The Meet Group (MEET) Tops Q1 EPS by 1c, Revenues Beat; Offers Q2 & FY19 Revenue Outlook

The Meet Group (NASDAQ: MEET) reported Q1 EPS of $0.09, $0.01 better than the analyst estimate of $0.08. Revenue for the quarter came in at $49.5 million versus the consensus estimate of $47.8 million.

• Total revenue of $49.5 million, up 32% year over year.
• GAAP net income of $1.3 million, or $0.02 per diluted share, compared to a GAAP net loss of $4.2 million, or a loss of $0.06 per diluted share, in the prior year quarter.
• Adjusted EBITDA of $8.1 million, compared to Adjusted EBITDA of $5.2 million in the prior year quarter.
• Non-GAAP net income of $7.0 million, or $0.09 per diluted share, compared to $4.1 million, or $0.05 per diluted share, in the prior year quarter.

“Our strong progress in video continued in the first quarter,” said Geoff Cook, Chief Executive Officer of The Meet Group. “We grew video revenue to more than $20 million, a more than four-fold increase from the year ago quarter, and we set new records growing video revenue on each of our apps. Average video revenue per daily active video user increased to 26 cents, up from 18 cents in the fourth quarter of 2018, while approximately 20% of users engaged in video every day.

“Operationally, we completed the rollout of Battles in the quarter, with the launch on Tagged and Lovoo, and we made good progress integrating our newly acquired Growlr app. We improved operating efficiency from the year ago quarter, growing adjusted EBITDA margin by 250 basis points.

“We are excited at the many opportunities to drive video growth. Over the coming quarters we expect to bring new features and interactive video formats including 1x1 live video, a levels system to further gamify our livestreams, interactive games, and new shows, all of which we expect will contribute to engagement and monetization.

“In 2018 we drove growth by rolling out livestreaming video to new communities. In 2019, we expect to drive growth by executing on our product roadmap and enabling community and connection for our users. With 80% of our users still to reach with our video features and with new and interesting monetization projects on the horizon, we look forward to delivering new products that drive meaningful connections for our users.”

GUIDANCE:

The Meet Group sees Q2 2019 revenue of $50.3-51.3 million, versus the consensus of $51.27 million.

The Meet Group sees FY2019 revenue of $210-215 million, versus the consensus of $211.33 million.

For earnings history and earnings-related data on The Meet Group (MEET) click here.

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