The Meet Group Reports Third Quarter 2019 Financial Results

Meet Group
  • Tuesday, November 26 2019 @ 12:04 pm
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The Meet Group, a leading provider of mobile apps and services with a focus on livestreaming, has released financial results for its third quarter of 2019. The Meet Group’s portfolio of dating and social networking brands includes MeetMe, LOVOO, Skout, Tagged and Growlr.

For the third quarter 2019, The Meet Group reported the following financial highlights:

  • Total revenue of $52.6 million, up 15% from the prior year quarter
  • GAAP net income of $3 million, or $0.04 per diluted share, compared to a GAAP net income of $1.3 million or $0.02 per diluted share in the prior year quarter
  • Adjusted EBITDA of $11 million, compared to Adjusted EBITDA of $8.7 million in the prior year quarter
  • Non-GAAP net income of $10.1 million, or $0.13 per diluted share, compared to $7.6 million, or $0.10 per diluted share, in the prior year quarter

“We had a strong third quarter and we are off to a good start in the fourth quarter,” said Geoff Cook, Chief Executive Officer of The Meet Group. “Our product strategy and execution contributed to growing revenue and adjusted EBITDA, resulting in record-high free cash flow in the third quarter that we used to repurchase our stock.”

Video has been a primary focus for The Meet Group this year. In July, the company launched one-on-one video chat to give users a better way to get to know someone safely without exchanging phone numbers. It also launched Streamer Levels, a feature that awards points to livestreamers according to how many viewers are in their audience.

The Meet Group’s latest launch is NextDate, a livestreaming dating game that gives gives streamers on MeetMe and Skout the chance to star in their own speed dating show while broadcasting to a live audience. Streamers get 90 seconds to chat to each contestant and assess if they are compatible. When the time is up, they must decide whether to say yes to the match or move on to the next person in the queue. Viewers can share their thoughts on each match by commenting, sending virtual gifts or voting using the Love-o-meter rating system.

“Video revenue for the third quarter grew approximately 85% from the prior year quarter to $20.3 million,” continued Cook. “Global average revenue per daily active video user was $0.27 cents in the quarter, and across our apps we had an average of 829,000 daily video users (20% of our total mobile daily active users where video is available).”

The Meet Group expects November and December video revenue to continue to increase from October as new products and features contribute to increasing user engagement. The company also plans to continue repurchasing shares of its stock according to its share repurchase plan authorized in June 2019.

“Looking to the fourth quarter and longer term, we believe we have compelling products that position us well for future growth,” Cook said. “We remain confident that our product pipeline and capital allocation strategy will continue to deliver value to our shareholders.”