LOV - Earnings call transcript Q1 2022

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Operator

Good day, and welcome to the Spark Networks First Quarter Fiscal 2022 Financial Results Conference Call. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Todd Kehrli of MKR Investor Relations. Please go ahead.

Todd Kehrli

operator. you, Thank welcome Earnings and Networks XXXX Fiscal Good Call. to Quarter Conference First afternoon, Spark With call on Financial me today's Officer, and Eric David Chief Eichmann; Clark. are Spark's CEO,

like at This afternoon, on release Networks the to call fiscal Before announcing press is spark.net. the Spark a financial XXXX I items. Eric, available first issued turn quarter I'd quick few to release over website its a company's cover This results.

parties, website. interested the are and Additionally, Relations and facts, that the long-term future may not to will regarding is Internet factors are management our likely forward-looking be opportunities, this on webcast statements. remind discuss the call, market being over comments archived that company's all historical plans call expectations will Any influence live page to business that broadcast going particularly for prospects of the I everyone be and the comments about Investor statements forward. certain These today's of the considered on should include company's forward-looking today factors performance. discussed want

to filings, number recent and Forward-looking of subject these of We XX-Q, listeners a all which our to differ a actual most are of materially. encourage uncertainties, risks our review complete description to could including statements our cause SEC and results for XX-K risks.

any expectations and Our events, a statements publicly future on forward-looking herein, company the or undertakes the today, XXXX, of obligation this otherwise. as no revise changes result X, made information, whether call update of are statements May new to or in of as contained

go periods reconciliation over please the the said, Spark the X-K the and earnings release now Eric I'll discussing certain X report With differences be between and financial and turn that on GAAP this present Networks. reporting to Today's Eichmann, current call non-GAAP call, Eric, measures. the throughout we'll Additionally, ahead. our the related of reported in CEO release. for describe the Form non-GAAP between

Eric Eichmann

XX-plus afternoon, investments dating good providing the revenue and Spark social strong XXXX targeting religious the start meaningful leader We meaningful and JDate. Thank SilverSingles, everyone. year. in about market $X.X Zoosk, around you, I EliteSingles, relationships we affiliations. demographic of with the shareholder a and and online growth road X% place portfolio billion, XX% people which brands, dating estimate be in the drive more value at and worldwide in that includes put of We by Todd, in with this a to color our over is strategies Mingle to for for and beyond. well-developed relationships, U.S. have market of growing about ultimately, want Christian capture map to

X/X the markets: our of X the and both us whole. first We first of the of time debt total approximately the for we are our and revenues, a in positions growth Australia, end U.S., quarter, biggest MGG our on for of tenure, drive being focus focused representing completed revenue refinancing U.K., to as that facility Spark my Zoosk with with with At core revenues. France over U.S. the Canada, XX%

the and dating us. that are have we we complete revenue. the our by of indicative the the to of our financial with place, flexibility to first return America on not execute now refinancing and new we fourth And fact growth. until subscription-based Europe didn't opportunity we in North plan results debt of ahead debt revenue largest the today across facility is the reporting agreement Given quarter online to the have company growth are the of end the quarter, Spark scale our

our account across ramp-up start growth we our brands. from metrics of which In the into April, indicators fact, key are when we look spend, at marketing our takes seeing

This our growth win are growth. driving past is are week largest include on Increases agreement by Some subscriber Also, as backs growth indicator these debt our in from Zoosk new in April. profitable this for coming for Zoosk, subscriber possible the spend and April. the marketing our new grew made first renewals leading to of year-over-year growth of overall property, week dependent platform. indicator. backs subscribers Win base, the our and grew renewals from and such, the lagging XX% last XX%

translate updating platform, on indicator revamped increase XX% product which improvements rates good experience which over subscriber are momentum the put following response of we Zoosk, increase a more Female attribute QX leading place a in year retention. conversions; this positive to in year. We female accelerated dating matches; first-time and algorithm year-over-year first momentum An increase day QX seeing user X% users healthier on and a XX% in into female last paid a driven in a active have engagement, is and both, growing daily increase time billings. for and female to in in X.X% should productive matching a increases: a

Adient. in revenue of compared Thanks increase lower and opportunity for charge in this quarter and cart of plan XXXX, to We efficiency. momentum XXXX conversions. us CRM our migrating higher direct conversion which with at similar also targeted growth optimization our XXXX and and to mid strategic in stronger more driven higher and partnership in have marketing believe saw will an backs marketing to more payment growth also to We agreement, in our levels with Abandoned payment a the include efforts, new debt high spend because further marketing product even increase result direct revenue We XXXX accelerate to single-digit investments. beyond. this campaigns growth spend position we have meaningfully and

investments affiliate in to we media native XXXX that debt debt new increasing cut marketing such under as spend investing facility, scalable TikTok, Some had channels and proven in buying, due old include: marketing, of and and search these our paid covenants channels display. in including

expect reach significantly at higher We this provide our attractive brands to for returns.

