Spark Networks Announces Q2’22 Financial Results

Luke Smith 9th August 202216th January 2024

Spark Networks have announced their financial results for Q2’22. Highlights of the results are as follows:

Revenue was $48.0 million, compared to $55.3 million in the second quarter of 2021. On a constant currency basis ⁽¹⁾, revenue would have been $50.3 million in the second quarter of 2022.
Net loss was $8.8 million, compared to $49.0 million in the second quarter of 2021.
Adjusted EBITDA loss⁽²⁾ was $1.7 million, compared to Adjusted EBITDA of $8.6 million in the second quarter of 2021.

Eric Eichmann, CEO of Spark Networks, said: “We saw new subscriber growth of 17% year over and a 19% increase in organic traffic year over year for our largest brand Zoosk in the second quarter, as we began scaling our user acquisition spend, supporting Zoosk’s trajectory back to revenue growth. We continue to make good progress on improving the Zoosk user experience, which we believe will drive increased adoption and renewals. As the fourth largest online subscription-based dating company across North America and Europe by revenue, we remain focused on successfully executing the well-developed roadmap of strategies and investments we have in place to drive revenue growth and ultimately shareholder value.”

David Clark, CFO of Spark Networks, said: “As we look to the rest of the year, due to a number of factors, the largest of which is the appreciation of the U.S. dollar, we are revising down our guidance for our full-year 2022 revenue. We now expect total revenue for the year to be down low to mid-single digits on a percentage basis as compared to 2021. On a constant currency basis, we expect full-year 2022 revenue to be consistent with full-year 2021 revenue. On the profitability side, although we expect full-year Adjusted EBITDA to be lower than previously anticipated, we expect to deliver low double-digit Adjusted EBITDA margins for the full year. It is important to note that in periods of subscriber growth, revenue and Adjusted EBITDA tend to lag as we recognise revenue over the entire subscription length, while 100% of the user acquisition cost is recognised ahead of this growth in the quarter that it is incurred.”