Total Revenue for 2016 Increased 34% Year Over
Year
Mobile Revenue for 2016 Increased 56% Year Over
Year
GAAP Net Income for 2016 (excluding one-time
deferred tax benefit) Increased 204% Year Over Year
Adjusted EBITDA for 2016 Increased 45% Year
Over Year
Full Year Adjusted EBITDA Margin Increased to
39%
MeetMe, Inc. (NASDAQ: MEET), a public market leader for social
discovery, today reported financial results for its full year and
fourth quarter ended December 31, 2016.
Full Year 2016 Financial Highlights
- Total revenue was $76.1 million, up 34%
year over year.
- Mobile revenue was $70.7 million, up
56% year over year.
- GAAP net income was $46.3 million, or
$0.80 per diluted share (excluding a one-time deferred tax benefit,
net income was $18.2 million, or $0.31 per diluted share, up 204%
year over year).
- Non-GAAP net income was $26.9 million,
or $0.47 per diluted share, up 60% year over year.
- Adjusted EBITDA was $29.3 million, or a
39% margin, up 45% 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.)
Fourth Quarter 2016 Financial Highlights
- Total revenue was $29.2 million, up 47%
year over year.
- Mobile revenue was $27.8 million, up
62% year over year.
- GAAP net income was $9.9 million, or
$0.15 per diluted share, up 63% year over year.
- Non-GAAP net income was $12.4 million,
or $0.19 per diluted share, up 56% year over year.
- Adjusted EBITDA was $12.8 million, or a
44% margin, up 42% 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.)
- Cash and Cash Equivalents totaled $21.9
million at December 31, 2016.
Geoff Cook, Chief Executive Officer of MeetMe, stated, “We made
tremendous progress on multiple fronts in 2016. We achieved record
financial results for the year, reflecting the increasing value of
our audience to mobile advertisers, as well as our growth in mobile
engagement through product innovation and the acquisition of
Skout.
“Through our combination with Skout, we brought two of the
largest mobile apps for meeting and chatting with new people into
the same portfolio, increasing our scale to more than eight million
monthly active users. With the signing of our agreement to acquire
if(we) announced today, we continue to execute on our vision to
innovate, acquire and build the largest mobile portfolio of brands
for meeting and chatting with new people. The addition of if(we)’s
Tagged and hi5 brands into our portfolio is expected to increase
our monthly active users to more than 10 million, giving us even
greater scale for monetization and increased profits.”
David Clark, Chief Financial Officer of MeetMe, added, “Our
record mobile revenue for the year increased 56% year over year and
was driven by growth in the mobile engagement of our users, as well
as by the continued strength in the mobile advertising industry.
Our record adjusted EBITDA for the year increased 45% to $29.3
million, representing a 39% adjusted EBITDA margin. During the
year, we internally funded the $28.5 million cash portion of the
total consideration for our acquisition of Skout, as well as $5
million of stock buybacks, while still ending the year with a $2.6
million increase in our cash balance.”
Webcast and Conference Call Details
Management will host a webcast and conference call to discuss
full year and fourth quarter 2016 financial results today, March 6,
2017 at 4:30 p.m. Eastern time. To access the call dial
888-337-8202 (US and Canada) or +1 913-312-1450 (International) and
when prompted provide the participant passcode 1061836 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 portfolio of brands, MeetMe (NASDAQ: MEET) is
meeting the universal need for human connection. Using innovative
products and sophisticated data science, MeetMe keeps its
approximately two million daily active users engaged and originates
untold numbers of casual chats, friendships, dates, and marriages.
MeetMe offers advertisers the opportunity to reach customers on a
global scale with hundreds of millions of daily mobile ad
impressions. MeetMe utilizes high user density, economies of scale,
and leading monetization strategies to maximize EBITDA. 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
we will continue to execute against our Skout integration plan,
whether and when we will close the if(we) acquisition, whether the
addition of if(we)’s Tagged and hi5 brands into our portfolio will
increase our MAU to more than 10 million and give us even greater
scale for monetization and increased profitability, 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 Reports on Form 8-K filed with the SEC on October 4, 2016
and March 6, 2017. 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 Measures
The Company defines mobile traffic and engagement metrics
(including MAU, DAU, chats per day, and new users per day) to
include mobile app traffic for all properties and mobile web
traffic for MeetMe and Skout.
