Meet Group | Designed to Meet the Universal Need for Human Connections
Founded in 2005, Meet Group Inc (MEET) offers a portfolio of mobile social
entertainment apps designed to meet the universal need for human connection. It
includes a powerful live-streaming video platform, empowering the global
community to forge meaningful connections. The Company’s primary apps include,
MeetMe, LOVOO, Skout, and Tagged, which keeps millions of daily active users entertained
and engaged, and originates a number of casual chats, friendships, dates, and
marriages. The Meet Group’s portfolio of apps, is
particularly popular among millennial's and Generation X and the Meet Group apps
are available on iPhone, iPad, and Android in multiple languages. Through these
innovative apps, users can stream live video, send gifts, chat, and share
The newest game app from MEET is ‘Battles’, which
offers live competitions for the best dancer, musician or comedian, among other
categories. The app brings large audiences and participants together.
Each ‘battle’ lasts just a few minutes, and the winner is the streamer earning
more diamonds, by receiving gifts from viewers during the battle period. Battles
brings together two live-streamers and their audiences for a live competition,
whether it be for best dancer, musician or comedian.
transformed its business from a predominantly advertising model, enabling
marketers to display their advertisements in different formats and in different
locations, to now generating the majority of revenue from user pay sources. These include subscriptions and in-app
purchases for virtual gifts as part of its video live-streaming product.
In the second
quarter of 2018, 60% of revenue was derived from user pay, versus 26% in the
second quarter of 2017. Livestreaming video revenue has become an increasingly
important component of revenue and growth and the product has been rolled out
to all of the Company's main apps . Livestreaming
video grew from virtually $0 to more than $82mn annualised revenue run-rate for
the month of February 2019 .
confidence in Meet Group Inc. helped
to lift shares by about a third since Christmas, and the company got another
boost recently, as the app developer topped its forecasts for both revenue and
adjusted Ebitda in the fourth quarter, according to preliminary results .
Live Streaming Functionality Proves Lucrative
The Meet Group saw the growth of live
streaming in China and the parallels between their platforms and MOMO, and
decided to follow the MOMO model, adding live streaming functionality to their
existing platforms. Since adopting a similar model, The Meet Group has
experienced a similar growth trajectory, with their live video results to date
almost mimicking MOMO’s. The Meet Group has
learnt from China’s mature live streaming industry, helping it develop features
similar to MOMO’s Quickchat and PK (on The Meet Group platforms titled Quick
and Battles) but innovating within these features to make them work for a
mission to build the best place to meet new people, through novel approaches, Gaming
apps such as Battles enable connection around talent. Meet believes the
competitive dynamic helps strengthen the relationships between streamers and
their fans. Battles, sometimes referred to as PK in Asian live-streaming apps
such as MOMO and YY, is a mainstay of monetisation for those apps.
to Battles, MEET has a pipeline of features aimed at increasing video monetisation.
Its 12 Days of Gifting holiday campaign, includes exclusive holiday-themed
gifts, aimed at maximising gifting in the peak of the holiday season.
Meet’s new video revenue stems from in-app purchases users make to
buy and give “gifts” like a virtual race car, and when a popular live-streamer
acquires the equivalent of more than $200 worth, they can redeem for cash. A
very small subset make thousands a month, put on sophisticated live-streams like
dating games, art shows and cooking shows.
Meet has built its portfolio of five dating apps through
acquisitions, with the $11.8 million deal to buy niche gay dating app Growlr
being the most recent, a new segment of users it hasn’t reached before. Further,
an acquisition of Lovo also means reaching the European market.
Find out more about the HAN-GINS Innovative Technologies UCITS ETF (ITEK).
As of 30th July 2019, the HAN-GINS Innovative Technologies UCITS ETF (ITEK) held 0.86% of its weight in The Meet Group.
Read our ITEK Whitepaper "The 4th Industrial Revolution" here.
Article Date: 17th May 2019.