Spark Networks has updated its revenue guidance for the current fiscal year after a positive couple of financial quarters.
The online dating company is now expecting total revenue for 2020 to be in the range of $230 to $232 million, having previously anticipated the value would be less than $228 million. Adjusted EBITDA remains unchanged for the time being, between $34 to $36 million.
Eric Eichmann, CEO of Spark Networks, explained in a statement: “I am pleased with our 2020 topline guidance increase and the reiteration of our prior EBITDA guidance.
“We continue to make good progress in delivering our 2020 plan, setting a strong foundation for future growth. We will continue to work on driving key product enhancements, improving our balance sheet and becoming a domestic filer in 2021.”
The decision to update came following the publication of financial results in August. It covered the first half of the current fiscal year, and was the first full-period report that included information from Zoosk.
Revenue was just over $120 million, an impressive increase of 110% compared to the previous year.
The general consensus among stock market analysts is that Spark Networks is moving towards profitability, having continued to make overall yearly losses. Simply Wall Street estimates net profits of $868,000 in 2020, which indicates the company could hit the breakeven line towards the end of 2021.
Share prices are up more than 50% in the last six months, resulting in a market cap of $122.5 million.
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