MeetMe Reports First Quarter 2014 Financial Results


  • Total First Quarter Revenue increased 22% year-over-year to $9.5
  • First Quarter Mobile Revenue increased 144%

MeetMe®, Inc. (NASDAQ: MEET), the public market leader in
social discovery, today reported financial results for the first quarter
ended March 31, 2014.

First Quarter 2014 Financial Highlights

  • Total revenue was $9.5 million, up 22% from the first quarter of 2013.
  • Mobile revenue was $4.7 million, up 144% from the first quarter of
  • Mobile revenue represented nearly 50% of total revenue, the highest
    proportion in MeetMe’s history.
  • Mobile average revenue per user (ARPU) was $1.92, up 134% from $0.82
    in the first quarter of 2013, and exceeding web ARPU for the second
    consecutive quarter.
  • Mobile average revenue per daily active user (ARPDAU) was $0.068, up
    145% from $0.028 in the first quarter of 2013.
  • Adjusted EBITDA was a loss of $500 thousand compared to a loss of $1.7
    million in the first quarter of 2013. For the first quarter, the
    company reported a net loss of $3.4 million compared to a net loss of
    $7.3 million for the first quarter of 2013. (See the important
    discussion about the presentation of non-GAAP financial measures, and
    reconciliation to the most directly comparable GAAP financial
    measures, below.)

Geoff Cook, Chief Executive Officer of MeetMe, said, “The mobile
monetization products launched in 2013 drove encouraging first quarter
results, and I believe the recent and upcoming engagement-oriented
launches will drive results into 2015. As I’ve stated previously, our
primary goal in 2014 is to grow mobile daily active users. We have made
considerable progress towards that goal in recent weeks with the launch
of significant updates to Chat and with the launch of ephemeral photo
sharing on MeetMe. Since those launches, mobile DAU has averaged
852,000, an increase of 10% over the average in the first quarter. I am
excited at the strength of the product pipeline with its continued focus
on increasing the number of chats, continually improving the chat
experience, and making it easy to discover new people with whom to chat.
We believe these efforts will continue to drive DAU and ultimately
mobile revenue.”

David Clark, Chief Financial Officer of MeetMe, added, “As anticipated,
first quarter mobile revenue growth of 144% offset declining web
revenues, leading to a 22% growth in total revenue. In addition, the
bottom line continued its recent trend of steady year-over-year
improvement. With $394,000 of cash flow from operating activities in the
quarter, we believe our financial condition remains solid. Based on the
success of our mobile strategy, the significant growth in spending on
mobile advertising, the brand recognition that is leading to
partnerships with social media leaders such as Sprint’s Pinsight Media,
and the promise of our new mobile features and standalone apps, we
believe we have established the foundation of a franchise with
significant long term potential in a rapidly expanding market.”

Webcast and Conference Call Details

Management will host a webcast to discuss first quarter 2014 financial
results today at 10:30 AM Eastern time. A webcast of the conference call
will be available live on the Investor Relations section of the
Company’s website at
and a replay will be available for 90 days. Interested parties unable to
access the conference call via the webcast may dial 1-888-317-6003 and
reference ID#: 5988680.

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 meeting new people fun through social games and
apps, monetized by both advertising and virtual currency. With 75
percent of traffic coming from mobile, MeetMe is fast becoming the
social gathering place for the mobile generation. The Company operates and
MeetMe apps on iPhoneiPad,
and Android in
multiple languages including English, Spanish, Portuguese, French,
Italian, German, Chinese (Traditional and Simplified), Russian,
Japanese, Dutch, Turkish and Korean.

Cautionary Note Regarding 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 statements regarding the future success of our mobile
monetization products, our ability to launch new product releases,
including engagement-oriented releases, as anticipated and, if so, their
effectiveness at driving results, the strength of our product pipeline
and whether it will increase the number of chats, improve the chat
experience or make it easier to discover new people, whether our product
efforts will drive DAU and mobile revenue, whether mobile revenue will
continue to increase and if so, whether it will continue to offset
declining web revenue, whether our bottom line will continue to improve,
whether our financial condition will remain solid, whether we will
achieve top line growth for the year, and whether we have established
the foundation of a franchise with significant long term potential in a
rapidly expanding market are forward-looking statements. 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,” “is likely,” “will,” “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 we will not be able to
launch products and updates as anticipated, the risk that our
applications will not function easily or otherwise as anticipated, the
risk that unanticipated events affect the functionality of our
applications with popular mobile operating systems, 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 SEC, including the Form 10-K for the year ended
December 31, 2013. 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 above.

