The Meet Group's Strong Second Quarter Isn't Enough
It's been a rough year for The Meet Group (NASDAQ: MEET), bucking the trend of generally buoyant social media stocks in 2019. The company behind MeetMe, Skout, and other social discovery and online dating platforms has been weak since a New York Post article detailed concerns about behavior that was risque (if not illegal) on its live-streaming platforms. The Meet Group defended its user safety position, but now the shares are taking another hit after the company posted a disappointing financial report.
Revenue rose 22% to hit $52 million in the second-quarter results announced on Wednesday morning, ahead of the $50.3 million to $51.4 million it was forecasting for the period back in May. Adjusted EBITDA and earnings rose even higher. The Meet Group's adjusted net income of $0.11 a share landed just ahead of the $0.10 that analysts were expecting.
The deal breaker for investors came in The Meet Group's guidance. It's eyeing $50.5 million to $51 million on its top line for the current quarter, leading investors to wonder if the sequential decline in revenue is the result of seasonality or something more problematic.
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