- Total Fourth Quarter Revenue increased
12% year-over-year to $13.0 million as a result of a 128% increase
in Mobile Revenue
- Fourth Quarter Adjusted EBITDA of $2.4
Million, which is an 18.5% Adjusted EBITDA margin
MeetMe®, Inc. (NYSE MKT:MEET), the public market leader in
social discovery, today reported financial results for the fourth
quarter and full year ended December 31, 2013.
Fourth Quarter 2013 Financial Highlights
- Mobile average revenue per user (ARPU)
exceeded web ARPU for the first time in Company history.
- In line with recently upwardly revised
expectations, total revenue was $13.0 million, a 12% increase from
the fourth quarter of 2012.
- Mobile revenue was up 128% from the
year ago quarter to a record $5.1 million, driven primarily by a
significant increase in mobile advertising. Mobile represented
nearly 40% of total MeetMe fourth quarter revenue, the highest
proportion in Company history.
- Adjusted EBITDA increased to $2.4
million, or 18.5% of total revenues, up from $977,000 in the fourth
quarter of 2012. Net income for the quarter was $15,290. (See the
important discussion about the presentation of non-GAAP financial
measures, and reconciliation to the most directly comparable GAAP
financial measures, below.)
Full Year 2013 Financial Highlights
- Mobile revenue was a record of $12.6
million, up 106% from $6.1 million in 2012.
- Adjusted EBITDA was $1.8 million for
the year. Over the final three quarters of the year, the Company
generated Adjusted EBITDA of $3.5 million. Net loss for 2013 was
$11 million. (See the important discussion about the presentation
of non-GAAP financial measures, and reconciliation to the most
directly comparable GAAP financial measures, below.)
- Cash and Cash Equivalents totaled $6.3
million at December 31, 2013, up from $5.0 million at December 31,
2012.
Geoff Cook, CEO of MeetMe, said, “We successfully built a number
of strong mobile monetization products in 2013, including
advertising, freemium, and subscription products. Our mobile native
advertising product, launched in March of 2013, accounted for 29%
of mobile revenue in the fourth quarter, as a result of both
increased ad impressions and stronger CPMs on native units versus
traditional mobile banners. Moreover, the fourth quarter was the
first time in our Company’s history that mobile ARPU exceeded web
ARPU. Our mobile users login 100 times a month on average, compared
to nine times on the web, and we believe that higher level of
engagement now translates to higher levels of monetization as a
result of these successful new products.”
“Our primary goal in 2014 is to drive significantly more mobile
daily active users. The team is executing against an ambitious and
exciting product pipeline aimed at increasing both viral spread and
engagement among our users. Over the years, we have grown our
audience from zero to over one million daily users primarily on the
basis of our repeated success in creating new engaging products and
then continually improving them.”
“In the coming weeks, we intend to launch a dramatic overhaul of
Chat, our most important feature, to make it easier, faster, and
more powerful for meeting new people. We know Chat is the core of
the MeetMe app, with more than 50% of daily users sending a chat
and more than 75% receiving a chat every day. We also know some
portion of users who discover each other on MeetMe will leave
MeetMe for dedicated messaging apps like Whatsapp. We intend to
dramatically upgrade our Chat feature in order to retain users
while at the same time differentiating it around the
meet-new-people use case. In particular, we plan to add real-time
components, including real-time typing and status indicators, to
enhance our current product. We also intend to enable ephemeral
photo-sharing directly within the chat conversation. The ability to
share photos within messages is one of the most requested features
from users, and we believe this product will enable increased
messaging volume and ultimately contribute to virality and improved
DAU/MAU ratios.”
David Clark, Chief Financial Officer of MeetMe, added, “The
fourth quarter of 2013 represents an important inflection point as
we returned to year-over-year revenue growth driven by the strong
performance of our mobile strategy. This was also a successful
earnings turnaround year, beginning with positive Adjusted EBITDA
in the second quarter and culminating with positive GAAP earnings
in the fourth quarter. The significant improvement of our bottom
line illustrates the earnings potential in our business with fourth
quarter Adjusted EBITDA increasing 144%, an Adjusted EBITDA margin
of over 18% and our first quarter of GAAP earnings in over five
years. We expect to be EBITDA positive and generate positive free
cash flow before debt service in 2014. Our plan for 2014 is to fund
initiatives that we believe will drive user growth and engagement
that will create shareholder value over the longer term.”
Webcast and Conference Call Details
Management will host a conference call and audio webcast to
discuss fourth quarter 2013 financial results today at 10:30 AM
Eastern Time. During the conference call, management will also
present the Company’s revenue guidance estimates for 2014.
Presentation materials will be posted after the call on the
Company’s website, www.meetmecorp.com, in the Investors section
under the “Presentations” tab. A webcast of the conference call
will be available live on the Investor Relations section of the
Company’s website at www.meetmecorp.com and a replay will be
available for 90 days. Interested parties unable to access the
conference call via the webcast may dial 1-888-317-6003 and
reference ID: 4559901#.
About MeetMe, Inc.
