Total Revenue for 2014 Increased 11% Year Over
Year
Mobile Revenue for 2014 Increased 96% Year Over
Year
Adjusted EBITDA for 2014 Increased 177% Year
Over Year
MeetMe, Inc. (NASDAQ: MEET), the public market leader for social
discovery, today reported financial results for its full year and
fourth quarter ended December 31, 2014.
Full Year 2014 Financial Highlights
- Total revenue was $44.8 million, up 11%
year over year.
- Mobile revenue was $24.6 million, up
96% year over year.
- Mobile revenue represented 55% of total
revenue, up from 31% in 2013.
- Adjusted EBITDA was $5.0 million or an
11% margin, up 177% year over year. (See the important discussion
about the presentation of non-GAAP financial measures, and
reconciliation to the most direct comparable GAAP financial
measure, below.)
- Net loss was $4.0 million, compared to
a net loss of $10.9 million for 2013.
Fourth Quarter 2014 Financial Highlights
- Total revenue was $13.0 million, up 12%
sequentially and equal to Q4 2013 (which included a one-time
$600,000 recognition of deferred revenue).
- Mobile revenue was $7.6 million, up 14%
sequentially and 50% year over year.
- Mobile revenue represented 58.4% of
total revenue, the highest in MeetMe’s history.
- Mobile average revenue per user (ARPU)
was $2.46, up 22% from $2.01 in the fourth quarter of 2013, and
exceeded web ARPU of $1.03.
- Mobile average revenue per daily active
user (ARPDAU) was $0.090, up 27% from $0.071 in the fourth quarter
of 2013.
- Adjusted EBITDA was $2.6 million or a
20% margin, up 9% from $2.4 million in the fourth 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 increased to $847,000,
compared to $15,000 for the fourth quarter of 2013.
- Cash and Cash Equivalents totaled $17.0
million at December 31, 2014.
Geoff Cook, Chief Executive Officer of MeetMe, said:
“We generated significant growth in our mobile traffic during
the year that helped drive a 96% increase in annual mobile revenue
over last year. In the fourth quarter, we reached an all-time high
of 923,000 average mobile daily active users, up 19% over last
year, and in January we reported averaging more than one million
daily active users on mobile, up 30% from a year ago. Additionally,
new user registrations on our mobile apps in January increased 47%
year over year. We believe these positive growth metrics
demonstrate the increasing momentum of our business as the
preeminent mobile chat app for connecting new people. We look
forward to continuing to execute against a strong product pipeline
in 2015 to further grow engagement and continue to expand our
audience.”
David Clark, Chief Financial Officer of MeetMe, added:
“Our success in growing mobile engagement is reflected in our
solid financial results. We grew mobile revenue in 2014 to $24.6
million, which represented 55% of our total revenue for the year,
the highest annual contribution in our history, and up from 31% a
year ago. Mobile ARPU climbed to $2.46 in the quarter, up 22%
versus a year ago, on the strength of our mobile banner and native
advertising business. We also increased adjusted EBITDA by 177% on
a year-on-year basis to $5 million, generated free cash flow of
$3.5 million and ended the year with a strong cash balance of $17
million.”
Webcast and Conference Call Details
Management will host a webcast and conference call to discuss
full year and fourth quarter 2014 financial results today, February
27, 2015 at 10:30 a.m. Eastern time. To access the call dial
888-438-5448 (+1 719-457-2664 outside the United States) and when
prompted provide the participant passcode 1362119 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 total revenue and mobile
revenue will continue to grow, whether our adjusted EBITDA will
continue to grow, whether our mobile revenue will continue to
constitute an increasing percentage of our total revenue, whether
our net loss will continue to decrease, whether our mobile ARPU and
ARPDAU will continue to grow and exceed web ARPU, whether our net
income will continue to increase, whether our mobile traffic will
continue to grow, whether our mobile daily active users (DAU) will
continue to grow, whether our new user registrations on our mobile
app will continue to grow, whether our positive growth metrics
demonstrate the increasing momentum of our business and growing
mobile engagement, whether we are the preeminent mobile chat app
for connecting new people, whether we will execute against our
product pipeline as anticipated to further grow engagement and the
strength of the pipeline, and whether we will continue to expand
our audience. 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, the Prospectus Supplement (Rule 424(b)(5))
filed on July 24, 2014, and the Current Report on Form 8-K filed on
December 29, 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, change in warrant
liability, 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 AS OF DECEMBER 31, 2014 AND
2013 (UNAUDITED)
2014
2013 ASSETS CURRENT ASSETS: Cash and
cash equivalents $ 17,041,050 $ 6,330,532 Accounts receivable, net
of allowance of $586,000 and $495,000, at December 31, 2014 and
2013, respectively 9,045,269 10,136,929 Prepaid expenses and other
current assets
790,031
597,133 Total current assets
26,876,350 17,064,594
Goodwill 70,646,036 70,646,036 Property and
equipment, net 2,458,897 2,871,800 Intangible assets, net 2,894,330
4,787,941 Other assets
338,146
205,869 TOTAL ASSETS
$ 103,213,759
$ 95,576,240
LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES:
Accounts payable $ 2,985,259 $ 3,331,484 Accrued liabilities
3,249,404 3,262,327 Current portion of capital lease obligations
872,761 928,181 Current portion of long-term debt 2,068,326
2,333,966 Deferred revenue
218,484
275,761 Total current liabilities
9,394,234 10,131,719
Long-term capital lease obligation, less current portion,
net 587,416 713,699 Long-term debt, less current portion, net
556,612 2,102,842 Other liabilities
418,530
819,930 TOTAL LIABILITIES
$ 10,956,792
$ 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 December 31, 2014 and 2013
$ 1,000 $ 1,000 Common stock, $.001 par value; authorized -
100,000,000 Shares; 44,910,034 and 38,477,359 issued and
outstanding at December 31, 2014 and 2013, respectively 44,914
38,481 Additional paid-in capital 297,001,167 282,496,996
Accumulated deficit (204,072,239 ) (200,110,075 ) Accumulated other
comprehensive income (loss)
(717,875
) (618,352 ) TOTAL
STOCKHOLDERS' EQUITY 92,256,967
81,808,050 TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY $
103,213,759 $
95,576,240 MEETME, INC.
