Mobile Revenue Increased 73% Year Over Year
Adjusted EBITDA Increased 141% Year Over
Year
Adjusted EBITDA Margin Increased to 37%
MeetMe, Inc. (NASDAQ: MEET), the public market leader for social
discovery, today reported financial results for its third quarter
ended September 30, 2015.
Third Quarter 2015 Financial Highlights
- Mobile revenue was $11.6 million, up
73% from the third quarter of 2014.
- Mobile revenue represented 81% of total
revenue, the highest in MeetMe’s history.
- Total revenue was $14.3 million, up 23%
from the third quarter of 2014.
- Adjusted EBITDA was $5.2 million, an
increase of 141% 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.) Third quarter 2015 adjusted EBITDA excludes a
one-time, $5.7 million write-off of Beanstock Media’s accounts
receivable balance, which falls outside of the Company’s normal
range of bad debt expense.
- Adjusted EBITDA margin increased to
37%, up from 19% in the third quarter of 2014.
- Net loss was $2.0 million, compared to
net income of $52,000 for the third quarter of 2014. Third quarter
2015 net income was impacted by the one-time, $5.7 million
write-off of Beanstock Media’s accounts receivable balance.
- Cash and Cash Equivalents totaled $15.5
million at September 30, 2015.
Geoff Cook, Chief Executive Officer of MeetMe, stated, “In the
third quarter, we set a new revenue record, reflecting growth in
both engagement and ad pricing (or CPMs). Our mobile daily active
users increased 19% year over year and our total mobile monthly
active users increased 31% year over year. Additionally, our mobile
CPMs increased 88% year over year. We believe it is significant to
have achieved this level of revenue performance in the third
quarter, as the fourth quarter is historically our strongest
revenue quarter of the year, due to seasonal trends in CPMs. We are
pleased to see the positive CPM momentum experienced in the third
quarter continue to date into the fourth quarter.”
“On the product side, by year end, we expect to launch a major
revamp of the MeetMe Plus subscription service, as well as
additional native advertising partners. Our team is also hard at
work at initiatives designed to deliver future user growth,
including a significant revamp to our Recommendation Engine and a
major new feature designed to facilitate interest-based
communities.”
David Clark, Chief Financial Officer of MeetMe, added, “With
continued effective management of our mobile advertising inventory,
our mobile revenue during the quarter increased 73% year over year.
Mobile revenue represented 81% of our total quarterly revenue, the
highest percentage in our history and up from 58% in the year ago
quarter. Much of that revenue improvement flowed through to
adjusted EBITDA, which increased to $5.2 million on a year over
year basis, resulting in a 37% adjusted EBITDA margin.”
Webcast and Conference Call Details
Management will host a webcast and conference call to discuss
third quarter 2015 financial results today, November 3, 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 2164051 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 the significance of third quarter
revenue performance in terms of historical seasonal trends in our
CPMs; whether positive CPM momentum experienced in the third
quarter continue so far into the fourth quarter; whether we will
launch a major revamp of the MeetMe Plus subscription service and
the timing of such launch; whether we will launch additional native
advertising partners and the timing of such launch; the success of
future initiatives in delivering user growth; whether we will
launch a significant revamp to our Recommendation Engine and the
timing of such launch; whether we will launch a major new feature
designed to facilitate interest-based communities and the timing of
such launch; and whether our management of our mobile advertising
inventory will continue to be effective in increasing mobile
revenue.. 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, bad debt expense
outside the normal range, 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)
September
30,2015
December
31,2014
ASSETS CURRENT ASSETS: Cash and cash equivalents $
15,528,283 $ 17,041,050 Accounts receivable, net of allowance of
$338,000 and $586,000, at September 30, 2015 and December 31, 2014,
respectively 10,956,933 9,045,269 Prepaid expenses and other
current assets
911,601
790,031 Total current assets
27,396,817 26,876,350
Goodwill 70,646,036 70,646,036 Property and
equipment, net 2,519,033 2,458,897 Intangible assets, net 1,657,248
2,894,330 Other assets
191,193
338,146 TOTAL ASSETS
$ 102,410,327
