MeetMe Reports Preliminary Third Quarter 2015 Financial Results above Its Previously Released Guidance
October 07 2015 - 8:30AM
Business Wire
MeetMe, Inc. (NASDAQ: MEET), the public market leader for social
discovery, today reported preliminary financial results for its
third quarter ended September 30, 2015.
Preliminary Third Quarter 2015 Financial Results
- Total revenue is expected to be
approximately $14.2 million, an increase of approximately 22% from
the third quarter of 2014, and above the Company’s previously
released guidance range of $12.5 million to $13 million for the
third quarter of 2015.
- Adjusted EBITDA is expected to be
approximately $5.1 million, an increase of approximately 134% from
the prior year third quarter and above the previously released
guidance range of $2 million to $3 million for the third quarter of
2015. Third quarter 2015 adjusted EBITDA will exclude approximately
$5.8 million of an anticipated one-time write-off of Beanstock
Media’s accounts receivable balance, which falls outside of the
Company’s normal range of bad debt expense.
David Clark, Chief Financial Officer of MeetMe, added, “We
believe our quarterly revenue growth in excess of 20% year over
year reflects continued growth in mobile engagement and the
effective management of mobile advertising inventory. We
significantly increased adjusted EBITDA year over year largely as a
result of mobile revenue growth and prudent cost controls. During
the quarter, we determined it was necessary to write-off the
accounts receivable owed by our previous outsourced inventory
management provider, Beanstock Media. This bad debt write-off is a
one-time event that falls well outside our normal range of bad debt
expense of less than 1% of revenue and should not impact our
ability to deliver substantial EBITDA margins going forward.
Furthermore, we successfully completed our transition to in-house
management in the second quarter at little or no additional cost,
and since then have continued to grow both revenue and adjusted
EBITDA. We do intend to vigorously pursue repayment of these
amounts despite this write-off.”
Earnings Call and Webcast
MeetMe expects to report full third quarter results in early
November. Details for the earnings conference call and webcast will
be provided in a separate press release.
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 statements regarding expected revenue
and expected adjusted EBITDA, whether quarterly revenue growth
reflects mobile engagement growth and whether mobile engagement
will continue to grow, whether we will continue to manage mobile
advertising inventory effectively, whether mobile revenue will
continue to grow, whether we will implement prudent cost controls,
whether the write-off of the Beanstock receivable will impact our
ability to deliver substantial EBITDA margins going forward,
whether the write-off is a one-time event and whether we will
deliver EBITDA margins as expected, whether we will continue to
grow both revenue and adjusted EBITDA, and whether we will
vigorously pursue repayment of the Beanstock receivable. 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 the Current Report on Form 8-K filed
with the SEC on June 3, 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.
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20151007005435/en/
Investor Contact:MKR Group Inc.Todd Kehrli or Jim Byers,
323-468-2300meet@mkr-group.com
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