Contributed by: ElyseRomano on Wednesday, November 25 2015 @ 09:12 am
Last modified on
Online dating provider Spark Networks has released its financial report for the third quarter of 2015, revealing a mix of highs and lows.
The company suffered a 22 percent drop in its year-on-year revenue, taking in a total of $11.7 million for the third quarter. Along with the dip in profit, Spark Networks also saw a net income loss of $822,000 for the quarter, compared to its $95,000 loss for Q2 of 2015.
But it's not all bad news. The report also highlights positive results that could mean things are looking up for next year:
CEO Michael Egan stated, "The last three months represent a true inflection point for Spark Networks and the clearest indication yet that we are on the right path towards turning this business around.” He notes four achievements in particular that he believes will be instrumental in getting Spark Networks back on track.
First, the subscriber base grew for the first time in two years. The growth was modest, but it came during what is traditionally a seasonally slow period. The momentum could carry into Q4 and Q1 2016, which are typically the strongest seasonal periods for Spark.
The second accomplishment is a record contribution margin on ChristianMingle. A new marketing strategy, and more sophisticated communications with members, has proved to be highly beneficial for the service.
Third is the launch of a handful of new mobile applications. Only a year ago, the company didn't have a single native mobile app. Today Spark Networks has nine apps across five different brands representing over 200,000 monthly active users. CrossPaths, targeted at millennial Christians seeking to meet others who share their faith, has been especially valuable.
Finally, in early October, Spark Networks closed the strategic acquistion of Smooch Labs. As the developer of popular Jewish millennial dating app JSwipe, Smooch Labs is a powerful new ally for Spark. With JSwipe added to JDate, which traditionally serves an older audience, Spark Networks now offers well-rounded romantic solutions to all singles of the Jewish faith.
Successes aside, Egan knows there is still work to be done. “We remain committed to driving revenue and EBITDA growth and continuing to execute against our product improvement roadmap,” he said. “Through both organic development and acquisitions we are proving that we can build and grow fantastic brands that serve important market niches. It is a very exciting time for Spark."
For more information on the popular Spark Networks dating sites and apps you can read our review of Christian Mingle and JDate.