SPARK NETWORKS INC CORRECTION: SPARK NETWORKS® REPORTS SECOND QUARTER 2017 RESULTS
In the news release, "Spark Networks® Reports Second Quarter 2017 Results," issued August 7, 2017 by Spark Networks, Inc. (NYSE American: LOV), we are advised by the company that, due to a production error, the previously furnished press release contained incorrect information for ARPU metrics within the tables presenting Segment Results From Operations and Key Quarterly Metrics. This press release corrects ARPU metrics within these tables.LOS ANGELES, CA / ACCESSWIRE / August 8, 2017 -- Spark Networks, Inc. (NYSE American: LOV) today reported results for the second quarter of 2017.
"With our recent relaunch of JDate on our new technology platform we reached a major strategic milestone, and are well on our way toward completing the launch of Christian Mingle later this quarter," said Danny Rosenthal, Chief Executive Officer of Spark Networks. "We expect that the release of the new platform will quickly translate into operational cost savings and increased marketing efficiency and effectiveness.
"In Q2, we saw our second consecutive quarter of revenue stability within the Jewish Networks. These results, when combined with our new platform, position us to make the data-driven marketing investments necessary to drive future growth and value creation."
As previously announced on May 2, 2017, Spark Networks, Inc. entered into a definitive agreement with Affinitas GmbH ("EliteSingles"), which operates premium online dating platforms EliteSingles, eDarling and Attractive World to combine in a stock-for-stock merger. Spark continues to expect the transaction to close in the fourth quarter of 2017, subject to Spark shareholder approval and the satisfaction of certain other customary closing conditions.
In light of the pending merger, Spark will not host a conference call to review its second quarter 2017 results.
Key Quarterly Metrics
Q2 2017 | Q1 2017 | Q2 2016 | |
Revenue | $6.6 Million | $7.3 Million | $9.1 Million |
Contribution1 | $6.0 Million | $5.8 Million | $7.6 Million |
Net Loss | $(2.5) Million | $(2.1) Million | $329 Thousand |
Adjusted EBITDA2 | $1.2 Million | $131 Thousand | $1.4 Million |
Cash Balance | $9.8 Million | $10.8 Million | $3.1 Million |
Period Ending Subs3 | 111,371 | 119,540 | 183,678 |
Avg. Paying Subs3 | 114,925 | 130,441 | 189,938 |
ARPU | $19.12 | $18.38 | $15.70 |
Second Quarter 2017 Financial Results
Revenue: For the second quarter of 2017, total revenue was $6.6 million, a decrease of 27% compared to the year ago period, and a 9% decrease from the prior quarter. The year over year and sequential decreases were primarily driven by a decrease in average paying subscribers, reflecting reduced direct marketing investment in the Jewish and Christian Networks. These decreases were partially offset by year over year and sequential increases in ARPU of 22% and 4%, respectively.
Contribution: Contribution was $6.0 million in the quarter, a decrease of 22% compared to the year ago period, and a 2% increase from the prior quarter. Our contribution margin increased to 90% from 80% in the prior quarter and increased from 84% in the year ago period. Total direct marketing expenses decreased 53% to $690,000 in the second quarter of 2017 as compared to $1.5 million in the prior year period.
Net Loss: Net Loss was $(2.5) million in the quarter, compared to Net Income of $329,000 in the year ago period and a Net Loss of $(2.1) million in the prior quarter.
Adjusted EBITDA: For the second quarter of 2017, Adjusted EBITDA was $1.2 million, a decrease of
$(283,000) versus the year ago period and an increase of $1.0 million from the prior quarter.
Cash: Cash used in operating activities in the second quarter was $440,000. At June 30, 2017, the Company had $9.8 million in cash and cash equivalents, compared to $10.8 million at the end of the prior quarter. At quarter end, the Company had no outstanding debt.
