The Enterprise Information Best Quarterly Profits in 7 Years
Society6 Team Posts File Quarterly Income and New Buyers
SANTA MONICA, Calif., Jan. 06, 2021 (Globe NEWSWIRE) — Leaf Group Ltd. (NYSE: LEAF), a diversified consumer web corporation, today provided a economic update. Leaf Group’s fourth quarter 2020 profits grew above 40% 12 months-above-12 months – marking its highest quarterly income because fiscal year 2013 – reflecting solid advancement for Modern society6 Team and Saatchi Artwork Group by way of the conclusion of December 2020, partly offset by reduce Media income.
“We are very pleased that Leaf Group sent an additional robust quarter in Q4 2020, coming on the heels of our historic earnings advancement in Q2 and Q3 of this past year,” mentioned Sean Moriarty, CEO of Leaf Group. “The unsure macroeconomic ecosystem of 2020 was not devoid of its problems, but the resilience of our brands and the durability of our portfolio strategy positioned us to supply superb outcomes quarter right after quarter this yr. Our history new buyer expansion for each Society6 Team and Saatchi Artwork Team, the energy of Society6 Group in the $50 billion U.S. on line dwelling merchandise industry, and large viewers throughout our digital models sets us up very well for continued results in 2021 and outside of.”
- Culture6 Group Gross Transaction Worth (GTV)(1) improved above 100% yr-more than-yr in the fourth quarter 2020, driven by general Immediate-to-Buyer (DTC) GTV progress of over 105%, such as around 120% advancement in the U.S. and around 45% advancement internationally. Society6 Team professional strong need through the holiday break period and across its main types of Wall Art, Household Décor, and Tech Extras. In addition, Modern society6 Group obtained history new prospects in Q4 2020.
- Saatchi Art Team GTV(1) greater around 20% in Q4 2020, pushed by power in Saatchi Art On line with GTV growth of around 45% and the not too long ago-introduced The Other Art Reasonable On the net Studios, partially offset by the postponement or cancellation of its are living fairs for the fourth quarter of 2020. In addition, Saatchi Art On the internet established a record for GTV in Q4 2020.
- Media profits declined about 20% calendar year-about-yr in the fourth quarter of 2020 partly owing to election-related softness for our life-style models.
“Consumer behavior is continuing to change on-line in our key categories of Home, Art & Layout and Conditioning & Wellness, positioning the corporation for powerful sustained growth. In Q4, we reinvested in new client acquisition for Modern society6 ensuing in record new prospects for the brand name, an maximize of 14% over our previous report set in Q3 2020,” additional Brian Gephart, CFO of Leaf Group. “Our Q4 2020 results have further more elevated our self-confidence in surpassing the earlier offered 2022 targets of additional than $250 million in earnings and $20 million in Modified EBITDA, and we be expecting to provide an update on our outlook in the upcoming Q4 2020 earnings call.”
Leaf Team expects to announce total fourth quarter and total 12 months ended December 31, 2020 fiscal outcomes in the common training course.
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(1) Gross transaction value: Gross transaction value is described as the total greenback worth of Society6 Team and Saatchi Art Team transactions, respectively (excluding, in the situation of Saatchi Artwork Group, the revenue from sure transactions created by Saatchi Art’s The Other Artwork Fair, which include things like sales of stand house to artists at fairs, sponsorship fees and ticket sales). Gross transaction benefit is the complete amount paid out by the customer for a Society6 product or service or Saatchi Art Group artwork, respectively, which is made up of the next elements: the merchandise price, inclusive of the fee payable to the artist, shipping and delivery prices, and gross sales taxes, considerably less any marketing discounts. Gross transaction benefit does not mirror any subsequent cancellations, refunds or credits and does not characterize earnings earned by Leaf Group.
About Leaf Team:
Leaf Group Ltd. (NYSE: LEAF) is a diversified consumer world wide web company that builds enduring, creator-driven manufacturers that reach passionate audiences in huge and developing way of life groups, including fitness and wellness (Effectively+Superior, Livestrong.com and MyPlate App), and dwelling, artwork and layout (Saatchi Art, Modern society6 and Hunker). For a lot more details about Leaf Team, visit www.leafgroup.com.
Cautionary Info With regards to Forward-Hunting Statements
This push release consists of “forward-seeking statements” inside of the that means of the secure harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The ahead-seeking statements set forth in this push release consist of, among other items, statements concerning the Company’s preliminary fiscal outcomes, the Company’s long term financial effectiveness, the Company’s economic targets for upcoming periods, and the Company’s small business and operational tactic. In addition, statements that contains words these as “may,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “project,” “projections,” “business outlook,” “estimate,” “targets,” “guidance,” “guideposts,” or related expressions represent forward-hunting statements. Genuine outcomes may perhaps vary materially from the effects predicted, and described success should not be thought of an indicator of foreseeable future effectiveness. These ahead-wanting statements contain dangers and uncertainties concerning the Company’s upcoming economical performance could induce true effects or developments to vary materially from those people indicated due to a amount of elements affecting Leaf Group’s operations, marketplaces, products and solutions and expert services and are dependent on current anticipations, estimates and projections about the Company’s industry, fiscal issue, operating overall performance and benefits of operations, together with certain assumptions linked thereto. Prospective risks and uncertainties that could have an effect on the Company’s functioning and monetary results are explained in Leaf Group’s once-a-year report on Variety 10-K for the fiscal calendar year ending December 31, 2019 submitted with the Securities and Exchange Fee (http://www.sec.gov) on March 16, 2020, as these kinds of threats and uncertainties may possibly be up to date from time to time in Leaf Group’s quarterly reviews on Type 10-Q filed with the Securities and Trade Commission. These pitfalls and uncertainties incorporate, among the some others: dangers linked with political and financial instability domestically and internationally such as those ensuing from the COVID-19 pandemic the Company’s means to retain compliance with the ongoing listing standards of the New York Inventory Exchange the Company’s means to acquire forgiveness of its Paycheck Security System loan the Company’s means to effectively drive and raise traffic to its marketplaces and media properties the Company’s potential to attract new and repeat customers and artists to its marketplaces and properly develop its market firms the opportunity effect on promotion-dependent income from decrease advert unit premiums, a reduction in online promotion paying out, a loss of advertisers, lower advertising yields, enhanced availability of ad blocking computer software the Company’s dependence on several agreements with a particular small business associate for a substantial part of its promoting profits the Company’s history of incurring web functioning losses the Company’s means to acquire capital when preferred on f
avorable terms the Company’s capacity to effectively combine, regulate, run and develop acquired organizations the Company’s ability to crank out prolonged-time period worth for its stockholders and any upcoming steps that might be taken by activist stockholders. From time to time, the Corporation might contemplate acquisitions or divestitures that, if consummated, could be product. Any ahead-hunting statements relating to financial metrics are based mostly upon the assumption that no these types of acquisition or divestiture is consummated through the applicable intervals. If an acquisition or divestiture were consummated, precise final results could vary materially from any ahead-on the lookout statements. Any ahead-seeking assertion made by the Organization in this push launch is primarily based only on info presently obtainable to the Business and speaks only as of the day on which it is designed. The Company undertakes no obligation to revise or update any ahead-looking information, regardless of whether created or oral, that may possibly be built from time to time, irrespective of whether as a final result of new information and facts, long term developments or normally, apart from as required by law, and may well not supply this variety of details in the upcoming.
Investor Get in touch with:
Shawn Milne
SVP Corporate Finance and Trader Relations
(310) 656-6346
[email protected]
Media Get hold of:
Sharna Daduk
Vice President, Communications
[email protected]