Christian Mingle

Breakups are never easy, especially when it means losing your job. Spark Networks, the company behind dating sites like ChristianMingle.com and JDate.com, has announced that it's cut its workforce and has made substantial progress in expense reduction initiatives. The measures are expected to save the company $4.5 million to $5 million a year.

Although Spark did not disclose exactly how many jobs were cut, the company had previously reported that it had 201 full-time equivalent employees as of December 31. The company expects to incur pre-tax cash charges of approximately $1.3mm for severance benefits and other related expenses.

The cuts come at an interesting time for Spark Networks. Lately, its sites have seen an increasing number of their customers turn to competing services. The company has also undergone a number of recent changes in its corporate structure. David Hughes, formerly chief executive at a digital marketing firm in West Los Angeles, resigned as a director after joining Spark Networks’ board just six months prior. He will be replaced by Jonathan R. Mather, a former Netgear chief financial officer.

Hughes’ exit comes only two months after a very public ousting of four of Spark's six directors (including Chief Executive Greg Liberman). The hope is that a fresh crop of directors will be better able to help the company rise above the competition in difficult times.

Free dating sites like OkCupid and mobile apps like Tinder are dominating the market and have made life difficult for services like Christian Mingle and JDate. Spark Networks experienced a 10% drop in revenue during the second quarter, to $15.8 million. The company reported a total of $29 million in net losses over the last three years.

Looking to future, Spark Networks plans to head back to basics. It's putting its focus on three things in hopes of boosting subscriber count and revenue:

1. Upgrading its product offerings
2. Improving its processes for subscriber acquisition, retention, and renewal
3. Refining its marketing strategy

"Much has been accomplished over the last 30-days to refocus the business on its core properties and to drive operational efficiencies,” said Executive Chairman Michael McConnell in a statement.

“Moving forward, I believe the opportunity to profitably grow our business is significant and we are prepared to execute on strategic growth initiatives that meet our return on capital hurdles. Further, the team is operating with a sense of urgency and commitment to drive improvements in all areas of the business. Importantly, I am confident in the resilience and resonance of our brands within our targeted communities."

We live in a crazy world. And at the moment, nothing is greater proof of that and the fact that there is a Christian Mingle movie.

Yes, that Christian Mingle. The dating website that promises devout singles it will "find God's match for you." Someone in Hollywood apparently thought that sounded like a rip-roaring good time of a rom-com, and here we are, wondering what led us to this strange and confusing place.

Oh yeah, and did I mention that the lead role is played by Lacey Chabert, most notable for her turn as the ditzy Gretchen Wieners in Mean Girls? It just gets better and better.

Allegedly there is also a plot. It follows Chabert’s character, a 30-something marketing executive named Gwyneth Hayden, whose life is perfect except for one thing: it's missing a man. In a moment of desperation, she joins the Christian Mingle dating site in hopes of changing her fortunes – even though she is not a Christian. Here’s a synopsis of the rest of the film:

It’s been a busy month for Spark Networks. The owner of ChristianMingle, JDate, BlackSingles. and more, has released its financial results for the second quarter of 2014, and will soon be getting a new CEO.

Revenue in Q2 2014 was $15.8 million, a decrease of 10% from the previous year’s $17.6 million. A 9% decrease in average paying subscribers – reflecting an 8% and 7% decline in average paying subscribers for the Christian and Jewish Networks segments, respectively – is the primary reason for the overall drop in revenue.

On the plus side, expenses were down. Direct marketing expenses in the second quarter of 2014 were $7.9 million, a decrease of 43% from Q2 2013. Total cost and expenses dropped 19% from the previous year, to $16.8 million this year. Net loss in the second quarter of 2014 was $1.1 million, or $0.05 per share, compared to a net loss of $3.3 million, or $0.15 per share, in the year-ago period. Adjusted EBITDA in the second quarter of 2014 was a loss of $363,000, an improvement of 84% compared to the year-ago period.

Much of the good news comes from Christian Networks, which accounted for most of the decreased expenses thanks to improved marketing efficiency and growth in the winback and renewal subscriber bases. Christian Networks was also responsible for bumping contribution up in the second quarter of 2014 to $7.8 million, an increase of 109% from the year before. This is the first time Christian Networks has generated positive contribution in 15 quarters.

All this comes at a time of major change for Spark Networks. President & CEO Greg Liberman has left the company, leaving Michael McConnell – the company’s Chairman of the Board – to serve as Executive Chairman until Liberman’s successor is in place.

“It has been an incredible ten years, and I am honored to have spent more than half of my professional career at such a special company,” said Liberman. “Spark is a relationship business in every sense of the word. Through iconic brands like JDate and ChristianMingle, we create countless relationships for our members every day. But, behind the scenes, it’s the relationships we have in the communities we serve and the relationships within our team that drive everything.

Suffice it to say, I am extremely proud and grateful to have played a role in building and leading such an amazing team, and to have had the opportunity to work hand-in-hand with them to transform this company and business. In their hands, Spark’s future is very bright.”

For more on these two dating sites you can read our reviews of ChristianMingle.com and JDate.com.

Online dating is about to get a major shakeup. And when I say major, I really mean major. Spark Networks, which owns popular dating sites like JDate and Christian Mingle, has put itself up for sale and has at least one prospective suitor.

The big news comes on the heels of the company unexpectedly postponing its annual shareholder meeting in June, two days before it was scheduled. The move allowed Spark Networks to put its focus on the potential deal and to sidestep a board battle with its largest shareholder, Osmium. Things have been tense lately with Osmium, a San Francisco hedge fund that has been pushing for board seats over concerns that Spark has been neglecting to allocate sufficient funds for JDate while over-spending on Christian Mingle.

