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Leaf Group Ltd. (LEAF)

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Previous Close5.04
Open5.12
Bid5.24 x 900
Ask5.26 x 1200
Day's Range5.03 - 5.34
52 Week Range1.03 - 7.62
Volume320,190
Avg. Volume484,180
Market Cap187.238M
Beta (5Y Monthly)1.88
PE Ratio (TTM)N/A
EPS (TTM)-0.32
Earnings DateMay 10, 2021 - May 14, 2021
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est8.25
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  • Benzinga

    Recap: Leaf Group Q4 Earnings

    Shares of Leaf Group (NYSE:LEAF) decreased in after-market trading after the company reported Q4 results. Quarterly Results Earnings per share were up 55.00% over the past year to ($0.09), which beat the estimate of ($0.12). Revenue of $64,973,000 rose by 44.07% from the same period last year, which beat the estimate of $63,600,000. Guidance Earnings guidance hasn't been issued by the company for now. Revenue guidance hasn't been issued by the company for now. Details Of The Call Date: Feb 25, 2021 View more earnings on LEAF Time: 05:00 PM ET Webcast URL: https://event.on24.com/eventRegistration/EventLobbyServlet?target=reg20.jsp&referrer=https%3A%2F%2Fir.leafgroup.com%2F&eventid=2947635&sessionid=1&key=62F4A0711EBF3BEDCB47DA385381E023®Tag=&V2=false&sourcepage=register Price Action 52-week high: $7.62 Company's 52-week low was at $1.03 Price action over last quarter: Up 5.26% Company Description Leaf Group Ltd is an internet marketplace and media company. The company has online media properties and marketplace platforms that enable communities of creators to reach audiences in lifestyle categories. It operates an online studio platform for the professional creation and distribution of content, as well as online artist marketplaces. Its business comprises two segments: Media and Marketplaces, of which the Marketplaces generates a higher revenue share. It is engaged in selling comparable products. Geographically, the company operates in the US and other international countries. See more from BenzingaClick here for options trades from BenzingaPCTEL: Q4 Earnings InsightsVicor: Q4 Earnings Insights© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Leaf Group Ltd. Reports Fourth Quarter and Full Year 2020 Results
    GlobeNewswire

    Leaf Group Ltd. Reports Fourth Quarter and Full Year 2020 Results

    SANTA MONICA, Calif., Feb. 25, 2021 (GLOBE NEWSWIRE) -- Leaf Group Ltd. (NYSE: LEAF), a diversified consumer internet company, today reported financial results for the fourth quarter and fiscal year ended December 31, 2020. Financial Summary(In thousands, except per share amounts) (unaudited) Three months ended Year ended December 31, December 31, 2020 2019 2020 2019Segment Revenue: Society6 Group $43,711 $22,446 $138,000 $73,852 Saatchi Art Group 5,665 3,825 17,063 15,773 Media Group 15,597 18,828 56,998 65,331 Total revenue $64,973 $45,099 $212,061 $154,956 Net loss $(2,673) $(5,305) $(8,860) $(26,838) EPS—basic and diluted $(0.09) $(0.20) $(0.32) $(1.03) Segment Operating Contribution: Society6 Group $876 $428 $8,152 $310 Saatchi Art Group 172 (770) (1,563) (2,492)Media Group 6,875 7,812 21,517 24,730 Deduct: Strategic shared services and corporate overhead (6,196) (7,682) (27,075) (30,025)Adjusted EBITDA(1) $1,727 $(212) $1,031 $(7,477) Net cash provided by (used in) operating activities $4,394 $4,475 $11,354 $(4,270)Free cash flow(1) $2,288 $2,642 $3,830 $(11,180) (1) These non-GAAP financial measures, and reasons for why the Company believes these non-GAAP financial measures are useful, are described below and reconciled to their most directly comparable GAAP measures in the accompanying tables. Q4 2020 Financial Summary: Leaf Group is comprised of three reporting segments: Society6 Group, Saatchi Art Group, and Media Group. For the fourth quarter of 2020: Total revenue increased 44% year-over-year from $45.1 million to $65.0 million due to a 95% increase in Society6 Group revenue and a 48% increase in Saatchi Art Group revenue, partially offset by a 17% decrease in Media Group revenue.Society6 Group revenue increased 95% year-over-year from $22.4 million to $43.7 million. This increase was primarily attributable to overall Direct-to-Consumer revenue growth of 102%, including 115% growth in the U.S. and 44% growth internationally.Saatchi