Spark Networks SE

Second-quarter 2023 revenue was $41.2 million versus $48 million in Q2 2022. End-of-period paying subscribers were 2 million, down from 3.1 million a year ago, while monthly ARPU increased to $21.58 from $20.13. Net loss was $26.9 million versus $8.8 million last year, and adjusted EBITDA was $7.2 million, or a 17% margin, compared with negative $1.7 million, or negative 3.6%, in Q2 2022. The company ended the quarter with $5.7 million in cash and $94.2 million of GAAP debt, or $88.5 million in net debt. For 2023, management expects full-year adjusted EBITDA of approximately $16 million to $18 million and still targets 20% to 30%+ adjusted EBITDA margins over time.

Colleen Brown framed the quarter as part of a “critical time” and a broader transformation intended to return Spark to competitive levels. She said the company is outsourcing performance marketing and portions of IT to add expertise, scalability, and stability while reducing internal headcount and improving customer acquisition efficiency. Her tone was determined and change-oriented, with repeated emphasis on a simpler, more profitable business and sustainable growth by 2025.

Kristie Goodgion highlighted the main operating metrics and bridge to profitability. She pointed to $41.2 million of revenue, 2 million paying subscribers, $21.58 ARPU, a $26.9 million net loss, and $7.2 million of adjusted EBITDA at a 17% margin. She said the EBITDA improvement versus last year was driven mainly by lower customer acquisition spend and reduced operating expenses, and noted quarter-end cash of $5.7 million against $94.2 million of debt.

There was no analyst Q&A in the transcript; the call ended after management’s prepared remarks. The main management message was that the restructuring is still early, but they believe the outsourcing plan and headcount reduction will improve marketing efficiency, lower costs, and position the company for growth and profitability in 2025. They also said the restructuring costs will be significant and will require external funding.