Blueprint
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
 
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): March 21, 2017
 
 
 
Spark Networks, Inc.
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 
 
 
Delaware
(State or other jurisdiction
of incorporation)
 
001-32750
(Commission
File Number)
 
20-8901733
(IRS Employer
Identification No.)
 
 
 
 
11150 Santa Monica Boulevard, Suite 600
Los Angeles, California
(Address of principal executive offices)
 
90025
(Zip Code)
 
 
(310) 893-0550
(Registrant’s telephone number, including area code)
 
Not Applicable
(Former name or former address, if changed since last report)
 
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 

 
 
 
Item 2.02.
Results of Operations and Financial Condition
 
On March 21, 2017, Spark Networks, Inc. issued a press release announcing its fourth quarter 2016 results. The press release is attached hereto as Exhibit 99.1 and the information therein is incorporated herein by reference.
 
Item 9.01
Financial Statements and Exhibits.
 
(d)
Exhibits
99.1
Press Release of Spark Networks, Inc. dated March 21, 2017
 
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
 
 
 
 
SPARK NETWORKS, INC.
 
 
 
 
Dated: March 21, 2017
 
 
 
By:
 
/s/ Robert W. O’Hare
 
 
 
 
 
 
Robert W. O’Hare
 
 
 
 
 
 
Chief Financial Officer
 
 
 
 
Exhibit Index
 
 
Exhibit
Number
 
Description
 
 
 
99.1
 
Press Release of Spark Networks, Inc. dated March 21, 2017
 
 
 

Blueprint
  Exhibit 99.1
 
 
SPARK NETWORKS® REPORTS FOURTH QUARTER AND FULL YEAR 2016 RESULTS
 
LOS ANGELES, Calif., March 21, 2017 -- Spark Networks, Inc. (NYSE MKT: LOV) reported fourth quarter and full year 2016 financial results today.
 
“We made clear progress in the fourth quarter to improve profitability and implement a unified technology platform across our networks as we work to reposition the business for the future,” said Danny Rosenthal, Chief Executive Officer of Spark Networks. “The significant improvement in adjusted EBITDA in Q4 reflects our actions to reduce costs as we focus on driving operational efficiency and profitable growth in the future.
 
“We expect 2017 will be a transformational year for Spark. Our priorities are clear: operating profitably, relaunching our technology platform and driving future growth through effective marketing investments. Importantly, we are on track to deliver our new technology platform and re-launch JDate in Q2 and Christian Mingle in Q3. We have more work to do, but with our new platform in place and our focus on operating efficiently, we will be well-positioned to invest behind data-driven marketing programs that enable us to connect customers and drive future growth and value creation.”
 
Key Quarterly Metrics
 
 
 
Q4 2016
 
 
Q3 2016
 
 
Q4 2015
 
Revenue
 
$7.7 Million
 
 
$8.4 Million
 
 
$10.7 Million
 
Contribution1
 
$7.1 Million
 
 
$7.2 Million
 
 
$6.8 Million
 
Net Loss
 
$(3.7) Million
 
 
$(94) Thousand
 
 
$(1.2) Million
 
Adjusted EBITDA2
 
$1.8 Million
 
 
$1.5 Million
 
 
$116 Thousand
 
Cash Balance
 
$11.4 Million
 
 
$11.3 Million
 
 
$6.6 Million
 
Period Ending Subs3
  142,372 
  158,233 
  200,023 
Avg. Paying Subs3
  150,675 
  173,564 
  199,781 
ARPU
 $16.89 
 $15.81 
 $17.26 
 
Fourth Quarter 2016 Financial Results
 
Revenue: For the fourth quarter of 2016, total revenue was $7.7 million, a decrease of 28% compared to the year ago period, and an 8% decrease from the prior quarter. The year over year decrease was primarily driven by decreases in both average paying subscribers and average revenue per user (“ARPU”). The sequential decrease was driven by decreases in average paying subscribers, reflecting reduced direct marketing investment in the Jewish and Christian Networks. These decreases were partially offset by a 7% sequential increase in ARPU from the prior quarter.
 
