☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Germany |
N/A
|
||||
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
||||
Kohlfurter Straße 41/43
Berlin
Germany
|
10999 | ||||
(Address of principal executive offices) | (Zip Code) |
Title of each class |
Trading
Symbol(s)
|
Name of each exchange on which registered | ||||||||||||
American Depository Shares each representing one-tenth of an ordinary share | LOV | New York Stock Exchange | ||||||||||||
Ordinary shares, €1.00 nominal value per share*
|
LOV | New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||||||||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||||||||||||||||
Emerging growth company | ☒ |
Page | ||||||||
September 30, 2021 | December 31, 2020 | |||||||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 12,440 | $ | 19,267 | ||||||||||||||||
Accounts receivable, net of allowance of $435 and $93, respectively
|
7,135 | 5,507 | ||||||||||||||||||
Prepaid expenses | 3,936 | 4,366 | ||||||||||||||||||
Other current assets | 1,059 | 2,140 | ||||||||||||||||||
Total current assets | 24,570 | 31,280 | ||||||||||||||||||
Property and equipment, net of accumulated depreciation of $6,204 and $6,252, respectively
|
9,982 | 11,418 | ||||||||||||||||||
Goodwill | 134,759 | 156,582 | ||||||||||||||||||
Intangible assets, net of accumulated amortization of $15,159 and $18,631, respectively
|
44,834 | 58,999 | ||||||||||||||||||
Deferred tax assets | 5,697 | 23,522 | ||||||||||||||||||
Other assets | 8,521 | 8,642 | ||||||||||||||||||
Total assets | $ | 228,363 | $ | 290,443 | ||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current portion of long-term debt | $ | 12,600 | $ | 19,037 | ||||||||||||||||
Accounts payable | 10,828 | 11,127 | ||||||||||||||||||
Deferred revenue | 40,479 | 38,304 | ||||||||||||||||||
Accrued expenses and other current liabilities | 26,738 | 28,429 | ||||||||||||||||||
Total current liabilities | 90,645 | 96,897 | ||||||||||||||||||
Long-term debt, net of current portion | 72,067 | 80,109 | ||||||||||||||||||
Deferred tax liabilities | 6,382 | 993 | ||||||||||||||||||
Other liabilities | 18,120 | 17,541 | ||||||||||||||||||
Total liabilities | 187,214 | 195,540 | ||||||||||||||||||
Contingencies (Note 7) | ||||||||||||||||||||
Shareholders' Equity: | ||||||||||||||||||||
Common stock, €1.00 nominal value; 2,661,386 shares issued as of September 30, 2021 and December 31, 2020; 2,614,914 and 2,605,689 shares outstanding as of September 30, 2021 and December 31, 2020, respectively
|
3,064 | 3,064 | ||||||||||||||||||
Treasury stock, at €1.00 nominal value; 46,472 and 55,697 shares as of September 30, 2021 and December 31, 2020, respectively
|
(51) | (61) | ||||||||||||||||||
Additional paid-in capital | 222,523 | 220,852 | ||||||||||||||||||
Accumulated deficit | (190,469) | (132,248) | ||||||||||||||||||
Accumulated other comprehensive income | 6,082 | 3,296 | ||||||||||||||||||
Total shareholders' equity | 41,149 | 94,903 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 228,363 | $ | 290,443 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
Revenue | $ | 53,297 | $ | 60,784 | $ | 164,929 | $ | 174,968 | ||||||||||||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||||||||
Cost of revenue, exclusive of depreciation and amortization | 34,804 | 39,459 | 104,603 | 109,223 | ||||||||||||||||||||||||||||
Sales and marketing expenses | 1,271 | 962 | 3,474 | 3,202 | ||||||||||||||||||||||||||||
Customer service expenses | 1,842 | 1,821 | 5,605 | 5,834 | ||||||||||||||||||||||||||||
Technical operations and development expenses | 5,195 | 4,480 | 14,889 | 14,139 | ||||||||||||||||||||||||||||
General and administrative expenses | 6,133 | 8,647 | 21,548 | 23,870 | ||||||||||||||||||||||||||||
