The Arena group (AREN) – Get the report from The Arena Group Holdings Inc.the tech-focused media company that operates more than 200 brands, including Sports Illustrated, TheStreet, Parade Media and HubPages, estimated first-quarter gross profit more than tripled, with revenue rising about 44%.
The company said in a statement it posted gross profit of about $20 million for the quarter, compared to $5 million in the prior quarter.
Revenue soared to $47 million, up about $14 million from a year earlier. Digital advertising more than doubled, driving overall revenue growth, The Arena Group said.
The latest results do not include any contribution from AMG/Parade, which The Arena Group acquired after the end of the first quarter.
“Our expected first quarter financial results continue to validate our platform and strategy, enabling us to exceed expectations and drive higher revenue and substantial audience growth,” said the CEO of Arena Group, Ross Levinsohn, in a statement.
Scroll to continue
“Our first quarter, typically the slowest from a seasonal perspective, will significantly exceed analysts’ expectations. We continue to grow, drive efficiencies and grow our operating margins.
“During the fourth quarter of 2021, we reached an inflection point in our growth, and now, for every new dollar of digital revenue generated by the business, more than 50% contributes to our gross profit.
“The investments we have made over the past 18 months have now positioned our business to grow without further substantial capital outlay. We continue to strengthen our content, grow and leverage brand recognition, and leverage strong audience development capabilities through a unified back-end. system.
“Our expected first quarter financial results are a powerful validation of our strategy, and we believe 2022 will be a year of significant growth.”
Arena Group plans to release its full first quarter financial results on May 4.