in online spend these U.S., our the attractive most and majority increased market. the Finally, largest of targeting dating

technology Zoosk brands, driving high-return improving higher higher in specifically on matching drive registration, first ultimately engagement continuing all simplifying moving X our across enhancing We platforms. ability and us profiles of X. initiatives, search by platforms days our speed most platforms product drive plan innovation one, to engagement the X and to or from algorithms non-Zoosk collapse billings, upgrade to to to and infrastructure improvements all and allowing our of brands to are into also focus primary our across and We

significant saw and to all give Clark, believe technology marketing us mobile to in ability future market revamping capture fair with XXXX April look the We in the Financial financial our grow revenue have to and us the spend front color initiatives also are our we we us mobile around and beyond. significant All opportunity more as product talent, performance XXXX. to Chief marketing investment of revenue. return product growth Spark in well our believe revenue in growth for as our represents app growth position I'll for our this Officer, company are our ask the in allow will confidence David? increased concert add as opportunity total our these David With that, quarter. in we XXXX of market Finally, in a capture to and fueling in we the in apps. We share the

David Clark

$XX.X the Zoosk good quarter quarter in basis, a our in resulting year-over-year XXXX due X% of of have first the from continued compared in attribute decrease million Thank decrease million, and you, $XX.X lower $X.X product revenue currency for The year-over-year. first Adjusted first $XX.X down quarter for only was quarter. the in million investment that the constant was quarter first to the quarter last first the the and revenue before compared Eric, in quarter would spend year's quarter to marketing in the million refinancing. increased decrease our first Revenue decline first On year's XXXX. Zoosk everyone. total afternoon, to million and the revenue quarter been was We number XXXX. to of primarily the $X.X during EBITDA this during

with Net quarter result incentives. of price company the XXXX. duration million of paying XXXX revenue to of loss $XX.X the $XX same average average $XX.XX $XX.XX subscriptions million a on to sheet. ARPU $X.X the balance calendar of in balance The Shifting in and loss XXXX. compared net decreased was quarter this quarter in the emphasizing quarter, decline subscribers a to monthly decreased user in spend to the per constraints the of XXXX. attribute to ARPU the of debt monthly $X.X cash marketing in year. in GAAP XXX,XXX net of through of decrease of the first compared or We primarily same For in period $XX.X Spark's the longer million XXX,XXX compared ended slightly a XXXX or period was in quarter million. million first debt first to The the

growth our able beyond. were in XXXX. existing to extended to which maturity us with we should debt and in in improved MGG refinance fund facility quarter, have facility and the allow business successfully covenant to our our we our initiatives the debt new million Group, flexibility, During our dates $XXX Investment Under better XXXX invest growing

month the In the year-over-year. And the as direct from April indicators increased of close Zoosk of for in our April, investment saw fact, grew new as following of in we growth subscribers Eric mentioned, leading refinancing. this positive marketing increased spend we XX%

and non-Zoosk grow brands which billings, saw renewals in also April. We include Zoosk win-backs and across

Turning to guidance.

road map the through well-developed return in that, the and questions. high with revenue to flexibility mid- new revenue to investments ultimately With to plan. your to full in And facility to we to financial debt strategies take execute year-over-year. XXXX, happy Accordingly, this we have growth our XXXX in We place put beyond. and now single-digit shareholder have we're for year a drive value on Operator? expect total of with growth place,

Operator

Instructions]. question with will from Sharma Riley. B. Raj [Operator be first the And

Rajiv Sharma

little some up the a those you're initiatives streaming, your that how bit doing push are, discovery, to sort growth live and and things talk engagement? you other social subscriber Could of on about of

Eric Eichmann

much very for Raj, the thank you question.

maybe that we're for on So which first, exciting subscriber very us. is seeing, the growth

been a property now, over we're improving done the our that have has last doing and and we couple facility, the years, acquired debt that Zoosk not we are around had lot the of the spend also we're improvement profitably, we to since declining able we a product something marketing. things it, actually from more know, you decreased to of As thanks

helping. is marketing So

spend important on to and we we of opportunities we bit We of we've a initiatives, that at most the product the also, We're seeing about have drive that it, of talked female the really engagement discussion look good profitably that platform. end. we're and seeing number subscribers, then that. similar to about the They're metrics. efficiency in had on a at talked And levels momentum

people more are rates That response the getting the by are getting XX%, more actually that's up and platform that only where have the going is positive. not means people that into platform We -- engaged. we very