Depreciation and amortization | 1,060 | 2,512 | 5,648 | 7,165 | ||||||||||||||||||||||||||||
Impairment of intangible assets and goodwill | — | — | 32,086 | — | ||||||||||||||||||||||||||||
Total operating costs and expenses | 50,305 | 57,881 | 187,853 | 163,433 | ||||||||||||||||||||||||||||
Operating income (loss) | 2,992 | 2,903 | (22,924) | 11,535 | ||||||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||||
Interest income | — | 34 | — | 74 | ||||||||||||||||||||||||||||
Interest expense | (3,110) | (3,135) | (10,352) | (9,987) | ||||||||||||||||||||||||||||
(Loss) gain on foreign currency transactions | (978) | 1,539 | (2,122) | 1,332 | ||||||||||||||||||||||||||||
Other income (expense) | 7 | — | (11) | 200 | ||||||||||||||||||||||||||||
Total other expense, net | (4,081) | (1,562) | (12,485) | (8,381) | ||||||||||||||||||||||||||||
(Loss) income before income taxes | (1,089) | 1,341 | (35,409) | 3,154 | ||||||||||||||||||||||||||||
Income tax expense(1)
|
(1,601) | (1,485) | (22,812) | (4,626) | ||||||||||||||||||||||||||||
Net loss | (2,690) | (144) | (58,221) | (1,472) | ||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | 1,232 | (2,127) | 2,786 | (2,012) | ||||||||||||||||||||||||||||
Comprehensive loss | $ | (1,458) | $ | (2,271) | $ | (55,435) | $ | (3,484) | ||||||||||||||||||||||||
Loss per share: | ||||||||||||||||||||||||||||||||
Basic loss per share | $ | (1.03) | $ | (0.06) | $ | (22.31) | $ | (0.56) | ||||||||||||||||||||||||
Diluted loss per share | $ | (1.03) | $ | (0.06) | $ | (22.31) | $ | (0.56) | ||||||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 2,613,708 | 2,605,689 | 2,609,285 | 2,605,689 | ||||||||||||||||||||||||||||
Diluted | 2,613,708 | 2,605,689 | 2,609,285 | 2,605,689 |
Three Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional Paid-in Capital |
Accumulated
Deficit |
Accumulated Other Comprehensive Income |
Total
shareholders' equity |
|||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 1, 2021 | 2,661,386 | $ | 3,064 | (48,128) | $ | (53) | $ | 222,082 | $ | (187,779) | $ | 4,850 | $ | 42,164 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 482 | — | — | 482 | ||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued pursuant to equity-based plans | 1,656 | 2 | (41) | (39) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (2,690) | — | (2,690) | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | 1,232 | 1,232 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 2,661,386 | $ | 3,064 | (46,472) | $ | (51) | $ | 222,523 | $ | (190,469) | $ | 6,082 | $ | 41,149 | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional Paid-in Capital |
Accumulated
Deficit |
Accumulated Other Comprehensive Income |
Total
shareholders' equity |
|||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 1, 2020 | 2,661,386 | $ | 3,064 | (55,697) | $ | (61) | $ | 218,416 | $ | (86,968) | $ | 7,866 | $ | 142,317 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 1,506 | — | — | 1,506 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (144) | — | (144) | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | (2,127) | (2,127) | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 2,661,386 | $ | 3,064 | (55,697) | $ | (61) | $ | 219,922 | $ | (87,112) | $ | 5,739 | $ | 141,552 | ||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional Paid-in Capital |
Accumulated
Deficit |
Accumulated Other Comprehensive Income |
Total
shareholders' equity |
