In an extremely competitive market, SNAP Interactive (Ticker: STVI), the developers behind the “Are You Interested?” application, has out shined the competitors to become the largest Facebook dating application.
When the company’s primary competitor, Zoosk, closed a round for $30 million, and as Facebook began to close off many of their original communication channels, you could have speculated that it would soon be game over for the “Are You Interested?” team as the cost of user acquisition would become too expensive (if it wasn’t already). The exact opposite has happened. Last week the company announced record quarterly revenues: $1.65 million, more than double the revenue of the same quarter the year prior.
Not only has the company perfected their subscription model, but the user acquisition and reengagement models have also been perfected. The result is that a large percentage of the money that the company is making is being reinvested in a platform that keeps its users. Over the past month “Are You Interested?” has seen it’s monthly active user base almost double, and the same now goes for daily active users as well.
Granted, Zoosk.com is dramatically larger than Are You Interested’s destination site, however there’s no doubt that SNAP Interactive is showing incredible strength despite never raising money. It just goes to show that self-funding is indeed a viable option, even in a market which is filled with people who have deep pockets thanks to a supportive venture capital environment.