Art Group revenue increased 48% year-over-year from $3.8 million to $5.7 million. This increase was primarily attributable to strength in the Saatchi Art online marketplace with revenue growth of 123% and the recently-launched The Other Art Fair Online Studios, partially offset by the cancellation of its live fairs for the fourth quarter 2020.Media Group revenue decreased 17% year-over-year from $18.8 million to $15.6 million. This decrease was primarily attributable to a 37% decrease in visits, partially offset by a 32% increase in RPV. On a pro forma basis after giving effect to the Hearst Transaction, visits decreased by 23% and RPV increased by 7% year-over-year.(1)Net loss was $2.7 million for the quarter, an improvement of $2.6 million year-over-year, and Adjusted EBITDA was $1.7 million for the quarter, reflecting an improvement of $1.9 million year-over-year.Cash and cash equivalents was $67.1 million at period end with $11.4 million in debt outstanding including $7.1 million from the Paycheck Protection Program and $4.0 million drawn on our revolving credit facility.On a consolidated basis, Leaf Group’s properties reached over 53 million monthly unique visitors in the United States in December 2020 (source: December 2020 U.S. comScore)._________________(1) On April 24, 2020, Leaf Group entered into an Asset Sale and Services Agreement with Hearst Newspapers (“Hearst”), pursuant to which the Company sold to Hearst a library of content carried on certain websites that had been hosted by the Company on behalf of Hearst for $9.5 million, of which $4.0 million was paid at signing (the “Hearst Transaction”). The balance of $5.5 million was paid on August 21, 2020, upon completion of the migration of the Hearst Content to servers controlled by Hearst. As of April 25, 2020, the Company is no longer including visits to the sites migrated to Hearst in the Hearst Transaction in its media group metrics. Unaudited Operating Metrics: Three months ended Year ended December 31, December 31, 2020 2019 % Change 2020 2019 % ChangeSociety6 Group Metrics: Society6 Group Number of Transactions(1) 761,726 408,895 86% 2,276,846 1,233,155 85%Society6 Group Gross Transaction Value (in thousands)(2) $50,675 $24,953 103% $158,809 $83,851 89% Saatchi Art Group Metrics: Saatchi Art Group Number of Transactions(3) 9,447 9,104 4% 32,209 30,703 5%Saatchi Art Group Gross Transaction Value (in thousands)(4) $10,340 $8,360 24% $38,554 $30,988 24%Number of Art Fairs(5) — 3 (100)% — 12 (100)% Media Group Metrics:(6) Visits per Google Analytics (in thousands)(7) 410,285 652,418 (37)% 2,109,411 2,847,099 (26)%Revenue per Visit (RPV)(8) $38.02 $28.86 32% $27.02 $22.95 18%Pro forma Visits per Google Analytics (in thousands)(7)(9) 410,285 529,566 (23)% 1,935,138 2,261,666 (14)%Pro forma Revenue per Visit (RPV)(8)(9) $38.02 $35.55 7% $29.45 $28.89 2% (1) Society6 Group number of transactions is defined as the total number of Society6 Group transactions successfully completed by a customer during the applicable period. (2) Society6 Group gross transaction value is defined as the total dollar value of Society6 Group transactions. Society6 Group gross transaction value is the total amount paid by the customer for a Society6 Group product, which consists of the following elements: the product price, inclusive of the commission payable to the artist, shipping charges, and sales taxes, less any promotional discounts. Gross transaction value does not reflect any subsequent cancellations, refunds or credits and does not represent revenue earned by the Company. (3) Saatchi Art Group number of transactions is defined as the total number of Saatchi Art Group transactions successfully completed by a customer during the applicable period, excluding certain transactions generated by Saatchi Art’s The Other Art Fair, which include sales of stand space to artists at fairs, sponsorship fees and ticket sales. (4) Saatchi Art Group gross transaction value is defined as the total dollar value of Saatchi Art Group transactions, excluding the revenue from certain transactions generated by Saatchi Art’s The Other Art Fair, which include sales of stand space to artists at fairs, sponsorship fees and ticket sales. Saatchi Art Group gross transaction value is the total amount paid by the customer for a Saatchi Art Group product, which