|||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2021 | 2,661,386 | $ | 3,064 | (55,697) | $ | (61) | $ | 220,852 | $ | (132,248) | $ | 3,296 | $ | 94,903 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 2,098 | — | 2,098 | |||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued pursuant to equity-based plans | — | — | 9,225 | 10 | (427) | — | (417) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (58,221) | — | (58,221) | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | 2,786 | 2,786 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 2,661,386 | $ | 3,064 | (46,472) | $ | (51) | $ | 222,523 | $ | (190,469) | $ | 6,082 | $ | 41,149 | ||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional Paid-in Capital |
Accumulated
Deficit |
Accumulated Other Comprehensive Income |
Total
shareholders' equity |
|||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | 2,661,386 | $ | 3,064 | (55,697) | $ | (61) | $ | 216,072 | $ | (85,640) | $ | 7,751 | $ | 141,186 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 3,850 | — | — | 3,850 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (1,472) | — | (1,472) | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | (2,012) | (2,012) | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 2,661,386 | $ | 3,064 | (55,697) | $ | (61) | $ | 219,922 | $ | (87,112) | $ | 5,739 | $ | 141,552 |
Nine Months Ended September 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Net loss | $ | (58,221) | $ | (1,472) | ||||||||||
Adjustments to reconcile net loss to cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 5,648 | 7,165 | ||||||||||||
Impairment of goodwill and intangible assets | 32,086 | — | ||||||||||||
Loss on tangible and intangible assets | — | 341 | ||||||||||||
Unrealized loss (gain) on foreign currency transactions | 2,218 | (1,465) | ||||||||||||
Stock-based compensation expense | 2,098 | 3,850 | ||||||||||||
Amortization of debt issuance costs and accretion of debt discounts | 3,204 | 2,516 | ||||||||||||
Deferred tax expense | 22,812 | 4,626 | ||||||||||||
Provision for credit losses | 331 | 246 | ||||||||||||
Non-cash lease expense | 1,421 | 1,441 | ||||||||||||
Change in operating assets and liabilities: | ||||||||||||||
Accounts receivable | (2,103) | (3,276) | ||||||||||||
Prepaid expenses and other current assets | (116) | (131) | ||||||||||||
Other assets | 188 | 58 | ||||||||||||
Accounts payable, accrued expenses, and other current liabilities | (1,416) | (3,211) | ||||||||||||
Other liabilities | (1,902) | (1,409) | ||||||||||||
Deferred revenue | 3,341 | 4,088 | ||||||||||||
Net cash provided by operating activities | $ | 9,589 | $ | 13,367 | ||||||||||
Capital expenditures | (905) | (2,108) | ||||||||||||
Acquisitions of businesses, net of cash acquired | — | (513) | ||||||||||||
Net cash used in investing activities | $ | (905) | $ | (2,621) | ||||||||||
Repayment of debt | (16,243) | (12,320) | ||||||||||||
Payments directly related to debt facility | (523) | — | ||||||||||||
Net cash used in financing activities | $ | (16,766) | $ | (12,320) | ||||||||||
Net change in cash and cash equivalents and restricted cash | (8,082) | (1,574) | ||||||||||||
Effects of exchange rate fluctuations on cash and cash equivalents and restricted cash | (453) | (711) | ||||||||||||
Net decrease in cash and cash equivalents and restricted cash | $ | (8,535) | $ | (2,285) | ||||||||||
Cash and cash equivalents and restricted cash at beginning of period | 21,117 | 17,457 | ||||||||||||
Cash and cash equivalents and restricted cash at end of period | $ | 12,582 | $ | 15,172 | ||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||
Cash paid for interest | $ | 7,089 | $ | 8,049 | ||||||||||
Cash paid for income taxes | $ | 114 | $ | 744 | ||||||||||
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets | Sep-21 | Dec-20 | ||||||||||||
Cash and cash equivalents | $ | 12,440 | $ | 19,267 | ||||||||||
Restricted cash included in other current assets | 142 | 1,850 | ||||||||||||
