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Spark Networks Inc (LOV) filed Quarterly Report for the period ended 2011-09-30.
Spark Networks has a market cap of $65.6 million; its shares were traded at around $3.18 with a P/E ratio of 35.3 and P/S ratio of 1.7. Spark Networks had an annual average earning growth of 18.8% over the past 5 years.
This is the annual revenues and earnings per share of LOV over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of LOV.
Highlight of Business Operations:
Revenue increased 27.8% to $12.7 million in the third quarter of 2011 compared to $9.9 million in the third quarter of 2010. The increase can be attributed to higher subscription revenue in our Other Affinity Networks segment. Revenue for the Jewish Networks segment decreased 0.6% to $6.7 million in the third quarter of 2011 compared to $6.8 million in the third quarter of 2010. The decrease in revenue is primarily driven by a lower average paying subscriber base. Revenue for our Other Affinity Networks segment increased 108.3% to $5.7 million in the third quarter of 2011 compared to $2.7 million in the third quarter of 2010. The increase in revenue is due to an 83.7% increase in average paying subscribers and a 12.3% increase in average revenue per user, (ARPU). The higher average paying subscriber base is primarily driven by a 245.2% increase in direct marketing investment while the higher ARPU reflects a shift in the mix of plans purchased by our subscribers and their related price points as we shifted our focus to a select group of brands within this segment.Cost of Revenue. Cost of revenue consists primarily of direct marketing costs, compensation and other employee-related costs (including stock-based compensation) for personnel dedicated to maintaining our data centers, data center expenses and credit card fees. Cost of revenue increased 130.0% to $7.4 million for the three months ended September 30, 2011, compared to $3.2 million for the same period in 2010. Direct marketing expenses increased 165.0% to $6.5 million for the three months ended September 30, 2011, compared to $2.5 million for the same period in 2010. The majority of this increase can be attributed to higher marketing investments in select Web sites affiliated with our Other Affinity Networks Segment. Direct marketing expenses for the Jewish Networks segment increased 34.5% to $936,000 in the third quarter of 2011 compared to $696,000 in the third quarter of 2010. The increase reflects higher offline marketing investments. Direct marketing expenses for the Other Affinity Networks segment increased 245.2% to $5.5 million for the third quarter of 2011 compared to $1.6 million in the third quarter of 2010, reflecting an increase in online and offline marketing expenses and a shift in brand focus.
Revenue increased 15.9% to $35.6 million in the first nine months of 2011 compared to $30.7 million in the first nine months of 2010. The increase can be attributed to higher subscription revenue in our Other Affinity Networks segment. Revenue for the Jewish Networks segment decreased 0.8% to $20.4 million in the first nine months of 2011 compared to $20.5 million in the first nine months of 2010. Revenue for our Other Affinity Networks segment increased 66.4% to $14.1 million in the first nine months of 2011 compared to $8.5 million in the first nine months of 2010. The revenue increase is due to a 50.3% increase in average paying subscribers and an 11% increase in ARPU. A 205.2% increase in direct marketing expense for the first nine months of 2011 accounted for the majority of growth in average paying subscribers. The higher ARPU reflects a shift in the mix of plans purchased by our subscribers and their related price points as we shifted our focus to a select group of brands within this segment.
Cost and expenses consist primarily of cost of revenue, sales and marketing, customer service, technical operations, development and general and administrative expenses. Cost and expenses for the nine months ended September 30, 2011 were $36.1 million, an increase of 40.5% compared to $25.7 million for the nine months ended September 30, 2010. The increase is primarily attributable to a $10.8 million increase in cost of revenue, offset by a $644,000 decrease in general and administrative expenses.
Cost of Revenue. Cost of revenue consists primarily of direct marketing costs, compensation and other employee-related costs (including stock-based compensation) for personnel dedicated to maintaining our data centers, data center expenses and credit card fees. Cost of revenue increased 110.7% to $20.5 million for the nine months ended September 30, 2011 compared to $9.7 million for the same period in 2010. Direct marketing expenses increased 142.2% to $18.1 million for the nine months ended September 30, 2011, compared to $7.5 million for the same period in 2010. The majority of this increase can be attributed to an increase in online and offline marketing investments for the Jewish Networks and the Other Affinity Networks segments. Direct marketing expenses for the Jewish Networks segment increased 41.8% to $2.5 million in the nine months ended September 30, 2011 compared to $1.7 million in the nine months ended September 30, 2010. Direct marketing expenses for the Other Affinity Networks segment increased 205.2% to $14.8 million for the nine months ended September 30, 2011 compared to $4.9 million in the nine months ended September 30, 2010. The increase in direct marketing spend can be attributed to an increase in online and offline marketing investments.
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