Contribution: Contribution was $7.1 million in the quarter, an increase of 4% compared to the year ago period, and a 1% decrease from the prior quarter. Our contribution margin increased to 91% from 85% in the prior quarter and 64% in the year ago period. Total direct marketing expenses decreased 83% to $673,000 in the fourth quarter of 2016 as compared to $3.9 million in the prior year period.
 
 
 
 
Net Loss: Net Loss was $(3.7) million in the quarter, a $(2.5) million decline versus the year ago period and a $(3.6) million decrease from the prior quarter. In the fourth quarter, the Company recognized $4.5 million of non-cash intangible and long-lived asset impairment expense. $4.2 million of the impairment expense was related to goodwill and intangible assets within our Jewish Networks reporting unit.
 
Adjusted EBITDA: For the fourth quarter of 2016, Adjusted EBITDA was $1.8 million, an increase of $1.7 million versus the year ago period and a $252,000 increase from the prior quarter. Current period Adjusted EBITDA does not include $4.5 million of non-cash intangible and long-lived asset impairment expense.
 
Cash: Cash provided by operating activities in the fourth quarter was $568,000. At December 31, 2016, the Company had $11.4 million in cash and cash equivalents, compared to $11.3 million at the end of the prior quarter. At quarter end, the Company had no outstanding debt.
 
Key Annual Metrics
 
 
2016
 
 
2015
 
Revenue
 
$35.1 Million
 
 
$48.1 Million
 
Contribution1
 
$26.7 Million
 
 
$28.4 Million
 
Net Loss
 
$(6.9) Million
 
 
$(1.4) Million
 
Adjusted EBITDA2
 
$2.5 Million
 
 
$2.8 Million
 
Cash Balance
 
$11.4 Million
 
 
$6.6 Million
 
Period Ending Subs3
  142,372 
  200,023 
Avg. Paying Subs3
  178,407 
  203,557 
ARPU
 $16.13 
 $18.92 
 
Full Year 2016 Financial Results
 
Revenue: For the full year 2016, total revenue was $35.1 million, a decrease of 27.1% compared to the year ago period. The year over year decrease was primarily driven by 10.3% and 13.4% decreases in average paying subscribers for the Jewish and Christian Networks segments, respectively, coupled with decreases in ARPU of 17.2% and 14.0%, within these segments, respectively.
 
Contribution: For the full year 2016, contribution was $26.7 million, a decrease of 6% compared to the year ago period. Our contribution margin increased to 76% from 59% in the year ago period. The margin expansion was primarily driven by our Christian Networks, which increased contribution margin to 67% from 39% in the year ago period.
 
Net Loss: For the full year 2016, Net Loss was $(6.9) million, a $(5.5) million decline versus the year ago period. In 2016, the Company recognized $4.6 million of non-cash intangible and long-lived asset impairment expense. $4.2 million of the impairment expense was related to goodwill and intangible assets within our Jewish Networks reporting unit.
 
Adjusted EBITDA: For the full year 2016, Adjusted EBITDA was $2.5 million, a decrease from $2.8 million in the year ago period. Current period Adjusted EBITDA does not include $1.2 million of severance payments and $4.6 million of non-cash intangible and long-lived asset impairment expense.
 
Cash: Cash used in operating activities in 2016 was $1.4 million. At December 31, 2016, the Company had $11.4 million in cash and cash equivalents, compared to $6.6 million at the end of 2015. At year end, the Company had no outstanding debt.
 
 
 
 
SPARK NETWORKS, INC.
SEGMENT4 RESULTS FROM OPERATIONS
(in thousands except subscriber and ARPU information)
 
 
 
Q4 2016
 
 
Q3 2016
 
 
Q2 2016
 
 
Q1 2016
 
 
Q4 2015
 
 
Q4 '16 v. Q4 '15
 
 
Q4 '16 v. Q3 '16
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jewish Networks
 $3,136 
 $3,322 
 $3,628 
 $3,995 
 $4,299 
  -27.1%
  -5.6%
Christian Networks
  4,262 
  4,673 
  5,044 
  5,405 
  5,940 
  -28.2%
  -8.8%
Other Networks
  335 
  385 
  413 
  438 
  446 
  -24.8%
  -13.0%
Offline & Other Businesses
  10 
  11 
  13 
  21 
  20 
  -49.9%
  -9.1%
Total Revenue
 $7,743 
 $8,391 
 $9,098 
 $9,859 
 $10,705 
  -27.7%
  -7.7%
 
    
    
    
    
    
    
    
Direct Mktg. Exp.
    
