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Leaf Group Reports First Quarter 2018 Results

Santa Monica, CA - Leaf Group Ltd. (NYSE: LFGR), a diversified consumer internet company comprised of several marketplace and media properties, today reported financial results for the first quarter ended March 31, 2018.

Q1 2018 Financial Summary

Leaf Group is comprised of two reporting segments: Marketplaces and Media.

For the first quarter of 2018:

  • Total revenue increased 24% year-over-year from $27.2 million to $33.7 million due to a 32% increase in Marketplaces revenue and a 12% increase in Media revenue.
  • Marketplaces revenue increased 32% year-over-year from $15.9 million to $21.0 million due to a 25% increase in Society6 revenue, inclusive of Deny Designs acquired in May 2017, and a 103% increase in Saatchi Art revenue, inclusive of The Other Art Fair.
  • Society6 revenue growth was driven by the acquisition of Deny Designs in May 2017 and an increase in average order value from price increases and a reduction in promotional discounts. *Saatchi Art revenue growth was driven by the introduction of three art fairs hosted by The Other Art Fair, increased conversion on Saatchi Art, and a higher commission rate on Saatchi Art initiated in Q2 2017.
  • Media revenue increased 12% year-over-year from $11.4 million to $12.8 million. The increase in Media revenue was primarily driven by a 25% increase in Livestrong revenue as a result of traffic growth and improved revenue per visit.
  • Net loss was $(5.9) million for the quarter, improving 41% year-over-year and Adjusted EBITDA was $(1.2) million for the quarter, improving 72% year-over-year, reflecting revenue growth in both Marketplaces and Media, reduced Media operating expenses, and a decrease in Marketplaces expenses as a percentage of revenue.
  • Cash and cash equivalents was $46.5 million at period end, reflecting $23.4 million in net proceeds from the follow-on offering of 3,373,332 shares of Leaf Group common stock completed in February 2018.
  • On a consolidated basis, Leaf Group’s properties reached over 54 million average monthly unique visitors in the U.S. during Q1 (source: Jan – Mar 2018 U.S. comScore).
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