• 10.1 million members up from 8.5 million a year ago
• 235,000 paying subscribers
• Average revenue per subscriber was $75
• Average subscriber acquisition cost was $41

Revenue in the third quarter of 2004 was $17.1 million, an increase of 8% compared to $15.8 million for the second quarter of 2004. Compared to the third quarter of last year, revenue increased 74%, from $9.8 million. The increase in revenue was primarily due to an increase in subscriptions.

The net loss in the third quarter was $3.0 million, compared to a net loss of $4.1 million in the second quarter of 2004 and a net loss of $2.7 million in the third quarter of last year. On an adjusted EBITDA(3) basis, the loss in the third quarter was approximately $200,000, compared to a loss of $2.4 million in the second quarter and a loss of $2.1 million in the third quarter of last year.

In order to provide a more accurate depiction of its membership, during the first quarter of 2004, the company changed the way it accounts for active members to include those members who were active in the 12 months preceding the period end date. Previously, the company reported members during the subject period regardless of their last date of activity.

The company also announced several key hires, including Mark Thompson as chief financial officer, Phil Nelson as chief technology officer, Greg Liberman as general counsel, and Sherry Willhoite as director of product development.

The company also announced the appointment of Benjamin Derhy to its board of directors. Mr. Derhy is a private investor and entrepreneur with a particular focus on the Internet and consumer products sectors. He replaces Todd Tappin, who resigned from MatchNet's board in August.

Read the Press release.