LOV - Earnings call transcript Q4 2020

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Operator

Good afternoon, ladies and gentlemen, and thank you for waiting. Welcome to Spark Networks' conference call to provide the company's preliminary results for the second half and full year 2020. This call is being recorded.

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

Althaus. and Thank us Eric everyone, Bert joining you, afternoon. you, Eichmann; With CFO, CEO, operator, this is me for call thank on and this

second comments As results to listening half forward-looking or results, a remind can on the everyone section to found fact made today cause We that and information that or call or statements Investor be contain are or we www.spark.net. risks company's differ future such reminder published regarding may website our statements you which and events. projections. projections year at to on XXXX results actual from events today, could this caution full are financial predictions materially Relations on any uncertainties our that our in that subject I'd like

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

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

Eric Eichmann

mark to dollars earnings all four a financials This our the and prospective domestic of with Chris basis filer. will for investor and first coupled in more our will joining transparency, shareholder you, six the US as stakeholders. also roadshows to with call and This our on Spark GAAP This call call with future us into Therefore be reports quarterly company program, filing in Thank utilizing now increase today. thank in we current XXXX. reporting. be XXXX all you while intends in of on official both for conducting listeners biannually. approximately participate today's will be call first calls, investors Management insight will this and US communications in a reporting the conferences robust greater a year, quarterly provide as instead will for

As Althaus will company. been Spark exiting all Spark. management member the to Bert of many CFO, like thank I of that XXXX. contributions our his the team for our an since Bert know has announced you Bert to team we be integral would in executive joining

Spark. my closely appreciate have We tenure strong his CEO a during building I at worked leadership and as financial foundation in here

pleased everyone time the CFO. period. by will We company the are this and a the challenges new for during Spark actively looking around support responded way a was world. Bert the social distancing I about for restrictions. unique transition brought that XXXX am Spark and to the lockdown with

and remained flexible Our efficient fluctuated. and attendance as office has the employees have work-from-home

remained our online resilient. While business largely hurdles daters, the created for circumstances COVID

we this for goals we foundation provided to As seek meaningful that confident will core are XXXX, people believe emerge several growth. our connections. out of establish a and long-term focused come on brands as Management we sustainable strong will pandemic, which in stronger new

of integration Zoosk and decline. its reducing user The platform business its initiatives successful those stabilization of the the first was of

We are Zoosk business now running out Berlin of the office. our entire

allowed campaign's lies ROI. across of marketing Second, our strength optimize integration part Spark brands, improving marketing us efforts marketing capabilities. within we our marketing The our leveraged of our Zoosk synergies to

Zoosk Finally, other and/or we brands. delivering improved products, for key our product enhancements

EliteSingles report flow million we million, and $XXX year million $XX Mingle legacy paid on The that $XXX happy Operating revenue. new to increased product XXXX our enhancements. the of to prior implementing drivers million and and guidance ramped increased increased at our for million. that million XXXX of increase EBITDA From more started product $XXX engagement drove The XXXX. December to $X.X $XX or $XX.X a both plan user SilverSingles, those generate Zoosk, and up grew brands Mingle algorithms, cash We as adjusted our $XX.X XXst, of our experiences, bottom-line investments I'm our and to cash million combined were We are product received four at and to and than position times, User XXst, execution, of of in XXXX. from of and Christian $XX.X Spark's December interest American the million all largest North in HX exceeding as as SilverSingles, matchmaking EliteSingles, product total contemporary these response for enhancement. perspective, largest features feedback XXXX positive three are topline after from brand our strong $XX and proud improvement, million properties main in success to came streamlined revenue Spark's investment million. XXXX Christian throughout faster marketing brands aesthetics. guidance market. we XX% enhanced

we XX% about and line have it Christian second declining half end growth. XXXX, grew to revenue. half X% by of North the America EliteSingles percent organically now declining mostly during largest our the SilverSingles, brand, was American collectively XXXX, this North American of by year begin represents By made XX% were our Mingle Zoosk's revenues growing line Zoosk's we We per in by by and of our North year-over-year driven high in expect of progress end to top year. when which top single-digits XX-plus and it. improve the efforts acquired Zoosk,