Total cash and cash equivalents and restricted cash as shown on the condensed statements of cash flows | $ | 12,582 | $ | 21,117 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Subscription revenue | $ | 51,503 | $ | 59,210 | $ | 159,746 | $ | 170,272 | ||||||||||||||||||
Virtual currency revenue | 970 | 896 | 2,877 | 2,740 | ||||||||||||||||||||||
Advertising revenue | 824 | 678 | 2,306 | 1,956 | ||||||||||||||||||||||
Total Revenue | $ | 53,297 | $ | 60,784 | $ | 164,929 | $ | 174,968 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
United States | $ | 35,063 | $ | 41,030 | $ | 107,653 | $ | 117,383 | ||||||||||||||||||
France | 5,006 | 3,100 | 15,727 | 8,961 | ||||||||||||||||||||||
Germany | 266 | 426 | 904 | 1,310 | ||||||||||||||||||||||
Rest of world | 12,962 | 16,228 | 40,645 | 47,314 | ||||||||||||||||||||||
Total Revenue | $ | 53,297 | $ | 60,784 | $ | 164,929 | $ | 174,968 |
(in thousands) | ||||||||
Balance as of January 1, 2020 | $ | 199,238 | ||||||
Impairment charges | (42,713) | |||||||
Impact of currency translation | 57 | |||||||
Balance as of December 31, 2020 | $ | 156,582 | ||||||
Impairment charges | (21,786) | |||||||
Impact of currency translation | (37) | |||||||
Balance as of September 30, 2021 | $ | 134,759 |
September 30, 2021 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | Weighted-Average Remaining Amortization Period (Years) | Gross Carrying Amount | Accumulated Impairment Charges | Accumulated Amortization | Currency Translation Impact on Carrying Amount | Net Carrying Amount | ||||||||||||||||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||||||||||||||||
Brands and trademarks | $ | 63,800 | $ | (21,260) | $ | — | $ | — | $ | 42,540 | ||||||||||||||||||||||||||||
Long-lived intangible assets: | ||||||||||||||||||||||||||||||||||||||
Brands and trademarks | 0.1 | 86 | — | (48) | 1 | 39 | ||||||||||||||||||||||||||||||||
Acquired technology | 1.7 | 5,910 | — | (3,715) | — | 2,195 | ||||||||||||||||||||||||||||||||
Customer relationships | 0.0 | 10,780 | — | (10,760) | — | 20 | ||||||||||||||||||||||||||||||||
Licenses and domains | 0.0 | 205 | — | (177) | 1 | 29 | ||||||||||||||||||||||||||||||||
Other | 0.0 | 470 | — | (459) | — | 11 | ||||||||||||||||||||||||||||||||
Total intangible assets | 1.8 | $ | 81,251 | $ | (21,260) | $ | (15,159) | $ | 2 | $ | 44,834 |
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | Weighted-Average Remaining Amortization Period (Years) | Gross Carrying Amount | Accumulated Impairment Charges | Accumulated Amortization | Currency Translation Impact on Carrying Amount | Net Carrying Amount | ||||||||||||||||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||||||||||||||||
Brands and trademarks | $ | 63,800 | $ | (10,960) | $ | — | $ | — | $ | 52,840 | ||||||||||||||||||||||||||||
Long-lived intangible assets: | ||||||||||||||||||||||||||||||||||||||
Brands and trademarks | 0.1 | 3,025 | (2,573) | (409) | 4 | 47 | ||||||||||||||||||||||||||||||||
Acquired technology | 1.3 | 7,300 | — | (3,997) | — | 3,303 | ||||||||||||||||||||||||||||||||
Customer relationships | 0.4 | 11,420 | — | (8,762) | — | 2,658 | ||||||||||||||||||||||||||||||||
Licenses and domains | 0.0 | 410 | — | (361) | 3 | 52 | ||||||||||||||||||||||||||||||||
Other | 0.0 | 5,203 | — | (5,102) | (2) | 99 | ||||||||||||||||||||||||||||||||
Total intangible assets | 1.8 | $ | 91,158 | $ | (13,533) | $ | (18,631) | $ | 5 | $ | 58,999 |
(in thousands) | Amortization Expense | |||||||
2021 | $ | 363 | ||||||
2022 | 1,280 | |||||||
2023 | 632 | |||||||
2024 | 9 | |||||||
2025 | 9 | |||||||
Thereafter | 1 | |||||||
Total estimated amortization expense | $ | 2,294 |
(in thousands) | September 30, 2021 | December 31, 2020 | ||||||||||||
