Second Quarter Mobile Revenue Increased 114%
Year-Over-Year
Adjusted EBITDA Increased 93% Year-Over-Year To
$740,000 In Second Quarter
MeetMe, Inc. (NASDAQ: MEET), the public market leader for social
discovery, today reported financial results for its second quarter
ended June 30, 2014.
Second Quarter 2014 Financial Highlights
- Total revenue was $10.7 million, up 13%
from the second quarter of 2013.
- Mobile revenue was $5.6 million, up
114% from the second quarter of 2013.
- Mobile revenue represented nearly 53%
of total revenue, the highest proportion in MeetMe’s history.
- Mobile average revenue per user (ARPU)
was $2.19, up 123% from $0.98 in the second quarter of 2013, and
exceeded web ARPU of $1.28 for the third consecutive quarter.
- Mobile average revenue per daily active
user (ARPDAU) was $0.074, up 100% from $0.037 in the second quarter
of 2013.
- Adjusted EBITDA was $740,400 compared
to $384,000 in the second quarter of 2013. For the second quarter,
the Company reported a net loss of $1.4 million compared to a net
loss of $2.1 million for the second quarter of 2013. (See the
important discussion about the presentation of non-GAAP financial
measures, and reconciliation to the most direct comparable GAAP
financial measure, below.)
- Cash and Cash Equivalents totaled $5.8
million at June 30, 2014. Following the close of the quarter the
Company completed an equity offering which provided the Company
with net proceeds of $10.5 million.
Geoff Cook, Chief Executive Officer of MeetMe, said:
“Our mobile traffic and our financial results in the second
quarter demonstrate the gathering momentum in the business. We made
considerable progress in the quarter against our primary goal of
increasing mobile daily active users, ending the quarter with
864,000 daily active users in June, up 12% versus the Q1 average.
Our team is committed to making MeetMe the leading platform for
finding new mobile chat partners, and we look forward to continuing
to execute against an ambitious product pipeline to grow engagement
and continue to expand our audience.”
David Clark, Chief Financial Officer of MeetMe, added:
“For the first time in our history, due to 114% year over year
growth, mobile revenue represents the majority of revenue generated
in the quarter. This demonstrates the success of our mobile
monetization strategy implemented last year. In addition we
recently strengthened our balance sheet with a completed equity
offering, which provided the Company with net proceeds of
$10.5 million.”
Webcast and Conference Call Details
Management will host a webcast and conference call to discuss
second quarter 2014 financial results today, August 4, 2014 at
11:30 a.m. Eastern time. To access the call dial 888-481-2877 (+1
719-325-2484 outside the United States) and when prompted provide
the passcode “MeetMe” to the operator. In addition, 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 of the webcast will be available for 90 days.
About MeetMe, Inc.
MeetMe® is the leading social network for meeting new people in
the US and the public market leader for social discovery (NASDAQ:
MEET). MeetMe makes it easy to discover new people to chat with on
mobile devices. With approximately 80 percent of traffic coming
from mobile and more than one million total daily active users,
MeetMe is fast becoming the social gathering place for the mobile
generation. MeetMe is a leader in mobile monetization with a
diverse revenue model comprising advertising, native advertising,
virtual currency, and subscription. MeetMe apps are available 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. For
more information, please visit meetmecorp.com.
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 whether our business will continue
gathering momentum, whether and to what extent we will increase
mobile daily active users in the future, whether we make MeetMe the
leading platform for finding new mobile chat partners, whether we
can successfully implement our product pipeline to grow engagement
and expand our audience, whether mobile revenue will continue to
constitute the majority of our total revenue, and whether our
mobile monetization strategy will continue to be successful. All
statements other than statements of historical facts contained
herein are forward-looking statements. The words “believe,” “may,”
“estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,”
“could,” “target,” “potential,” “project,” “is likely,” “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 our applications will not function
easily or otherwise as anticipated, the risk that we will not
launch additional features and upgrades as anticipated, the risk
that unanticipated events affect the functionality of our
applications with popular mobile operating systems, any 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 Securities and
Exchange Commission (“SEC”), including the Form 10-K for the year
ended December 31, 2013 and the Prospectus Supplement (Rule
424(b)(5)) filed on July 24, 2014. 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 below.
