LOV - Earnings call transcript Q2 2020

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Operator

Hello, ladies and gentlemen, and thank you for waiting. Welcome to Spark Networks' conference call to provide the company's results for the first half of 2020. This call is being recorded, and we are broadcasting live in listen-only mode. I would now like to turn the conference over to Chris Camarra, VP of Investor Relations. Mr. your begin may you conference. Camarra,

Chris Camarra

Financial and Thank us Officer, everyone, Chief joining you, morning. you, Eric On and Executive operator, this Chief this for Spark's Althaus. thank call Bert Officer, Eichmann; are

reminder, results, can section financial on a half Investor website company's on which this our be published As first we at XXXX the our found Relations morning, www.spark.net.

EBITDA, to prepared which of earnings release. the our press refer in the remarks Before SEC this reconciliation in to defined filings. we can consolidated in release of to is that found adjusted begin, in our adjusted statements remind everyone in the included I'd net we on like be call, A operations and loss EBITDA

made regarding to call our or uncertainties are, on forward-looking projections. cause information would such results you that future from contain are this subject or risks to differ listening I Additionally, to comments remind may projections like events. fact, materially predictions statements statements everyone actual that results and We or in events caution or can any today that that

the events and be in actual these with that company's cause forward-looking to found results Additional risks, filings materially uncertainties statements differ factors may or the from SEC.

to conduct remarks, said, I for and will now a prepared Bert Eric website. please the being being CEO that Mr. Investor over go our Eichmann, Networks. With on Eric, session. Eric our Relations is and the will This call Following playback of question-and-answer available will ahead. recorded be section Spark call of turn

Eric Eichmann

on to for us call and the today. thanks Chris, many everyone you, Thank joining

the focused executing around and thoughts our Spark, our strategic we by the are Let are on saying that At me world by impacted pandemic. individuals businesses COVID-XX priorities. with begin

to people's products work capacity and connect morale the relationships pandemic, a strong. and home. business. offices and our be have from COVID-XX-resilient. productivity this team and U.S. In meaningful fill employees We are to while continues to believe will returned forge We limited new proven needs Berlin Our connected remain Spark's a in staff at the as our with total business a in has safe, others to

And very in our clear: with for guidance map year-on-year grown with flat to dating fundamentals the growth. prepare we focused synergies, signs have results success. are on fiscal We preannounced North take fixes, After opportunities. top through road brands quarter-on-quarter line our maximizing XXXX top meaningful this earlier and meaningful line the strong performance. and I'm now raised top very revenue X very meaningful acquisition, the Zoosk advantage America. of XXXX to positive brands by a XXXX year We are X for having growth of marketing HX happy the organic progress getting a product is month. of for growth our future right ties stabilization clear

growth First the half North first XXXX The and million core Zoosk $XXX XXXX. the revenues of to to attributable integration other to increase the during America. half revenue increased is million in of in $XX.X brands compared our of

to million due increase offering plan The X.X%. margin business in $XX.X of in EBITDA with of COVID-XX EBITDA an adjusted and XX.X%. EBITDA increase of half the First was environment. our is adjusted This EBITDA XXXX successful of strength $X.X year XXXX prior represents compared adjusted and adjusted largely in our execution margin period the million to of

the onetime not line to top overperformance the to to translate mostly Our bottom Zoosk fully due related did expenses line, transaction.

improving for flow; stable for home and people we and to softer onboarding a improved coming several to to optimization drivers and a term products. Mingle than largest tracking enhanced marketing matchmaking for simplified to economic $XX.X we of thanks including levels. responsive maintained more brands There flow higher after SilverSingles, performance due interest brand and spending design first, our cash to of from a at strength. four consumers, and the financial revenue. from engagement staying better Despite EliteSingles due model million XX% made larger operating doubled implementation $X.X portfolio; performance: capabilities million basis, efficiencies demonstrating our on increased our subscription are to conditions third, algorithms, our good year-on-year payment Finally, marketing over Zoosk's products, COVID-XX led progress our second, represent our Zoosk Zoosk, synergies, are Christian

and We towards good user making progress experience. have integration now fully are completed improving Zoosk's its