to to brands expect these throughout We XXXX. expand continue

applications our year for to contribution the our indicators. increase we compared default Spark's nearly the key X% effects XXXX. in clerical month, paying contribution lenders. million this certain achieved driven performance compared was operational the XX-month nearly to year in a resolving shortly the a million full $XX.XX turn with and the half now filed. second safeguards all million, not XXst, Let's marketing Average same US ARPU concern company December triggered increased full and new $XX.XX an the processes Spark's lenders and to avoid agreement and similar for year X-K we ended average The in during This we that announcing and increased We compared $XXX signed one-time subscribers, XXXX. an after to increased of the implemented to XXXX, paying XXXX this X-K $XX.X Full previous in in purchase XXXX was to future. to and relating events year. marketing ARPU period dollar. weaker filings. to to filed a full Earlier by XX%, original when $XX.X accounting tax $XXX,XXX waiver for the matter, issues patent roughly subscribers the mostly of had reaching recorded $XXX,XXX increased

made ability company have Product more operations today. as deepened cost-effective such stronger scale improved and maintaining operational user achievements our with standing. algorithms have have us connection enhancements base XXXX have yielded strengthened marketing our to our a our while Our meaningful matches, financial

strengthened Additionally, successfully us million. facility, flexibility we growth. financial and by to structure to marketing enhancements to debt product These $X our and provided invest our amend which to cash work covenant with allows in drive our position lenders capital our

turn me Spark's Let to now strategy.

allow Zoosk with CAGR communities to meet Our with is years. informal that intend these our discovery to distinctive focus to strength expected five on us XX-plus content, North a functionality religious to the segments at more and for more grow to are demographic With in as EliteSingles, the and users ways offerings. provide X% position ways next in in in social our features create serious Mingle brands well community incorporate such new SilverSingles, We Segments date America. dating to Christian to products online. and social in and

leader in become to is meaningful social the ambition relationships. Our dating for

be will on a that As step stream a the first in live direction, I'm this in we service launching platform. to excited video Zoosk announce QX

video will to join service. days have be Meet in exciting a live We partnered to to buy participate streamers join platform-as-a-service. users Zoosk streams and Group XX/X, able The this vPaaS new year, service tokens with actively gift their or XXX

attract demographic. embraced We incentives driving broader to this Zoosk users will users potentially will spent a and come offering. for day to expect and every our new that provide Zoosk be will streaming increase time it additional our functionality stickiness revenue, live to back additional platform by

brands will a augment the be platform Live streaming Importantly, words our to meet Spark's platforms we on encourage social, deployed often we setting. others features the that brands Canada, more Android users comedy search serve. test like-minded Zoosk more live they come more to to meet allow results. the successful as a Over the in more and match offline will the to world individuals more and Spark to dates meet traditional discovery potential strong or Content, social live appropriate would in in iOS of outside makes we the app community app. segments allowing a few show. in dating in users with After of or A to app and relaxed gaming developed to will a time, users streaming new informally concert functionality. functionality

the we would be innovative of a the market, Spark believe incorporate require launch audience, profiles younger, an functionality overall Spark that pay offering years significant casual dating the core core functionality the and our we within will considering costly we to interactive US making to investment two-plus fun. time, more in brands our on brands focus While Instead, before will part as out. such growing decided app is dating app social for a strong in

dating expanding We the are large excited and about Spark's online future in US$X.X billion sector.

opportunities. our opportunity. social dating social the opportunity activities successful base to of Bumble's IPO of bigger result demonstrates the moving as potential of is offerings even build also pandemic, dating as working brand well our dating intend elements offline this are a Hyperconnect, online, growing creating year. Match.com to towards We capture mainstream for even and this more platforms. social As recent We're acquisition diversifying into an shareholder online these

be greater intend now with than opposed the ever a US domestic investors increase reporting we frequencies and previous to times filer, with four as year to we before. As year earnings our will a interactions

growth continue play Going made in progress in future trajectory. role a that the forward, strong we our XXXX will to believe

and EBITDA in announced As marketing, short-term The for product but provided our with and to stability in activities line that million in in our expect growth mid million $XXX projections month, the long-term reinvestment million a EBITDA to limit last top in is adjusted of revenue result $XX profitability. These we see high and into top show $XX Spark to $XXX of million XXXX. line. ROI guidance

about Spark's excited are future. We

set our social now to Bert in is Mr. would please Chief XXXX turn the to for become go call over leader Financial in the like dating I to foundation the Althaus. meaningful Bert, goal relationships. Officer, ahead. Our to