Accrued advertising | $ | 8,358 | $ | 8,691 | ||||||||||
Accrued employee compensation and benefits | 2,356 | 2,085 | ||||||||||||
Accrued professional fees | 1,504 | 1,819 | ||||||||||||
Accrued service providers | 1,716 | 2,433 | ||||||||||||
Accrued value-added, sales, and other non-income-based taxes | 7,835 | 8,897 | ||||||||||||
Current portion of income tax payable | 1,335 | 1,536 | ||||||||||||
Current portion of lease liabilities | 1,532 | 1,932 | ||||||||||||
Other | 2,102 | 1,036 | ||||||||||||
Accrued expenses and other current liabilities | $ | 26,738 | $ | 28,429 |
(in thousands) | September 30, 2021 | December 31, 2020 | ||||||||||||
Deferred payment to Zoosk's shareholders | $ | 11,249 | $ | 10,373 | ||||||||||
Lease liabilities, less current portion | 4,364 | 4,650 | ||||||||||||
Sublease security deposit | 1,038 | 1,038 | ||||||||||||
Other | 1,469 | 1,480 | ||||||||||||
Other liabilities | $ | 18,120 | $ | 17,541 |
September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
(in thousands) | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||||
Long-term debt, including current portion(1)
|
$ | 84,667 | $ | 101,158 | $ | 99,146 | $ | 107,504 |
Virtual Stock Options | Zero-Priced Options | |||||||||||||||||||||||||
Long Call | Short Call | Long Call | Short Call | |||||||||||||||||||||||
Option | Option (Cap) | Option | Option (Cap) | |||||||||||||||||||||||
Stock price |
$3.21 - $5.42
|
$3.21 - $5.42
|
$3.21 - $5.42
|
$3.21 - $5.42
|
||||||||||||||||||||||
Strike price |
$3.13 - $5.34
|
$31.30 - $53.40
|
$— | $50.00 | ||||||||||||||||||||||
Term |
4.65 - 4.67
|
4.65 - 4.67
|
4.65 - 4.67
|
4.65 - 4.67
|
||||||||||||||||||||||
Volatility |
62.7% - 64.0%
|
62.7% - 64.0%
|
62.7% - 64.0%
|
62.7% - 64.0%
|
||||||||||||||||||||||
Dividend | — | % | — | % | — | % | — | % | ||||||||||||||||||
Risk-free rate |
0.7% - 0.9%
|
0.7% - 0.9%
|
0.7% - 0.9%
|
0.7% - 0.9%
|
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||||||||||||||
(in years) | ||||||||||||||||||||||||||
Outstanding as of December 31, 2020 | 1,550,000 | $4.74 | 6.22 | $0.90 | ||||||||||||||||||||||
Granted | 523,400 | 4.50 | ||||||||||||||||||||||||
Exercised | (7,250) | 3.14 | ||||||||||||||||||||||||
Forfeited | (208,247) | 4.57 | ||||||||||||||||||||||||
Outstanding as of September 30, 2021 | 1,857,903 | $4.70 | 5.88 | $0.05 | ||||||||||||||||||||||
Vested at September 30, 2021 | 514,571 |
Number of Options | Weighted Average Grant Date Fair Value | |||||||||||||
Unvested as of December 31, 2020 | 1,550,000 | $2.99 | ||||||||||||
Granted | 523,400 | 1.89 | ||||||||||||
Vested | (521,821) | 3.08 | ||||||||||||
Forfeited | (208,247) | 2.86 | ||||||||||||
Unvested as of September 30, 2021 | 1,343,332 | $2.54 |
Number of Shares | ||||||||
Outstanding as of December 31, 2020 | 674,000 | |||||||
Granted | 200,900 | |||||||
Exercised | (164,063) | |||||||
Forfeited | (67,778) | |||||||
Outstanding as of September 30, 2021 | 643,059 | |||||||
Vested and Exercisable at September 30, 2021 | 71,729 |
Number of Options | Weighted Average Grant Date Fair Value | |||||||||||||
Unvested as of December 31, 2020 | 674,000 | $6.13 | ||||||||||||
Granted | 200,900 | 3.85 | ||||||||||||
Vested | (235,792) | 6.25 | ||||||||||||
Forfeited | (67,778) | 5.78 | ||||||||||||
Unvested as of September 30, 2021 | 571,330 | $5.32 |
Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2021 | 2020 | ||||||||||||
Cost of revenue, exclusive of depreciation and amortization | $ | — | $ | — | ||||||||||
Sales and marketing | 49 | 120 | ||||||||||||
Customer service | 26 | 29 | ||||||||||||
Technical operations and development | 222 | 320 | ||||||||||||
General and administrative | 1,801 | 3,381 | ||||||||||||