consists of the following elements: the product price, inclusive of the commission payable to the artist, shipping charges, and sales taxes, less any promotional discounts. Gross transaction value does not reflect any subsequent cancellations, refunds or credits and does not represent revenue earned by the Company. (5) Number of Art Fairs is defined as in-person art fairs hosted by The Other Art Fair. (6) Media Group Metrics include visits and revenue generated by OnlyInYourState subsequent to its acquisition in February 2019. From April 25, 2020 onwards, Media Group Metrics exclude visits generated by certain domains no longer under our control as a result of the Hearst Transaction. (7) Visits per Google Analytics is defined as the total number of times users access the Company’s content across (a) one of its owned and operated properties and/or (b) one of its customers’ properties, to the extent that the visited customer web pages are hosted by the Company. In each case, breaks of access of at least 30 minutes constitute a unique visit. Additionally, a visit is also considered to have ended at midnight or if a user arrives via one campaign, leaves, and then comes back via a different campaign. (8) RPV is defined as Media Group revenue per one thousand visits. (9) Pro forma Visits and Pro forma Revenue per Visit exclude visits generated by certain domains no longer under our control as a result of the Hearst Transaction for all periods reported. The number of visits is derived from Google Analytics. Shareholder Letter and Conference Call Information Leaf Group’s detailed Shareholder Letter is available at https://ir.leafgroup.com/investor-overview/quarterly-and-annual-results/default.aspx. Leaf Group will host a corresponding conference call and presentation to answer questions today at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). To access the conference call and presentation, dial 833-502-0482 (U.S./CAN) or 778-560-2575 (International) and reference conference ID 4423559. To participate on the live call, analysts should dial-in at least 10 minutes prior to the commencement of the call. A live webcast also will be available on the Investor Relations section of Leaf Group’s corporate website at http://ir.leafgroup.com and via replay beginning approximately two hours after the completion of the call. The accompanying slide presentation will also be posted to our website at https://ir.leafgroup.com/investor-overview/events-and-presentations/. Use of Non-GAAP Financial Measures To supplement its consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), Leaf Group uses certain non-GAAP financial measures, as described below. These non-GAAP financial measures are presented to enhance the user’s overall understanding of Leaf Group’s financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The non-GAAP financial measures presented in this release, together with the GAAP financial results, are the primary measures used by the Company’s management and board of directors to understand and evaluate the Company’s financial performance and operating trends, including period-to-period comparisons, because they exclude certain expenses and gains that management believes are not indicative of the Company’s core operating results. Management also uses these measures to prepare and update the Company’s short and long term financial and operational plans, to evaluate investment decisions, and in its discussions with investors, commercial bankers, equity research analysts and other users of the Company’s financial statements. Accordingly, the Company believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating the Company’s operating results in the same manner as the Company’s management and in comparing operating results across periods and to those of Leaf Group’s peer companies. The use of non-GAAP financial measures has certain limitations because they do not reflect all items of income and expense, or cash flows, that affect the Company’s financial performance and operations. An additional limitation of non-GAAP financial measures is that they do not have standardized meanings, and therefore other companies, including peer companies, may use the same or similarly named measures but exclude or include different items or use different computations. Management compensates for