Bert Althaus

one-time million XX% same the of a from was of the remains led year declined by fiscal second reduction and of the to XXXX paying Thank in cash average XXXX to in expenses. primarily marketing million of XXXX primarily the total To to basis, million. as flow. of half XXXX effect respectively the Financially accounting for the US$X.X accounting US$X.X to July and sentiment, second subscriber compensating on million XXXX efficiency $XX.X for increasing half and from increase to $XX.X attributable million, pro of The the half million, eliminating month XXXX. fully XXXX. on US$XXX driven million XXXX. million ended XXXX payment million is in time of Registrations company of from effect $XXX.X US$XXX to marketing of the of in concentrated by increased X% On half you, XXXX half XXXX XXXX. revenue contribution and million X% second marketing million reemphasize half a to a was top an development. Revenue marketing the XXXX acquisition of and XXXX subscribers focused for of the when optimization the XXXX. the and in million, revenue decrease $XX.X revenue the from increase in by spend XXXX compared second the XX% level registration Eric. $XXX line increased in to the compared on stabilization US$XXX.X in previous in The on Zoosk the approximately the Spark's XXXX, Total ARPU from of year the profitability, In in acquisition to US$XX.X second consolidating from US$XXX related up in second increase XXXX in XX% forma by of revenue to $XX.X acquisition $XXX.X of effect decline million was Zoosk million average Zoosk.

efficiency of marketing during more from XXXX, net it and to million and an increase of centralized XXXX to million impairment the million, Higher a half to second of $XX.X $XX.X efficient operations million, spending. the to compared increased in the $XX.X loss Net intangible to XXXX $X.X in XXXX, because of in US$XX and For marketing million for Zoosk $XX.X of when million XXXX USD$XX.X half consolidation million of XX for million XXXX increased headquarter. USD$XX.X in of loss due Adjusted $XX.X full months. second million to in XXXX EBITDA building compared based assets was XXXX. in goodwill due

Turning our year was working in to revised future agreement the which balance ended with more initiatives. the a us growth improved balance $XX.X and capital sheet. debt. to debt $XX.X objective allows provided The million in of one credit which cash covenants. amendment This company and also Notable, our via greater we in ours, sheet manageable facility primary to invest a million

compared of about we As same-day December XXXX, $XX.X USD$XXX.X million, XX, to as reporting the of equity million XXXX. of are

Cash generation debt company's the XXXX, same to compared period operating XXXX, position of USD$X.X from As USD$XX.X million in stands flow XXXX, increase million USD$XX of at million. USD$XXX.X during million. XX, an the December was activities long-term

indicators Our offerings with the of for application provided coupled vPaaS XXXX. and foray improving like performance service strong growth new into mobile market our sentiment

Additionally, subside million US$XX one will there another we adjusted the $XXX be that and again. an revenue that annual to emerging achieve to pandemic to of anticipate to to from connect million for desire month, social Earlier as appeared $XXX people and stated US$XX this million. and expect with lockdown we we million EBITDA of restrictions increased XXXX be

which allow this on Most you to be domestic EBITDA many are and million each to the and contributed. on UD$X quarterly we with as US$X.X fruitful of Spark. remarks. note, thank for a of a importantly, initial time out. our domestic XXXX, our I guidance Again, to forward revenue as our from XXXX. Thank transitioning concludes Projections annual quarter filer. basis congratulate conversations investors our of for to me personal we dedication call work and of trust investors and line expect million. incredible prepared the Spark is For On during adjusted my providing discussed million This a in please team US$XX.X to updates intensive CFO million here first our previously US$XX their look you the for the of one filer to for

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

Operator

Thank you.

[Operator We Instructions] Thank will now question-and-answer a you. be session. conducting

Anderson Kara question. your first Please Riley question Our B. with & from Company. comes with proceed

Kara Anderson

Hi, good afternoon.

Eric Eichmann

Hey, Kara.

Kara Anderson

Hey, I'm wondering if you….

Bert Althaus

Good afternoon.

Kara Anderson

subscriber this the year? ARPU around for in color guide expectations further provide embedded ….could and the

Eric Eichmann

for Sorry, on Further let just me year? wasn't I sure heard I -- you right. color the this ARPU expectations

Kara Anderson

that balance ARPU The in for topline and between subscriber growth? embedded growth guide

Eric Eichmann

offerings. not versus been you know just expect main things. That we couple a XXXX it, don't I obviously, Bert, One, core change they to in differences, by talk just if about -- of don't the when want something service, our has say consider maybe even of ARPU. a were sort that let from you the me XXXX were driven dramatic events driven that by really

introducing up. different itself live of year with with in could new do are sort we And however, service as are, also streaming bring Group pricing Meet and every The a ARPU that We pricing testing Zoosk -- we mechanisms. on

haven't we on done that the as just obviously Something we much integrated Zoosk platform.

that? there. anything two those not in improvements I improvements Zoosk, elements could don't So, add meaningful in want assume to to lead you think to but do have we Bert particular ARPU in

Bert Althaus

can the -- you I on No, Yes. ARPU I with side. agree

But subscribers. mentioned development our of before, way we are basis comes from overall to we a see ARPU has that pricing the course, frequent impact we topline on Of also really additional as -- an the the to on pricing checking on optimize course.