    
    
    
    
    
    
Jewish Networks
 $316 
 $420 
 $372 
 $497 
 $648 
  -51.2%
  -24.7%
Christian Networks
  316 
  750 
  1,001 
  4,420 
  3,111 
  -89.8%
  -57.9%
Other Networks
  41 
  60 
  105 
  120 
  129 
  -68.4%
  -31.7%
Total Direct Mktg. Exp.
 $673 
 $1,230 
 $1,478 
 $5,038 
 $3,888 
  -82.7%
  -45.3%
 
    
    
    
    
    
    
    
Contribution
    
    
    
    
    
    
    
Jewish Networks
 $2,820 
 $2,902 
 $3,256 
 $3,497 
 $3,652 
  -22.8%
  -2.8%
Christian Networks
  3,946 
  3,923 
  4,043 
  985 
  2,829 
  39.5%
  0.6%
Other Networks
  294 
  325 
  308 
  318 
  316 
  -7.0%
  -9.4%
Offline & Other Businesses
  10 
  11 
  13 
  20 
  20 
  -49.9%
  -8.0%
Total Contribution
 $7,070 
 $7,161 
 $7,620 
 $4,821 
 $6,817 
  3.7%
  -1.3%
 
    
    
    
    
    
    
    
Period Ending Subs
    
    
    
    
    
    
    
Jewish Networks
  51,519 
  52,952 
  59,868 
  63,982 
  65,004 
  -20.7%
  -2.7%
Christian Networks
  82,163 
  95,047 
  112,895 
  122,935 
  123,800 
  -33.6%
  -13.6%
Other Networks
  8,690 
  10,234 
  10,915 
  11,321 
  11,219 
  -22.5%
  -15.1%
Total Period Ending Subs.
  142,372 
  158,233 
  183,678 
  198,238 
  200,023 
  -28.8%
  -10.0%
 
    
    
    
    
    
    
    
Average Paying Subs.
    
    
    
    
    
    
    
Jewish Networks
  52,493 
  57,684 
  61,732 
  63,930 
  64,627 
  -18.8%
  -9.0%
Christian Networks
  88,774 
  105,108 
  117,024 
  124,180 
  123,888 
  -28.3%
  -15.5%
Other Networks
  9,408 
  10,772 
  11,182 
  11,341 
  11,266 
  -16.5%
  -12.7%
Total Avg. Paying Subs.
  150,675 
  173,564 
  189,938 
  199,451 
  199,781 
  -24.6%
  -13.2%
 
    
    
    
    
    
    
    
ARPU
    
    
    
    
    
    
    
Jewish Networks
 $18.58 
 $18.79 
 $19.33 
 $20.46 
 $21.82 
  -14.8%
  -1.1%
Christian Networks
  15.75 
  14.60 
  14.09 
  14.17 
  15.25 
  3.3%
  7.9%
Other Networks
  11.55 
  11.69 
  12.15 
  12.52 
  12.72 
  -9.2%
  -1.2%
Total ARPU5
 $16.89 
 $15.81 
 $15.70 
 $16.12 
 $17.26 
  -2.2%
  6.8%
 
 
 
 
Distribution of New Subscription Purchases6
 
 
 
Q4 2016
 
 
Q3 2016
 
 
Q2 2016
 
 
Q1 2016
 
 
Q4 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jewish Networks
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 month plans
  45.7%
  32.6%
  28.2%
  26.4%
  32.8%
 3 month plans
  20.4%
  18.4%
  19.2%
  17.0%
  19.8%
 6 month plans
  33.9%
  49.0%
  52.6%
  56.6%
  47.3%
 
  100.0%
  100.0%
  100.0%
  100.0%
  100.0%
 
    
    
    
    
    
Christian Networks
    
    
    
    
    
 1 month plans
  52.7%
  36.5%
  39.2%
  32.9%
  38.5%
 3 month plans
  27.0%
  22.4%
  25.7%
  20.5%
  21.6%
 6 month plans
  20.3%
  41.1%
  35.1%
  46.7%
  39.9%
 
