XO Group CEO: Mobile Revenue Is a A Key Component of Our Business
Cheddar Archive
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9m 59s
Since wedding season is upon us, XO Group CEO Mike Steib joined Cheddar live on set to discuss the many ways the $60 billion a year wedding industry is innovating. Steib talked about how The Knot, a subsidiary of the XO Group, released a new product called The Knot Concierge, a high-tech and high-touch service to help couples find and book their wedding professionals. “We are combining our 20 years of wedding expertise, industry-leading technology and personal concierge support to help plan every wedding in America,” said Steib. “This first-of-its-kind service will help couples find and book the services and professionals they need for an unforgettable wedding.” Steib told Cheddar that it is no longer sufficient to simply provide advertising or wedding-related content to drive company profits. Booking through The Knot has become a major component and revenue driver of the XO Group’s business model that he intends to expand in the near future. “If you look at where the business is now, we have recommitted to our investors that in the back half of this year we will be growing in the double digits,” said Steib. “We’ll have the highest EBITDA that we’ve ever had at the company, and we’ve continued to commit to that target model that we set out two years ago.”For 2016, XO Group’s total revenue for the first quarter of 2016 was $35.7 million, up 9.4% compared to the same period in the prior year. Wedding costs have also grown significantly, with the average couple spending about $32,641 in 2015 on their wedding. As the cost of weddings continues to rise, couples are also turning to their mobile device for personalized planning solutions to help them find the vendors within their budget. “When you book your band, when you book your florist, each of those transactions will likely be the most expensive thing you have ever bought in your life,” he said. “So we’ve built a team of wedding concierges and we’ve started to integrate them into the product.” To learn more about how XO Group is expanding its business, check out the video above.
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