Kara Anderson

that the to And bit about a guys little you're little it. out? give EBITDA calling expecting the detail stability you we're talk a more bit can investments Can on you then Got make?

Eric Eichmann

Yes.

activities them to dating you together example, movie can -- can for to I exciting social some we online we're to relevant informally. now else, others, platforms, people offerings. on to Plus with somebody a obviously -- conversations. So, maybe today many very because you're in while, very of more In of to Clubhouse of lot basically have is forward, go the us offline things use So, continue moved think you We as and it's a our about what with they're going you talked a of to we've to we related listen intending to to watch [Indiscernible] for said some right? seeing do Disney important and you of sort dating. to like office, meet evolve pandemic allows that for tools It's the the get that which

of think start which going to of all about our part be sticky. thinking we I to make things are so platforms And more expect and what integrating those

half as things more in need in continue last our one to investments, the think I we investments ROI more mid-term to that full second will generally to last in of We but started the do are we of in the we that product. So, of getting that terms year they look this of we investments that, process positive -- that year. invest are realized it. Those continue at and of HX year benefit

so like long-term, profitability. investment that high sounds -- ROI on on more short-term from hurts they our immediate investments it's are the perspective. the And very But it an

bottom-line why on EBITDA So, a XXXX have Kara? the topline, in the is meaningful issue more that address what increase. that's versus an you but that's increase stable a Does

Kara Anderson

streaming talk with helpful. then live ParshipMeet economics that's you Group? can about the Yes, And of the

Eric Eichmann

Yes.

part PlentyOfFish. in so other And been it's and just Group or models choose, watch share to The through of an can agreement streamers That buy including is properties the the that that sort The something will Zoosk that understand like excited. come the people that's the those they at So, platform to gone offer of The gets are and different there live diamonds offering can so there the time. Meet economics has streamers a if out proven Group. people they tokens an with users Meet is exciting points in that streamers. the be network in purchase is And marketplace there Zoosk revenues

Kara Anderson

And their different there the it. touch a to your safety peer bit larger your adding in Got totally on of you check then technology touch background a compared others for and can out context you how especially topic, that but users? brands -- recently match can

Eric Eichmann

great that think Look, happening. it's Yes. things I these are

that As industry different you sure of know you ways platform. we checks. main of an one of is is have making We're at the that looking safety of we a the background as from many that one to number things things do our We're perspective fraud to the adding challenges have.

I important. think that's

able think towards sort opposed And and that safe an think a so more as service. service to evolution revenue I of of to trust to we and for kind offer this out that and go are that platforms a that our be is that people meeting that we there as just they're it about opportunity people provide

Kara Anderson

Got so me. That’s for much. it you it. Thank

Eric Eichmann

Yes. Kara. Thank you,

Operator

Thank you.

from question. your Our with proceed comes Please next with Moldow question Austin Canaccord.

Austin Moldow

questions. Thanks taking for Hi. my

pertains to streaming live the As it agreement --

Eric Eichmann

Hi, Austin.

Austin Moldow

Hi.

As more it be users to the free access the will agreement more for up usage pertains robust to to streaming? streaming Zoosk live give opened

Eric Eichmann

access that will will to So the able at see Zoosk point the streaming this the have to be and profiles. idea other is users

which on coming the and And social able also but being call goes the of about really the about about baiting which to that stickiness meeting of time it's the and talked more people. the so is theme just we've spend back, in part to offering platform other not informally about it's

people. of meet those chat profile people you people see So can agree you the then and other and if with separately can

them platform match in So them back sort involved and of, again getting only to with hopefully beyond offer, new that people it informal will more of on people more we the terms functionality also going search and meet setting. a but not in be, the bringing getting better

that. excited about we're So

Austin Moldow

wants to to someone So use be Zoosk but who it a subscribers, downloads to but will not free just membership? available

Eric Eichmann

other to be -- able service So, to streaming part the as Zoosk with of users I will Zoosk think, will they users it. connect be and can access able live

Austin Moldow

to subscribed? be have Do you

Eric Eichmann

I that let about yes. be do me something we're this on to I you don't that. subscribed. point, believe to It's be to you that believe to you have have thinking purchase, but subscribed get that back at