America. by biggest Zoosk, revenues X brands and in after North EliteSingles Our X% collectively grew year-on-year SilverSingles, Mingle, Christian

momentum continued for We these brands. expect

in indicators. Turning in was key $XX.X. million HX contribution led XXXX XX%, grew stable represent our million increased basis. is U.K., X.XX ARPU first marketing priority on Average to Australia Marketing revenues was XXXX of America from year-on-year International at a ARPU subscribers contribution $XX and subscribers on and paying from HX year-on-year million XX% X.XX XXXX top Average performance versus half. stable $XX our by our to revenue France in representing million a North basis. increased while and HX paying XXXX to presence. our market, XX%

outlined driving product During improving our structure. capital priorities scaling for enhancing previous our and innovation; and earnings cost-effective operations; XXXX, four call, marketing; we running

have these We progress good made on priorities.

Zoosk. brands, functionality for improved our key have each First, product in for particular we of

platform We services, data and warehousing such good in billing. unified progress as also made building CRM,

on app look features. premium of working several and feel experience updating exploring and mobile of now and are new usability improving We brands, and our the the

and our undergoing younger Spark and currently feedback scope also Canada easy, demographic We've and new is on capabilities. app, focused self-expression, has of the been marketing positive. For fun preliminary testing in a enhanced scale

by that During areas efficiencies strongest the to the those provide leverage we and ROI. improved target, first identify of working half XXXX,

implemented used optimize sophisticated side, to tracking that improve enable costs marketing marketing we was On acquisition and the campaigns. a solution Zoosk to teams

capitalize notably discounted Additionally, to media most pay Zoosk the pricing, on the company to social costs and acquisition was able COVID-XX also in related television.

channels, areas retargeting we that have app year, of significant remainder in on the and focused the testing potential. For we are believe scaling,

a of strict thorough terms have implemented vendors, reducing In cost of external our and we operations. to costs our improving review our oversight performed structure,

costs, out We Berlin, leading our of XX product, to running power one tech now one shared marketing with consolidating lower team and are purchasing expertise. one brands and

improve Lastly, exploring ways we to structure. our capital are

We We an of debt. party future are actively XX excited X% current dating platforms market, very operate annually. Spark. to review about an our $X the summary, In external growing working with billion I'm in attractive

markets While XX% France. Australia United operates online generated approximately the in the the the and Canada, the is company globe, our Kingdom, across for of U.S., dating: revenue leading

leader are premium dating. and a We world community-based in

our is with to XX% critical on U.S. drive financial religious XX-plus well XX-plus performance XX% Product adult better industry. will our today. in presence differentiated XXXX, strong advantage of other to in And and for Our for up on success demographic hard community, of XX% significant a relationship for overall, expected us day factor. us good population working make with our be the engagement company's a is organic users. creates team, of to the every for success segment, growth targeted growth. our The the the I'm higher take of potential. at we for to who and our capabilities demographic position with and the serious from combined on online believe acquisitions, combined a marketing with progress large Spark's for allow is brand portfolio. making current a innovation proud low pleased organization This, growth resulting penetration adults improved XX-plus of opportunity in XXXX factor XX% focused brand's size, is and half that our XXXX are important Historically, in that outlook. dating I'm singles versus Spark We product the strong first company front. future

As to over about to Officer, you our Bert, turn go and would ahead. the call online second-largest to our Chief traded on publicly like Financial player, I'm progress. updating Bert dating our the now I optimistic Mr. look Althaus. future please forward

Bert Althaus

you, Thank Eric.

full period half a reported same be XXXX which half period XX, include €XXX.X represents the As top We total with June of financials, line. Starting XX% million, Zoosk's of first compared the X-month than XXXX our revenue increase first XXX% top now reminder, the ended first to more of to reporting XXXX. will an of line. our

which half to forma half increase revenue the €XX.X and to €XXX.X with Spark million Zoosk Networks/Zoosk On is For in brands. a year, first was to existing merger, closed Spark million €XX.X revenue the XXXX. attributable pro basis, XXXX million in attributable July

average X.XX the in to Our XXXX represents This paying during million half subscribers first XXX% increased million same X.XX in the the XXXX. increase of period from year-over-year an growth.

