Mobile Revenue Increased 76% Year Over Year
Adjusted EBITDA Increased To $3.1 Million,
Compared to a Loss of $500,000 a Year Ago
Achieved Record Adjusted EBITDA Margin of
27%
MeetMe, Inc. (NASDAQ: MEET), the public market leader for social
discovery, today reported financial results for its first quarter
ended March 31, 2015.
First Quarter 2015 Financial Highlights
- Total revenue was $11.6 million, up 22%
from the first quarter of 2014.
- Mobile revenue was $8.2 million, up 76%
from the first quarter of 2014.
- Mobile revenue represented 71% of total
revenue, the highest in MeetMe’s history.
- Adjusted EBITDA was $3.1 million or a
27% margin, compared to a loss of $500,000 in the first quarter of
2014. (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 $722,000 compared to a
net loss of $3.4 million for the first quarter of 2014.
- Cash and Cash Equivalents totaled $14.8
million at March 31, 2015.
Geoff Cook, Chief Executive Officer of MeetMe, said:
“During the quarter we achieved the highest sequential mobile
traffic growth we’ve experienced in more than two years, and
exceeded an average of one million mobile daily users for the first
time in company history. On a sequential basis, mobile daily users
increased 12% and mobile monthly users increased 15% in the first
quarter, and year over year, mobile daily users increased 33% and
mobile monthly users grew 44%. We believe this significant growth
in traffic reflects our success in growing Chat engagement. Last
October, we first achieved the milestone of 20 million chats in a
single day. Since then, we have reached that milestone three times
in November, seven times in December, and 83 out of the 90 days in
the first quarter, illustrating our momentum in the quarter. We
have a deep product pipeline planned focused on improving the
quality and relevance of the connections we facilitate, as well as
on enhancing our freemium and subscription offerings.”
David Clark, Chief Financial Officer of MeetMe, added:
“With continued growth in engagement, we are seeing solid
financial results. We grew total revenue during the quarter 22% on
a year over year basis to $11.6 million. Mobile revenue comprised
71% of our total revenue for the quarter, the highest contribution
in our history, and up from 49% a year ago. We also increased
adjusted EBITDA significantly on a year-on-year basis to $3.1
million, resulting in a record 27% adjusted EBITDA margin.”
Webcast and Conference Call Details
Management will host a webcast and conference call to discuss
first quarter 2015 financial results today, May 7, 2015 at 10:30
a.m. Eastern time. To access the call dial 888-401-4668 (+1
719-457-2697 outside the United States) and when prompted provide
the participant passcode 8683228 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 will
continue to grow, whether our mobile revenue will continue to grow
and continue to constitute an increasing percentage of our total
revenue, whether our mobile ARPU and ARPDAU will continue to grow,
whether our EBITDA will continue to grow, whether net income will
continue to be positive and grow, the growth of sequential mobile
traffic and whether that growth reflects our success in growing
Chat engagement, whether our Chat volumes will continue to increase
and if so at what rate, whether we will continue to meet the
milestone of 20 million chats in a single day, our ability to
execute against our product pipeline and the ability of our product
pipeline to improve the quality and relevance of the connections we
facilitate and enhance our freemium and subscription offerings, our
ability to produce solid financial results, and whether engagement
will continue to grow and if so at what rate. 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, 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, loss on cumulative foreign currency
translation adjustment, gain on sale of asset, 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
(Unaudited) March 31,
2015
December 31, 2014
ASSETS CURRENT ASSETS: Cash and cash equivalents $
14,835,822 $ 17,041,050
Accounts receivable, net of allowance of
$324,000 and $586,000, at March 31, 2015 and December 31, 2014,
respectively
10,741,066 9,045,269