these limitations by reconciling these non-GAAP financial measures to their most comparable GAAP financial measures in the tables captioned “Reconciliations of Non-GAAP Financial Measures” included at the end of this release. Investors and others are encouraged to review the Company’s financial information in its entirety and not rely on a single financial measure. The Company defines Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) as net income (loss) excluding interest (income) expense, income tax expense (benefit), and certain other non-cash or non-recurring items impacting net income (loss) from time to time, principally comprised of depreciation and amortization, stock-based compensation, contingent payments to certain key employees/equity holders of acquired businesses and other payments attributable to acquisition, disposition or corporate realignment activities. Management believes that the exclusion of certain expenses and gains in calculating Adjusted EBITDA provides a useful measure for period-to-period comparisons of the Company’s underlying core revenue and operating costs that is focused more closely on the current costs necessary to operate the Company’s businesses, and reflects its ongoing business in a manner that allows for meaningful analysis of trends. Management also believes that excluding certain non-cash charges can be useful because the amounts of such expenses is the result of long-term investment decisions made in previous periods rather than day-to-day operating decisions. The Company defines Segment Operating Contribution as earnings before corporate or unallocated expenses and also excludes: (a) depreciation expense; (b) amortization of intangible assets; (c) share-based compensation expense; (d) interest and other income (expense); (e) income taxes; and (f) contingent payments to certain key employees/equity holders of acquired businesses. Management believes that the exclusion of certain expenses and gains in calculating Segment Operating Contribution provides a useful measure for period-to-period comparisons of the segment’s underlying revenue and operating costs that is focused more closely on the current costs necessary to operate the segment, and reflects the segment’s ongoing business in a manner that allows for meaningful analysis of trends. Management also believes that excluding certain non-cash charges can be useful because the amounts of such expenses is the result of long-term investment decisions made in previous periods rather than day-to-day operating decisions. The Company defines Free Cash Flow as net cash provided by (used in) operating activities net of cash flows from contingent payments to certain key employees/equity holders of acquired businesses; other payments attributable to acquisition, disposition or corporate realignment activities; purchases of property and equipment; and purchases of intangible assets. Management believes that Free Cash Flow provides investors with useful information to measure operating liquidity because it reflects the Company’s underlying cash flows from recurring operating activities after investing in capital assets and intangible assets. Free Cash Flow is used by management, and may also be useful for investors, to assess the Company’s ability to generate cash flow for a variety of strategic opportunities, including reinvesting in its businesses, pursuing new business opportunities and potential acquisitions, paying dividends and repurchasing shares. About Leaf Group Leaf Group Ltd. (NYSE: LEAF) is a diversified consumer internet company that builds enduring, creator-driven brands that reach passionate audiences in large and growing lifestyle categories, including fitness and wellness (Well+Good, Livestrong.com and MyPlate App), and home, art and design (Saatchi Art, Society6 and Hunker). For more information about Leaf Group, visit www.leafgroup.com. Cautionary Information Regarding Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements set forth in this press release include, among other things, statements regarding potential synergies achieved from acquisitions, the impact of strategic operational changes and the Company’s future financial performance. In addition, statements containing words such as “guidance,” “may,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “project,” “projections,” “business