The Arena Group (AREN), the tech-driven media company operating more than 200 brands including Sports Illustrated, TheStreet, Parade Media, and HubPages, estimated that first-quarter gross profit more than tripled as revenue rose about 44%.
The company said in a statement that it registered a gross profit of around $20 million for the quarter, compared with $5 million in the year-earlier quarter.
Revenue climbed 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 don't include any contribution from AMG/Parade, which The Arena Group acquired after the first quarter ended.
"Our expected financial results for the first quarter continue to validate our platform and our strategy, enabling us to exceed expectations and drive higher revenue and substantial audience growth," Arena Group Chairman and CEO Ross Levinsohn said in a statement.
"Our first quarter, typically the slowest from a seasonal perspective, will significantly exceed analyst expectations. We are continuing to expand and generate 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 digital dollar of revenue that the company generates, more than 50% contributes to our gross profit.
"The investments we made over the past 18 months have now positioned our company to grow without any further substantial capital outlays. We continue to bolster our content, develop and leverage brand recognition, and exploit strong audience-development capabilities across a unified back-end system.
"Our expected financial results from the first quarter serve as powerful validation of our strategy, and we believe 2022 will be a year of significant growth."
The Arena Group expects to report full financial results for the first quarter on May 4.
