Spark Networks has published its third quarter financial results, which came in slightly under analyst estimates.
Total revenue dropped by 12%, compared to the same quarter last year, to $53.3 million. The dating company’s net loss was $2.7 million, which resulted in an earnings per share figure of $-0.27.
According to Investing.com, analysts were expecting revenue of $54.4 million and earnings per share of $0.46.
The decline in revenue was caused by Zoosk, Spark Networks’ biggest brand, losing subscribers. The full-year revenue outlook is still expected to be between $219 million and $223 million, after the figure was dropped in Q1 due to product delays on Zoosk.
However, the executive team is optimistic that the ongoing developments will help bring subscriber and revenue growth back to the platform. Zoosk’s livestreaming feature is seeing good traction as the number of users engaging with it have doubled since last quarter’s launch.
A new virtual dating feature is also expected to be launched in Q4. ‘Zoosk Great Dates’ will allow subscribers to have virtual dates in a number of cities all over the world, starting with Athens, Naples and Kyoto, and more to be added next year.
Spark Networks CEO Eric Eichmann explained in a statement: “We are pleased to report that four of our top five brands continued to grow their revenue and subscribers collectively during the quarter.
“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 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.”
Spark Networks is also working on reducing its total debts. The figure currently stands at $84.7 million, down from $99.1 million at the start of the year.
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