outlook,” and “estimate” or similar expressions constitute forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. These forward-looking statements involve risks and uncertainties regarding the Company’s future financial performance; could cause actual results or developments to differ materially from those indicated due to a number of factors affecting Leaf Group’s operations, markets, products and services; and are based on current expectations, estimates and projections about the Company’s industry, financial condition, operating performance and results of operations, including certain assumptions related thereto. Potential risks and uncertainties that could affect the Company’s operating and financial results are described in Leaf Group’s annual report on Form 10-K for the fiscal year ending December 31, 2020 filed with the Securities and Exchange Commission (http://www.sec.gov) on February 25, 2021, as such risks and uncertainties may be updated from time to time in Leaf Group’s quarterly reports on Form 10-Q filed with the Securities and Exchange Commission, including, without limitation, information under the captions “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations.” These risks and uncertainties include, among others: risks associated with political and economic instability domestically and internationally including those resulting from the COVID-19 pandemic, which have and could lead to fluctuations in the availability of credit, decreased business and consumer confidence and increased unemployment; the Company’s ability to execute its business plan to maintain compliance with the continued listing criteria of the New York Stock Exchange (“NYSE”); changes by the Small Business Administration (“SBA”) or other governmental authorities regarding the Coronavirus Aid, Relief and Economic Security Act of 2020, the SBA’s related Paycheck Protection Program (the “PPP Program”); the Company’s ability to obtain forgiveness of the loan we obtained pursuant to the PPP Program; the Company’s ability to successfully drive and increase traffic to its marketplaces and media properties; changes in the methodologies of internet search engines, including ongoing algorithmic changes made by Google, Bing and Yahoo!; the Company’s ability to attract new and repeat customers and artists to its marketplaces and successfully grow its marketplace businesses; the potential impact on advertising-based revenue from lower ad unit rates, a reduction in online advertising spending, a loss of advertisers, lower advertising yields, increased availability of ad blocking software, particularly on mobile devices and/or ongoing changes in ad unit formats; the Company’s dependence on various agreements with a specific business partner for a significant portion of its advertising revenue; the effects of shifting consumption of media content and online shopping from desktop to mobile devices and/or social media platforms; the Company’s history of incurring net operating losses; the Company’s ability to obtain capital when desired on favorable terms; potential write downs, reserves against or impairment of assets including receivables, goodwill, intangibles (including media content) or other assets; the Company’s ability to effectively integrate, manage, operate and grow acquired businesses; the Company’s ability to retain key personnel; the Company’s ability to prevent any actual or perceived security breaches; the Company’s ability to expand its business internationally; the Company’s ability to generate long-term value for its stockholders; and ongoing actions taken and any future actions that may be taken by activist stockholders. From time to time, the Company may consider acquisitions or divestitures that, if consummated, could be material. Any forward-looking statements regarding financial metrics are based upon the assumption that no such acquisition or divestiture is consummated during the relevant periods. If an acquisition or divestiture were consummated, actual results could differ materially from any forward-looking statements. Any forward-looking statement made by the Company in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. The Company undertakes no obligation to revise or update any forward-looking information, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required