The Meet Group Inc. (NASDAQ: MEET) reported better-than-expected revenue and earnings for the third quarter of 2019, sending shares climbing by 8% in premarket hours on Thursday.
Total revenue jumped 15% year-over-year to $52.6 million, beating estimates of $51.8 million.
GAAP net income was $3 million, or $0.04 per share, compared to $1.3 million, or $0.02 per share, in the prior year quarter. Adjusted net income was $10.1 million, or $0.13 per share, which was ahead of forecasts of $0.12 per share.
During the quarter, video revenue grew approx. 85% from the prior-year period to $20.3 million. Global average revenue per daily active video user was $0.27. The company had an average of 829,000 daily video users across its apps in the quarter.
Geoff Cook, CEO, said, “With the launch of Streamer Levels and one-on-one video chat, we are giving users even more reasons to engage in video. Just last week we further expanded our product portfolio with the launch of NextDate, our new livestreaming dating game. While early, in markets where NextDate is available, we’re seeing an approximately 20% increase in daily video users versus September, the month prior to launch.”
Meet saw strong results in advertising during the third quarter. Mobile ad revenue, which comprises approx. 90% of total advertising revenue, grew year-over-year for the first time since Q1 2017. The company anticipates this positive momentum to continue in the fourth quarter of 2019 and throughout 2020.
For the fourth quarter of 2019, revenue is estimated in the range of $56.9 million to $58.4 million. For the full year of 2019, revenue is expected to come in the range of $211 million to $212.5 million.
In the fourth quarter, video revenue is expected to increase by 10-16% sequentially as new products and features help in increasing user engagement. In October, the company saw solid growth in video revenue and this growth is expected to continue in November and December.
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