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Market Overview

XO Group Reports Third Quarter 2018 Financial Results

Share:

- Total revenue increased 6% in the third quarter

- Local Marketplace and Transactions revenue increased 18% and 23% in
the third quarter, respectively

- Third quarter GAAP net income per diluted share was $0.17; Non-GAAP
net income per diluted share was $0.19

- Proposed merger with WeddingWire, Inc. expected to close in the
first half of 2019

XO Group Inc. (the "Company") (NYSE:XOXO, xogroupinc.com)),
today reported financial results for the three and nine months ended
September 30, 2018.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20181101006095/en/

Total revenue for the third quarter of 2018 was $43.1 million, up 6%
from $40.6 million reported during the same period in the prior year.
Net income for the quarter was $4.3 million or $0.17 per diluted share
compared to diluted earnings per share of $0.14 in the same period in
the prior year. Non-GAAP adjusted EBITDA for the quarter was $9.8
million or 23% of revenue. Non-GAAP net income per share for the quarter
was $0.19 compared to $0.14 in the same period in the prior year. The
Company's balance sheet at September 30, 2018 reflects cash and cash
equivalents of $123.0 million compared to $106.1 million at December 31,
2017.

"I want to thank the team for their good work this quarter, during which
our growth businesses, Local Marketplace and Transactions, grew 19%
year-over-year. We believe our products continue to delight our users
and drive increased engagement: The Knot Planner app exceeded more than
1 million installs for the year, already surpassing the total for all of
2017. We are focused on maintaining this strong momentum across our
platforms as we finish the year and head into 2019," said Mike Steib,
Chief Executive Officer.

Long-Term Financial Targets

XO Group is not providing long-term financial targets due to its
announced pending merger with WeddingWire, Inc.

Conference Call Details

In light of the pending merger announced on September 25, 2018, XO Group
will not be hosting a conference call to discuss its results for the
third quarter of 2018. More information on the Company's third quarter
results can be found in XO's Form 10-Q for the three and nine months
ended September 30, 2018. More details on the pending transaction can be
found on XO Group's investor relations site, ir.xogroupinc.com.

               

XO GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except for share and per share data)

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

2018         2017 2018         2017
 
Net revenue $ 43,057 $ 40,609 $ 124,516 $ 120,351

Costs and expenses (exclusive of depreciation
and
amortization, shown separately below):

Cost of revenue 1,793 2,307 6,050 7,133
Product and content development 12,620 11,131 35,445 34,137
Sales and marketing 13,187 12,197 38,967 39,761
General and administrative 9,075 7,809 23,307 23,740
Depreciation and amortization 1,350   1,565   4,664   5,234  
Total costs and expenses 38,025 35,009 108,433 110,005
Income from operations 5,032 5,600 16,083 10,346
Loss in equity interests (24 ) (33 )
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