by law, and may not provide this type of information in the future. (Tables Follow) Investor Contacts:Brian GephartChief Financial Officer(310) 917-6414IR@leafgroup.com Shawn MilneInvestor Relations(310) 656-6346shawn.milne@leafgroup.com Leaf Group Ltd. and SubsidiariesConsolidated Balance Sheets(In thousands) December 31, December 31, 2020 2019Assets Current assets Cash and cash equivalents $67,080 $18,106 Accounts receivable, net 13,135 14,402 Prepaid expenses and other current assets 4,358 2,555 Total current assets 84,573 35,063 Property and equipment, net 14,789 13,797 Operating lease right-of-use assets 10,266 12,645 Intangible assets, net 10,784 12,589 Goodwill 19,295 19,465 Other assets 1,220 1,044 Total assets $140,927 $94,603 Liabilities and Stockholders' Equity Current liabilities Accounts payable $13,515 $7,825 Accrued expenses and other current liabilities 25,876 21,291 Deferred revenue 3,609 2,464 Debt, current 7,614 4,000 Total current liabilities 50,614 35,580 Deferred tax liability 115 63 Operating lease liabilities 7,943 10,863 Debt, non-current 3,762 — Other liabilities 190 287 Total liabilities 62,624 46,793 Commitments and contingencies Stockholders’ equity Common stock 4 3 Additional paid-in capital 601,687 562,332 Treasury stock (35,706) (35,706)Accumulated other comprehensive loss (23) (20)Accumulated deficit (487,659) (478,799)Total stockholders’ equity 78,303 47,810 Total liabilities and stockholders’ equity $140,927 $94,603 Leaf Group Ltd. and SubsidiariesConsolidated Statements of Operations(In thousands, except per share amounts) (unaudited) Three months ended Year ended December 31, December 31, 2020 2019 2020 2019Revenue: Product revenue $45,711 $22,774 $143,150 $75,795 Service revenue 19,262 22,325 68,911 79,161 Total revenue 64,973 45,099 212,061 154,956 Operating expenses: Product costs (exclusive of amortization of intangible assets shown separately below)(1) 36,858 17,055 109,610 57,104 Service costs (exclusive of amortization of intangible assets shown separately below)(1)(2) 8,903 9,509 34,173 35,509 Sales and marketing(1)(2) 10,423 9,221 35,122 31,719 Product development(1)(2) 4,036 5,228 18,764 20,880 General and administrative(1)(2) 6,805 8,709 29,753 33,433 Amortization of intangible assets 532 734 2,454 3,353 Total operating expenses 67,557 50,456 229,876 181,998 Loss from operations (2,584) (5,357) (17,815) (27,042)Interest income 1 33 28 265 Interest expense (79) (25) (371) (40)Other income, net 36 34 9,420 40 Loss before income taxes (2,626) (5,315) (8,738) (26,777)Income tax (expense) benefit (47) 10 (122) (61)Net loss $(2,673) $(5,305) $(8,860) $(26,838) Net loss per share—basic and diluted $(0.09) $(0.20) $(0.32) $(1.03)Weighted average number of shares—basic and diluted 29,040 26,233 27,305 25,960 __________________ (1) Depreciation expense included in the above line items: Product costs $468 $442 $2,006 $1,604 Service costs 1,176 978 4,441 3,809 Sales and marketing 13 10 42 30 Product development 17 24 59 59 General and administrative 138 183 615 1,256 Total depreciation $1,812 $1,637 $7,163 $6,758 (2) Stock-based compensation included in the above line items: Service costs $236 $381 $1,238 $1,139 Sales and marketing 260 323 1,288 843 Product development 554 745 2,554 2,536 General and administrative 917 1,325 4,149 4,846 Total stock-based compensation $1,967 $2,774 $9,229 $9,364 Leaf Group Ltd. and SubsidiariesConsolidated Statements of Cash Flows(In thousands) (unaudited) Three months ended December 31, Year ended December 31, 2020 2019 2020 2019Cash flows from operating activities Net loss $(2,673) $(5,305) $(8,860) $(26,838)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 2,344 2,371 9,617 10,111 Non-cash lease expense 763 677 2,836 2,063 Deferred income taxes 29 (43) 52 (23)Stock-based compensation 1,967 2,774 9,229 9,364 Gain from sale of asset — (24) — (24)Gain from sale of business — — (9,300) — Other (283) 55 26 173 Change in operating assets and liabilities, net of effect of acquisitions and disposals: Accounts receivable, net 470 (2,592) 1,343 (1,938)Prepaid expenses and other current assets (682) 628 (1,864) 1,473 Other long-term assets 57 3 89 112 Operating lease ROU assets and liabilities (809) (832) (2,955) (2,527)Accounts payable 3,878 4,328 5,680 6,362 Accrued expenses and other