SPARK NETWORKS, INC. SEGMENT4 RESULTS FROM OPERATIONS
Q2 2017 | Q1 2017 | Q4 2016 | Q3 2016 | Q2 2016 | Q2 '17 v. Q2 '16 | Q2 '17 v. Q1 '17 |
Revenue Jewish Networks $ 3,137 $ 3,148 $ 3,136 $ 3,322 $ 3,628 -13.5% -0.4% | ||||||
(in thousands except subscriber and ARPU information)
Christian Networks | 3,371 | 3,813 | 4,262 | 4,673 | 5,044 | -33.2% | -11.6% |
Other Networks | 134 | 286 | 335 | 385 | 413 | -67.6% | -53.2% |
Offline & Other Businesses | (2 ) | 17 | 10 | 11 | 13 | -115.7% | -111.8% |
Total Revenue | $ 6,640 | $ 7,264 | $ 7,743 | $ 8,391 | $ 9,098 | -27.0% | -8.6% |
Direct Mktg. Exp. | |||||||
Jewish Networks | $ 259 | $ 570 | $ 316 | $ 420 | $ 372 | -30.4% | -54.6% |
Christian Networks | 405 | 803 | 316 | 750 | 1,001 | -59.5% | -49.6% |
Other Networks | 26 | 60 | 41 | 60 | 105 | -75.2% | -56.7% |
Total Direct Mktg. Exp. | $ 690 | $ 1,433 | $ 673 | $ 1,230 | $ 1,478 | -53.3% | -51.8% |
Contribution | |||||||
Jewish Networks | $ 2,878 | $ 2,578 | $ 2,820 | $ 2,902 | $ 3,256 | -11.6% | 11.6% |
Christian Networks | 2,966 | 3,009 | 3,946 | 3,923 | 4,043 | -26.6% | -1.4% |
Other Networks | 108 | 227 | 294 | 325 | 308 | -64.9% | -52.3% |
Offline & Other Businesses | (2 ) | 17 | 10 | 11 | 13 | -119.7% | -114.8% |
Total Contribution | $ 5,950 | $ 5,831 | $ 7,070 | $ 7,161 | $ 7,620 | -21.9% | 2.0% |
Period Ending Subs | |||||||
Jewish Networks | 47,487 | 47,236 | 51,519 | 52,952 | 59,868 | -20.7% | 0.5% |
Christian Networks | 57,947 | 65,146 | 82,163 | 95,047 | 112,895 | -48.7% | -11.1% |
Other Networks | 5,937 | 7,158 | 8,690 | 10,234 | 10,915 | -45.6% | -17.1% |
Total Period Ending Subs. | 111,371 | 119,540 | 142,372 | 158,233 | 183,678 | -39.4% | -6.8% |
Average Paying Subs. | |||||||
Jewish Networks | 47,278 | 48,823 | 52,493 | 57,684 | 61,732 | -23.4% | -3.2% |
Christian Networks | 60,972 | 73,627 | 88,774 | 105,108 | 117,024 | -47.9% | -17.2% |
Other Networks | 6,675 | 7,991 | 9,408 | 10,772 | 11,182 | -40.3% | -16.5% |
Total Avg. Paying Subs. | 114,925 | 130,441 | 150,675 | 173,564 | 189,938 | -39.5% | -11.9% |
ARPU | |||||||
Jewish Networks | $ 21.80 | $ 21.07 | $ 19.68 | $ 18.79 | $ 19.33 | 12.8% | 3.5% |
Christian Networks | 18.43 | 17.23 | 15.74 | 14.60 | 14.09 | 30.8% | 7.0% |
Other Networks | 6.54 | 11.91 | 11.55 | 11.69 | 12.15 | -46.2% | -45.1% |
Total ARPU5 | $ 19.12 | $ 18.34 | $ 16.85 | $ 15.81 | $ 15.70 | 21.8% | 4.3% |
Distribution of New Subscription Purchases6
Q2 2017 | Q1 2017 | Q4 2016 | Q3 2016 | Q2 2016 | |
Jewish Networks | |||||
1 month plans | 54.7% | 51.6% | 45.7% | 32.6% | 28.2% |
3 month plans | 19.5% | 19.2% | 20.4% | 18.4% | 19.2% |
6 month plans | 25.8% | 29.2% | 33.9% | 49.0% | 52.6% |
100.0% | 100.0% | 100.0% | 100.0% | 100.0% | |
Christian Networks | |||||
1 month plans | 58.2% | 55.1% | 52.7% | 36.5% | 39.2% |
3 month plans | 24.8% | 25.0% | 27.0% | 22.4% | 25.7% |
6 month plans | 17.0% | 19.9% | 20.3% | 41.1% | 35.1% |
100.0% | 100.0% | 100.0% | 100.0% | 100.0% | |
Other Networks | |||||
1 month plans | 57.4% | 55.0% | 60.1% | 51.1% | 52.2% |
3 month plans | 11.3% | 12.2% | 10.5% | 9.5% | 10.8% |
6 month plans | 31.3% | 32.8% | 29.4% | 39.4% | 37.1% |
100.0% | 100.0% | 100.0% | 100.0% | 100.0% | |
Composition of Average Paying Subscriber Base7
Q2 2017 | Q1 2017 | Q4 2016 | Q3 2016 | Q2 2016 | |
Jewish Networks | |||||
First Time Subscribers | 21.2% | 21.7% | 22.0% | 23.7% | 24.6% |
Winback Subscribers | 25.8% | 28.1% | 33.0% | 34.6% | 34.0% |
Renewal Subscribers | 53.0% | 50.2% | 44.9% | 41.7% | 41.4% |
Total | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
Christian Networks | |||||
First Time Subscribers | 32.7% | 35.2% | 37.2% | 39.9% | 42.0% |
Winback Subscribers | 21.0% | 21.4% | 25.1% | 26.4% | 26.0% |
Renewal Subscribers | 46.3% | 43.4% | 37.7% | 33.7% | 32.0% |
Total | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
Other Networks | |||||
First Time Subscribers | 27.0% | 28.0% | 29.8% | 32.7% | 33.0% |
Winback Subscribers | 22.6% | 21.6% | 22.2% | 22.9% | 22.4% |
Renewal Subscribers | 50.4% | 50.4% | 48.0% | 44.4% | 44.6% |
Total | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
Spark Networks Inc. published this content on 08 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 09 August 2017 00:11:01 UTC.
Original documenthttp://investor.spark.net/static-files/8b9bc090-dd5a-481d-807b-e4c5d0269339
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