Spark Networks SE (NASDAQ:LOV) Q4 2022 Earnings Call Transcript

Chelsea Grayson: Yes. Well, I mean, I’ll turn to David, I’m sorry.

Raj Sharma: No. And you’re moving away from – are you moving away from Zoosk or are you finding a new focus on non-Zoosk?

Chelsea Grayson: Yes, we’re – I think it’s not moving away necessarily to the point of abandonment, it’s just rebalancing where we think the dollar square legs, like I said, you know. David has tend to work with his group, and shown that it’s the – it’s a shorter and more predictable payback period on the non-Zoosk side of things and the LTV over there is you just get better bang for your buck. And so after taking a look at what he tested out with his group, it was – it felt to us like the move to go with and we’ve talked to other experts that have started to preliminarily, again, you know, as both David and I have said, we’re still in the process of assessing but it looks preliminarily that third party neutrals agree with us as well. So it seems intelligent to go down that path.

Raj Sharma: Got it. And then just last and maybe this is for David. So you were a net user of operating cash in the fourth quarter. When I think seasonally it’s a supposed to be a positive quarter. Is anything materially different there that happened?

David Clark: No, usually that probably falls out of – there probably was higher spend in the third quarter – there was higher spend the third quarter and the fourth quarter and we were just had had a use of cash to pay off those payables.

Raj Sharma: Got it. Thanks. I’ll get back in line. Thank you for answering my questions.

David Clark: Thanks Raj.

Operator: At this time, we are showing no further questions in the queue. I would like to turn the conference back over to management for any closing remarks.

Chelsea Grayson: Thanks everyone for your interest in Spark’s Networks and thank you for joining our call. We’ll see you on the next one and have a great day.

Operator: The conference has now concluded. Thank you for attending today’s presentation and you may now disconnect.