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 CONDENSED CONSOLIDATED
BALANCE SHEETS (Unaudited) June 30,
2014 December 31, 2013
ASSETS
CURRENT ASSETS: Cash and cash equivalents $ 5,838,757 $ 6,330,532
Accounts receivable, net of allowance of $628,000 and $495,000, at
June 30, 2014 and December 31, 2013, respectively 7,420,244
10,136,929 Prepaid expenses and other current assets
655,401 597,133
Total current assets
13,914,402
17,064,594 Goodwill 70,646,036
70,646,036 Property and equipment, net 1,899,266 2,871,800
Intangible assets, net 3,808,775 4,787,941 Other assets
164,627 205,869
TOTAL ASSETS
$
90,433,106
$
95,576,240
LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT
LIABILITIES: Accounts payable $ 3,234,907 $ 3,331,484 Accrued
liabilities 2,356,130 3,262,327 Current portion of capital lease
obligations 901,346 928,181 Current portion of long-term debt
2,071,267 2,333,966 Deferred revenue
235,740
275,761 Total current liabilities
8,799,390 10,131,719
Long-term capital lease obligation, less current
portion, net 310,196 713,699 Long-term debt, less current portion,
net 1,454,433 2,102,842 Other Liabilities
819,500 819,930
TOTAL LIABILITIES
$
11,383,519
$
13,768,190
STOCKHOLDERS' EQUITY:
Preferred stock, $.001 par value, authorized - 5,000,000 Shares;
Convertible Preferrred Stock Series A-1, $.001 par value;
authorized - 1,000,000 shares; 1,000,000 shares issued and
outstanding at June 30, 2014 and December 31, 2013, respectively $
1,000 $ 1,000
Common stock, $.001 par value; authorized
- 100,000,000 Shares; 38,971,200 and 38,477,359 shares issued and
outstanding at June 30, 2014 and December 31, 2013,
respectively
38,975 38,481 Additional paid-in capital 284,558,884 282,496,996
Accumulated deficit (204,971,194 ) (200,110,075 ) Accumulated other
comprehensive income
(578,078 )
(618,352 )
Total stockholders' equity
79,049,587
81,808,050
Total liabilities and stockholders'
equity
$
90,433,106
$
95,576,240
See notes to condensed consolidated financial
statements included in the June 30, 2014 10-Q filing.
MEETME, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
Three Months Ended June
30,
Six Months Ended June 30,
2014 2013
2014
2013 Revenues
$
10,687,330 $
9,482,960 $
20,190,834 $
17,288,592 Operating Costs and Expenses:
Sales and marketing 1,935,678 1,542,977 4,094,766 3,529,670 Product
development and content 6,855,739 6,342,576 13,713,179 12,726,020
General and administrative 2,194,138 1,822,300 4,123,783 4,222,559
Depreciation and amortization 1,079,932 1,089,043 2,165,391
2,171,987 Acquisition and restructuring costs - 646,479 120,202
2,540,896 Loss on debt restructure
-
- -
1,174,269 Total Operating Costs and Expenses
12,065,487
11,443,375 24,217,321
26,365,401 Loss from
Operations
(1,378,157 )
(1,960,415 )
(4,026,487 )
(9,076,809 ) Other Income
(Expense): Interest income 549 3,097 1,715 5,353 Interest expense
(241,643 ) (141,728 ) (661,886 ) (355,568 ) Change in warrant
liability
181,493 -
(174,461 )
- Total Other Income (Expense)
(59,601 ) (138,631
) (834,632 )
(350,215 ) Loss before Income
Taxes (1,437,758 ) (2,099,046 ) (4,861,119 ) (9,427,024 ) Income
taxes
- -
- - Net Loss
(1,437,758 ) (2,099,046 ) (4,861,119 ) (9,427,024 ) Preferred stock
dividends
- -
- - Net Loss
Allocable to Common Stockholders
$
(1,437,758
)
$
(2,099,046
) $ (4,861,119
) $ (9,427,024
) Basic and diluted losses per Common
Stockholders
$ (0.04 )
$ (0.05 ) $
(0.13 ) $ (0.25
) Basic and diluted weighted average shares
outstanding
38,798,706
38,127,737 38,649,766
37,749,772 Net Loss
(1,437,758 ) (2,099,046 ) (4,861,119 ) (9,427,024 ) Foreign
currency translation adjustment
12,573
(45,741 )
40,274 (28,414
) COMPREHENSIVE LOSS
(1,425,185
) (2,144,787 )
(4,820,845 )
(9,455,438 ) See notes to
condensed consolidated financial statements included in the June
30, 2014 10-Q filing.
MEETME, INC. AND SUBSIDIARIES
RECONCILIATION of GAAP NET INCOME (LOSS) FROM CONTINUING
OPERATIONS TO ADJUSTED EBITIDA (UNAUDITED)
Three Months Ended June
30, Six Months Ended June 30,
2014 2013
2014 2013 Net
Income (Loss) from Continuing Operations
$
(1,437,758 ) $
(2,099,046 ) $
(4,861,119 ) $
(9,427,024 ) Interest expense
241,643 141,728 661,886 355,568 Change in warrant liability
(181,493 ) - 174,461 - Depreciation and amortization 1,079,932
1,089,043 2,165,391 2,171,987 Amortization of stock based
compensation 1,038,101 605,776 1,979,388 1,910,924 Acquisition and
restructuring costs - 646,479 120,202 2,540,896 Loss on debt
restructure
- -
- 1,174,269
Adjusted EBITDA
$ 740,425
$ 383,980 $
240,209 $ (1,273,380
) GAAP basic and diluted net income
(loss) per common shareholders
$ (0.04
) $ (0.05 )
$ (0.13 ) $
(0.25 ) Basic adjusted EBITDA per common
shareholders
$ 0.02 $
0.01 $ 0.01
$ (0.03 ) Diluted adjusted
EBITDA per common shareholders
$ 0.02
$ 0.01 $
0.01 $ (0.03
) Weighted average number of shares
outstanding, Basic
38,798,706
38,127,737 38,649,766
37,749,772 Weighted average
number of shares outstanding, Diluted
42,271,469 40,064,802
42,227,631
37,749,772
Investor Contact:MKR Group Inc.Todd Kehrli or Jim
Byers323-468-2300meet@mkr-group.com
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