  100.0%
  100.0%
  100.0%
  100.0%
  100.0%
 
    
    
    
    
    
Other Networks
    
    
    
    
    
 1 month plans
  60.1%
  51.1%
  52.2%
  55.8%
  59.9%
 3 month plans
  10.5%
  9.5%
  10.8%
  11.6%
  10.6%
 6 month plans
  29.4%
  39.4%
  37.1%
  32.6%
  29.6%
 
  100.0%
  100.0%
  100.0%
  100.0%
  100.0%
 
Composition of Average Paying Subscriber Base7
 
 
 
Q4 2016
 
 
Q3 2016
 
 
Q2 2016
 
 
Q1 2016
 
 
Q4 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jewish Networks
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Time Subscribers
  22.0%
  23.7%
  24.6%
  24.7%
  23.1%
Winback Subscribers
  33.0%
  34.6%
  34.0%
  32.5%
  32.0%
Renewal Subscribers
  44.9%
  41.7%
  41.4%
  42.8%
  44.9%
Total
  100.0%
  100.0%
  100.0%
  100.0%
  100.0%
 
    
    
    
    
    
Christian Networks
    
    
    
    
    
First Time Subscribers
  37.2%
  39.9%
  42.0%
  43.1%
  41.3%
Winback Subscribers
  25.1%
  26.4%
  26.0%
  24.6%
  23.7%
Renewal Subscribers
  37.7%
  33.7%
  32.0%
  32.3%
  35.0%
Total
  100.0%
  100.0%
  100.0%
  100.0%
  100.0%
 
    
    
    
    
    
Other Networks
    
    
    
    
    
First Time Subscribers
  29.8%
  32.7%
  33.0%
  31.9%
  30.0%
Winback Subscribers
  22.2%
  22.9%
  22.4%
  21.7%
  21.0%
Renewal Subscribers
  48.0%
  44.4%
  44.6%
  46.4%
  49.1%
Total
  100.0%
  100.0%
  100.0%
  100.0%
  100.0%
 
 
 
 
Investor Conference Call
 
The Company will discuss its financial results during a live teleconference today at 1:30 p.m. Pacific time.
 
Toll-Free (United States): 1-877-705-6003
 
International:                     1-201-493-6725
 
In addition, the Company will host a webcast of the call which will be accessible in the Investor Relations section of the Company’s website at http://investor.spark.net.
 
A replay will begin approximately three hours after completion of the call and run until April 4, 2017.
 
Replay
 
Toll-Free (United States): 1-844-512-2921
 
International:                     1-412-317-6671
 
Passcode:                           13653078
 
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 regarding the Company’s new strategy and the expected benefits to the Company of its new strategy, statements regarding the expected launch of new versions of JDate and Christian Mingle in 2017 on a new technology platform, and statements regarding the Company’s efforts to engage customers through data-driven marketing investments that support future growth.
 
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 “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “intends,” “goal,” “objective,” “seek,” “attempt,” or variations of these or similar words, 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, our ability to: successfully implement our strategy to stabilize our subscriber base and grow; avoid significant subscriber declines; attract and retain members; convert members into paying subscribers and retain our paying subscribers; retain and enhance the new marketing team; develop or acquire new product offerings and successfully implement and expand those offerings; keep pace with rapid technological changes, including making the technology stack more nimble; drive use of newly-updated mobile applications; maintain the strength of our existing brands and maintain and enhance those brands; continue to depend upon the telecommunications infrastructure and our networking hardware and software infrastructure; estimate on-going general and administrative costs, and obtain financing on acceptable terms. Additional factors that could cause actual results to differ are discussed under the heading “Risk Factors” and in other sections of the Company's filings with the Securities and Exchange Commission (“SEC”), and in the Company's other current and periodic reports filed or furnished from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.
 
 
 
 
About Spark Networks, Inc.:
 
The Spark Networks portfolio of consumer Web sites includes, among others, JDate®.com (www.jdate.com), ChristianMingle®.com (www.christianmingle.com), JSwipe (www.jswipeapp.com), CROSSPATHS (www.crosspathsapp.com), Spark®.com (www.spark.com), BlackSingles.com® (www.blacksingles.com), and SilverSingles®.com (www.silversingles.com).
 
