Spark Networks SE (fka LOVLQ)

[StockLogistics]

“Spark Networks Reports Third Quarter 2021 Financial Results
and Reiterates Full Year Guidance

BERLIN, November 15, 2021 -- Spark Networks SE (NYSE American: LOV), a leader in social dating platforms for meaningful relationships focusing on the 40+ demographic and faith-based affiliations, including Zoosk, Silver Singles, Elite Singles, Christian Mingle, and Jdate, today reported financial results for its 2021 third quarter ended September 30, 2021.

Third Quarter 2021 Financial Results

•Revenue was $53.3 million, compared to $60.8 million in the third quarter of 2020.
•Net Loss was $2.7 million, compared to $0.1 million in the third quarter of 2020.
•Adjusted EBITDA(1) was $5.0 million, compared to $7.6 million in the third quarter of 2020.
•Total cash and cash equivalents were $12.4 million.
•Total debt was $84.7 million, compared to $99.1 million at December 31, 2020, representing a $14.4 million decline in total debt.

Business Highlights and Financial Outlook

•Four of Spark's top five brands, representing nearly 50% of total revenue, collectively grew revenue and subscribers year over year during the quarter, their fifth consecutive quarter of growth.
•Zoosk turnaround progressing as organic traffic increased 50% sequentially in the quarter, and conversion rates improved over 10%.
•Zoosk Live! users doubled since its second quarter launch
•Spark expects to launch Zoosk Great Dates in the fourth quarter to drive increased user engagement and subscribers.
•Spark reiterates full year 2021 revenue guidance of $219 million to $223 million.
•Spark reiterates full year 2021 adjusted EBITDA guidance of $27 million to $30 million.
•Spark expects sequential revenue and adjusted EBITDA growth in the fourth quarter.

"We are pleased to report that four of our top five brands continued to grow their revenue and subscribers collectively during the quarter,” said Eric Eichmann, CEO of Spark Networks. "While our fifth and largest brand, Zoosk, experienced a decline during the quarter, resulting in a year-over-year decrease in our total revenue, we continue to execute our turnaround plan for Zoosk, including promoting our new livestreaming service, Zoosk Live! We are seeing traction with this new feature, as subscribers using Zoosk Live! have doubled since last quarter's launch. We also continue to focus on improving the Zoosk product and user experience, which has resulted in a 50% increase in organic traffic sequentially, and improved conversion rates. In the fourth quarter, we expect to launch a new virtual dating travel experience for Zoosk which will drive an increase in user engagement and subscribers. The first of its kind offering will allow subscribers to go on interactive, virtual dates in exciting destinations, such as Athens, Naples, and Kyoto, with new locations coming in 2022. We are confident that the improvements we are making to Zoosk will result in a return to subscriber and revenue growth.”

Financial Outlook




Spark continues to expect full-year 2021 revenue to be in the range of $219 million to $223 million and its full-year 2021 adjusted EBITDA to be in the range of $27 million to $30 million.

“We are reiterating our revised financial guidance for the full year 2021, as we expect to see a sequential improvement in total revenue in the fourth quarter,” said David Clark, Chief Financial Officer of Spark Networks. “During the quarter, we continued to focus on improving our balance sheet by paying down approximately $3 million in debt. Year to date, we have paid down over $14 million in total debt and we continue to review expenses company-wide with an aim at becoming more efficient in 2022.””

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10-Q:

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