XXXX. Our stable paying first subscribers end compared X.XX XXXX year of million half were to at end-of-period

€XX.X in share an North same million number first from For X-month This of €XX.X and an first average in attributable spend. XXXX, period of the stated to to The increase user, monthly we X-month America. X.X to to increasing due change the efficiency Zoosk million. XX%. compared XXXX. of June a represents the to for of half million half Contribution XXXX, total XX, net XXX% in or of is registrations reflecting per €XX.X This growth increased X.X our or revenue ended revenue €XX.X in million acquisition XXXX, ARPU, period the the of when marketing compared was

assets goodwill. In than business our terms assets model. of of by asset-light and total XX% our balance More operate are to sheet, Spark with continues represented an intangible

of and end December XXXX cash half in reporting ended of to €XX.X €XX.X half equivalents also and Spark million that compared are XXXX. €XX at first the the cash at million first We XXXX end the with million the

As the XXXX XX, the we day €XXX.X December XXXX, million €XX.X to same compared €XXX.X June million million of and end of of equity as reporting XXXX. are of about at

reporting our sectors, increase first XXXX, COVID-XX million from generation increase million. charge-backs flow dating. online was compared in across As XXXX, €X.X €XX.X of in of the Cash an to position million we XXXX XX, period company's operating same half XXX%. at debt resulted the an has June during all are activities including in results, the €XX.X

the on to charge-backs on reduce impact actions business. to We of continue work mitigating our

Now turning brands, COVID-XX. product primary marketing our this from previous estimates first, and The to enhancement month, increased second, across and evidence Earlier our better-than-anticipated guidance. impact efforts our revenue that reasons both to we this strongest KPIs a increased XXXX driving are: guidance working; EBITDA. adjusted are our

to released expect million to annual XXXX As we to $XXX €XXX $XX €XX €XX million XX, or €XXX million. million revenue million and achieve of million million $XX to $XXX or August EBITDA adjusted to of million; on

€XX EBITDA revenue million $XXX and million half €XX or to second of to $XX to €XX million; are of million $XX adjusted or million to the million €XX of million XXXX, to $XXX guiding For million. we

to is this due reminder, call our second status. earnings call this final a and year our foreign filer As

earnings working QX filer on XXXX. release a in basis on are looking and We quarterly to forward becoming XXXX a beginning domestic in

intermediate. are prepared remarks. our actively to This concludes our in with communicate We investors planning

take to to me questions. let Operator? the Now your turn call operator the over

Eric Eichmann

Operator?

Operator

is Yes. live. your Eric, line

Eric Eichmann

Good.

grew. payments Okay. that the script before Obviously, interest I cash in operating Great. One after. operating mentioned It flow quick correction not cash flow to interest, everybody. was wrong. that after is

Sorry All about to Ready that. right. questions. take

Operator

[Operator Instructions].

Your of comes B. from Anderson line the Kara first question with Riley.

Kara Anderson

can just in the is half the first trends of then read the first, decline kind I you the the XH subs should we throughout in registration paying total of second So XXXX? discuss for the question half? guess, into piece the And first versus, how

Eric Eichmann

Hey first repeat sorry, can the you the question? of Kara, part

Kara Anderson

Yes.

throughout The could whether if you trends was discuss the... any half, the first got part you've just first subs And then some on sense. paying

Eric Eichmann

Great. Well, it for very you I in you Coast. waking up the and early West much, early. is Got Kara, thank it. thank know

and what the we results the provided in in pandemic in this as have our about seen we reflected as U.S. is on bit a hit a when way. was we talked we and question, of made in big the first guidance, look, April soon slowdown that XXXX comments So a saw,

our at of other So bit and sort buy March, as And cautious. people when we we end that that a at time, towards sort and there, toilet sort went of crazy -- you the mentioned were the in a have double-digit a go store remember, of paper to seen of low bit dip. we have goods more and first

engagement was news, that so had what go good we have happened afterwards, this seen and a us And up. worried little bit,

was was good. optics. And that with that subscription So followed

that results half first first we for XXXX, so a you good about half in see the it's been can talked And the as us. from of

simpler. environment I with just from a part made came of, But staying algorithm significant the required flow think a sort led I in to importantly, Zoosk, a of was would at we sort more was improvements big home. results products. that our matchmaking work. say, generally of and good area that people implemented more to of not We that sort onboarding that particular, a

We tracking a also sort had before. full exist that marketing of didn't

spending working and And were things on sort of so that to well and the able limit were things optimize working the well. we that now marketing not scale we're

the positive mean, I things, how becoming those product at how a say and could people that, and part So least, know measure enhancements. was bit marketing much was at But of was that and a home would to with I And product staying it's we it. more environment much big hard marketing.

