What happened
Shares of The Meet Group (MEET) jumped on Thursday after the livestreaming company updated its outlook for the third quarter. The Meet Group raised its forecast for revenue, video revenue, and adjusted EBITDA. The stock was up about 19.6% at 12:10 p.m. EDT.
So what
The Meet Group now expects to report third-quarter revenue between $52.0 million and $52.3 million, up from a previous range of $50.5 million to $51.0 million. The company expects at least $20 million of video revenue, up from previous expectations of $19 million.
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"New features including streamer levels, VIP badges, first time buyer bonuses and one-on-one video chat are contributing to meaningful business results. Further, we believe that the moderation-related headwinds related to our recent safety enhancements are largely behind us," said The Meet Group CEO Geoff Cook in prepared remarks included in the press release.
Adjusted EBITDA is now expected between $10.4 million and $10.6 million in the third quarter, up from a previous range of $9.3 million to $9.5 million. The company expects an adjusted EBITDA margin of 20%.
Now what
On top of stronger-than-expected third-quarter numbers, the tech company expects a solid fourth quarter as well. "Given the ongoing stabilization in our advertising business, we anticipate a seasonally strong fourth quarter in advertising," said Cook.
The Meet Group will report its full third-quarter results in November.