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS) THREE MONTHS AND YEARS ENDED
DECEMBER 31, 2014 AND 2013 (UNAUDITED)
Three Months Ended December 31,
Years Ended December 31,
2014 2013
2014 2013
Revenues
$ 13,021,878
$ 13,016,106 $
44,817,436 $
40,378,007 Operating Costs and Expenses:
Sales and marketing 1,666,406 2,393,167 7,277,719 7,799,077 Product
development and content 7,589,911 7,117,098 28,324,443 26,660,709
General and administrative 1,962,026 2,115,897 8,017,970 7,875,395
Depreciation and amortization 922,852 1,106,621 4,223,506 4,387,464
Restructuring costs - - 120,202 2,540,896 Loss on debt restructure
- -
- 1,174,269 Total
Operating Costs and Expenses
12,141,195
12,732,783
47,963,840 50,437,810
Income (Loss) from Operations
880,683 283,323
(3,146,404 )
(10,059,803 ) Other Income
(Expense): Interest income 5,958 1,869 10,352 9,725 Interest
expense (183,754 ) (269,902 ) (1,052,620 ) (848,247 ) Change in
warrant liability
144,037
- 226,508
- Total Other Income (Expense)
(33,759 ) (268,033
) (815,760 )
(838,522 ) Income (loss) before
Income Taxes 846,924 15,290 (3,962,164 ) (10,898,325 ) Income taxes
- -
- - Net Income
(Loss)
$ 846,924 $
15,290 $ (3,962,164
) $ (10,898,325
) Preferred stock dividends
-
- -
- Net Income (Loss) Allocable to Common
Stockholders
$ 846,924
$ 15,290 $
(3,962,164 ) $
(10,898,325 ) Basic and diluted
net income (loss) per common shareholders: Basic and diluted net
income (loss) per common shareholders
$
0.02 $ 0.00
$ (0.10 ) $
(0.29 ) Weighted average shares
outstanding, basic and diluted
44,879,982
38,477,359
41,328,699 38,048,446
Net Income (Loss) $ 846,924 $ 15,290 $ (3,962,164 ) $
(10,898,325 ) Foreign currency translation adjustment
(65,408 ) (25,466
) (99,523 )
(52,407 ) Comprehensive Income (Loss)
$ 781,516 $
(10,176 ) $
(4,061,687 ) $
(10,950,732 ) MEETME,
INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME
(LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA THREE
MONTHS AND YEARS ENDED DECEMBER 31, 2014 AND 2013
(UNAUDITED) Three Months Ended
December 31, Years Ended December
31, 2014
2013 2014
2013 Net Income (Loss) Allocable to
Common Stockholders
$ 846,924
$ 15,290 $
(3,962,164 ) $
(10,898,325 ) Interest expense
183,754 269,902 1,052,620 848,247 Depreciation and amortization
922,852 1,106,621 4,223,506 4,387,464 Stock-based compensation
expense 787,738 996,477 3,810,209 3,758,043 Change in warrant
liability (144,037 ) - (226,508 ) - Acquisition and restructuring
costs - - 120,202 2,540,896 Loss on debt restructure
- - -
1,174,269 Adjusted EBITDA
$ 2,597,231 $
2,388,290 $ 5,017,865
$ 1,810,594 GAAP
basic and diluted net income (loss) per common shareholders
$ 0.02 $
0.00 $ (0.10 )
$ (0.29 ) Basic adjusted
EBITDA per common shareholders
$ 0.06
$ 0.06 $
0.12 $ 0.05
Diluted adjusted EBITDA per common shareholders
$
0.05 $ 0.06
$ 0.11 $
0.04 Weighted average number of shares
outstanding, Basic
44,879,982
38,477,359 41,328,699
38,048,446 Weighted average number of
shares outstanding, Diluted
48,181,596
40,694,677 45,563,736
40,375,214
Investor Contact:MKR Group Inc.Todd Kehrli or Jim
Byers323-468-2300meet@mkr-group.com
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