Leaf Group Announces Preliminary Fourth Quarter 2020 Results
The Company Records Highest Quarterly Revenue in Seven Years;
Society6 Group Posts Record Quarterly Revenue and New Customers
SANTA MONICA, Calif., Jan. 06, 2021 (GLOBE NEWSWIRE) -- Leaf Group Ltd. (NYSE: LEAF), a diversified consumer internet company, today provided a financial update. Leaf Group’s fourth quarter 2020 revenue grew over 40% year-over-year – marking its highest quarterly revenue since fiscal year 2013 – reflecting strong growth for Society6 Group and Saatchi Art Group through the end of December 2020, partially offset by lower Media revenue.
“We are proud that Leaf Group delivered another strong quarter in Q4 2020, coming on the heels of our historic revenue growth in Q2 and Q3 of this past year,” said Sean Moriarty, CEO of Leaf Group. “The uncertain macroeconomic environment of 2020 was not without its challenges, but the resilience of our brands and the durability of our portfolio strategy positioned us to deliver outstanding results quarter after quarter this year. Our record new customer growth for both Society6 Group and Saatchi Art Group, the strength of Society6 Group in the $50 billion U.S. online home goods market, and large audience across our digital brands sets us up well for continued success in 2021 and beyond.”
- Society6 Group Gross Transaction Value (GTV)(1) increased over 100% year-over-year in the fourth quarter 2020, driven by overall Direct-to-Consumer (DTC) GTV
growth of over 105%, including over 120% growth in the U.S. and over 45% growth internationally. Society6 Group experienced strong demand throughout the holiday period and across its main
categories of Wall Art, Home Décor, and Tech Accessories. In addition, Society6 Group acquired record new customers in Q4 2020.
- Saatchi Art Group GTV(1) increased over 20% in Q4 2020, driven by strength in Saatchi Art Online with GTV growth of over 45% and the recently-launched The Other Art Fair
Online Studios, partially offset by the postponement or cancellation of its live fairs for the fourth quarter of 2020. In addition, Saatchi Art Online set a record for GTV in Q4 2020.
- Media revenue declined approximately 20% year-over-year in the fourth quarter of 2020 partially due to election-related softness for our lifestyle brands.
“Consumer behavior is continuing to shift online in our main categories of Home, Art & Design and Fitness & Wellness, positioning the company for strong sustained growth. In Q4, we reinvested in new customer acquisition for Society6 resulting in record new customers for the brand, an increase of 14% over our previous record set in Q3 2020,” added Brian Gephart, CFO of Leaf Group. “Our Q4 2020 results have further increased our confidence in surpassing the previously provided 2022 targets of more than $250 million in revenue and $20 million in Adjusted EBITDA, and we expect to provide an update on our outlook in the upcoming Q4 2020 earnings call.”