Total stock-based compensation expense | $ | 2,098 | $ | 3,850 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Registrations | 3,398,389 | 3,749,229 | 10,192,943 | 11,417,809 | ||||||||||||||||||||||
Average Paying Subscribers | 865,752 | 952,704 | 880,238 | 933,752 | ||||||||||||||||||||||
Total Monthly ARPU | $ | 20.52 | $ | 21.27 | $ | 20.82 | $ | 20.82 | ||||||||||||||||||
Net Revenue | $ | 53,297 | $ | 60,784 | $ | 164,929 | $ | 174,968 | ||||||||||||||||||
Direct Marketing | 27,988 | 31,523 | 84,817 | 88,153 | ||||||||||||||||||||||
Contribution | $ | 25,309 | $ | 29,261 | $ | 80,112 | $ | 86,815 |
Three Months Ended September 30, | ||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||
Revenue | $ | 53,297 | $ | 60,784 | $ | (7,487) | (12.3) | % | ||||||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||
Cost of revenue, exclusive of depreciation and amortization | 34,804 | 39,459 | (4,655) | (11.8) | % | |||||||||||||||||||||
Sales and marketing expenses | 1,271 | 962 | 309 | 32.1 | % | |||||||||||||||||||||
Customer service expenses | 1,842 | 1,821 | 21 | 1.2 | % | |||||||||||||||||||||
Technical operations and development expenses | 5,195 | 4,480 | 715 | 16.0 | % | |||||||||||||||||||||
General and administrative expenses | 6,133 | 8,647 | (2,514) | (29.1) | % | |||||||||||||||||||||
Depreciation and amortization | 1,060 | 2,512 | (1,452) | (57.8) | % | |||||||||||||||||||||
Total operating costs and expenses | 50,305 | 57,881 | (7,576) | (13.1) | % | |||||||||||||||||||||
Operating income | 2,992 | 2,903 | 89 | 3.1 | % | |||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||
Interest income | — | 34 | (34) | (100.0) | % | |||||||||||||||||||||
Interest expense | (3,110) | (3,135) | 25 | (0.8) | % | |||||||||||||||||||||
(Loss) gain on foreign currency transactions | (978) | 1,539 | (2,517) | (163.5) | % | |||||||||||||||||||||
Other income (expense) | 7 | — | 7 | |||||||||||||||||||||||
Total other expense, net | (4,081) | (1,562) | (2,519) | 161.3 | % | |||||||||||||||||||||
(Loss) income before income taxes | (1,089) | 1,341 | (2,430) | (181.2) | % | |||||||||||||||||||||
Income tax expense(1)
|
(1,601) | (1,485) | (116) | 7.8 | % | |||||||||||||||||||||
Net loss | $ | (2,690) | $ | (144) | $ | (2,546) | 1768.1 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||
Revenue | $ | 164,929 | $ | 174,968 | $ | (10,039) | (5.7) | % | ||||||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||
Cost of revenue, exclusive of depreciation and amortization | 104,603 | 109,223 | (4,620) | (4.2) | % | |||||||||||||||||||||
Sales and marketing expenses | 3,474 | 3,202 | 272 | 8.5 | % | |||||||||||||||||||||
Customer service expenses | 5,605 | 5,834 | (229) | (3.9) | % | |||||||||||||||||||||
Technical operations and development expenses | 14,889 | 14,139 | 750 | 5.3 | % | |||||||||||||||||||||
General and administrative expenses | 21,548 | 23,870 | (2,322) | (9.7) | % | |||||||||||||||||||||
Depreciation and amortization | 5,648 | 7,165 | (1,517) | (21.2) | % | |||||||||||||||||||||
Impairment of intangible assets and goodwill | 32,086 | — | 32,086 | |||||||||||||||||||||||
Total operating costs and expenses | 187,853 | 163,433 | 24,420 | 14.9 | % | |||||||||||||||||||||
Operating (loss) income | (22,924) | 11,535 | (34,459) | (298.7) | % | |||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||
Interest income | — | 74 | (74) | (100.0) | % | |||||||||||||||||||||
Interest expense | (10,352) | (9,987) | (365) | 3.7 | % | |||||||||||||||||||||
(Loss) gain on foreign currency transactions | (2,122) | 1,332 | (3,454) | (259.3) | % | |||||||||||||||||||||
Other (expense) income | (11) | 200 | (211) | (105.5) | % | |||||||||||||||||||||
