Mobile Revenue Increased 128% Year Over
Year
Adjusted EBITDA Increased 213% Year Over Year
to $2.2 Million or a 19% Margin
MeetMe, Inc. (NASDAQ: MEET), the public market leader for social
discovery, today reported financial results for its third quarter
ended September 30, 2014.
Third Quarter 2014 Financial Highlights
- Total revenue was $11.6 million, up 15%
from the third quarter of 2013.
- Mobile revenue was $6.7 million, up
128% from the third quarter of 2013.
- Mobile revenue represented 58% of total
revenue, the highest in MeetMe’s history.
- Mobile average revenue per user (ARPU)
was $2.29, up 108% from $1.10 in the third quarter of 2013, and
exceeded web ARPU of $1.01 for the fourth consecutive quarter.
- Mobile average revenue per daily active
user (ARPDAU) was $0.082, up 105% from $0.040 in the third quarter
of 2013.
- Adjusted EBITDA was $2.2 million, up
213% from $696,000 in the third 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.)
- Net income was $52,000 compared to a
net loss of $1.5 million for the third quarter of 2013.
- Cash and Cash Equivalents totaled $15.6
million at September 30, 2014. During the quarter MeetMe completed
an equity offering which provided the Company with net proceeds of
$10.5 million.
Geoff Cook, Chief Executive Officer of MeetMe, said:
“The third quarter results demonstrated the strength and
vitality of the MeetMe community. In the third quarter 2.9 million
mobile users visited an average of 122 times per month. Average
mobile daily active users increased 6% versus Q2 and 15% versus Q1
to an all-time record of 888,000 in Q3. We recently announced
reaching 20 million chats in a single day, doubling our daily chat
volume in just six months. MeetMe for Android now ranks in the Top
15 social Android apps in the US and in the Top 40 social iPhone
apps. I believe our recent mobile redesign and the launch of our
Boost virtual currency product help establish a strong foundation
for future growth. Our users trust MeetMe to help them find new
people to chat with, and I look forward to continued progress
towards building the preeminent mobile chat app for connecting with
new people.”
David Clark, Chief Financial Officer of MeetMe, added:
“With the growth in engagement, we are seeing solid financial
results. We grew mobile revenue in the quarter by 128% on a
year-on-year basis to $6.7 million and by 18% versus Q2. Mobile
revenue comprised 58% of our total revenue for the quarter, the
highest contribution in our history, and up from 29% a year ago.
Mobile ARPU climbed to $2.29 in the quarter, up more then 100%
versus a year ago, on the strength of our mobile banner and native
advertising business. We also increased adjusted EBITDA by 213% on
a year-on-year basis to $2.18 million, a 19% adjusted EBITDA
margin. In addition, we believe we have substantially strengthened
our balance sheet with the completion of our equity offering in the
third quarter, ending the quarter with a cash balance of $15.5
million.”
Webcast and Conference Call Details
Management will host a webcast and conference call to discuss
third quarter 2014 financial results today, November 6, 2014 at
10:30 a.m. Eastern time. To access the call dial 888-572-7033 (+1
719-325-2472 outside the United States) and when prompted provide
the participant passcode 8101195 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 mobile revenue will
continue to grow, whether our mobile ARPU and ARPDAU will continue
to grow, whether our EBITDA will continue to grow, whether our Chat
volumes will continue to increase and if so at what rate, whether
our recent mobile redesign and the launch of our Boost virtual
currency product will help establish a strong foundation for future
growth, our future progress towards building the preeminent mobile
chat app for connecting with new people, whether engagement will
continue to grow and if so at what rate, and the future strength of
our advertising business. 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) September 30,
December 31, 2014 2013 ASSETS CURRENT
ASSETS: Cash and cash equivalents $ 15,597,966 $ 6,330,532 Accounts
receivable, net of allowance of $611,000 and $495,000, at September
30, 2014 and December 31, 2013, respectively 8,013,051 10,136,929
Prepaid expenses and other current assets
844,033 597,133
Total current assets
24,455,050
17,064,594 Goodwill 70,646,036
70,646,036 Property and equipment, net 1,798,600 2,871,800
Intangible assets, net 3,319,191 4,787,941 Other assets
272,793 205,869
TOTAL ASSETS $
100,491,670 $
95,576,240 LIABILITIES AND
STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $
2,166,568 $ 3,331,484 Accrued liabilities 2,770,973 3,262,327
Current portion of capital lease obligations 831,312 928,181
Current portion of long-term debt 2,012,313 2,333,966 Deferred
revenue
213,111
275,761 Total current liabilities
7,994,277 10,131,719
Long-term capital lease obligation, less current portion,
net 275,539 713,699 Long-term debt, less current portion, net
1,018,948 2,102,842 Other Liabilities
562,568
819,930 TOTAL LIABILITIES
$ 9,851,332
$ 13,768,190
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 September 30, 2014 and December
31, 2013, respectively
$ 1,000 $ 1,000 Common stock, $.001 par value; authorized -
100,000,000 Shares; 44,872,867 and 38,477,359 shares issued and
outstanding at September 30, 2014 and Decmber 31, 2013,
respectively 44,877 38,481 Additional paid-in capital 296,166,091
282,496,996 Accumulated deficit (204,919,163 ) (200,110,075 )
Accumulated other comprehensive income
(652,467
) (618,352 ) Total
stockholders' equity 90,640,338
81,808,050 Total
liabilities and stockholders' equity $
100,491,670 $
95,576,240 See notes to condensed
consolidated financial statements included in the September 30,
2014 10-Q filing.
