Spark Networks Q3 Loss Widens

(RTTNews) - Spark Networks SE (LOV) Tuesday reported its third-quarter results, with net loss widening from a year ago, as revenues slipped.

Net loss was $10.7 million, wider than last year's loss of $2.7 million. This quarter's loss included an $11.8 million non-cash impairment charge to the Zoosk trade name.

Revenues for the quarter dropped to $48.2 million from $53.3 million last year.

Adjusted EBITDA increased 66% to $8.3 million, compared to Adjusted EBITDA of $5.0 million.

CEO Eric Eichmann commented, "We saw initial subscriber growth of 5.1% year over year and average subscriber growth of 3.4% for our largest brand Zoosk in the third quarter. Zoosk product improvements on user profiles, payment flows and trust and safety led to double-digit increases in conversion rates, higher customer satisfaction and stronger app store ratings. We are excited to see our hard work paying off with a second consecutive quarter of Zoosk subscriber growth since we acquired it three years ago."

Looking forward, the company said it expects total revenue for the year to be down low double-digits on a percentage basis as compared to 2021.

The drop in revenues "we attribute mainly to the negative impact of foreign exchange rates on our revenue," said CFO David Clark.