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Leaf Group Reports Second Quarter 2018 Results

Santa Monica, CA - Leaf Group Ltd. (NYSE: LFGR), a diversified consumer internet company, today reported financial results for the second quarter ended June 30, 2018.

Q2 2018 Financial Summary

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

For the second quarter of 2018:

  • Total revenue increased 20% year-over-year from $28.6 million to $34.3 million due to an 11% increase in Marketplaces revenue and a 35% increase in Media revenue.
  • 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).
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