Total other expense, net | (12,485) | (8,381) | (4,104) | 49.0 | % | |||||||||||||||||||||
(Loss) income before income taxes | (35,409) | 3,154 | (38,563) | (1222.7) | % | |||||||||||||||||||||
Income tax expense(1)
|
(22,812) | (4,626) | (18,186) | 393.1 | % | |||||||||||||||||||||
Net loss | $ | (58,221) | $ | (1,472) | $ | (56,749) | 3855.2 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Net loss | $ | (2,690) | $ | (144) | $ | (58,221) | $ | (1,472) | ||||||||||||||||||
Net interest expense | 3,110 | 3,101 | 10,352 | 9,913 | ||||||||||||||||||||||
Loss (gain) on foreign currency transactions | 978 | (1,539) | 2,122 | (1,332) | ||||||||||||||||||||||
Income tax expense | 1,601 | 1,485 | 22,812 | 4,626 | ||||||||||||||||||||||
Depreciation and amortization | 1,060 | 2,512 | 5,648 | 7,165 | ||||||||||||||||||||||
Impairment of intangible assets and goodwill | — | — | 32,086 | — | ||||||||||||||||||||||
Stock-based compensation expense | 482 | 1,506 | 2,098 | 3,850 | ||||||||||||||||||||||
Acquisition-related costs(1)
|
— | 81 | — | 1,545 | ||||||||||||||||||||||
Other costs(2)
|
412 | 635 | 1,822 | 1,557 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 4,953 | $ | 7,637 | $ | 18,719 | $ | 25,852 |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | ||||||||||||||||||||||||
Net cash provided by (used in): | ||||||||||||||||||||||||||
Operating activities | $ | 9,589 | $ | 13,367 | ||||||||||||||||||||||
Investing activities | (905) | (2,621) | ||||||||||||||||||||||||
Financing activities | (16,766) | (12,320) | ||||||||||||||||||||||||
Net change in cash and cash equivalents and restricted cash | $ | (8,082) | $ | (1,574) |
Incorporated by Reference |
Filed/Furnished
Herewith
|
|||||||||||||||||||||||||||||||||||||
Exhibit
Number
|
Description | Form | File No. |
Exhibit
Filing Date
|
Exhibit No. | |||||||||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||||||||||||||
32.1 | X | |||||||||||||||||||||||||||||||||||||
32.2 | X | |||||||||||||||||||||||||||||||||||||
101.1 |
The following financial statements from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, formatted in Extensible Business Reporting Language (“XBRL”):
•unaudited condensed consolidated balance sheets;
•unaudited condensed consolidated statements of operations and comprehensive loss;
•unaudited condensed consolidated statements of shareholders’ equity;
•unaudited condensed consolidated statement of cash flows; and
•notes to unaudited condensed consolidated financial statements.
|
X | ||||||||||||||||||||||||||||||||||||
104 |
Cover Page Interactive Data File – the cover page
from this Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, is formatted in Inline XBRL and contained in Exhibit 101.1 |
** | The certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Form 10-Q and are not deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall they be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act. |
Spark Networks SE | |||||||||||
Date: November 15, 2021
|
By: | /s/ Eric Eichmann | |||||||||
Eric Eichmann | |||||||||||
Chief Executive Officer | |||||||||||
(Principal Executive Officer)
|
|||||||||||
Date: November 15, 2021
|
By: | /s/ David Clark | |||||||||
David Clark | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer and Principal Accounting Officer)
|
Date: November 15, 2021
|
By: |
/s/ Eric Eichmann
|
|||||||||
Eric Eichmann | |||||||||||
Chief Executive Officer |
Date: November 15, 2021
|
By: |
/s/ David Clark
|
|||||||||
David Clark
|
|||||||||||
Chief Financial Officer |
Date: November 15, 2021
|
By: |
/s/ Eric Eichmann
|
|||||||||
Eric Eichmann | |||||||||||
Chief Executive Officer |
Date: November 15, 2021
|
By: |
/s/ David Clark
|
|||||||||
David Clark | |||||||||||
Chief Financial Officer |