couple So that. on that's registrations, total that. of The things that a would decline mention in I

is at that really international, total of not First And registrations, the Zoosk. follows if that from from existed is you majority a America. the in decline it of number look decline in North the

that in that. I think Zoosk clear a And a was believe America will. acquired North was Zoosk, we if we of brand to that doing brand process it It we're also when it decline. very some needed to in strong And us the [indiscernible] a that certain was revival, you reach was very size. was

of is that number points a well. proof have that we working think show process that, I

I America, I'm to the in end end million. the to at the the so That's half $XXX,XXX of say, the end math, look would you do June XXXX. it's North out when or decline $X first of of the trying quick And at from XXXX of

significant. I like prepare it year it's what right, And the like So for said, I've XXXX hope, to not obviously, X%, for us of as idea something our guess, a stabilization. growth. ourselves And So that, is is reach future is to that?

not segment. as on are obviously we So the focusing international much

is said focusing market have we're on. that We America North key the

the would at there And metrics overall so look more I the metrics. than

Kara Anderson

So you want you second provided I and to guidance both declines includes you can for for on the [Indiscernible] margin the give about half? erosion then just [indiscernible], expectations there. at the that. on know color revenue right? even And sharp it. I some first half pretty and Got us Okay. EBITDA just the some talk time

Eric Eichmann

Yes.

Kara. that's I another great Thank think question, you.

quite and is feel optimistic how we the quite look, about going. business So bullish

risks. for to second But seeing to we happening seemed in about you're seems already up peak potential And wave again. seems have good. happening. in like And of it it's now, coming think so is all And future, some it of now, reached It Europe are seems the as also now mitigating about another that be we're It's U.S. guidance the thinking a picking down. the as and

we not optimistic, mean, that pandemic territories wave I first what what And happens here in might -- clear in the So what terms the not in in the it's means. necessarily we're of it's clear second. and though be unchartered it are necessarily happened

there's So there's recession. but that be the effect also would potential most likely scenario, the a again some risk and then of

the and to guess to with cautious or the being ability to our improve I guidance, So of the related that think of the is we're in not times uncertainty we're us. in still operations marketing but sort given for anything the our some we appropriately living that continue core when to answer product belief the about drive

Kara Anderson

waiting we then tech was Zoosk, were on And that that with all piece final Got it. the on. I the integration think

happen? And guide? [indiscernible] any is related savings the And in sort of there the when to did that that

Eric Eichmann

Yes.

Zoosk, or last of were San it company, Francisco, the of that people QX. company was the So late the early out think I left QX part

the integration is And completely so done.

of the tech out now. All done being in of is products Berlin

the And of we from for in synergies done. is so that the provided included year. And all are the that get of that any rest we'll that guidance

Kara Anderson

we you the to the direct that marketing of contribution is going question, expect the improvement think Got talk level out that you performance forward? respect driver improvement? it. see you you the is biggest with And should significant one of there. just in what think did last behind Can about I called it And that a spend, kind

Eric Eichmann

Yes.

-- us taking being One, and able Zoosk probably there. the spending things. two the to us biggest think I and able being on the and allowed factor ROI improve capabilities of improve tracking to sort is the So drastically

And to big how was work, scaling areas. understanding probably those and channels so full they then just the which their work of one extent

fully better leads right? say, you just to improve When if XX% related And generally you would flow that improve there. then that's conversion, you I ability onboarding your better or the you marketing than marketing area particularly, marketing one, more to engagement. obviously, the And is get room better, a have the product, XX% product. conversion was gives is that spend. spend, better the second big ROI The which to to better Because

say of has staying penetration And something it's good. I at So biggest what know third going for future. the probably And with belief or exactly seen would That's change increase those are in not the people that's the the to X dating. the hard has engagement with step-up things. then future. to we've a the do to to But And a improved that staying that means my home. it's in online home that at is step very led the

contribution for area. and very key we advantage the positive saw the The much say, we at marketing intend in from do to some And last TV. the think is and That's a social marketing of media mentioned And that. our script, would we that's thing to I time of we doing. have and idea particularly is obviously, is So look very I we a the how in the terms of in in that took pay perspective, contribution improve we prices decline metrics is well that. what one all continue future, that

of Our well that guidance imply front. we do compete obviously on that to sort

Operator

with question Genuity. Canaccord line comes next Moldow from the Your Austin of

Austin Moldow

seeing the of towards But of can from and is level different the I about total different that in mix shift there points? talk ARPU ARPU the given North kind ARPU price brands, The and happening American [indiscernible] line shift sort you're that some America. understand relative of growth be a imagine might first the segment you that is on one North improving ARPU. I mix