The Company uses Adjusted EBITDA and Non-GAAP Net Income, 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
operations before interest expense, benefit or provision for income
taxes, depreciation and amortization, stock-based compensation,
warrant obligations, non-recurring acquisition, restructuring or
other expenses, gain or loss on cumulative foreign currency
translation adjustment, gain on sale of asset, bad debt expense
outside the normal range, and goodwill and long-lived asset
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) before benefit or provision for income
taxes, amortization of intangibles, non-recurring acquisition and
restructuring costs, bad debt expense outside the normal range, and
non-cash stock based 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) December
31, December 31, 2016
2015 ASSETS CURRENT ASSETS: Cash and cash
equivalents $ 21,852,531 $ 19,298,038 Accounts receivable, net of
allowance of $283,000 and $133,000, at December 31, 2016 and 2015,
respectively 23,737,254 16,509,291 Prepaid expenses and other
current assets
1,489,267
970,239 Total current assets
47,079,052 36,777,568
Restricted Cash 393,484 - Goodwill 114,175,554
70,646,036 Property and equipment, net 2,466,110 2,610,307
Intangible assets, net 17,010,565 1,278,498 Deferred taxes
28,253,827 - Other assets
110,892
178,264 TOTAL ASSETS
$ 209,489,484
$ 111,490,673
LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES:
Accounts payable $ 5,350,336 $ 2,776,710 Accrued liabilities
8,395,060 4,127,634 Current portion of capital lease obligations
221,302 366,114 Deferred revenue
434,197
293,414 Total current liabilities
14,400,895 7,563,872
Long-term capital lease obligation, less current portion,
net - 221,302 Other Liabilities
-
1,035,137 TOTAL LIABILITIES
$ 14,400,895
$ 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 December 31, 2016 and 2015, respectively
$ - $ - Common stock, $.001 par value; authorized - 100,000,000
Shares; 58,945,607 and 47,179,486 issued and outstanding at
December 31, 2016 and 2015, respectively 58,949 47,183 Additional
paid-in capital 351,873,801 300,725,791 Accumulated deficit
(156,844,161 )
(198,102,612 ) TOTAL STOCKHOLDERS'
EQUITY 195,088,589
102,670,362 TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $
209,489,484 $
111,490,673 MEETME, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (UNAUDITED)
For the Three Months Ended For the Years Ended
December 31, December 31,
2016 2015
2016
2015 Revenues
$
29,222,186 $
19,879,840 $
76,124,109 $
56,903,773 Operating Costs and Expenses:
Sales and marketing 6,313,958 2,826,198 15,089,987 6,618,837
Product development and content 8,059,563 6,036,478 25,790,173
24,615,304 General and administrative 3,063,319 3,337,598 9,494,804
14,534,861 Depreciation and amortization 1,802,568 760,201
4,069,211 3,140,205 Acquisition and restructuring costs
829,169 -
2,457,295 - Total
Operating Costs and Expenses
20,068,577
12,960,475
56,901,470 48,909,207
Income from Operations
9,153,609
6,919,365
19,222,639 7,994,566
Other Income (Expense): Interest income 2,488 5,304 21,185
21,037 Interest expense (3,160 ) (84,723 ) (19,388 ) (459,962 )
Change in warrant liability - (622,819 ) (864,596 ) (616,607 ) Gain
(loss) on cumulative foreign currency translation adjustment 69
5,640 33,416 (856,438 ) Gain on sale of asset
-
- -
163,333 Total Other Expense
(603 ) (696,598
) (829,383 )