$ 103,213,759
LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES:
Accounts payable $ 1,745,902 $ 2,985,259 Accrued liabilities
3,178,405 3,249,404 Current portion of capital lease obligations
437,158 872,761 Current portion of long-term debt 1,246,809
2,068,326 Deferred revenue
207,753
218,484 Total current liabilities
6,816,027 9,394,234
Long-term capital lease obligation, less current portion,
net 290,290 587,416 Long-term debt, less current portion, net -
556,612 Other liabilities
412,318
418,530 TOTAL LIABILITIES
$ 7,518,635
$ 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 September 30, 2015 and December
31, 2014 $ 1,000 $ 1,000 Common stock, $.001 par value; authorized
- 100,000,000 Shares; 45,480,470 and 44,910,034 issued and
outstanding at September 30, 2015 and December 31, 2014 45,486
44,914 Additional paid-in capital 299,021,085 297,001,168
Accumulated deficit (204,175,879 ) (204,072,240 ) Accumulated other
comprehensive loss
-
(717,875 ) TOTAL STOCKHOLDERS'
EQUITY 94,891,692
92,256,967 TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $
102,410,327 $
103,213,759
MEETME, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
For the Three Months
EndedSeptember 30,
For the Nine Months
EndedSeptember 30,
2015 2014
2015 2014 Revenues
$ 14,308,080 $
11,604,724 $
37,023,933 $
31,795,558 Operating Costs and Expenses:
Sales and marketing 1,483,252 1,516,547 3,792,639 5,611,313 Product
development and content 6,175,566 7,021,353 18,578,826 20,734,532
General and administrative 7,802,367 1,932,161 11,197,263 6,055,944
Depreciation and amortization 762,830 1,135,263 2,380,004 3,300,654
Restructuring costs
-
- -
120,202 Total Operating Costs and Expenses
16,224,015
11,605,324 35,948,732
35,822,645 Income (Loss)
from Operations
(1,915,935 )
(600 )
1,075,201 (4,027,087
) Other Income (Expense): Interest income 5,303
2,679 15,733 4,394 Interest expense (93,383 ) (206,980 ) (375,239 )
(868,866 ) Change in warrant liability 45,532 256,932 6,212 82,471
Loss on cumulative foreign currency translation adjustment (78,987
) - (862,078 ) - Gain on sale of asset
-
- 163,333
- Total Other Income (Expense)
(121,535 ) 52,631
(1,052,039 )
(782,001 ) Income (loss) before
Income Taxes (2,037,470 ) 52,031 23,162 (4,809,088 ) Income taxes
1,849 -
(126,801 ) -
Net Income (Loss)
$ (2,035,621
) $ 52,031
$ (103,639 ) $
(4,809,088 ) Preferred stock dividends
- -
- - Net income
(loss) allocable to Common Stockholders
$
(2,035,621 ) $
52,031 $ (103,639
) $ (4,809,088
) Basic and diluted income (loss) per common
stockholders: Basic income (loss) per common stockholders
$ (0.04 ) $
0.00 $ 0.00
$ (0.12 ) Diluted income
(loss) per common stockholders
$ (0.04
) $ 0.00
$ 0.00 $
(0.12 ) Weighted average shares
outstanding: Basic
45,470,686
43,092,803 45,192,785
40,131,955 Diluted
45,470,686 43,092,803
45,192,785
40,131,955 Net Income (Loss) $
(2,035,621 ) $ 52,031 $ (103,639 ) $ (4,809,088 ) Foreign currency
translation adjustment
-
(74,389 ) -
(34,115 ) Comprehensive Loss
$ (2,035,621 )
$ (22,358 ) $
(103,639 ) $
(4,843,203 ) MEETME,
INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME
(LOSS) ALLOCABLE TO COMMON STOCKHOLDERS TO ADJUSTED EBITDA
(UNAUDITED)
For the Three Months
EndedSeptember 30,
For the Nine Months
EndedSeptember 30,
2015 2014
2015 2014 Net income
(loss) allocable to Common Stockholders
$
(2,035,621 ) $
52,031 $ (103,639
) $ (4,809,088
) Interest expense 93,383 206,980 375,239
868,866 Depreciation and amortization 762,830 1,135,263 2,380,004
3,300,654 Stock-based compensation expense 661,426 1,043,083
2,009,742 3,022,471 Change in warrant liability (45,532 ) (256,932
) (6,212 ) (82,471 ) Income taxes (1,849 ) - 126,801 - Acquisition
and restructuring costs - - - 120,202 Bad debt expense outside
normal range 5,735,204 5,735,204 Loss on cumulative effect of
foreign currency translation adjustment 78,987 - 862,078 - Gain on
sale of asset
- -
(163,333 )
- Adjusted EBITDA
$
5,248,828 $ 2,180,425
$ 11,215,884 $
2,420,634 GAAP basic and diluted
net income (loss) per common stockholders
$
(0.04 ) $ 0.00
$ 0.00 $
(0.12 ) Basic adjusted EBITDA per common
stockholders
$ 0.12 $
0.05 $ 0.25
$ 0.06 Diluted adjusted EBITDA per
common stockholders
$ 0.11
$ 0.05 $
0.23 $ 0.05
Weighted average number of shares outstanding, Basic
45,470,686 43,092,803
45,192,785
40,131,955 Weighted average number of shares
outstanding, Diluted
49,128,421
46,064,928 48,794,667
45,567,523
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151103005625/en/
Investors:MKR Group Inc.Todd Kehrli or Jim Byers,
323-468-2300meet@mkr-group.com
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