Leaf Group Announces Preliminary Third Quarter 2020 Results
Records Highest Quarterly Revenue Growth Rate Since the Company’s 2011 IPO, Highest Quarterly Revenue Since FY2013
Society6 Group Posts Record Quarterly Revenue and New Customers
SANTA MONICA, Calif., Oct. 05, 2020 (GLOBE NEWSWIRE) -- Leaf Group Ltd. (NYSE: LEAF), a diversified consumer internet company, today provided a financial update. Leaf Group’s third quarter 2020 revenue grew over 50% year-over-year, reflecting strong Marketplaces growth through the end of September 2020, partially offset by lower Media revenue. Leaf Group’s third quarter 2020 revenue was its highest since fiscal year 2013, driven by its strongest year-over-year revenue growth rate since the Company went public in 2011.
- Society6 Group Gross Transaction Value (GTV) increased over 115% year-over-year in the third quarter 2020 driven by overall Direct-to-Consumer GTV growth of over 125%, including over 140% growth in the US and over 50% growth internationally. Society6 Group experienced strong eCommerce demand across all its main categories of Wall Art, Home Décor, and Technology and a record GTV quarter for Society6’s Business-to-Business segment. In addition, Society6 Group delivered record new customers in Q3 2020.
- Saatchi Art Group GTV increased over 30% in Q3 2020 driven by strength in the Saatchi Art online marketplace with GTV growth of over 70% and the recently-launched The Other Art Fair Online Studios, offset by the postponement or cancellation of its live fairs for the third quarter 2020. In addition, Saatchi Art online marketplace set an all-time high for quarterly GTV in Q3 2020.
- Media revenue declined approximately 13% year-over-year in the third quarter 2020, driven by improving trends in direct advertising sales compared to the second quarter of 2020.
- As of September 30, 2020, Leaf Group had over $30 million in cash and cash equivalents.
“We are very proud that Leaf Group delivered another record quarter,” said Sean Moriarty, CEO of Leaf Group. “Our performance in the third quarter of 2020 highlights the durability of our portfolio strategy as we continue to deliver outstanding results in a volatile macroeconomic environment. Consumer behavior is continuing to shift online especially in our main categories of Home, Art & Design and Fitness & Wellness, positioning the Company for sustained growth and free cash flow generation. We reiterate our 2022 Targets previously communicated in our Q2 2020 shareholder letter and earnings conference call of more than $250 million in revenue and $20 million in Adjusted EBITDA as guideposts for investors based on increased confidence in the growth and strength of our key brands and proven portfolio operating leverage. We expect that selective, strategic tuck-in acquisitions would be additive to these targets.”