MeetMe Resumes Management of its Mobile and Web Ad Inventory
June 03 2015 - 8:15AM
Business Wire
Terminates Advertising Agreements with
Beanstock Media
MeetMe, Inc. (NASDAQ: MEET), the public market leader for social
discovery, today announced that it has terminated its agreements
with Beanstock Media, Inc. pursuant to which Beanstock managed the
majority of MeetMe’s web and mobile ad inventory. Effective
yesterday, MeetMe has resumed managing its advertising inventory
in-house.
Geoff Cook, Chief Executive Officer of MeetMe, said:
“In the past two years, we have outsourced our ad management to
Beanstock and another partner to reduce the impact of seasonal
trends in the advertising market. During that time, we maintained
the capability and staff to manage our inventory internally in case
we decided to do so again. We have resumed that management and are
confident that we will continue to monetize and capitalize on the
growth in engagement we have seen on our mobile platform."
David Clark, Chief Financial Officer of MeetMe, added:
“We do not expect to incur any additional operating costs as a
result of this change and continue to expect to achieve our
previously provided revenue guidance for the full year 2015 of $47
to $53 million. Additionally, we expect to achieve adjusted
EBITDA within our previous guidance range of $8 to $11 million for
the full year. However, due to the transition back to our own
internal management of our mobile and web advertising inventory
during the quarter, we are revising our second quarter revenue and
adjusted EBITDA guidance to reflect this change. We now expect
revenue for the second quarter to be in the range of $9.0 to $9.5
million, with an adjusted EBITDA range of $250,000 to $750,000. All
guidance amounts are subject to change based on our determination
of the collectability of all amounts owed by Beanstock. Beanstock
represents approximately $5.8 million in accounts receivable, of
which approximately $2.25 million is overdue. None of these amounts
is in dispute.”
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 we will continue to monetize
and capitalize on the growth in engagement we have seen on our
mobile platform, whether we will incur any additional operating
costs as a result of the termination of our agreements with
Beanstock, whether we will achieve our previously provided revenue
guidance for the full year 2015 of $47 to $53 million, whether we
will achieve EBITDA within our original guidance range of $8 to $11
million for the full year, whether our revenue for the second
quarter to be in the range of $9.0 to $9.5 million, with an
adjusted EBITDA range of $250,000 to $750,000, and whether guidance
amounts will change based on our determination of the
collectability of all amounts owed by Beanstock. 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 and our Quarterly Report on Form 10-Q for
the quarter ended March 31, 2015. 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20150603005476/en/
Investors:MKR Group Inc.Todd Kehrli or Jim Byers,
323-468-2300meet@mkr-group.com
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