Mobile Revenue Increased 47% Year Over Year
Adjusted EBITDA Increased 288% Year Over
Year
Adjusted EBITDA Margin of 26%
MeetMe, Inc. (NASDAQ: MEET), the public market leader for social
discovery, today reported financial results for its second quarter
ended June 30, 2015.
Second Quarter 2015 Financial Highlights
- Mobile revenue was $8.3 million, up 47%
from the second quarter of 2014.
- Mobile revenue represented 75% of total
revenue, the highest in MeetMe’s history.
- Total revenue was $11.1 million, up 4%
from the second quarter of 2014.
- Adjusted EBITDA was $2.9 million or a
26% margin, an increase of 288% 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.)
- Net income was $1.2 million compared to
a net loss of $1.4 million for the second quarter of 2014.
- Cash and Cash Equivalents totaled $16.2
million at June 30, 2015.
Geoff Cook, Chief Executive Officer of MeetMe, stated, “Mobile
engagement continued to grow during the second quarter, with our
mobile daily active users increasing 26% year over year and our
total mobile monthly users increasing 42% year over year. We also
achieved multiple milestones during the quarter, including
surpassing 25 million chats in a single day, up more than 100% from
a year ago, and reaching 20 million installs of our flagship
Android app. Additionally, we saw increased international growth,
with approximately 20,000 new international users joining every day
during the quarter, up more than 100% versus a year ago.
During the quarter, we successfully transitioned our mobile
advertising inventory management to an in-house solution and have
benefited from this change with much stronger click-through-rates
and increased mobile revenue. From July 1 through July 26, our
click-through-rate (CTR) increased 62% over the average in April,
the month in which we began making mobile ad logic changes. During
the same period our daily mobile app ad revenue increased 50%. By
optimizing for the performance of our mobile advertising, we
believe we have substantially increased the overall value of our
inventory.”
David Clark, Chief Financial Officer of MeetMe, added, “With
continued growth in mobile engagement, our mobile revenue during
the quarter increased 47% on a year-over-year basis. Mobile revenue
represented 75% of our total quarterly revenue, the highest
percentage in our history and up from 53% in the year ago quarter.
We also significantly increased adjusted EBITDA on a year-over-year
basis to $2.9 million, resulting in a 26% adjusted EBITDA
margin.”
Webcast and Conference Call Details
Management will host a webcast and conference call to discuss
second quarter 2015 financial results today, July 30, 2015 at 10:30
a.m. Eastern time. To access the call dial 877-419-6591 (+1
719-325-4755 outside the United States) and when prompted provide
the participant passcode 9080523 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 whether we will continue to benefit
from transitioning our mobile advertising to an in-house solution,
whether CPMs and click-through-rates will continue to strengthen,
whether our CTR and daily mobile app revenue will continue to
increase, whether mobile revenue will continue to increase, whether
reducing lower quality ad units and running more higher-performing
ones increase, or will continue to increase, the overall value of
our ad inventory. 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, 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) June 30,
2015 December 31, 2014 ASSETS
CURRENT ASSETS: Cash and cash equivalents $ 16,191,072 $ 17,041,050
Accounts receivable, net of allowance of
$368,000 and$586,000, at June 30, 2015 and December 31, 2014,
respectively
11,106,887 9,045,269 Prepaid expenses and other current assets
967,098 790,031
Total current assets
28,265,057
26,876,350 Goodwill 70,646,036
70,646,036 Property and equipment, net 2,722,770 2,458,897
Intangible assets, net 2,035,998 2,894,330 Other assets
314,068 338,146
TOTAL ASSETS $
103,983,929 $
103,213,759 LIABILITIES AND
STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $
1,679,353 $ 2,985,259 Accrued liabilities 2,730,300 3,249,404
Current portion of capital lease obligations 540,235 872,761
Current portion of long-term debt 1,733,446 2,068,326 Deferred
revenue
214,710
218,484 Total current liabilities
6,898,044 9,394,234
