XO GROUP INC. | Understand Stock

No Longer Reporting

The company has not filed an annual or quarterly report since its Q3 FY2018 10-Q, filed Nov 1, 2018. Its latest SEC filing is a SC 13G/A from Feb 13, 2019.

The sections below describe the company as of the FY2017 annual report.

What Did They Do?

Connects couples and guests with local wedding professionals, and sells advertising and transaction services across wedding, pregnancy and parenting, and entertainment markets.

How Did They Make Money?

Businesses pay for online listings, digital ads, email marketing and sponsored content; online ads run over a contract period or are delivered on a set date, while print ads are tied to magazine publication. The company also earns fees and commissions on registry purchases and event bookings.

FY2017 revenue

Who Were Their Customers?

Wedding professionals buy local listings and marketing, while national advertisers buy online and print advertising. Couples and guests use the registry and entertainment marketplace; retailers and event vendors pay commissions on resulting transactions.

Did Revenues Turn Into Profits?

Yes. It kept 3 cents of every revenue dollar as net income in FY2017 and turned 15 cents into free cash flow.

Operating income, FY2017

9% of revenue

▼ −21% vs FY2016 ($17.9M, 12%)

Net income, FY2017

3% of revenue

▼ −54% vs FY2016 ($12.1M, 8%)

Free cash flow, FY2017

15% of revenue

▼ −12% vs FY2016 ($27.2M, 18%)

How Were They Changing?

Since the FY2017 annual report

Latest quarter: Q3 FY2018, the three months to Sep 30, 2018

Revenue: ▲ +6%; vs $40.6M in Q3 FY2017
Net income: ▲ +20%; vs $3.6M in Q3 FY2017

Dec 21, 2018 XO Group merged with WeddingWire and became privately held The combined company is owned by the Permira Funds and Spectrum Equity; XO Group shareholders received $35.00 per share in cash.

Grew. Revenue grew 20% in 4 years, from $133.8M in FY2013 to $160.6M in FY2017, about 5% a year.

Wedding and parenting focus The earlier report included The Nest, a brand for young couples setting up homes, and described content and publishing operations in China. The latest report instead highlights GigMasters and local entertainment alongside weddings, pregnancy and parenting.

Merchandise operations exited The earlier report described warehouse-based wedding merchandise operations and a plan to close the warehouse. The latest report says merchandise revenue had ended after the warehouse operations were exited.

Transaction services expanded The earlier report described registry and commerce offers; the latest report also describes booking entertainment and event vendors through GigMasters, with commissions earned when services are provided.