For More Information
 
Investors:
Robert O’Hare
rohare@spark.net
 
 
1 “Contribution” is defined as revenue, net of credits and credit card chargebacks, less direct marketing.
 
2 The Company reports Adjusted EBITDA as a supplemental measure to generally accepted accounting principles ("GAAP"). This non-GAAP measure is one of the primary metrics by which we evaluate the performance of our businesses, budget, forecast and compensate management. We believe this measure provides management and investors with a consistent view, period to period, of the core earnings generated from on-going operations and excludes the impact of: (i) non-cash items such as stock-based compensation, asset impairments, non-cash currency translation adjustments related to an inter-company loan and (ii) one-time items that have not occurred in the past two years and are not expected to recur in the next two years. Adjusted EBITDA should not be construed as a substitute for net income (loss) (as determined in accordance with GAAP) for the purpose of analyzing our operating performance or financial position, as Adjusted EBITDA is not defined by GAAP. A reconciliation of the Adjusted EBITDA for the three and twelve months ended December 31, 2016 and December 31, 2015 can be found in the table below.
 
“Adjusted EBITDA” is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, impairment of intangible and long-lived assets, non-cash currency translation adjustments for an inter-company loan and non-recurring significant executive and non-executive severance, and acquisition costs.
 
3 "Paying Subscribers" are defined as individuals who have paid a monthly fee for access to communication and website features beyond those provided to our members. Period ending subscribers for each quarter represent the paying subscriber count as of the last day of the period. Average paying subscribers for each month are calculated as the sum of the paying subscribers at the beginning and end of the month, divided by two. Average paying subscribers for periods longer than one month are calculated as the sum of the average paying subscribers for each month, divided by the number of months in such period. The calculation excludes results from the Company’s HurryDate business due to its relative size.
 
4 In accordance with Segment Reporting guidance, the Company’s financial reporting includes detailed data on four separate operating segments. The Jewish Networks segment consists of JDate, JDate.co.il, JDate.fr, JDate.co.uk, Cupid.co.il, and JSwipe. The Christian Networks segment consists of ChristianMingle, CrossPaths, ChristianMingle.co.uk, ChristianMingle.com.au, Believe.com, ChristianCards.net, ChristianDating.com, DailyBibleVerse.com and Faith.com. The Other Networks segment consists of Spark.com and related other general market websites as well as other properties which are primarily composed of sites targeted towards various religious, ethnic, geographic and special interest groups. The Offline & Other Businesses segment consists of revenue generated from offline activities and HurryDate events and subscriptions.
 
5 ARPU is defined as average revenue per user per month. Total ARPU excludes results from the Company’s HurryDate business due to its relative size.
 
6 One month plans may also include a small amount of two month plans. Three month plans may include a small amount of four month plans. Six month plans may include a small amount of twelve month plans.
 
7 Represents the composition of average paying subscribers in the period. First Time Subscribers are defined as those subscribers that have never purchased a subscription from the Company for that reporting segment. Winback Subscribers are defined as those individuals who have purchased a subscription from the Company for that reporting segment, allowed their subscription to lapse, and subsequently purchased a subscription from the Company for that reporting segment. Renewal Subscribers are defined as those subscribers that have auto-renewed a subscription from the Company for that reporting segment. Figures exclude results from JSwipe and CrossPaths.
 
 
 
 
SPARK NETWORKS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
 
 
 
December 31,
 
 
December 31,
 
 
 
2016
 
 
2015
 
Assets
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
 $11,360 
 $6,565 
Restricted cash
  454 
  747 
Accounts receivable (net of allowance for doubtful accounts of $0 and $99 at December 31, 2016 and 2015, respectively)
  525 
  790 
Prepaid expenses and other
  1,408 
  1,341 
Total current assets
  13,747 
  9,443 
Property and equipment, net
  4,494 
  5,584 
Goodwill
  10,523 
  14,450 
Intangible assets, net
  2,950 
  3,451 
Deposits and other assets
  103 
  148 
Total assets
 $31,817 
 $33,076 
Liabilities and Stockholders' Equity
    
    
Current liabilities:
    