Eric Eichmann

Yes.

of second of then things it's are from not couple on couple in as a big, look I'll €XX.XX relevant improved to maybe the of the you from of in Bert press is more ARPU €XX.XX half our to also if increase XXXX, first But comments. there half There's and the if of a €XX.XX. release, So to things pass there XXXX and any €XX.XX. sort the at

should to you QX, our Christmas after is so And are that there seasonality high is that of business. what to know end QX, season. of sort Day a Valentine's from

so higher ARPU and generally so that's in see And these because of it we numbers. reflected

So have in an you the to ARPU is higher we've has and carries in those. and those you about, particular, increase But sort the see EliteSingles we North seen seasonality with talked other there. in with brands. growth brands that America, do thing the pricing associated In the X the And that of different Top SilverSingles X ARPU.

the a big driver. not And if bit other any that? comments have the mix shift. to but is at But you you I if know of that's don't that's say look a Bert, would difference that majority it, of the I So

Bert Althaus

add comparable allocation out purchase Yes. to half the due Well, is price one thing effects had. to of we accounting hardly of is second XXXX that the

an part. has the on impact that So Zoosk

not that's comparable. think I So

think American by shift to to as more the is half that, XXXX ARPU. first that overall of North revenue I increases significantly our the compare improving Eric and adding explained, but XXXX to the half that, first of the appropriate

Eric Eichmann

we're revenues, future the to those things potentially is to you or very And to of things premium which if the like from Austin, advertising, looking additional And but comment bring But have those like that drivers, a obviously additional significant obviously things of priority features, the These positive. revenue that trying to thing implemented ROI. will. improvements is are last have video most and things I'll features at led haven't new subscription these. engagement we're any for and we perspective, on, revenue-enhancing sort are product highest

Austin Moldow

[indiscernible]? that Got there it. sort also, sort And Considering on a does And be as some different an becomes of the rest follow-up the of of it ARPU quick the of within down sort fit Zoosk. big should total a just mix of shift Zoosk expectation the of from portfolio, level portfolio? piece is where

Eric Eichmann

and expect shift? are of mean, if understand, different shift you new a I so then would different to revenue in the you're the sort I terms say a mean asking have And a of, lead Austin, over drive ARPUs One, registrations. initiatives. I things. couple different for and that we brands Yes. we can I time, of if does mix that provide

contribute should growing in Mingle, or just as And bit X And so the and brands Silver and faster. we've all those ARPU. And Christian Top ARPU a and EliteSingles. X Christian than X mentioned, in higher growing have Top of Elites are America, general, to our they're North SilverSingles

of And we would sort as bit so those seeing again, stabilize. Zoosk sort And think probably I start end up little in would growth ARPU driving a of up. that

we a So trend. fairly of comments Bert, let particular turn to stable. I Bert. that? it would me think that don't I to know it's any would on But sort point

Bert Althaus

There's Yes. Zoosk towards others. to optimization no overall It Thank particular or Eric. we way our is we trend on that the have you, a compared Zoosk the pricing pricing brands. on are in really differentiation the

Eric Eichmann

And we ARPU up and goes volume to if going up. But that like while down too. our going our like is ARPU we and up, see revenue is contribution obviously,

So ARPU not itself in a metric. is

sure factors, we're the ARPU at once things want really that as we all initiatives, the to drive obviously metric that. main trying in contribution when exclude is end, that, like revenue think contributing like about you to new the shifts to and So we revenue. make But mix

Austin Moldow

last is Got on Okay. And my it. product innovation. question

times. several Zoosk mentioned You

product evaluating that you're talk kind been just mentioned of So you about And thinking you can outside Zoosk implemented about? were maybe that video the think and I what features previous innovation in have answer. of recently you

on the Zoosk you can outside new through horizon? of some those features So talk of

Eric Eichmann

Yes.