liabilities 1,032 2,680 4,316 (2,927)Deferred revenue (1,699) (245) 1,145 349 Net cash provided by (used in) operating activities 4,394 4,475 11,354 (4,270)Cash flows from investing activities Purchases of property and equipment (2,106) (1,830) (7,361) (6,997)Purchases of intangible assets — (3) (163) (3)Proceeds from sale of assets — 24 — 24 Proceeds from sale of business — — 9,500 — Cash paid for acquisitions, net of cash acquired — — — (1,900)Net cash provided by (used in) investing activities (2,106) (1,809) 1,976 (8,876)Cash flows from financing activities Proceeds from promissory note — — 7,144 — Borrowings from revolving line of credit — 4,000 — 4,000 Proceeds from exercises of stock options and purchases under ESPP 13 35 55 761 Net proceeds from issuance of common stock 32,200 — 32,200 — Taxes paid on net share settlements of restricted stock units (374) (258) (2,442) (2,661)Cash paid for acquisition holdback — — (36) (625)Cash paid for contingent consideration liability — — (856) (934)Cash paid for debt issuance costs — (110) (38) (110)Other (27) (16) (81) (91)Net cash provided by financing activities 31,812 3,651 35,946 340 Effect of foreign currency on cash, cash equivalents and restricted cash (58) (1) (38) (3)Change in cash, cash equivalents and restricted cash 34,042 6,316 49,238 (12,809)Cash, cash equivalents and restricted cash, beginning of period 34,322 12,810 19,126 31,935 Cash, cash equivalents and restricted cash, end of period $68,364 $19,126 $68,364 $19,126 Reconciliation of cash, cash equivalents and restricted cash Cash and cash equivalents $67,080 $18,106 $67,080 $18,106 Restricted cash included in other current assets 136 136 136 136 Restricted cash included in other long-term assets 1,148 884 1,148 884 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $68,364 $19,126 $68,364 $19,126 Leaf Group Ltd. and SubsidiariesReconciliations of Non-GAAP Financial Measures(In thousands) (unaudited) Three months ended December 31, Year ended December 31, 2020 2019 2020 2019Adjusted EBITDA: Net loss(1) $(2,673) $(5,305) $(8,860) $(26,838)Add (deduct): Income tax expense (benefit), net 47 (10) 122 61 Interest (income) expense, net 78 (8) 343 (225)Other income, net (36) (34) (9,420) (40)Depreciation and amortization(2) 2,344 2,371 9,617 10,111 Stock-based compensation(3) 1,967 2,774 9,229 9,364 Acquisition, disposition, realignment and contingent payment costs(4) — — — 90 Adjusted EBITDA $1,727 $(212) $1,031 $(7,477) Free Cash Flow: Net cash provided by (used in) operating activities $4,394 $4,475 $11,354 $(4,270)Purchases of property and equipment (2,106) (1,830) (7,361) (6,997)Purchases of intangibles — (3) (163) (3)Acquisition, disposition, realignment and contingent payments(4) — — — 90 Free Cash Flow $2,288 $2,642 $3,830 $(11,180) (1) For the fiscal year ended December 31, 2020, we had $1.5 million in cost savings, which included temporary salary cuts of our executive team and salaried direct workforce (whose salaries were reinstated effective with payroll paid on June 30, 2020) and compensation cuts and deferrals of compensation of our independent directors (whose cash retainer compensation was reinstated, effective July 1, 2020), neither of which is expected to reoccur. (2) Represents depreciation expense of the Company’s long-lived tangible assets and amortization expense of its finite-lived intangible assets, including amortization expense related to its investment in media content assets as included in the Company’s GAAP results of operations. (3) Represents the expense related to stock-based awards granted to employees, as included in the Company’s GAAP results of operations. (4) Represents such items, when applicable, as (a) legal, accounting and other professional service fees directly attributable to acquisition, disposition or corporate realignment activities, (b) employee severance, (c) contingent payments to certain key employees/equity holders of acquired businesses, and (d) other payments attributable to acquisition, disposition or corporate realignment activities. Leaf Group Ltd. and SubsidiariesReconciliation of Segment Disclosure(In thousands) (unaudited) Three months ended December 31, Year ended December 31, 2020 2019 2020 2019Segment Revenue: Society6 Group $43,711 $22,446 $138,000 $73,852 Saatchi Art Group 5,665 3,825 17,063 15,773 Media