Austin Moldow

process users And to that your date on you Okay. attract willingness be usage? stream or trying regardless their will to of what's thought

Eric Eichmann

happen looking it's I people of would stream. of by people We -- but a live becoming we're platform. have at on that become celebrities for I Yes. like platform, happy streaming usage on this generally streamers open big that very for What mean, the look the to drive to people the you the stream. nothing, is celebrities but to number majority that tends

sort one again, because hoping would are people Look that So a right to this clear come the are as single live happen. is we're watching they the dating of, that streaming offering Zoosk platform. thing in that's that, that

that thing that And so when one unifies about you the interest. that's think drives them that and

And our so single. platforms are that come generally to people the

self-describe I themselves single. think they as

And as come so to in. if that you a seems you requirement be will

Austin Moldow

a dating how is And to social define the you strategy? can previous are doing? just that peers what does from differ different your little bit? how And it Like

Eric Eichmann

great Yes, question.

by stay social this look accelerated think had had some pandemic fact distance. very much I has home, the people that So they the to and been of

is, think, have right? to have happen happening conduct started So more I what's tasting events wine been online, that you people more and social so And online. might activities more

new You that's it gatherings meet before. transferring itself Gap] had [Audio think way as in might you people was a that -- which off to have I about if online you offline

grown discovery this so has a social of new And need been people. meet to because there's sector that

But on date. it large because to, it's propositions just some grown one of, to want for new up you when which people, you a people been functionalities matched capability happens it's single connect. meeting new of through chat, sort other we once meeting connection to think on end And the there's traditional platform. about as person people. that you're The And algorithms search dating a be you setting path dating can you far of necessarily start to sort get looking providing can really on core are people and Now then both know the socialize the of profile, that bring not developments. consumers. relates might at if or if the and that up a of then to matched course offline development will connection for being most matchmaking the you so with And

On going the events playing people. with It's it's potentially a them games their talking with live connection somebody to in looking to at other else interested. stream sharing profile and being

there's is don't more to directed connect which just are that so And to you require ways informal more the do behavior. that very search,

the do stage, but a pretty you you're you night also movie movie have very pretty through opposed going just informally. confident that lot at traditionally pure sticky on do people a you together. do feel people more can think way other it it just They will They do the in that through as is can finding sort can you and that's we potentially in they process connect going might, somebody game. just to in So of of, a to also thing They chat, search. meet video the you because online that they do want check the That's advanced. will that's chat watch evening to not our opposed a they're on as and it pretty Zoosk doing exciting come to a because what's can -- that make then but platforms more And it. might

a play can together. game You

an go can event. to You

together. museum a tour do can You

much So of and to there's big difference people. a enrich like could natural I more that's lot lots make events that the the meet it you very And for experience this think to the more many be ways these you platforms. course, the in continues of what have online meet to one experience, from is to people and where match search functionality to core

Austin Moldow

developing? the That's watching follow-up or of it. comedy really experiences, really that. be this is These quick helpful. museum movie and to live that you'll meet like show, video is experience, And that separate product viewing, Got a streaming a just part

Eric Eichmann

service today this be say offering, I service, that that but wouldn't looking not or things happening incorporate with streams. there So develop, point these many believe of specific at live live are developing the integrated. at and your but either streaming have parties. -- out sort streaming Meet of of we can They're that online these you reach to I part sort out partnerships there offerings Group are plans is can within Live it are other that that ourselves, are

Austin Moldow

last very on the a able to there there share you'd be what that your be -how for purchasing And That economics taking? Okay. revenue of activity question. you'll is number - being the users, much share

Eric Eichmann

would it evolves. obviously, Yes. this my We of we're yet and the I confidential. economics, say, excited we'll I about bringing platform how would users. foremost, don't that's But not a potentially more exciting Zoosk our on mean, make bringing retention. first on will and expectation activity is, well look, by to But people, them I we're back. excited. could see received will It I have mean, our a be impact say, positive of that sort know lot

very we could good of if Some it, thing the our a get might not be platform. interested. meaningful But be interested it in for consumers a portion

Austin Moldow

for color luck. Thank the and Okay. you good

Eric Eichmann

you. Yes. Thank

Bert Althaus

you. Thank

Operator

you. Thank

Our question. John your proceed comes Osmium. Please next from question with Lewis with

John Lewis

Eric you, and Bert. Thank and Chris

So, congratulations I guess, for with I'd -- start really

Eric Eichmann

Thank you.

Bert Althaus

Thank you.

