Spark Networks, Inc. (LOV) saw its loss widen to $3.72 million, or $0.12 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $1.24 million, or $0.05 a share.
Revenue during the quarter dropped 27.67 percent to $7.74 million from $10.70 million in the previous year period. Gross margin for the quarter expanded 2538 basis points over the previous year period to 67.17 percent. Operating margin for the quarter stood at negative 52 percent as compared to a negative 11.67 percent for the previous year period.
Operating loss for the quarter was $4.03 million, compared with an operating loss of $1.25 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.75 million compared with $0.12 million in the prior year period. At the same time, adjusted EBITDA margin improved 2154 basis points in the quarter to 22.63 percent from 1.08 percent in the last year period.
"We made clear progress in the fourth quarter to improve profitability and implement a unified technology platform across our networks as we work to reposition the business for the future," said Danny Rosenthal, Chief Executive Officer of Spark Networks. "The significant improvement in adjusted EBITDA in Q4 reflects our actions to reduce costs as we focus on driving operational efficiency and profitable growth in the future.
Working capital turns positive
Working capital of Spark Networks, Inc. has turned positive to $6.33 million on Dec. 31, 2016 from negative $1.99 million on Dec. 31, 2015. Current ratio was at 1.85 as on Dec. 31, 2016, up from 0.83 on Dec. 31, 2015.
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