Spark has spent $120 million in direct marketing on Christian Mingle since 2011, which has helped grow Christian Mingle’s subscribers by almost 700 percent since 2010. Revenue is also up, from $45 million in 2008 to $70 million in 2013, but along with those efforts came dramatically increased costs as a percentage of revenue.

Meanwhile JDate, the most famous and lucrative site in the Spark Networks arsenal, looks to be going through a rough patch. According to Osmium, the Jewish dating site posted revenue of $6.1 million in the first quarter – its lowest level since 2006. Jewish subscribers have also declined to  2006 levels.

All of this is coming at the same time as big-time changes for the Spark Networks board. When the delayed annual shareholder meeting finally took place, four of the company’s six sitting directors were nixed, including Chairman and CEO Greg Liberman. The shareholders instead picked four directors nominated by – surprise! – Osmium. One of the two Spark directors who was re-elected, Thomas Stockham, resigned not long afterwards.

“The new board is eager to work alongside Spark employees with a renewed sense of urgency, accountability and focus, in order to drive increased shareholder value,” said Osmium’s founder and new Spark director John Lewis to the New York Post.

As for what’s happening with the sale of Spark Networks, everyone involved is remaining tight-lipped for now. The name of the prospective buyer has yet to be revealed, but the New York Post notes that “the world of online dating companies is small and currently dominated by Barry Diller’s IAC, which owns popular dating sites Match.com, OKCupid and Tinder.”

Many singles have tried at least one online dating site. Some have found success right away while others get frustrated and wonder why they decided to try online dating in the first place. Unfortunately, many people don’t know all of the options available, or one dating site might work better for them than another.

There is a lot of competition among online dating sites, but most people flock to the few they know, like Match.com. But it’s important to first ask yourself before you sign up: what do I want out of my dating experience?

People date for different reasons, and the same goes for online dating. Not every member is interested in finding a long-term relationship. So it’s good to ask yourself if you just want to date and have fun, or if you’re looking to meet someone special and settle down. Your intention is an important part of your dating experience.

Next, you have to know yourself. Are you very shy? Are you more at ease on a date where you’re doing something together rather than sitting across the table from each other? Or are you really confident and slightly intimidating? Do you know what you want and you’re not afraid to say it?

People date differently – some go into it like a job interview, asking questions and checking boxes off of their “must-haves” list. People place importance on different things – like religious beliefs, career, location, or even how close you are with your family. Others are a little less choosy, and go from date to date unsure of what they want but recognizing that they aren’t meeting the “right one.”

This is why it’s important to ask yourself these questions. From there, you can try a few different dating sites to see what’s right for you.

If you’re looking for a serious relationship, then eHarmony or Chemistry are your best bet. They have a significant number of members to choose from, and you have to go through a pretty rigorous and time-consuming sign-up process before you can search through matches. So from the start, people on the site are a little more serious than your average online dater. But I would also suggest Christian Mingle or a niche dating site if you have particular beliefs that are most important to you when looking for a partner. Again: know yourself and what you want.

If you’re looking to dip your toe back in the dating pool after a long absence, but aren’t sure if you want a long-term relationship, then sites like Match and OkCupid are a little less intense than the relationship-focused sites. They also have a large subscriber base and so you can meet a variety of people. Keep your options open if you’re unsure. Date outside of your “type.”

I suggest trying two or three sites and seeing which format you like best. Most sites offer a free trial period so you can at least set up a profile and check matches. It’s worth the time to really look and see what’s right for you.

Spark Networks, Inc., the company behind many special-interest online personal sites including JDate.com, BlackSingles.com, and ChristianMingle.com, has reported financial results for the fourth quarter and full year ending on December 31, 2013.

"2013 marked our third consecutive year of growth as we continued to execute our long-term strategic plan," said Greg Liberman, Spark Networks' Chairman and Chief Executive Officer. "And, unlike the previous two years, in addition to delivering 12% revenue growth, we also demonstrated a meaningful 8% improvement in contribution for the year, punctuated by a 16% increase in Q4 contribution."

Highlights of 2013 for Spark Networks include:

• Total revenue grew Y/Y for 12^th consecutive quarter
• Total contribution grew 16% Y/Y
• Christian Networks revenue grew Y/Y for 13^th consecutive quarter
• Christian Networks ARPU grew Q/Q for first time since Q1 2013

Revenue in the fourth quarter of 2013 was $17.2 million, an increase of 6% compared to the $16.3 million earned the year before. Full year 2013 revenue was $69.4 million, a 12% increase compared to 2012. The Christian Networks segment was primarily responsible for that growth.

"Our dual engines – the Christian and Jewish Networks segments, anchored by ChristianMingle and JDate – once again drove our performance,” said Liberman. “In 2013, Christian Networks grew 27%, generated more than $40 million in revenue and constituted 58% of the company's revenue base. While impressive in a vacuum, that is even more notable given that Christian Networks generated less than $6 million and comprised just 14% of our revenue when we relaunched the business three years ago.”

Spark Networks clearly has another iconic brand on its hands with ChristianMingle, but it hasn’t all been good news for the company. Wall Street isn’t loving Spark nearly as much as consumers are.

Earlier this month, Spark dropped 19% to $4.66 – earning it the dubious distinction of being Wall Street's fifth-biggest percentage drop - after the company said 2014 could be a tough year for some of its online dating website. Revenue is up, losses are down, but Liberman found that many online dating newbies let their paid subscriptions lapse in the third and fourth quarters.

In the face of stiff competition from IAC/Interactive's Match.com and OkCupid, Spark Networks plans to switch up its strategy in 2014 by reining in advertising and marketing spending. "We're pivoting a little bit here and focusing on profitability,'' said Liberman. Hopefully the new strategy means a little less heartbreak for Spark Networks investors.