The Meet Group Reports Q2 2019 Financial Results

Meet Group
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The Meet Group, parent to an ecosystem of social networking and dating apps focused on livestreaming, has released financial results for the second quarter of 2019. The Meet Group’s portfolio of brands includes MeetMe, LOVOO, Skout, Tagged, and Growlr.

For Q2 2019, the Meet Group reported revenue of $52 million, an increase of $9.2 million (or 22%) from $42.8 million in the second quarter of 2018. GAAP net income for the period was $2.2 million ($0.03 per diluted share) compared to a GAAP net loss of $0.2 million ($0.00 per diluted share) in the prior year quarter. Adjusted EBITDA for the second quarter of 2019 was $9.8 million, compared to $7.6 million in the second quarter of 2018. Non-GAAP net income for the second quarter of 2019 was $8.8 million ($0.11 per diluted share) compared to $6.4 million ($0.08 per diluted share) in the second quarter of 2018. The Meet Group ended the quarter with $26.1 million in cash and cash equivalents.

“Strong execution in video continued to drive our business growth,” said Geoff Cook, Chief Executive Officer of The Meet Group. “We grew revenue 22% from the prior year quarter to a new record high fueled by video revenue growth of 150% over the same period. We increased adjusted EBITDA by 29% and we generated $10.2 million in free cash flow – the highest quarterly free cash flow in our history.”

The Meet Group focused strongly on its core video products in Q2 2019. Average video revenue per daily active video user rose from $0.15 in the prior year quarter to $0.26 in the second quarter of 2019. Daily active video users grew to 892,000, roughly 21% of total users, on apps where Live is available.

Q2 2019 also saw the release of several new products and updates across The Meet Group’s platforms. Levels and 1x1 video chat debuted on MeetMe. The Meet Group also introduced a suite of new safety features, including more stringent content moderation standards and prominent abuse reporting. A comprehensive safety pledge system is in the works to educate users about dating and livestreaming safety.

“We believe these enhancements will set the foundation for the successful launch of our first livestreaming dating game in the fourth quarter of this year,” said Cook. "We believe that continuous improvements in our safety practices will provide a solid foundation on which we can grow video revenue over the long term, although we note that in the short-run we expect some pressure to video revenue as we educate our community on our updated processes.”

Looking ahead, The Meet Group will continue to focus on growing daily active video users and average video revenue per daily active video users as the company works towards its goal of $200 million of annualized video revenue by the end of 2021.