(1,748,637 ) Income before Benefit
(Provision) for Income Taxes 9,153,006 6,222,767 18,393,256
6,245,929 Benefit (provision) for income taxes
749,916 (149,500
) 27,875,362
(276,301 ) Net Income
$
9,902,922 $ 6,073,267
$ 46,268,618 $
5,969,628 Basic and diluted income per
common stockholders: Basic net income per common stockholders
$ 0.17 $
0.13 $ 0.89
$ 0.13 Diluted net income per
common stockholders
$ 0.15
$ 0.12 $
0.80 $ 0.12
Weighted average shares outstanding: Basic
58,856,831 46,090,961
51,963,702
45,419,175 Diluted
64,121,470 51,735,136
57,745,652
49,535,826 MEETME, INC. AND
SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME ALLOCABLE TO
COMMON STOCKHOLDERS TO ADJUSTED EBITDA (UNAUDITED)
For the Three Months Ended
For the Years Ended December 31, December 31,
2016
2015 2016
2015 Net income
allocable to Common Stockholders
$
9,902,922 $ 6,073,267
$ 46,268,618 $
5,969,628 Interest expense 3,160 84,723
19,388 459,962 Depreciation and amortization 1,802,568 760,201
4,069,211 3,140,205 Stock-based compensation expense 1,013,145
1,332,223 3,567,987 3,341,965 Change in warrant liability - 622,819
864,596 616,607 (Benefit) provision for income taxes (749,916 )
149,500 (27,875,362 ) 276,301 Acquisition and restructuring costs
829,169 - 2,457,295 - Bad debt expense outside normal range - - -
5,735,204 (Gain) loss on cumulative effect of foreign currency
translation adjustment (69 ) (5,640 ) (33,416 ) 856,438 Gain on
sale of asset
- -
- (163,333
) Adjusted EBITDA
$
12,800,979 $
9,017,093 $
29,338,317 $
20,232,977 GAAP basic net income
per common stockholders
$ 0.17
$ 0.13 $
0.89 $ 0.13
GAAP diluted net income per common stockholders
$
0.15 $ 0.12
$ 0.80 $
0.12 Basic adjusted EBITDA per common
stockholders
$ 0.22 $
0.20 $ 0.56
$ 0.45 Diluted adjusted EBITDA per
common stockholders
$ 0.20
$ 0.17 $
0.51 $ 0.41
Weighted average number of shares outstanding, Basic
58,856,831 46,090,961
51,963,702
45,419,175 Weighted average number of shares
outstanding, Diluted
64,121,470
51,735,136 57,745,652
49,535,826 MEETME, INC.
AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO
NON-GAAP NET INCOME (UNAUDITED)
For the Three Months Ended For the Years Ended
December 31, December 31,
2016 2015
2016 2015
GAAP Net Income
$ 9,902,922
$ 6,073,267 $
46,268,618 $
5,969,628 Amortization of Intangibles 1,364,850
378,750 2,507,433 1,524,166 Stock-based compensation expense
1,013,145 1,332,223 3,567,987 3,341,965 Benefit (provision) for
income taxes (749,916 ) 149,500 (27,875,362 ) 276,301 Acquisition
and restructuring costs 829,169 - 2,457,295 - Bad debt expense
outside normal range
-
- -
5,735,204 Non-GAAP Net Income
$
12,360,170 $
7,933,740 $ 26,925,971
$ 16,847,264 GAAP
basic net income per common stockholders
$
0.17 $ 0.13
$ 0.89 $
0.13 GAAP diluted net income per common stockholders
$ 0.15 $
0.12 $ 0.80
$ 0.12 Basic Non-GAAP net income per
common stockholders
$ 0.21
$ 0.17 $ 0.52
$ 0.37 Diluted Non-GAAP net income
per common stockholders
$ 0.19
$ 0.15 $ 0.47
$ 0.34 Weighted average
number of shares outstanding, Basic
58,856,831
46,090,961
51,963,702 45,419,175
Weighted average number of shares outstanding, Diluted
64,121,470 51,735,136
57,745,652
49,535,826
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170306006201/en/
Investor Contact:MKR Group Inc.Todd Kehrli or Jim
Byers323-468-2300meet@mkr-group.com
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