Long-term capital lease obligation, less current portion,
net 372,892 587,416 Long-term debt, less current portion, net -
556,612 Other liabilities
457,850
418,530 TOTAL LIABILITIES
$ 7,728,786
$ 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 andoutstanding at June 30, 2015 and December 31,
2014
$ 1,000 $ 1,000
Common stock, $.001 par value; authorized
- 100,000,000 Shares;45,462,637 and 44,910,034 issued and
outstanding at June 30, 2015and December 31, 2014
45,466 44,914 Additional paid-in capital 298,348,932 297,001,168
Accumulated deficit (202,140,255 ) (204,072,240 ) Accumulated other
comprehensive loss
-
(717,875 ) TOTAL STOCKHOLDERS'
EQUITY 96,255,143
92,256,967 TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $
103,983,929 $
103,213,759 MEETME, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
For the Three Months Ended June
30, For the Six Months Ended June
30, 2015
2014 2015
2014 Revenues
$ 11,086,878 $
10,687,330 $
22,715,854 $
20,190,834 Operating Costs and Expenses:
Sales and marketing 1,094,068 1,935,678 2,309,388 4,094,766 Product
development and content 6,083,455 6,855,739 12,403,259 13,713,179
General and administrative 1,774,991 2,194,138 3,394,895 4,123,783
Depreciation and amortization 801,260 1,079,932 1,617,175 2,165,391
Restructuring costs
-
- -
120,202 Total Operating Costs and Expenses
9,753,774 12,065,487
19,724,717
24,217,321 Income (Loss) from Operations
1,333,104 (1,378,157
) 2,991,137
(4,026,487 ) Other Income
(Expense): Interest income 5,244 549 10,430 1,715 Interest expense
(122,989 ) (241,643 ) (281,855 ) (661,886 ) Change in warrant
liability 56,408 181,493 (39,320 ) (174,461 ) Gain (loss) on
cumulative foreign currency translation adjustment 11,614 -
(783,090 ) - Gain on sale of asset
-
- 163,333
- Total Other Income (Expense)
(49,723 ) (59,601
) (930,502 )
(834,632 ) Income (loss) before
Income Taxes 1,283,381 (1,437,758 ) 2,060,635 (4,861,119 ) Income
taxes
(73,450 )
- (128,650 )
- Net Income (Loss)
$
1,209,931 $
(1,437,758 ) $
1,931,985 $
(4,861,119 ) Preferred stock dividends
- -
- - Net Income
(Loss) Allocable to Common Stockholders
$
1,209,931 $
(1,437,758 ) $
1,931,985 $
(4,861,119 ) Basic and diluted
income (loss) per common stockholders: Basic income (loss) per
common stockholders
$ 0.03
$ (0.04 ) $
0.04 $ (0.13
) Diluted income (loss) per common stockholders
$ 0.02 $
(0.04 ) $ 0.04
$ (0.13 )
Weighted average shares outstanding: Basic
45,191,563 38,798,706
45,051,576
38,649,766 Diluted
49,022,622 38,798,706
48,625,068
38,649,766 Net Income (Loss) $ 1,209,931
$ (1,437,758 ) $ 1,931,985 $ (4,861,119 ) Foreign currency
translation adjustment
-
12,573 -
40,274 Comprehensive Income (Loss)
$ 1,209,931 $
(1,425,185 ) $
1,931,985 $
(4,820,845 ) MEETME, INC. AND
SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME (LOSS)
ALLOCABLE TO COMMON STOCKHOLDERS TO ADJUSTED EBITDA
(UNAUDITED) For the Three
Months Ended June 30, For the Six Months Ended
June 30, 2015
2014 2015
2014 Net Income
(Loss) Allocable to Common Stockholders
$
1,209,931 $
(1,437,758 ) $
1,931,985 $
(4,861,119 ) Interest expense
122,989 241,643 281,855 661,886 Depreciation and amortization
801,260 1,079,932 1,617,175 2,165,391 Stock-based compensation
expense 733,051 1,038,101 1,348,316 1,979,388 Change in warrant
liability (56,408 ) (181,493 ) 39,320 174,461 Income taxes 73,450 -
128,650 - Acquisition and restructuring costs - - - 120,202 (Gain)
loss on cumulative foreign currency translation adjustment (11,614
) - 783,090 - Gain on sale of asset
-
- (163,333
) - Adjusted EBITDA
$ 2,872,659 $
740,425 $ 5,967,058
$ 240,209
GAAP basic net income (loss) per common stockholders
$
0.03 $ (0.04
) $ 0.04
$ (0.13 ) GAAP diluted net
income (loss) per common stockholders
$
0.02 $ (0.04
) $ 0.04
$ (0.13 ) Basic adjusted
EBITDA per common stockholders
$ 0.06
$ 0.02 $
0.13 $ 0.01
Diluted adjusted EBITDA per common stockholders
$
0.06 $ 0.02
$ 0.12 $
0.01 Weighted average number of shares
outstanding, Basic
45,191,563
38,798,706 45,051,576
38,649,766 Weighted average
number of shares outstanding, Diluted
49,022,622 38,798,706
48,625,068
38,649,766
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150730005276/en/
Investor Contact:MKR Group Inc.Todd Kehrli or Jim
Byers(323) 468-2300meet@mkr-group.com
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