Leaf Group Reports Increased Revenue in Second Quarter Results

Diversified consumer internet company, Leaf Group (NYSE:LFGR) reported its financial results for the second quarter ended June 30, 2018 with the company posting an increase in revenue of 20 percent in the year-over-year period.

The company said that its increase in revenues from US$28.6 million to US$34.3 million was due to an 11 percent increase in marketplaces revenue and 35 percent increase in media revenue.

As quoted in the press release:

For the second quarter of 2018:

• Marketplaces revenue increased 11% year-over-year from $17.7 million to $19.7 million due to an 11% increase in Society6 Group revenue, inclusive of Deny Designs, and a 12% increase in Saatchi Art Group revenue, inclusive of The Other Art Fair.
• Society6 Group revenue growth was driven by an increase in average order value as a result of continued promotional discipline.
• Saatchi Art Group revenue growth was driven by a 40% revenue increase on Saatchi Art as a result of increased transactions and higher average order value, offset by lower revenue from The Other Art Fair with one art fair hosted in the current period as compared to three fairs in the prior year period.

• Media revenue increased 35% year-over-year from $10.9 million to $14.7 million. The increase in Media revenue was a result of improved revenue per visit and revenue attributable to Well+Good acquired in June 2018.

• Net loss was $(6.3) million for the quarter, improving 30% year-over-year and Adjusted EBITDA was $(0.6) million for the quarter, improving 84% year-over-year.

• Cash and cash equivalents was $32.0 million at period end with no debt outstanding.

• On a consolidated basis, Leaf Group’s properties reached 55 million monthly unique visitors in the U.S. in June 2018 (source: Jun 2018 U.S. comScore).

Click here for the full press release.