We initiatives and a have sort initiatives Zoosk dating in of more the the One, the of both people they're one couple talked on and about other Live! prior social that to socially things trying -- get to platform. do we're obviously, quarters. we've

our to more in feedback a advertising, destinations. that or also Zoosk get this reacting something out we're using get if as on engagement well, and you what getting people love on into as Since has lot platforms, building versus experience Great experience. there. do are feedback. launched platform, calling we actually lodged to no great couple through Zoosk experience. a other other obviously, And good the differentiation continue that Day then, Dates go of Paris, that have to platform hoping people We the and is is more for card We're get We're dates and destinations. Zoosk on We that's people Valentine's that the dating exciting virtual a into of remember,

Rajiv Sharma

the are Great. last [indiscernible]. able quite that them factors amount on talk keeping of you extend time to talk of a was churn about the the that, control I about sort bit further. sort of are could some ability And then site, there if that of know to year you

Eric Eichmann

Yes.

So couple of one this. a on of comments --

And providing QX, this, QX we started though longer. because sort gotten One optimizations recognition, of longer things we quite get particular months more year, revenue of obviously, terms that's upfront we we on done the think periods. time, of since that upfront, a impacts were have is are these that commit the And that's stay was money billings subscribing that great incentives brands to or we we've previously. one same get the X of of been lot of last in to that other of but to I and to sort successful. revenues had had But the -- get X been for a X, at we over get in months. people Zoosk, lot on has people on time, doing, it recognized subscribe It's renewing to to even getting people people the

that's And healthy driver us. a been very so and for good

talked In addition platform its the initiatives that to about engagement the that, in effect. on terms we some of are of having

that So one go call the call the matches in, where the first-time for key most are people, And our seeing at that are have a matching platform talk work is these we where matches that's to up. metrics and at things that look And active. audience we the that what have going that touch of of find matches or those revamping the is we Within folks engagement in churn. folks. they beginning that's to, most they as algorithm females, to that our experience. them we make what they we part that want getting user And is critical on big sure want with them, we're

and about Brace drive flexibility as of also payment CRM are in is helping of the which sort revenue or to mechanism optimization perspective CRM more us preferred lot it's which is able billings automating more sort things and of then number we fronts. lot there. to able also to using switched talked doing charge the And giving in a conversion, payment revenues driving of is We sort a increase on more Adient, reduce optimization being great. engagement, from of targeting a also us our we've system, terms other backs, but finally, with which One, being a campaigns a that's campaigns, of

are but overall. it those improvement dramatically, things improved of rest an improved. the it's So changed into experience we've has place. first-time all because On it of user coming churn, The hasn't been mostly

Rajiv Sharma

single I of to then much higher it. be know is EBITDA marketing the digits, used to And how you any would you costs Got marketing think just -- year? guide high indicated there last know from growth revenue the cost the I sort you've Do on and/or lastly, direct line? last mid- to guidance direct year, that.

Eric Eichmann

about Yes. that? do David, want to you bit talk a

David Clark

Sure. Yes.

So we of on last spend range we the million. indicated that probably expect in to $XXX call the

will because, over may money spend we as know, With recognition. want to the not show that refinancing, as we be that. we're in EBITDA accretive reevaluate time, it revenue have up going period, And to you can flexibility because but that revenue actually or of our

put balance fully we compliant potentially expect cash and and at even now. So actually up spend, right on evaluating that the sheet, to we're be a covenant higher

Rajiv Sharma

Correct.

Okay.

So...

Eric Eichmann

But muted is that's we or said, opportunity we're in remain levels. to similar I at why so think David part But -- EBITDA. what and the want bit better or reiterate to a marketing think I remain on flexible, see we efficiency we just that the increasing

positive translate it doesn't effect EBITDA. or of has the within so very year a immediately And into on does subscribers, a revenue on sort positive effect have It very billings. that but

Operator

gentlemen, [Operator turn any this I and back would the remarks. to session. our Eichmann And Instructions]. question-and-answer to concludes over closing ladies for conference Eric like

Eric Eichmann

you, conclude will Thank conferences One update the front, operator. on Relations attending X be in before Investor we May. we investor

attending be we we it's following will Wednesday, Sidoti New person Investor York. believe Conference. in medium Technology on Wednesday, May Microcap Conference annual in I the will participating the the Media Next week, and in And Virtual that's be XXth

We in a continued We With great both and the day. updating for everyone your hosting joining on I these to progress future. Spark our that, you Networks one-on-one in for our forward investor to will Have be at of call. look want meetings thank interest conferences.

Operator

Thank for sir. Thank now has attending concluded. today's you presentation. Conference you,

may You disconnect. now

Spark Networks SE (LOVLY) 10 May 222022 Q1 Earnings call transcript