Prepaid expenses and other current
assets
1,051,909 790,031
Total current assets
26,628,797
26,876,350 Goodwill 70,646,036
70,646,036 Property and equipment, net 2,693,164 2,458,897
Intangible assets, net 2,414,747 2,894,330 Other assets
313,445 338,146
TOTAL ASSETS
$ 102,696,189
$ 103,213,759
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES: Accounts payable $ 1,845,433 $ 2,985,259
Accrued liabilities 2,417,242 3,249,404 Current portion of capital
lease obligations 708,426 872,761 Current portion of long-term debt
2,125,897 2,068,326 Deferred revenue
230,337
218,484 Total current liabilities
7,327,335 9,394,234
Long-term capital lease obligation, less current
portion, net 475,758 587,416 Long-term debt, less current portion,
net 66,677 556,612 Other liabilities
514,258
418,530 TOTAL LIABILITIES
$ 8,384,028
$ 10,956,792
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 March 31, 2015 and December 31,
2014 $ 1,000 $ 1,000 Common stock, $.001 par value; authorized -
100,000,000 Shares; 44,910,034 issued and outstanding at March 31,
2015 and December 31, 2014 44,914 44,914 Additional paid-in capital
297,616,433 297,001,168 Accumulated deficit (203,350,186 )
(204,072,240 ) Accumulated other comprehensive income (loss)
- (717,875 )
TOTAL STOCKHOLDERS' EQUITY
94,312,161
92,256,967 TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $
102,696,189 $
103,213,759 MEETME,
INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS) THREE MONTHS ENDED MARCH 31,
2015 AND 2014 (UNAUDITED)
Three Months Ended March 31,
2015
2014
Revenues
$ 11,628,976
$ 9,503,504 Operating Costs
and Expenses: Sales and marketing 1,215,320 2,159,088 Product
development and content 6,319,804 6,857,440 General and
administrative 1,619,904 1,929,645 Depreciation and amortization
815,915 1,085,459 Restructuring costs
-
120,202 Total Operating Costs and
Expenses
9,970,943
12,151,834 Income (Loss) from Operations
1,658,033 (2,648,330
) Other Income (Expense): Interest income 5,186
1,166 Interest expense (158,866 ) (420,243 ) Change in warrant
liability (95,728 ) (355,954 ) Loss on cumulative foreign currency
translation adjustment (794,704 ) - Gain on sale of asset
163,333 - Total
Other Income (Expense)
(880,779 )
(775,031 ) Income (loss)
before Income Taxes 777,254 (3,423,361 ) Income taxes
(55,200 ) -
Net Income (Loss)
$ 722,054
$ (3,423,361 ) Preferred
stock dividends
- -
Net Income (Loss) Allocable to Common Stockholders
$ 722,054 $
(3,423,361 ) Basic and diluted net
income (loss) per common stockholders: Basic net income (loss) per
common stockholders
$ 0.02
$ (0.09 ) Diluted net income
(loss) per common stockholders
$ 0.01
$ (0.09 )
Weighted average shares outstanding, basic
44,910,034 38,499,171
Weighted average shares outstanding, diluted
48,246,763 38,499,171
Net Income (Loss) $ 722,054 $ (3,423,361 ) Foreign
currency translation adjustment
-
27,701 Comprehensive Income (Loss)
$ 722,054 $
(3,395,660 ) MEETME,
INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME
(LOSS) ALLOCABLE TO COMMON STOCKHOLDERS TO ADJUSTED EBITDA
THREE MONTHS ENDED MARCH 31, 2015 AND 2014
(UNAUDITED) Three
Months Ended March 31, 2015
2014 Net Income (Loss) Allocable to
Common Stockholders
$ 722,054
$ (3,423,361 )
Interest expense 158,866 420,243 Depreciation and amortization
815,915 1,085,459 Stock-based compensation expense 615,265 941,287
Change in warrant liability 95,728 355,954 Income Tax 55,200 -
Acquisition and restructuring costs - 120,202 Loss on cumulative
foreign currency translation adjustment 794,704 - Gain on sale of
asset
(163,333 )
- Adjusted EBITDA
$
3,094,399 $ (500,216
) GAAP basic net income (loss) per
common stockholders
$ 0.02
$ (0.09 ) GAAP diluted net
income (loss) per common stockholders
$
0.01 $ (0.09
) Basic adjusted EBITDA per common stockholders
$ 0.07 $
(0.01 ) Diluted adjusted EBITDA per
common stockholders
$ 0.06
$ (0.01 ) Weighted
average number of shares outstanding, Basic
44,910,034 38,499,171
Weighted average number of shares outstanding, Diluted
48,246,763
38,499,171
MKR Group Inc.Todd Kehrli or Jim
Byers323-468-2300meet@mkr-group.com
Meet (NASDAQ:MEET)
Historical Stock Chart
From Mar 2024 to Apr 2024
Meet (NASDAQ:MEET)
Historical Stock Chart
From Apr 2023 to Apr 2024