John Lewis

-- persevering, feet well got And doing in great numbers and like you've it COVID sounds for XXXX. today. set solid your

So to that's see. great

about think feels about like four in of I Spark. industry are XXX it are XX% gone that. look watcher, at spending which competitors industry are big customer you of the the guys the and Parship to million math, Bumble, out I as long-time And a we've Match, year $XXX X, a from and As really acquisition

guys you $XXX are million. around spending as the Bumbles So basically amount same

spent guys you I think $XXX in million acquisition. customer

and when and Parship guess, XX% Spark revenue marketing public about about is is about X% value, and industry's thinking industry of I almost When question, to take budget. give I it's billion. you the the so, Bumble, of I market revenue up the get billion in $XX the industry's aggregate but annual one-half valuation of Match, about how about I'll of Spark, but And just the $X.X it. it, about I'll I'm really X%

So above way your budgets weight. your punching marketing

far Your above. revenue is

weight. You're punching your above

And X/XX at Match, are not at Bumble are about industry, I evaluation. so guys or I'm when look trading but the you saying guys you

think the backs. a you're I have about really XX so, could daters Can that one leverage million and almost And of how opens a lot opportunities, that retargeting what help you the win doing questions here? all with is, data just you I talk to up year of registrations registering

Eric Eichmann

us, John. the Yes. appreciate Yes. question. That's I data shared with you great a

I So would a say couple of things.

do company, to possible. to we'll we're we the about important flexibility off company of as year a is covenant at a trying we invest First and And talk obviously, have sure bit and focused to about one, on; in valuable everything that. the one had company the making and, events, today last

is I advantage users of, million, and sort think that people more see. driving taking that into sort and of increasing we our platforms retention it about of XX

transparency investors. Another thing us that with more establishing was important for was

company, last so, you'll was the able we with harder four hear foreign the trajectory year, We'll becoming with by that discuss be And a of a filer as domestic to something numbers. a filer, XX-F. from do year times to us were

declining had last line growth. year line couple And important you top always very an if our and years. at the forma after growth as show and is of too, take to So Spark the different this been thought I the top story guidance important numbers, are properties was component important over I of part those it was of think showing that it pro

is to turning I do corner, important, year. so, becoming daters we're We have in in our million consumers very America, the and a throughout we're because North think that's and particular the world more XX relevant focus. which And

can a marketing we there continue like that perspective are that to from test retargeting think important. is things do we I

are win important. backs us, For

We that. focus continue to on

can people also we activity have perspective, perspective with these And on as -- us. platforms But things as just opportunities mobile And just we our to us the stream one see to the interesting about back bit think that which that think and things informally. more And sort more has platform behavior. come also platforms, lot We'll marketing that that of be back a demographic, people will hope is bring active. to engage as opposed things, more and need on We've area. stay it's a as do we'll with had the that of think will more obviously to social I for on extend we more high do the otherwise is are to we're to that we discussion goes informally our a browser, but having make the about and that's will from more much From more in a time things Austin, the will older is directed stayed where that. leave to we life as in people then this haven't to longer like a focused people about people meet more live example. platform think often. search and we

us. us So, I activities enriching is platforms more think back of about a and with about that with are excited staying it to our lot coming so people

think we'll shot there, create coming I and be have captured we people think we now so, if there's platforms. And good at So, have value can that experiences, them I right? a richer the on keeping in, of lots to

John Lewis

appreciate that. I Okay.

So public of string Eric, I've CEO a very looked which you as background, have is continuous long encouraging. not a in guidance, missing your

time, -- two XX. on I at XX, for guess thought guidance that. was And two So, guess last I congratulations we'd year this you be

track million appreciate that You exceeded $XX -- like to I $XX million. by record. conservatism your Seems and

Parship do any XXXX? or is, curious with that So I has to increases look see guess you think the other potential you It the areas the areas where on mobile around anything you could out guess what be sounds was I question upside? there like surprise the partnership, I more retention when potential in but XXXX, at potential

Eric Eichmann

Yes. know improvements. I don't surprise, be certainly which have one we a would meaningful product the plans in but

continuing XXXX our not are aesthetics to Aesthetics we and that it's an a So you our as are products. space, looks surrounded XXXX, important not because it's good. you're how And yourself if by to new as present in something deploy individual.

