Total Revenue Increased 20% Year Over Year
Mobile Revenue Increased 39% Year Over Year
Adjusted EBITDA Increased 31% Year Over
Year
GAAP Net Income Increased 316% Year Over
Year
Non-GAAP Net Income Increased 30% Year Over
Year
MeetMe, Inc. (NASDAQ:MEET), a public market leader for social
discovery, today reported financial results for its third quarter
ended September 30, 2016.
Third Quarter 2016 Financial Highlights
- Total revenue increased 20% year over
year to a third quarter record $17.2 million.
- Mobile revenue increased 39% year over
year to $16.0 million.
- Adjusted EBITDA increased 31% year over
year to $6.9 million. (See the important discussion about the
presentation of non-GAAP financial measures, and reconciliation to
the most direct comparable GAAP financial measure, below.)
- Adjusted EBITDA margin increased to
40%, up from 37% in the third quarter of 2015.
- GAAP net income increased 316% year
over year to $4.4 million, or $0.07 per diluted share.
- Non-GAAP net income increased 30% year
over year to $6.2 million, or $0.10 per diluted share.
- Cash and Cash Equivalents totaled $46
million at September 30, 2016, an increase of 43% or $13.9 million
from $32.1 million at June 30, 2016.
Geoff Cook, Chief Executive Officer of MeetMe, stated, “Our
strong quarterly results reflect continued solid growth in our
mobile user engagement. MeetMe’s mobile daily active users for the
quarter increased 18% year over year while our mobile monthly
active users increased 32% year over year. Mobile ARPU also grew
both sequentially and year over year.
“We made tremendous progress during the quarter on multiple
fronts. We completed our acquisition of Skout on October 3rd and
have begun executing against our integration plan. With our new
Discuss platform, we increased comments and likes on topical posts
by 70%. Our innovative team also made strides toward the launch of
an exciting new mobile video product that is currently planned for
the first quarter of 2017. Combined with Skout, MeetMe now has more
than eight million monthly active users and one of the largest
mobile user bases of millennials, and we remain focused on
continuing to capitalize on this significant mobile
opportunity.”
David Clark, Chief Financial Officer of MeetMe, added, “Mobile
revenue for the quarter increased 39% year over year, driven by
growth in mobile user engagement and continued strength in the
mobile advertising industry, which resulted in higher advertising
rates on mobile devices. Adjusted EBITDA increased 31% to $6.9
million for the quarter with a 40% adjusted EBITDA margin. We
internally funded $5 million of stock buybacks which occurred in
September and October, as well as the cash portion of our
acquisition of Skout, which closed on October 3rd. Currently we
have more than $14 million in cash on our balance sheet.”
Webcast and Conference Call Details
Management will host a webcast and conference call to discuss
third quarter 2016 financial results today, November 7, 2016 at
8:00 a.m. Eastern time. To access the call dial 877-857-6149 (+1
719-325-4907 outside the United States) and when prompted provide
the participant passcode 5252198 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.
Through its MeetMe® and Skout® mobile apps and websites, MeetMe
is a 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 two 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, user credits, and
subscriptions. MeetMe’s apps are available
on iPhone, iPad, and Android in multiple
languages worldwide. 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 net income will continue
to grow, whether our adjusted EBITDA will continue to grow, whether
our EPS will continue to increase, whether we will execute against
our Skout integration plan, whether our Discuss platform will lead
to increased comments and likes on topical posts, whether we will
continue to make strides toward the launch of a new mobile video
product, whether we will launch our mobile video product in the
first quarter of 2017, whether our mobile user engagement will
continue to grow, whether we will continue to capitalize on our
mobile opportunity, whether the mobile advertising industry will
remain strong, and whether advertising rates on mobile devices will
continue to increase. 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, 2015 filed with the SEC
on March 8, 2016 and our Current Report on Form 8-K filed with the
SEC on October 4, 2016. 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, benefit or provision for income taxes, depreciation and
amortization, and non-cash stock-based compensation, non-recurring
acquisition and restructuring expenses, gain or 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. The Company defines Non-GAAP Net Income as
earnings (or loss) from continuing operations before benefit or
provision for income taxes, amortization on intangibles,
non-recurring acquisition and restructuring costs, and non-cash
stockbased compensation.