MEETME, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS (UNAUDITED)
Three Months Ended Nine
Months Ended September 30, September 30,
2014
2013 2014
2013 Revenues
$
11,604,724 $
10,073,309 $
31,795,558 $
27,361,901 Operating Costs and Expenses:
Sales and marketing 1,516,547 1,876,240 5,611,313 5,405,910 Product
development and content 7,021,353 6,817,591 20,734,532 19,543,611
General and administrative 1,932,161 1,536,939 6,055,944 5,759,498
Depreciation and amortization 1,135,263 1,108,856 3,300,654
3,280,843 Restructuring costs - - 120,202 2,540,896 Loss on debt
restructure
- -
- 1,174,269
Total Operating Costs and Expenses
11,605,324 11,339,626
35,822,645
37,705,027 Loss from Operations
(600 ) (1,266,317
) (4,027,087 )
(10,343,126 ) Other Income
(Expense): Interest income 2,679 2,503 4,394 7,856 Interest expense
(206,980 ) (222,777 ) (868,866 ) (578,345 ) Change in warrant
liability
256,932 -
82,471 -
Total Other Income (Expense)
52,631
(220,274 )
(782,001 ) (570,489
) Income (Loss) before Income Taxes 52,031
(1,486,591 ) (4,809,088 ) (10,913,615 ) Income taxes
- -
- - Net Income
(Loss)
$ 52,031 $
(1,486,591 ) $
(4,809,088 ) $
(10,913,615 ) Preferred stock dividends
- -
- - Net Income
(Loss) Allocable to Common Stockholders
$
52,031 $ (1,486,591
) $ (4,809,088
) $ (10,913,615
) Earnings (losses) per Common Stockholders:
Basic
$ 0.00 $
(0.04 ) $ (0.12
) $ (0.29 )
Diluted
$ 0.00 $
(0.04 ) $ (0.12
) $ (0.29 )
Weighted average shares outstanding: Basic
43,092,803 38,207,141
40,131,955
37,903,904 Diluted
46,064,928 38,207,141
40,131,955
37,903,904 Net Income (Loss) $ 52,031 $
(1,486,591 ) $ (4,809,088 ) $ (10,913,615 ) Foreign currency
translation adjustment
(74,389 )
1,473 (34,115
) (26,941 )
Comprehensive loss
$ (22,358
) $ (1,485,118
) $ (4,843,203
) $ (10,940,556
) See notes to condensed consolidated financial
statements included in the September 30, 2014 10-Q filing.
MEETME, INC. AND SUBSIDIARIES RECONCILIATION OF
GAAP NET INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED
EBITDA (UNAUDITED)
Three Months Ended September
30,
Nine Months Ended September
30, 2014
2013 2014
2013 Net Income (Loss) from
Continuing Operations
$ 52,031
$ (1,486,591 )
$ (4,809,088 )
$ (10,913,615 )
Interest expense 206,980 222,777 868,866 578,345 Change in warrant
liability (256,932 ) - (82,471 ) - Depreciation and amortization
1,135,263 1,108,856 3,300,654 3,280,843 Amortization of stock based
compensation 1,043,083 850,642 3,022,471 2,761,566 Acquisition and
restructuring costs - - 120,202 2,540,896 Loss on debt restructure
- -
- 1,174,269 Adjusted
EBITDA
$ 2,180,425 $
695,684 $ 2,420,634
$ (577,696 )
GAAP basic and diluted net income (loss) per common
shareholders
$ 0.00 $
(0.04 ) $ (0.12
) $ (0.29 )
Basic adjusted EBITDA per common shareholders
$
0.05 $ 0.02
$ 0.06 $
(0.02 ) Diluted adjusted EBITDA per
common shareholders
$ 0.05
$ 0.02 $
0.05 $ (0.02
) Weighted average number of shares
outstanding, Basic
43,092,803
38,207,141 40,131,955
37,903,904 Weighted average
number of shares outstanding, Diluted
46,064,928 40,144,904
45,567,523
37,903,904
Investor Contact:MKR Group Inc.Todd Kehrli or Jim
Byers323-468-2300meet@mkr-group.com
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