Friday’s Top Gainers; The Arena Group Holdings, Funko, & DMC Global
The Arena Group Holdings reports revenue of $48.2 million in Q1 2022
The Arena Group Holdings Inc. (NYSEAMERICAN: AREN) was up 43.54% after the company reported a 44% revenue increase in Q1 2022 to $48.2 million. Gross profit percentage was up 41% compared to 15% a year ago. Digital advertising revenue was more than double in Q1 2022 to $21.6 million, up from $9.5 million a year ago. Net loss equally increased to $18.4 million in Q1 2022 compared to a net loss of $25.5 in Q1 2021. The company’s adjusted EBITDA improved to a loss of $1.1 million in Q1 2022 relative to a loss of $8.7 million in Q1 2021, reflecting changes for non-cash charges that represent 81% of Q1 net loss.
CEO and Chairman of the company Ros Levinsohn said that in Q1, they realized considerable revenue growth and tripled gross profit and maintained a one percent increment in cost of revenue, allowing the company to narrow its net losses significantly.
The Chernin Group to invest $263 million in Funko
Funko Inc. (NASDAQ: FNKO) jumped 26.91% after a group of entertainment leaders, including former Walt Disney Co, Chairman Bob Iger, and Peter Chernin, announced a $263 million investment in the toymaker. The Chernin Group, which is an investment firm popular for backing emerging commerce, technology, and media firms, will lead the consortium that will acquire 25% interest in Funko for $21 per share representing a 23% premium over the shares close on May 3, 2022, when the deal was signed.
The investment consortium will buy the shares from Acon Investments. In addition to the increased shareholding, Iger and Chernin will seve as board advisers. Chernin feels that Funko has a powerful and famous brand amongst customers and that it is also reasonably priced. Despite sales growth that far surpassed Mattel Inc. and Hasbro Inc., the two biggest toy businesses in the United States.
DMC Global reports a 147% YoY revenue increase
DMC Global Inc. (NASDAQ: BOOM) was up 19.2% after the company, which focuses on the oil well perforation and welding sectors, announced that it generated revenue of $137.8 million in Q1 2022, representing a YoY increase of 147%. The company reported a net loss of $3.3 million, up 364% YoY, and on a per-share basis, the net loss was $0.47 per share. For the full fiscal 2022, the company anticipates revenue to range from $142 million to $152 million.
CEO and President Kevin Longe said they delivered a robust start to the year despite a range of macro-economic challenges. Longe said they now run three distinct and unique enterprises that have established leadership status in their particular fields. He added DMC’s long-term growth prospects and enhanced returns for its shareholders have never been brighter, in his opinion.