The Meet Group (NASDAQ: MEET) has released its Q2 earnings for 2018.
Revenue was up 37% year-on-year to $42.8 million, while adjusted EBITDA rose 3% to $7.6 million, up 3% from the prior year quarter.
The company reported a GAAP net loss of $0.2 million, a change from a $0.9 million net income in the prior year quarter.
“Our strong momentum continued into the second quarter,” said Geoff Cook, Chief Executive Officer.
“We made outstanding progress in video and reported better than anticipated results in advertising, contributing to growth in revenue and Adjusted EBITDA. Combined with our recent rollout of Live to Lovoo and the beta launch on MeetMe of Quick, our new 1-on-1 livestreaming feature, we believe we have set the stage for sustainable long-term revenue growth.
“Our investment in livestreaming video continues to yield strong results,” continued Cook.
“The number of video users and video revenue per user both increased sequentially. In less than two years, Live has become foundational to our business, central to our user experience and a key driver of our improving financial performance. No product in our history has grown faster and none has transformed our company to the degree that Live has.
What’s more, we have further diversified our business and are now generating 60% of our revenue from user pay, up from 26% in the year ago quarter. In July alone, we increased the annualized revenue run rate for video to $37 million, up from $35 million in June. Having now rolled out Live to all of our apps, we believe the opportunity to continue to grow video engagement and revenue is significant.”
The Meet Group uncovered a raft of new features alongside its earnings call, including chat-based gifting, 1-to-1 video chats and livestreamer ‘Battles’.
The firm is also working on “a more prominent placement of incented video which we believe will drive monetization. This follows the initial success we saw from testing incented video and seeing users willingness to watch videos for credits.”
Shout Out is also in the pipeline – a new way to promote users’ messages in the chat box.
Read more here.