MeetMe, Inc. (NASDAQ: MEET), a public market leader for social
discovery, today announced that it has completed its acquisition of
Skout, Inc., a leading global mobile network for meeting new
people. MeetMe expects the acquisition, which closed on October 3,
2016, to significantly increase both the size of its user base and
its total revenue, allowing for greater monetization, strong
operating leverage and increased profitability. Skout’s revenue for
its third quarter ended September 30, 2016 is expected to be
approximately $6.6 million and its trailing twelve months’ revenue
as of September 30, 2016 is expected to be approximately $26
million.
MeetMe also announced preliminary revenue results for its third
quarter of 2016, ended September 30, 2016. For the third quarter
MeetMe expects its standalone revenue to be approximately $17.2
million, which is within the company’s previously provided guidance
range and represents growth of approximately 20% year over
year.
Geoff Cook, CEO of MeetMe, said, “With the completion of this
acquisition, we have brought together two of the largest mobile
apps for meeting and chatting with new people, which combined have
more than eight million monthly active users and boast one of the
largest mobile user bases of the coveted millennial generation. As
we continue to capitalize on the increase in ad dollars being spent
on mobile advertising, we believe we are well positioned with our
significantly increased scale to deliver greater monetization and
increased profitability.”
In connection with the Skout acquisition, MeetMe granted stock
options to purchase an aggregate of up to 355,000 shares of its
common stock to 25 former Skout employees as an inducement material
to becoming non-executive employees of MeetMe at the closing. Each
option has a ten-year term, a three-year vesting period, subject to
continued employment, and an exercise price of $6.12 per share, the
closing price per share of MeetMe’s common stock on the grant date.
The grants were made under the Company’s 2016 Inducement Omnibus
Incentive Plan, which was adopted by the Board effective October 3,
2016 in accordance with NASDAQ Listing Rule 5635(c)(4).
MeetMe has not finalized its financial statement review process
for the third quarter of 2016. As a result, the information in this
release is preliminary and based upon information available to
MeetMe as of the date of this release. During the course of
MeetMe’s review process, items may be identified that would require
MeetMe to make adjustments, which could result in changes to our
preliminary selected financial information above. As a result, the
preliminary selected financial information above is forward-looking
information and subject to risks and uncertainties, including
possible adjustments to such information.
MeetMe plans to report its final unaudited financial results for
the third quarter of 2016 and host a conference call and webcast in
early November 2016. The time and access details for the conference
call and webcast will be provided in advance of the date of the
call.
About MeetMe
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 90 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, Korean, Hindi,
Bengali and Vietnamese. 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 the Skout acquisition will
significantly increase the size of MeetMe’s user base and total
revenue, allowing for greater monetization, strong operating
leverage and increased profitability, whether Skout’s revenue for
its third quarter ended September 30, 2016 will be approximately
$6.6 million, whether Skout’s trailing twelve months’ revenue as of
September 30, 2016 will be approximately $26 million, whether our
standalone revenue for the quarter ended September 30, 2016 will be
approximately $17.2 million, whether an increasing amount of money
will continue to be spent on mobile advertising and whether we will
continue to capitalize on that increase, and whether we will be
well positioned with our significantly increased scale to deliver
greater monetization and increased profitability. 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 the proposed acquisition and 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 Skout shareholder approval of
the proposed acquisition or that other conditions to the closing of
the acquisition may not be satisfied, the potential impact on the
business of MeetMe or Skout due to the announcement of the
acquisition, the occurrence of any event, change or other
circumstances that could give rise to the termination of the
definitive agreement, the risk that the expected benefits and
synergies of the acquisition are not achieved and general economic
conditions. Further information on our risk factors is contained in
our filings with the Securities and Exchange Commission, including
the Form 10-K for the year ended December 31, 2015, the Form 10-Q
for the quarter ended June 30, 2016, and the Form 8-K filed 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20161004005598/en/
MEET Investor Contact:MKR Group Inc.Todd
Kehrlimeet@mkr-group.com
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