    
Accounts payable
  819 
  1,749 
Accrued liabilities
  2,590 
  3,854 
Deferred revenue
  4,005 
  5,834 
Total current liabilities
  7,414 
  11,437 
Deferred tax liability - non-current
  2,092 
  2,136 
Other liabilities
  246 
  537 
Total liabilities
  9,752 
  14,110 
Commitments and Contingencies (Note 11)
    
    
Stockholders' equity:
    
    
10,000,000 shares of Preferred Stock, $0.001 par value, 450,000 of which are designated as Series C Junior Participating Cumulative Preferred Stock, with no shares of Preferred Stock issued or outstanding
  - 
  - 
100,000,000 shares of Common Stock, $0.001 par value, with 31,983,545 and 25,845,879 shares of Common Stock issued and outstanding at December 31, 2016 and 2015, respectively:
  32 
  27 
Additional paid-in-capital
  87,198 
  77,188 
Accumulated other comprehensive income
  713 
  739 
Accumulated deficit
  (65,878)
  (58,988)
Total stockholders' equity
  22,065 
  18,966 
Total liabilities and stockholders' equity
 $31,817 
 $33,076 
 
 
 
 
SPARK NETWORKS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data)
 
 
 
For the Three Months Ended
December 31,
 
 
Years Ended
December 31,
 
 
 
2016
 
 
2015
 
 
2016
 
 
2015
 
Revenue
 $7,743 
 $10,705 
 $35,091 
 $48,135 
Cost and expenses:
    
    
    
    
Cost of revenue (exclusive of depreciation shown separately below)
  1,647 
  5,017 
  12,852 
  24,075 
Sales and marketing
  854 
  1,242 
  4,789 
  4,137 
Customer service
  545 
  826 
  2,901 
  3,065 
Technical operations
  350 
  388 
  1,371 
  1,024 
Development
  748 
  1,059 
  3,920 
  4,037 
General and administrative
  2,038 
  2,675 
  8,991 
  10,379 
Depreciation
  1,038 
  604 
  3,234 
  2,211 
Amortization of intangible assets
  69 
  78 
  293 
  108 
Impairment of intangible and long-lived assets
  4,480 
  65 
  4,629 
  197 
Total cost and expenses
  11,769 
  11,954 
  42,980 
  49,233 
Operating loss
  (4,026)
  (1,249)
  (7,889)
  (1,098)
Interest expense and other, net
  138 
  16 
  29 
  96 
Loss before benefit for income taxes
  (4,164)
  (1,265)
  (7,918)
  (1,194)
Income tax benefit
  (447)
  (23)
  (1,028)
  243 
Net loss
  (3,717)
  (1,242)
  (6,890)
  (1,437)
Basic and diluted loss per share
 $(0.12)
 $(0.05)
 $(0.24)
 $(0.06)
Shares used in computation of basic and diluted net loss per share
  31,895 
  25,675 
  28,232 
  25,170 
 
    
    
    
    
Stock-based compensation:
    
    
    
    
 
    
    
    
    
Sales and marketing
  6 
  28 
  33 
  47 
Customer service
  4 
  - 
  12 
  - 
Technical operations
  (1)
  - 
  11 
  - 
Development
  10 
  4 
  28 
  12 
General and administrative
  179 
  238 
  898 
  723 
Total stock-based compensation
 $198 
 $270 
 $982 
 $782 
 
    
    
    
    
Reconciliation of Net Loss to Adjusted EBITDA:
    
    
    
    
 
    
    
    
    
Net Loss
 $(3,717)
 $(1,242)
 $(6,890)
 $(1,437)
Interest expense
  31 
  33 
  83 
  68 
Income tax (benefit) provision
  (447)
  (23)
  (1,028)
  243 
Depreciation
  1,038 
  605 
  3,234 
  2,211 
Impairment of intangible and long-lived assets
  4,480 
  65 
  4,629 
  197 
Amortization of intangible assets
  69 
  78 
  293 
  108 
Non-cash currency translation adjustments
  100 
  (24)
  (66)
  15 
Stock-based compensation
  198 
  270 
  982 
  782 
Non-recurring financing, acquisition, and severance costs
  - 
  354 
  1,234 
  644 
Adjusted EBITDA
 $1,752 
 $116 
 $2,471 
 $2,831