YouNow 1H19 review: Revenue is up, but there is 'substantial doubt' about the company’s solvency

On Wednesday, the live streaming company, YouNow, released its financials for 1H19, which showed the company's deteriorating financial condition. Despite raising $21 million from SAFT sales for its Props token back in late 2017, the company now finds itself with only $3.4 million in cash and $2.3 million in cryptocurrencies (BTC and ETH) after a series of consecutive operating losses. The company highlighted a 32% increase in daily in-app purchases following the integration of Props onto its streaming platform in July. However, YouNow will likely need more help than that to dig itself out of the hole it currently finds itself in.

YouNow’s revenue comes almost entirely from the sales of its in-app (non-crypto) currency, Bars, which users purchase to show appreciation for their favorite content creators on the platform. For the past couple of years, however, the company’s virtual good sales have been plummeting. According to YouNow's whitepaper, the company claimed to have virtual good sales of $11.7 million in 1H17. Fast-forward two years later, virtual good sales were only $3.1 million in 1H19 (a 74% decline).