couple of a So things.

in think have things online an is working will of dating of brand an something on so things important, meaningful yourself users. our so how and within we're the and Zoosk. including that's online important, is refresh is important is segment the dating, overall we present that our our of platform on one you of impact particular One in It's

positive. that's So

consolidating also and data a serve and on tracking number front-end have, done addition we've also comes providing about Zoosk CRM, global different a global all The this, that, we we're we of working platforms that from with talk out work In warehousing. we a about service the services talked we're of brands. to to really great

And one team. will, also launch all with But being marketing we working part around brands test so an on it different you we're there structures, billing. allows for shared pricing us if the Billing brands. all on to is of able have different that expertise, important

where one that's longer. the that areas takes area and a that the fraud complicated so our bit over with of And that that's and we're that And been an vetted. is area excited platforms about. a have time third little security about. features users but we're to of we're safer have implementing obviously about excited involves more parties, meaningful within areas are fully for safety and feel other number It we're interactions area a just It's excited people

that's just that things the things we're there in features we're address place the come. operationally but not And of ability some obviously, issues to as they doing putting so necessarily And now. are that also

targeted idea have that, other in would the just iOS Canada. users. I And It testing sort thing I our all is, that facing seen we're to at currently Android. is of is It We've demographic. we mentioned, Spark the on So app of as younger feedback it from initial are the good say app. an is

for proposition differentiated distinct, very a it's And that. consumers. about excited we're So

the product. a around of doing bit So that we're rainbow things that's of little

Operator

Roger [ph], line Private question Investor. Your of Barry the from comes next

Unidentified Analyst

this from And is U.K. Roger the

here. And So just we're three in actually. the questions afternoon

revenue I First on compared question of could wonder million. €XX-and-a-bit line with is the pro if explain XXXX. forma the that you drop

turn And of lockdown far expect in other you net above probably video the at a that move of guess expect in your it now do finally than for more with the how market put much And the and and adept a can you point platforms, that into in in on down to a question. that time. the available? you When line bearing based Next to Zoom is various trajectory? thing be as this line result best necessary a is End cheeky place? might When more do question. loss probably XX-somethings current mind positive

Eric Eichmann

Great. much, your right. Thank the appreciate very question. you Roger U.K., All from

So versus first asked a performance. revenue is about There you off, decrease.

a we positive, There's think some a of obviously, I had factors. negative. But Zoosk. biggest in is a mix the declining few So factors, some factor brand

decline that and is on. our so start beyond. worked that being all XXXX is And we of again hope that stabilize will now growing in And and

And what the points good that of to start so that. is seeing sort we're really around proof we're corner turning able

that's marketing tracking, thing Because last before place things because one, fix we in second the to things affects on we that debt; particular those line expenses then to sure future covenants product two, our decreased second the in we is marketing important a We were in did make like also of wanted The and that the with: year. we in some half that of business, we're revenues. key subscription the obviously, that HX. spend, around things comply

see are said we're very in obviously, think things that hoping North we're those I in to of the thing we all investing America. future. And the a things So different going is, trend clearly, second we're

a And cows number we of have cash so international. in

Hungary. we have not of to We And we're those a of EBITDA numbers. that. and sort name contribute brand a have we number brands looking in But that grow like obviously,

it. that another And into so that's comes factor

marketing, our up for we improve XXXX, again future we're ramp preparing growth. expectation in we to continue As as then stabilizing ourselves and we're our products,

little a gives color there. bit you of So that hopefully,

you if that's But I anything something, know don't Bert, just of $XX we not that net on for So we're positive, providing EBITDA. turning Obviously, But on we're loss positive. on. right? guidance generally, comments on that's million increasing, million guidance loss. the provide to guidance on net the full guidance providing are adjusted And year providing On $XX not that and Bert, we is have, that? any obviously, line front?

Unidentified Analyst

why said cheeky was That's That's I question. fine. a it Don't worry.