Group 15,597 18,828 56,998 65,331 Total revenue $64,973 $45,099 $212,061 $154,956 Segment Operating Contribution: Society6 Group(1) $876 $428 $8,152 $310 Saatchi Art Group(1) 172 (770) (1,563) (2,492)Media Group(1) 6,875 7,812 21,517 24,730 Deduct: Strategic shared services and corporate overhead(2)(3) (6,196) (7,682) (27,075) (30,025)Acquisition, disposition and realignment costs(4) — — — — Adjusted EBITDA $1,727 $(212) $1,031 $(7,477) Reconciliation to consolidated pre-tax income (loss): Adjusted EBITDA $1,727 $(212) $1,031 $(7,477)Add (deduct): Interest income (expense), net (78) 8 (343) 225 Other income, net 36 34 9,420 40 Depreciation and amortization(5) (2,344) (2,371) (9,617) (10,111)Stock-based compensation(6) (1,967) (2,774) (9,229) (9,364)Acquisition, disposition, realignment and contingent payment costs(7) — — — (90)Income loss before income taxes(8) $(2,626) $(5,315) $(8,738) $(26,777) (1) Segment operating contribution reflects earnings before corporate and unallocated expenses and also excludes: (a) depreciation expense; (b) amortization of intangible assets; (c) share-based compensation expense; (d) interest and other income (expense); (e) income taxes; and (f) contingent payments to certain key employees/equity holders of acquired businesses. (2) Strategic shared services include shared operating expenses that are not directly attributable to the operating segments, including: network operations center, marketing, business development, product development, creative, financial systems, quality assurance, software engineering, and information systems. Corporate overhead includes general and administrative support functions that are not directly attributable to the operating segments, including: executive, accounting, finance, human resources, legal, and facilities. Strategic shared services and corporate overhead excludes the following: (a) depreciation expense; (b) amortization of intangible assets; (c) share-based compensation expense; (d) interest and other income (expenses); and (e) income taxes. (3) Strategic shared services and corporate overhead includes $1.8 million and $1.9 million in strategic shared services costs for the three months ended December 31, 2020 and 2019, respectively, and $4.4 million and $5.8 million in corporate overhead for the three months ended December 31, 2020 and 2019, respectively. Strategic shared services and corporate overhead include $7.8 million and $8.0 million in strategic shared services for the fiscal year ended December 31, 2020 and 2019, respectively, and $19.3 million and $22.0 million in corporate overhead for the fiscal year ended December 31, 2020 and 2019, respectively. (4) Represents such items, when applicable, as (a) legal, accounting and other professional service fees directly attributable to acquisition, disposition or corporate realignment activities, (b) employee severance, and (c) other payments attributable to acquisition, disposition or corporate realignment activities, excluding contingent payments to certain key employees/equity holders of acquired businesses. (5) Represents depreciation expense of the Company’s long-lived tangible assets and amortization expense of its finite-lived intangible assets, including amortization expense related to its investment in media content assets, included in the Company’s GAAP results of operations. (6) Represents the expense related to stock-based awards granted to employees as included in the Company’s GAAP results of operations. (7) Represents such items, when applicable, as (a) legal, accounting and other professional service fees directly attributable to acquisition, disposition or corporate realignment activities, (b) employee severance, (c) contingent payments to certain key employees/equity holders of acquired businesses, and (d) other payments attributable to acquisition, disposition or corporate realignment activities. (8) For the fiscal year ended December 31, 2020, we had $1.5 million in cost savings, which included temporary salary cuts of our executive team and salaried direct workforce (whose salaries were reinstated effective with payroll paid on June 30, 2020) and compensation cuts and deferrals of compensation of our independent directors (whose cash retainer compensation was reinstated, effective July 1, 2020), neither of which is expected to reoccur.