MeetMe® is the leading social network for meeting new people in
the US and the public market leader for social discovery (NYSE MKT:
MEET). MeetMe makes meeting new people fun through social games and
apps, monetized by both advertising and virtual currency. With 70
percent of traffic coming from mobile, MeetMe is fast becoming the
social gathering place for the mobile generation. The Company
operates MeetMe.com and MeetMe apps
on iPhone, iPad, and Android in multiple
languages including English, Spanish, Portuguese, French, Italian,
German, Chinese (Traditional and Simplified), Russian, Japanese,
Dutch, Turkish and Korean.
Cautionary Note Regarding Forward Looking Statements
Certain statements in this press release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 including statements regarding new features and
innovative apps and whether such features and apps will drive
increased mobile traffic and revenue. All statements other than
statements of historical facts contained herein, including
statements regarding the future success of our mobile monetization
products, including advertising, freemium, and subscription
products, future levels of monetization and the influence of new
products on monetization, our ability to drive more mobile daily
active users, the effectiveness of our product pipeline to increase
viral spread and user engagement, our ability to create new
products and continually improve them, whether we successfully
upgrade our Chat feature and the effectiveness of that upgrade,
whether we can successfully add ephemeral photo sharing to chat
conversations and if so whether it will result in increased
messaging volume and ultimately contribute to virality and improved
DAU/MAU ratios, the future earnings potential of our business,
whether we will be EBITDA positive and generate positive free cash
flow before debt service in 2014, and whether we will fund
initiatives which will drive user growth and engagement that
creates shareholder value are forward-looking statements. The words
“believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,”
“should,” “plan,” “could,” “target,” “potential,” “is likely,”
“will,” “expect” and similar expressions, as they relate to us, are
intended to identify forward-looking statements. We have based
these forward-looking statements largely on our current
expectations and projections about future events and financial
trends that we believe may affect our financial condition, results
of operations, business strategy and financial needs. Important
factors that could cause actual results to differ from those in the
forward-looking statements include the risk that we will not be
able to launch products and updates as anticipated, the risk that
our applications will not function easily or otherwise as
anticipated, the risk that unanticipated events affect the
functionality of our applications with popular mobile operating
systems, changes in such operating systems that degrade our mobile
applications’ functionality and other unexpected issues which could
adversely affect usage on mobile devices. Further information on
our risk factors is contained in our filings with the SEC,
including the Form 10-K for the year ended December 31, 2012 and
the Current Reports on Form 8-K filed with the SEC on May 1, 2013,
October 1, 2013 and November 6, 2013. Any forward-looking statement
made by us herein speaks only as of the date on which it is made.
Factors or events that could cause our actual results to differ may
emerge from time to time, and it is not possible for us to predict
all of them. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
law.
Regulation G – Non-GAAP Financial Measures
The Company uses financial measures which are not calculated and
presented in accordance with U.S. generally accepted accounting
principles (“GAAP”) in evaluating its financial and operational
decision making and as a means to evaluate period-to period
comparison. The Company uses these non-GAAP financial measures for
financial and operational decision making and as a means to
evaluate period-to-period comparisons. The Company presents these
non-GAAP financial measures because it believes them to be an
important supplemental measure of performance that is commonly used
by securities analysts, investors and other interested parties in
the evaluation of companies in our industry. We refer you to the
reconciliations above.
The Company defines Adjusted EBITDA as earnings (or loss) from
continuing operations before interest expense, income taxes,
depreciation and amortization, and non-cash stock-based
compensation, non-recurring acquisition and restructuring expenses
and the goodwill impairment charges. The Company excludes
stock-based compensation because it is non-cash in nature.
Non-GAAP financial measures should not be considered as an
alternative to net income, operating income, cash flow from
operating activities, as a measure of liquidity or any other
financial measure. They may not be indicative of the historical
operating results of the Company nor is it intended to be
predictive of potential future results. Investors should not
consider non-GAAP financial measures in isolation or as a
substitute for performance measures calculated in accordance with
GAAP.
MEETME, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE
SHEETS
AS OF DECEMBER 31, 2013 AND
2012
(UNAUDITED)
2013 2012 Assets Current Assets Cash
and cash equivalents $ 6,330,532 $ 5,022,007 Accounts receivable,
net of allowance of $495,000 and $547,000, at December 31, 2013 and
December 31, 2012, respectively 10,136,929 15,744,789 Notes
receivable - 111,569 Prepaid expenses and other current assets
597,133 870,881 Total current assets 17,064,594
21,749,246 Goodwill 70,646,036 70,646,036 Intangible assets,
net 4,787,941 6,746,273 Property and equipment, net 2,871,800
4,772,632 Other assets 205,869 520,480 Total assets $
95,576,240 $ 104,434,667
Liabilities and Stockholders'
Equity Current Liabilities: Accounts payable $ 3,331,484 $
3,528,607 Accrued expenses and other liabilities 3,262,327
3,213,115 Deferred revenue 275,761 392,612 Accrued dividends -
69,455 Current portion of capital leases 928,181 648,573 Current
portion of long-term debt 2,333,966 1,903,368 Total
current liabilities 10,131,719 9,755,730 Long term capital
leases, less current portion, net 713,699 1,058,230 Long term debt,
less current portion, net 2,102,842 8,098,558 Other Liabilities
819,930 - Total liabilities 13,768,190
18,912,518 Commitments and Contingencies (see Note 9)
Stockholders' Equity: Preferred stock, $.001 par value, authorized
5,000,000 shares: Convertible preferred stock Series A-1, $.001 par
value; authorized – 1,000,000 shares; 1,000,000 shares issued and
outstanding at December 31, 2013 and 2012, respectively 1,000 1,000
Common stock, $.001 par value; authorized - 100,000,000 shares;
38,477,359 and 37,046,405 shares issued and outstanding at December
31, 2013 and 2012, respectively 38,481 37,050 Additional paid-in
capital 282,496,996 275,261,794 Accumulated deficit (200,110,075)
(189,211,750) Accumulated other comprehensive loss (618,352)
(565,945) Total stockholders’ equity 81,808,050
85,522,149 Total liabilities and stockholders’ equity $
95,576,240 $ 104,434,667 See notes to consolidated financial
statements included in the December 31, 2013 10-K filing.
