Strong Execution in First Quarter 2022 Leads Spark Networks to Reiterate Expected Revenue Growth for Full Year
Zoosk's New Subscribers Grew 15% Year Over Year andZoosk's Key Female Engagement Metrics Increased 14% Year Over Year inApril 2022 - Company Expects Mid-to-High Single-Digit Revenue Growth for Full Year 2022
First Quarter 2022 Financial Results
- Revenue was
$52.4 million , compared to$56.4 million in the first quarter of 2021. On a constant currency basis, revenue would have been$54.6 million in the first quarter of 2022, down 3% year over year. - Net Loss was
$5.3 million , compared to$6.5 million in the first quarter of 2021. - Adjusted EBITDA(1) was
$3.5 million , compared to$5.1 million in the first quarter of 2021.
Business Highlights and Financial Outlook
- Spark successfully refinanced its debt facility during the first quarter, to better fund its growth initiatives in 2022 and beyond.
- For the month of April, following the ramp-up in marketing spend under the new debt agreement,
Zoosk's new subscribers grew 15% year over year. Zoosk's female paid subscriptions and positive match responses, key engagement indicators, both increased 14% year over year in April.Zoosk's turnaround is progressing well as organic traffic increased 65% year over year in the first quarter.- Spark expects full-year 2022 revenue to grow mid to high single-digits year over year.
Please see the table below for a reconciliation of Adjusted EBITDA, which is a non-
Financial Outlook
"During the first quarter, we successfully refinanced our existing debt facility to better fund our growth initiatives," said
Investor Conference Call
To access the live call, dial 888-349-0106 (US and
A live and archived webcast of the conference call will be accessible on the Investor Relations section of the company's website at https://investor.spark.net/investor-relations/home. In addition, a phone replay will be available approximately two hours following the end of the call, and it will remain available for one week. To access the call replay dial 1-877-344-7529 (US) or +1 412-317-0088 (International) and enter the replay passcode: 3630144.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, statements involving known and unknown risks, uncertainties, and other factors that may cause
Any statements in this press release that are not statements of historical fact may be considered to be forward-looking statements. Written words, such as "believes," "hopes," "intends," "estimates," "expects," "projects," "plans," "anticipates," "guides," and variations thereof, or the use of future tense, identify forward-looking statements. By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the near future. There are a number of factors that could cause actual results and developments to differ materially, including, but not limited to, the risk that the benefits from the acquisition of
For More Information
Investor contact:
MKR Investor Relations, Inc.
[email protected]
1 Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), a non-
- Adjusted EBITDA does not reflect the cash capital expenditures during the measurement period;
- Adjusted EBITDA does not reflect any changes in working capital requirements during the measurement period;
- Adjusted EBITDA does not reflect the cash tax payments during the measurement period; and
- Adjusted EBITDA may be calculated differently by other companies in our industry, thus limiting its value as a comparative measure.
Because of these limitations, Adjusted EBITDA should be considered in addition to other financial performance measures, including net income (loss) and our other
|
||||
Condensed Consolidated Balance Sheets (Unaudited) |
||||
(in thousands) |
||||
|
|
|||
Assets |
||||
Cash and cash equivalents |
$ 13,007 |
$ 16,141 |
||
Accounts receivable, net |
5,753 |
6,261 |
||
|
163,782 |
164,113 |
||
Other assets |
23,642 |
23,286 |
||
Total assets |
$ 206,184 |
$ 209,801 |
||
Liabilities and Shareholders' Equity |
||||
Current portion of long-term debt |
$ — |
$ 17,593 |
||
Accounts payable |
2,098 |
11,474 |
||
Deferred revenue |
35,299 |
36,973 |
||
Accrued expenses and other current liabilities |
26,359 |
27,042 |
||
Long-term debt, net of current portion |
94,282 |
64,531 |
||
Other liabilities |
19,191 |
19,495 |
||
Total liabilities |
177,229 |
177,108 |
||
Total shareholders' equity |
28,955 |
32,693 |
||
Total liabilities and shareholders' equity |
$ 206,184 |
$ 209,801 |
|
||||
Condensed Consolidated Statements of Operations (Unaudited) |
||||
(in thousands) |
||||
Three Months Ended |
||||
2022 |
2021 |
|||
Revenue |
$ 52,374 |
$ 56,379 |
||
Operating costs and expenses: |
||||
Cost of revenue, exclusive of depreciation and amortization |
34,246 |
36,918 |
||
Other operating costs and expenses |
16,038 |
18,441 |
||
Total operating costs and expenses |
50,284 |
55,359 |
||
Operating income |
2,090 |
1,020 |
||
Other expense, net |
(7,386) |
(5,184) |
||
Loss before income taxes |
(5,296) |
(4,164) |
||
Income tax expense |
(53) |
(2,340) |
||
Net loss |
$ (5,349) |
$ (6,504) |
Reconciliation of Net loss to Adjusted EBITDA (Unaudited): |
||||
Three Months Ended |
||||
(in thousands) |
2022 |
2021 |
||
Net loss |
$ (5,349) |
$ (6,504) |
||
Interest expense |
6,882 |
3,440 |
||
Loss on foreign currency transactions |
767 |
1,728 |
||
Income tax expense |
53 |
2,340 |
||
Depreciation and amortization |
603 |
2,290 |
||
Stock-based compensation expense |
502 |
1,036 |
||
Other costs(1) |
22 |
795 |
||
Adjusted EBITDA |
$ 3,480 |
$ 5,125 |
||
(1) Includes primarily consulting and advisory fees related to special projects, as well as non-cash acquisition related expenses, |
|
||||
Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||
(in thousands) |
||||
Three Months Ended |
||||
2022 |
2021 |
|||
Net loss |
$ (5,349) |
$ (6,504) |
||
Adjustments to reconcile net loss to cash used in operating activities: |
||||
Non-cash items and other non-operating charges |
7,576 |
7,487 |
||
Change in operating assets and liabilities |
(12,702) |
(1,370) |
||
Net cash used in operating activities |
(10,475) |
(387) |
||
Capital expenditures |
(490) |
(423) |
||
Net cash used in investing activities |
(490) |
(423) |
||
Net cash provided by (used in) financing activities |
7,774 |
(3,686) |
||
Effects of exchange rate fluctuations on cash and cash equivalents and restricted cash |
55 |
781 |
||
Net decrease in cash and cash equivalents and restricted cash |
(3,136) |
(3,715) |
||
Cash and cash equivalents and restricted cash at beginning of period |
16,279 |
21,117 |
||
Cash and cash equivalents and restricted cash at end of period |
$ 13,143 |
$ 17,402 |
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