Zoosk has been challenged by competitors OkCupid and Match, which still dominate the market, and the growing popularity of dating and hookup app Tinder. Zoosk never quite developed its own brand recognition in the crowded market. But with Steckelberg at the helm, bringing strong financial expertise to the executive role, some say Zoosk has a chance to regroup and rejigger its image and finances.
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