So that's taking we're out. one component

normally As we'll that different things around testing takes prices see we to we'll as I said, we're sort going marketing. be and of us. do also be where doing And

a better what some could to set well and does work you and of have well-balanced scale as these And find know work that what you expectations what things, we do you're testing so, of than sometimes very think I are. start initiatives. you And able your rapidly. never some

So, but we'll about do what can the we have. we excited that brands year, throughout develop see are how we certainly we with the

John Lewis

Thank you for that. up. I guess if I could just follow back

my Idaho, equivalent Nevada State, entire registering of to what of the and state Oregon XX As wrap of perspective I every the it's a Washington look year. try million as head like, daters

And number on it's as And tremendous spending mean, so, a the acquisition. registrants. I literally, Bumble you're same of

really what to -- time? question acquire someone what process XXXX, you I of my deeply more once registrants? monetize this registered registrant, to a to the or XXXX you probe flow get if is is, try in mean monetize effectively you the that so over -- if lead you And just is can do to

Eric Eichmann

retargeting to become that opportunities as the Yes. back that now Look, haven't I scratch think could we're and at or bring subscribers. starting looked we sort them off there's of surface

a that's bringing other the value beyond we would -- say So, But is the the and doing area much back. sort think I we're of as as before like should this said thing on of app potential in I I've side. then and not is, those

them might see those of capturing website, we so, have might be them come should the and then -- on the but of we to seen again bring clicked people through to might And app back. able -- app come ours that have we ad an that an they on sort

in of think I the what's if in do and natural terms you have on -- a like are churn I also opportunities obviously -- platforms to our which they ways. we thing in meet to the people our important in they're But a and give finding are people think leave platforms. to in is I to partner most want potential biggest that So different from think people successful just impact we are in that that. sense opportunities marketing reducing perspective, marketing serious realize relationships the a there normally retention bound

becoming matching goes providing to which to important, that and So better the activities social dating. people can matchmaking they but people early the platforms the on more informally right meet also come to is algorithms them

could will. like functionality so, retention you show at think looks It's I a once that And just to match off when up -- our opposed of affect search also it show lots do only. a party and people door on have better you sort able to house you at as we we're of if if when somebody's going things

as want the do. as we single streaming a story. live these the do things think the becomes we like that's us just So, part have too marketing to we perspective of than for I tell from And what to ability story broader

John Lewis

Match Market Bumble I Parship's hear to said you'd just and XX% be between share. of your I six leave a of well the to or really -- at which you comment last think that. I'll huge -- at I'm an what this multiple, got just enthusiastic conferences. filer, a a $XX X to valuation you're gap earlier, domestic minimum -- I'm being And I it look to evaluation back look sell-side XXXX winter appreciate discount prices I about or I as is happy really I nuclear S&P really at kind the with you market when bare that X/X think said even

these if some success multiple a just upside think for I So there's in lot I you guys initiatives. have -- a and getting of market you could overshoot

So thanks again.

Eric Eichmann

you John. Thank it. Appreciate

John Lewis

you. Thank

Operator

Adam Lismore LLC. [Operator Waldo Our Instructions] question next Partners with comes from

Adam Waldo

Thank very Good of accelerated for My day. balance financial the improving context question. around are flexibility for the the sheet of reinvestment. my in runway issues the questions and company much and taking growth accelerated you

on we're this had kind to So the of down high-cost where X.Xx. did point net of have debt-to-EBITDA run since July of in this rate -- obviously we've And debt our X.X, deal EBITDA around now -- should closed we've had I say and we we XXXX, adjusted balance sheet.

cash cash free levels rock -- is although where that debt? able I the refinance flow XXXX to free what how bit are and bottom follow-ups. up flow but interest is Our quickly are debt we a world net little we Xx rates multiple that to Xx about you couple doing interest at that for paying to try about backed double-digit they report And And debt we're a do refinance then be we'll recently, think have rates? of around

Eric Eichmann

Adam thank for questions. those much you Yes. very

stronger So having part is balance more of us a obviously important becoming sheet. flexible this and an

also certain help bit be a process rethink a with great covenants I sort on lenders. there. that sort something more that income and that having We as ability will we from state showing the It's year filer we we open debt and ability an focused to couldn't lower of from to us being think I up do for cost a investment we're domestic our uncertainties start progress company last have ended agreement agree So more. of people or -- We'd do to for debt. flexible think might I a our make love run sort an little the that perspective. will did immediately, of as but eliminate not a of think once and up perspective and

will opportunity that the And to sort and when open certainly so, it very itself. I presents of we think consider we're

the point. -- of mind it's this the focus not core this is sort of I So company but of of at top course

Adam Waldo

million cash $XX paying or million we're of interest. a But okay. Well year $XX

we to out our so capital And going there? markets the market debt the thought is and have thinking -- to what issue okay. bank about to current then going term and And

Eric Eichmann

Yes.

these be filer if or to we So the company. I'd not realistic a all they and domestic a look not was We're at look where I'll were again, growing. back when they one realistic top-line as first go options. just and look And look to

we our certainly forward as we ability all sort be limit think wanted what options. at those And do. I of of those to to so move looking And we'll all do

Adam Waldo

enough. fair No

can feel those activities Now we a filer pursue that domestic we that we're more...