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, December 31, 2016 2015
ASSETS CURRENT ASSETS: Cash and cash equivalents $
45,971,169 $ 19,298,038 Accounts receivable, net of allowance of
$190,000 and $133,000, at September 30, 2016 and December 31, 2015,
respectively 13,526,976 16,509,291 Prepaid expenses and other
current assets
809,824
970,239 Total current assets
60,307,969 36,777,568
Goodwill 70,646,036 70,646,036 Property and
equipment, net 2,112,352 2,610,307 Intangible assets, net 145,415
1,278,498 Deferred tax asset 27,269,800 - Other assets
122,441 178,264
TOTAL ASSETS $
160,604,013 $
111,490,673 LIABILITIES AND
STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $
1,756,662 $ 2,776,710 Accrued liabilities 3,518,135 4,127,634
Current portion of capital lease obligations 271,389 366,114
Deferred revenue
296,080
293,414 Total current liabilities
5,842,266 7,563,872
Long-term capital lease obligation, less current portion,
net 18,901 221,302 Other liabilities
-
1,035,137 TOTAL LIABILITIES
$ 5,861,167
$ 8,820,311
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; 0 shares
issued and outstanding at September 30, 2016 and December 31, 2015
$ - $ - Common stock, $.001 par value; authorized - 100,000,000
Shares; 54,221,918 and 47,179,486 issued and outstanding at
September 30, 2016 and December 31, 2015 54,225 47,183 Additional
paid-in capital 318,465,808 300,725,791 Accumulated deficit
(163,777,187 )
(198,102,612 ) TOTAL STOCKHOLDERS'
EQUITY 154,742,846
102,670,362 TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $
160,604,013 $
111,490,673 MEETME,
INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)
For the Three Months Ended
For the Nine Months Ended September 30, September
30, 2016 2015
2016 2015 Revenues
$ 17,191,261 $
14,308,080 $
46,901,923 $
37,023,933 Operating Costs and Expenses:
Sales and marketing 3,228,262 1,483,252 8,776,029 3,792,639 Product
development and content 5,808,449 6,175,566 17,730,610 18,578,826
General and administrative 2,215,727 7,802,367 6,431,486 11,197,263
Depreciation and amortization 761,460 762,830 2,266,642 2,380,004
Acquisition and restructuring costs
467,777
- 1,628,126
- Total Operating Costs and
Expenses
12,481,675
16,224,015 36,832,893
35,948,732 Income (Loss)
from Operations
4,709,586
(1,915,935 )
10,069,030 1,075,201
Other Income (Expense): Interest income 7,135 5,303 18,697
15,733 Interest expense (4,123 ) (93,383 ) (16,228 ) (375,239 )
Change in warrant liability (318,983 ) 45,532 (864,596 ) 6,212 Gain
(loss) on cumulative foreign currency translation adjustment (1,206
) (78,987 ) 33,347 (862,078 ) Gain on sale of asset
- -
- 163,333 Total
Other Expense
(317,177 )
(121,535 ) (828,780
) (1,052,039 )
Income (Loss) before Benefit (provision) for Income Taxes 4,392,409
(2,037,470 ) 9,240,250 23,162 Benefit (provision) for income taxes
- 1,849
27,125,446 (126,801
) Net Income (Loss)
$
4,392,409 $
(2,035,621 ) $
36,365,696 $ (103,639
)
Basic and diluted net income (loss) per
common stockholders:
Basic net income (loss) per common
stockholders
$ 0.08 $
(0.04 ) $ 0.73
$ 0.00
Diluted net income (loss) per common
stockholders
$ 0.07 $
(0.04 ) $ 0.65
$ 0.00 Weighted
average number of shares outstanding: Basic
53,231,369 45,470,686
49,649,221
45,192,785 Diluted
59,048,821 45,470,686
55,604,866
45,192,785 Other comprehensive Income
(loss): Net income (loss) $ 4,392,409 $ (2,035,621 ) $ 36,365,696 $
(103,639 ) Foreign currency translation adjustment
- -
- - Comprehensive
income (loss)
$ 4,392,409
$ (2,035,621 )
$ 36,365,696 $
(103,639 ) MEETME, INC.
AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME ALLOCABLE
TO COMMON STOCKHOLDERS TO ADJUSTED EBITDA (UNAUDITED)
For the Three Months
Ended For the Nine Months Ended September 30,
September 30, 2016
2015 2016
2015 Net Income (Loss) allocable to
Common Stockholders
$ 4,392,409
$ (2,035,621 )
$ 36,365,696 $
(103,639 ) Interest expense 4,123
93,383 16,228 375,239 Depreciation and amortization 761,460 762,830
2,266,642 2,380,004 Stock-based compensation expense 911,490
661,426 2,554,842 2,009,742 Change in warrant liability 318,983
(45,532 ) 864,596 (6,212 ) Benefit (provision) for income taxes -
(1,849 ) (27,125,446 ) 126,801 Acquisition and restructuring costs
467,777 - 1,628,126 - Bad debt outside normal range - 5,735,204 -
5,735,204 (Gain) loss on cumulative effect of foreign currency
translation adjustment 1,206 78,987 (33,347 ) 862,078 Gain on sale
of asset
- -
- (163,333 )
Adjusted EBITDA
$ 6,857,448
$ 5,248,828 $
16,537,337 $
11,215,884 GAAP basic net income
(loss) per common stockholders
$ 0.08
$ (0.04 ) $
0.73 $ 0.00
GAAP diluted net income (loss) per common stockholders
$ 0.07 $ (0.04
) $ 0.65
$ 0.00 Basic adjusted EBITDA per
common stockholders
$ 0.13 $
0.12 $ 0.33
$ 0.25 Diluted adjusted EBITDA per
common stockholders
$ 0.12 $
0.11 $ 0.30
$ 0.23 Weighted average
number of shares outstanding, Basic
53,231,369
45,470,686
49,649,221 45,192,785
Weighted average number of shares outstanding, Diluted
59,048,821 49,128,421
55,604,866
48,794,667 MEETME, INC. AND
SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO NON-GAAP
NET INCOME (UNAUDITED)
For the Three Months Ended For the Nine Months
Ended September 30, September 30,
2016 2015
2016 2015 GAAP Net
Income (Loss)
$ 4,392,409 $
(2,035,621 ) $
36,365,696 $ (103,639
) Stock-based compensation expense 911,490
661,426 2,554,842 2,009,742 Amortization of intangible assets
381,916 378,750 1,142,583 1,145,416 Benefit (provision) for income
taxes - (1,849 ) (27,125,446 ) 126,801 Acquisition and
restructuring costs 467,777 - 1,628,126 - Bad debt outside normal
range
- 5,735,204
- 5,735,204
Non-GAAP Net Income
$ 6,153,592
$ 4,737,910 $
14,565,801 $
8,913,524 GAAP basic net income
(loss) per common stockholders
$ 0.08
$ (0.04 ) $
0.73 $ 0.00
GAAP diluted net income (loss) per common stockholders
$ 0.07 $ (0.04
) $ 0.65
$ 0.00 Basic non-GAAP net income
per common stockholders
$ 0.12
$ 0.10 $
0.29 $ 0.20
Diluted non-GAAP net income per common stockholders
$
0.10 $ 0.10
$ 0.26 $
0.18 Weighted average number of shares
outstanding, Basic
53,231,369
45,470,686 49,649,221
45,192,785 Weighted average
number of shares outstanding, Diluted
59,048,821 49,128,421
55,604,866
48,794,667
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161107005376/en/
Investor Contact:MKR Group Inc.Todd Kehrli or Jim Byers,
323-468-2300meet@mkr-group.com
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