The Meet Group Announces Selected Preliminary Financial Results for the Third Quarter 2019
October 03 2019 - 8:00AM
Business Wire
The Meet Group, Inc. (NASDAQ: MEET), a leading provider of
interactive livestreaming solutions, today pre-released selected
preliminary financial information for its third quarter 2019. This
announcement was made ahead of the Company’s presentation at the
5th Annual B. Riley FBR Consumer & Media Conference in New York
City, scheduled for 4:00pm ET today.
For the third quarter 2019, the Company expects:
- Revenue to be in the range of $52.0 million to $52.3 million,
an increase from the Company’s prior expectations of $50.5 million
to $51.0 million
- Adjusted EBITDA to be in the range of $10.4 million to $10.6
million, an increase from the Company’s prior expectations of $9.3
million to $9.5 million.
- Adjusted EBITDA margin of 20%
- Video revenue to be at least $20 million, an increase from
previous expectations of $19 million.
“We are encouraged by our results for the third quarter,” said
Geoff Cook, Chief Executive Officer of The Meet Group. “New
features including streamer levels, VIP badges, first time buyer
bonuses and one-on-one video chat are contributing to meaningful
business results. Further, we believe that the moderation-related
headwinds related to our recent safety enhancements are largely
behind us.
“We are particularly excited to begin rolling out our
livestreaming dating game to our MeetMe app in the coming weeks.
Given the ongoing stabilization in our advertising business, we
anticipate a seasonally strong fourth quarter in advertising.
Reflecting our optimism, we are committed to continuing to deliver
value to shareholders through stock buybacks. From July 15, 2019
through September 30, 2019, we repurchased approximately $12.2
million in stock, or approximately 3.4 million shares.”
The Company has not yet closed and not yet finalized its
financial statement review process for the third quarter 2019. As a
result, the information in this release is preliminary and based
upon information available to the Company as of the date of this
release, and thus remains subject to the completion of the normal
quarter-end accounting procedures and adjustments. During the
course of the Company’s review process, items may be identified
that would require the Company to make adjustments, which could
result in changes to its 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.
The Company expects to report its third quarter 2019 results in
November of 2019.
About The Meet Group
The Meet Group (NASDAQ: MEET) is a leading provider of
interactive livestreaming solutions designed to meet the universal
need for human connection. Our ecosystem of livestreaming apps
enables users around the world to interact through one-to-many
livestreaming broadcasts and text-based conversations. Our top
apps, MeetMe®, LOVOO®, Skout®, Tagged® and Growlr®, deliver live
interactions and meaningful connections to millions of users daily.
Headquartered in New Hope, PA, we have offices in Philadelphia, San
Francisco, Dresden, and Berlin. The Meet Group is committed to
safety. You can find a description of current safety practices
here: https://www.themeetgroup.com/safety-practices/. For more
information, visit themeetgroup.com, and follow us on Facebook,
Twitter or LinkedIn.
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 third quarter 2019 revenue,
Adjusted EBITDA, Adjusted EBITDA margin, and video revenue will be
as expected, whether the moderation-related headwinds related to
our recent safety enhancements are largely behind us, whether we
will roll out our livestreaming dating game to our MeetMe app in
the coming weeks, whether we will continue to experience ongoing
stabilization in our advertising business, whether we will have a
seasonally strong fourth quarter, whether we will continue to buy
back shares as anticipated, and whether we will report our third
quarter 2019 results as expected. 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,” “outlook,” “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, 2018 filed with the SEC on March 8, 2019. 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 defines video revenue as revenue from virtual
credits, points or gold purchased through our applications or
websites that are then used to purchase virtual gifts for other
users. Video revenue excludes incented advertising, even if the
advertisement is viewed within the video product. The Company uses
Adjusted EBITDA, which is 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 defines Adjusted EBITDA as earnings or loss from operations
before interest expense, benefit from or provision for income
taxes, depreciation and amortization, stock-based compensation,
non-recurring acquisition, restructuring or other expenses, gain or
loss on cumulative foreign currency exchange transactions, gain or
loss on sale of assets, 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 has not included a GAAP reconciliation of Adjusted
EBITDA because such reconciliation could not be produced without
unreasonable effort.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191003005241/en/
Investor Contact: Leslie Arena larena@themeetgroup.com
267-714-6418
Media Contact: Brandyn Bissinger bbissinger@themeetgroup.com
267-446-7010
Meet (NASDAQ:MEET)
Historical Stock Chart
From Aug 2024 to Sep 2024
Meet (NASDAQ:MEET)
Historical Stock Chart
From Sep 2023 to Sep 2024