Eric Eichmann

proof show a have think healthy. receptive of the business. you to are healthy is don't will Once I business to we those lenders if think be in you need points that business And number of thought a always health things care time of -- much sort explore I things. number the yes but your I have we was more than is taking of people one to enough there

in drive and I position right when I than constraints -- in in don't a you allow be I don't we're to certainly invest high presents like covenants opportunity interest do to think rates like to to us direction that. shareholder the we'll I believe think So of moving the itself, value. me do terms more in

couldn't that we yes. more So, aligned perspective from be

Adam Waldo

I it. appreciate Fair enough.

Now in terms you've to million of $XX adjusted of XXXX, your guidance guidance million. EBITDA then $XX given for

reaching would high conversion the was similar pretty obviously year? you're on write-down what the we to kind side intangible giving most presume sizable do I any again? Zoosk. here intangible have we're where think likely free the year. to of look of teens of that's And If related considerably it to expecting guidance Should we're cash write-downs that, end now at we're grow a forward cash then last point year. we to asset be this sort if last of a flow smaller And topline asset going

Eric Eichmann

Yes.

sort can in hard to the impairment now. future, hard what valuations a I will look know but like take it's look at think what So, this or we of

And seen so hopefully as the in making we're sheet. balance you've some adjustments

to significant. are hard want So question But going of on I a if And address crystal would yes. know. about then, the adjustments there to any tell. don't forward it's course, but free ball, expect be would have you your that that less flow, cash one? don't I Bert, I

Bert Althaus

Yes. Sure.

you Adam, so completely is, look at look it way at it I think right. as to And the

just assume operating from EBITDA, the flow. totally it year makes cash So, to think sense it the a I derive this to result similar on

So not to in respect a is there change big capitalization.

Adam Waldo

you on recedes. your story telling getting forward Okay. to good Terrific. and the from and domestic hearing filer. a Well, as you. out Thank becoming We this pandemic year luck congratulations look quarterly

Bert Althaus

you. Thank Appreciate.

Operator

Thank [Operator Instructions] you.

question proceed Retzer your with Patrick from with Retzer Please Management. Our Capital question. comes next

Patrick Retzer

Good afternoon gentlemen.

Eric Eichmann

afternoon, Pat. Good

Patrick Retzer

same. the are you several things. hope I and on I congratulate wanted to you Thanks

looks deal. turnaround. That's I It all, the a of becoming a First big engineering nice domestic that's you're wonderful. transition of like filer, a think

IR think program, I the talked is robust about appropriate. you

in already. but they've want had great to those to I company I'd topics, been and also XX think love guidance. these the questions growth, add hear topline we've on million so anything every while you monetizing of think finally, on mobile the have form is I there. of But I a care especially reinvigorated subscribers you most been It's work if of And mostly investment regarding unknown them. the you'd community. since build-out to US addressed congratulate there's year, to this its positive virtually seen I

Eric Eichmann

No.

guidance, registrations as them. I s, -- you those et Pat, that domestic as the you about feedback. value think We're convert XX very about cetera. that look of much positive a line lot in that excited hard question are top thank for talked positive Look, things million your we to we there's get. there's these try no We

things and new but of coming what taking way. -- aligned the we'll or try we're are to terms some excitement certainly stream tactics have of our platforms. of new some very of making full things marketing We are And works, improvements users new in more like our of the see advantage that on we retargeting, things product and

Patrick Retzer

Okay. make and Thanks. your Relations work work harder. Well, good the guy up keep Investor

Eric Eichmann

Okay.

A You do Chris? I'll that. - heard Camarra about that, Chris

Operator

Thank attending. conference. a if concludes time. have Vice free please questions on follow-up thank have you. for Thank Investor this There no to questions, for would And your are evening. reach Chris Relations. everyone behalf further Networks of This Spark of you any President feel and to at like you the today's to wonderful Camarra, We participation out

Eric Eichmann

you. Thank

Bert Althaus

you. Thank

Spark Networks SE (LOVLY) 1 Apr 212020 Q4 Earnings call transcript