MEETME, INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
Three Months Ended December 31,
Years Ended December 31,
2013 2012 2013 2012 Revenues $
13,016,106 $ 11,608,937 $ 40,378,007 $ 46,657,959 Operating Costs
and Expenses: Sales and marketing 2,393,167 2,367,564 7,799,077
8,467,158 Product development and content 7,117,098 6,905,722
26,660,709 29,510,917 General and administrative 2,115,897
3,337,527 7,875,395 9,663,323 Depreciation and amortization
1,106,621 1,073,330 4,387,464 3,962,290 Restructuring costs -
(469,011) 2,540,896 422,488 Loss on debt restructure -
- 1,174,269 - Total Operating Costs and
Expenses 12,732,783 13,215,132 50,437,810
52,026,176 Income (loss) from Operations 283,323
(1,606,195) (10,059,803) (5,368,217) Other
Income (Expense),net: Interest income 1,869 2,811 9,725 16,569
Interest expense (269,902) (418,538) (848,247) (1,285,674) Other
income net - - - 9,611 Total other
expense (268,033) (415,727) (838,522)
(1,259,494) Income (loss) before income taxes 15,290 (2,021,922)
(10,898,325) (6,627,711) Income taxes - - -
- Net income (loss) from continuing operations $ 15,290 $
(2,021,922) $ (10,898,325) $ (6,627,711) Loss from discontinued
operations, net of taxes $ - $ - $ - $ (3,680,627) Net Income
(loss) Allocable To Common Shareholders $ 15,290 $ (2,021,922) $
(10,898,325) $ (10,308,338) Basic and diluted net loss per
common shareholders: Continuing operations $ 0.00 $ (0.05) $ (0.29)
$ (0.18) Discontinued operations $ 0.00 $ 0.00 $ 0.00 $ (0.10)
Basic and diluted net loss per common shareholders $ 0.00 $ (0.05)
$ (0.29) $ (0.28) Weighted Average Number of Shares Outstanding,
Basic and Diluted: 38,477,359 36,924,360
38,048,446 36,461,615 Net income (loss) $ 15,290 $
(2,021,922) $ (10,898,325) $ (10,308,338) Foreign currency
translation, net (25,466) (1,078) (52,407)
(102,996) Comprehensive Loss $ (10,176) $ (2,023,000) $
(10,950,732) $ (10,411,334) See notes to consolidated
financial statements included in the December 31, 2013 10-K filing.
MEETME, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME (LOSS) FROM CONTINUING
OPERATIONS TO ADJUSTED EBITDA
(UNAUDITED)
Three Months Ended December
31, Years Ended December 31,
2013 2012
2013 2012 Net loss
from continuing operations allocable to common shareholders
$ 15,290 $
(2,021,922 ) $
(10,898,325 ) $
(6,627,711 ) Interest expense
269,902 418,538 848,247 1,285,674 Depreciation and amortization
1,106,621 1,073,330 4,387,464 3,962,290 Amortization of stock based
compensation 996,477 976,740 3,758,043 3,881,896 Loss on
contingency for lawsuit settlements - 1,000,000 - 1,000,000
Acquisition and restructuring costs - (469,011 ) 2,540,896 422,488
Loss on debt restructure
-
- 1,174,269
- Adjusted EBITDA
$
2,388,290 $ 977,675
$ 1,810,594 $
3,924,637 GAAP Basic and diluted net
loss per common shareholders
$ 0.00
$ (0.05 ) $
(0.29 ) $ (0.18
) Basic Adjusted EBITDA per common shareholders
$ 0.06 $ 0.03
$ 0.05 $
0.11 Diluted Adjusted EBITDA per common
shareholders
$ 0.06 $
0.02 $ 0.04
$ 0.09 Weighted
average number of shares outstanding, Basic
38,477,359 36,924,360
38,048,446
36,461,615 Weighted average number of shares
outstanding, Dilutive
40,694,677
40,815,708 40,375,214
41,514,224
For MeetMe:Gregory FCAJoe
Hassett, 610-228-2110joeh@gregoryfca.com
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