Call it the Facebook effect. Ever since the social media giant announced its long-awaited IPO the many gaming companies and social applications that use its platform are rising with the tide. SNAP Interactive, Inc., the parent company of the Facebook-integrated dating app AreYouInterested.com, has already seen its stock go up 230 percent since the beginning of 2012.
AreYouInterested.com matches single people by zip code. Users can browse through pictures of available singles in their area and click “yes” on the ones they want to meet. In January, AreYouInterested.com was named on of the top six mobile dating apps by Laptop Magazine.
Brothers Cliff and Darrell Lerner of Long Island founded SNAP in 2005. The company went public in 2006 (OTC BB: STVI) and raised $750K in total funding over the next four years. The closing stock price on Friday was $2.15, which is 30 percent higher than it it was when the market opened that morning and 230 percent higher than it was at the beginning of January.
The spike in SNAP’s stock value followed a good year. In 2011, the New York-based company grew to 38 employees, launched two blogs, and hired Jon Pedersen, Sr., formerly from Warner Music Group, as its first CFO. In celebration of New York’s emerging tech scene, SNAP partnered with Hotlist on a firefighter-style calendar called “Only in the Alley: A Gift from NYC’s Silicon Alley to Silicon Valley.”
Revenues in quarter three grew to $5.09 million, putting the company on an annualized revenue run-rate of more than $20 million. The majority of SNAP’s revenue comes from subscription sales to AreYouInterested.com. While the company can’t claim 12% of Facebook’s revenue like Zynga can, PR director Leah Taylor said, “We’re very much immersed in that ecosystem.”
The dating service is a fully integrated Facebook, iPhone, Android and Web application with 55 million installs and over 2 million mobile users. When SNAP started using the Facebook platform in October 2011, the company saw a 70 percent sustained increase in usage of its iPhone app. After TechCrunch picked up the news, the story landed on the front page of the Facebook Developer News site. The dating service currently adds approximately 30,000 to 40,000 new profiles per day and has 1.3 million Facebook fans.
Facebook announced its IPO on Wednesday, February 1st. By Thursday afternoon, gaming company Zynga Inc.’s (ZNGA) shares had risen more than 15 percent. The role of games and other apps in Facebook’s revenue stream could similarly make companies like SNAP more attractive to investors. Said Taylor, “We’re happy to be riding the wave.”
Image by Gunnar Pippel via Shutterstock.