Bert Althaus

our And take products marketing really year, focus the to us to let's base. to EBITDA wait company a And is we EBITDA growth. and the saying and guidance But our to priority let's No. the opportunity to and expect on that into is into on develop. transition we into on a growth. our providing turn investing adjusted for turn This further set said the we want it's the scale this year, question,

be will focus that forward. our So going

Unidentified Analyst

Great.

your the you someone or actually forward, sit food I say, were a any me forward, thing of the them this chat will to could to on sort if out we with like mind date to Going take that, platform had and Deliveroo, virus. going Eat providers before are on develop virtually, in hope bearing And crusties video. that much than old they video-enabled of particularly more combine,

Eric Eichmann

Yes. it. Got

So question that last was on video. your

is or less Zoom subscribers and incremental mechanism is but that that using fully video that to significant. so And we the future. talking inherent FaceTime it's benefit some they an than believe our we And part developing. most last of the from users platform our little benefit sort dating will we What we is the And thought. important them the or a an about is feature it's in an talked think platforms that of as within a this originally important your a it bit found or having There in integrated call. is become area from not

doesn't people But that, make disclosed be meet, wasn't worried to future. communicating, we what with we learned. the as about platforms, so there our the happening. found we Having being to that, with. that contact point this whoever concerned about at to that connecting in their it to product numbers what's is sort That's prioritizing out But were we were using We that's initiatives, items. on stop use then video of and phone today said ROI the higher case. FaceTime our And that going and because people platforms thought think they're were that of different something

will we at ROI. But So had priorities we a had this. that higher looking thought be we other again,

looking that this And future. then we will so the since as wasn't in pressing, be at

Operator

Instructions]. [Operator

with next line from comes You Vollmann, Mercutio. of question a the Christian

Christian Vollmann

et there And is, what little talk more the shareholder. mentioned. here founders from color calling. what Yes. progress would question, the debt you whether strategy that the a give the refinancing know Vollmann a you of concerning timing, on the and Germany Christian can bit is about and cetera. I'm I like to one My

Eric Eichmann

Christian. an to help A with there. us process. Yes. that engaged things of with third-party Thank We've you, couple external

has COVID-XX stop-and-go-type of markets. a on had think effect I sort debt

What priority, to And us. said -- we're that continue for this so and believe we been will is the process something XXXX for this at year. longer a we looking it's it's we've and

conversations. more I except not but sort that saying lot just so on I front XX, this news progress terms different year. December can in having information we're we'll provide, and there's hopefully end the think mean different right for a of have of contacting and And we making of that And [indiscernible] now, parties a the good process of by putting

Operator

comes from Lewis the The line John of next Osmium. question with

John Lewis

on Eric and terms you where question. with app, Could Bert, you update that's give I are guess, in Spark the an a quick of progress progressing? how

Eric Eichmann

thank you much. very John, Sure.

is we've engagement. the there's app. is reminder, about a Spark a use. intended XX. The excited as app and [indiscernible] Spark And a quite to XX fun seen date we're demographic, of app to being So easy What the may just Spark to bit for younger

frames things a App you of you person. it, create Toronto so any like and that dating example, you you then or the are, and you three profile or who a your ability sports. to thing match. go things. of show if can addition to if And spots in frame, for ones description are and to download different, favorite the an have which a vacation a platform, pictures call, have your picture of App number would just you out we to favorite of what somebody And like we you Store a nine the nine and bit And the you those they standard then sees picture in Store match, with a give their profile, choose then maybe have an X describe as can And Canadian you to they instant own your when interact have

signing are what app building that seen the different that putting up or of people for a up sort are robust or so with profile we've And frames. is individuals

the that. as come profile that's Most it?" Italians then "Absolutely "Should profile. those respond And can on and responding happening recently, in not allows response interesting you the example, of question, about an by then by what maker video to creating And interaction going pizza." saying, of excited sort sort can own And they not, have frame obviously, made created is that's people intended pizza that. like, of pineapple we're a when themselves seen, be to person the a within that you ever your to post for And the so we And then pose that frames. launched

example So little get talk each a used other know bit video better. that's being interactive subject a of people sort way, can safely a about an to in where very of and

it. So net-net, the about progress excited on we're

well, I we're And course. think year-end. get a launch working more sort on. that of of full And audience, having well. to it's that important of the all also an is on the And we all, usage people the reach one things in working we'll sort sure Android about making broader But we're of that's about information version all assuming make decision have. goes by doing it the of

Operator

we gentlemen, and question-and-answer today's reached concludes Ladies conference. have session. end the this And of the

may time. this participation. your Thank at lines for your You you disconnect

Spark Networks SE (LOVLY) 27 Aug 202020 Q2 Earnings call transcript