Stocks of Spark Networks SE, a global dating company with a portfolio of brands designed for singles seeking serious relationships, increased 7.11 after a full year 2020 earnings report on Wednesday.
Spark Networks, one of the world’s leading online dating platforms leveraging premium, complementary brands including Zoosk, EliteSingles, SilverSingles, Christian Mingle, Jdate, and JSwipe, reported a positive second half and full year 2020 financial results.
The full year revenue for 2020 of Spark Networks was at $233 million, showing an increase of $62.1 million compared to $170.9 million in recorded revenue for in 2019.
In terms of Monthly Average Revenue Per User, or Monthly ARPU, revenue increased by 7.4% to $20.93 compared to $19.48 in 2019.
The recent revenue announcement led to the 7.11% increase in LOV stock in after-market trading session. A day prior, LOV stock price increased 18.72% after Spark announced that it will deliver live streaming video to Zoosk, its largest brand.
“Our financial and operational gains for the Second Half and Full Year 2020 are a testament to the strength of Sparks’ top brands, which performed well during truly unique market conditions,” said Eric Eichmann, CEO of Spark Networks.
“Successful product improvements and expanded marketing capabilities led to higher user engagement and improved ARPU levels in 2020. Going forward, we are excited about our growth potential as we fulfill our ambition to become the leader in social dating for meaningful relationships in this rapidly expanding sector,” Eichmann said.
Revenue for the second half of 2020 was $118.9 million, an increase of $3.9 million compared to $115.0 million in the second half of 2019.
For the second half of year in 2020, the increase in revenue was the result of a fair value purchase price adjustment of $12.9 million recorded in the second half of 2019 related to the deferred revenue acquired from Zoosk.
For the full year in 2020, the significant increase in revenue is primarily attributable to the integration of Zoosk following the Spark Networks / Zoosk Merger in July 2019.
Average Paying Subscribers decreased by 76,217 to 941,104 in the second half of 2020, compared to 1,017,321 in the same period of 2019.
However, Average Paying Subscribers for the entire year 2020 increased nearly 27%, reaching roughly 928,000, compared to the 731,000 we recorded in 2019.
Monthly Average Revenue Per User, or Monthly ARPU, increased by 11.8% to $21.05 in the second half of 2020, compared to $18.83 in the same period of 2019. Spark’s ARPU for 2020 increased 7.4% to $20.93 compared to $19.48 in the 12-month period ended December 31, 2019.
“I am pleased to have exceeded both our top and bottom-line financial guidance for the full year 2020,” said Bert Althaus, Chief Financial Officer of Spark.
“In addition to stabilizing and integrating operations during the last year, the Company also strengthened its balance sheet by amending its credit facility by resetting financial covenants and securing an additional $6 million in funding,” Althaus said.