The Company defines Adjusted EBITDA as earnings (or loss) from
continuing operations before interest expense, income taxes,
depreciation and amortization, and non-cash stock-based compensation,
non-recurring acquisition and restructuring expenses 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.

March 31, 2014

December 31, 2013

Current Assets
Cash and cash equivalents $ 5,786,227 $ 6,330,532

Accounts receivable, net of allowance of $450,000 and $495,000 at
March 31, 2014 and December

31, 2013, respectively

8,586,432 10,136,929
Prepaid expenses and other current assets   662,614   597,133
Total current assets 15,035,273 17,064,594
Goodwill 70,646,036 70,646,036
Intangible assets, net 4,298,358 4,787,941
Property and equipment, net 2,313,186 2,871,800
Other assets   167,500   205,869
Total assets $ 92,460,353 $ 95,576,240
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable $ 3,106,383 $ 3,331,484
Accrued expenses and other liabilities 3,137,496 3,262,327
Deferred revenue 264,837 275,761
Current portion of capital leases 914,877 928,181
Current portion of long-term debt   1,650,608   2,333,966
Total current liabilities 9,074,201 10,131,719
Long term capital leases, less current portion, net 496,811 713,699
Long term debt, less current portion, net 2,359,780 2,102,842
Other Liabilities   1,000,993   819,930
Total liabilities   12,931,785   13,768,190
Commitments and Contingencies (see Note 8)
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 and outstanding at

December 31, 2013 and 2012, respectively

1,000 1,000

Common stock, $.001 par value; authorized – 100,000,000 shares;
38,566,589 and 38,477,359

shares issued and outstanding at March 31, 2014 and December 31,
2013, respectively

38,570 38,481
Additional paid-in capital 283,613,085 282,496,996
Accumulated deficit (203,533,436) (200,110,075)
Accumulated other comprehensive loss   (590,651)   (618,352)
Total stockholders’ equity   79,528,568   81,808,050
Total liabilities and stockholders’ equity $ 92,460,353 $ 95,576,240
See notes to consolidated financial statements included in the March
31, 2014 10-Q filing.
Three Months Ended March 31,
2014 2013
Revenues $ 9,503,504 $ 7,805,632
Operating Costs and Expenses:
Sales and marketing 2,159,088 1,986,693
Product development and content 6,857,440 6,383,444
General and administrative 1,929,645 2,400,259
Depreciation and amortization 1,085,459 1,082,944
Acquisition and restructuring costs 120,202 1,894,417
Loss on debt restructure     1,174,269
Total Operating Costs and Expenses   12,151,834   14,922,026
Loss from Operations   (2,648,330)   (7,116,394)
Other Income (Expense):
Interest income 1,166 2,256
Interest expense (420,243) (213,840)
Change in warrant liability   (355,954)  
Total other income (expense)   (775,031)   (211,584)
Loss before income taxes (3,423,361) (7,327,978)
Income taxes    
Net loss $ (3,423,361) $ (7,327,978)
Preferred stock dividends $ $
Net Loss Allocable To Common Shareholders $ (3,423,361) $ (7,327,978)
Basic and diluted net loss per common share $ (0.09) $ (0.20)
Weighted average number of shares outstanding, basic and diluted 38,499,171   37,367,607
Net loss $ (3,423,361) $ (7,327,978)
Foreign currency translation, net   27,701   (17,327)
Comprehensive Loss $ (3,395,660) $ (7,345,305)
See notes to consolidated financial statements included in the March
31, 2014 10-Q filing.
Three Months Ended March 31,
2014 2013
Net loss from continuing operations allocable to common shareholders $ (3,423,361 ) $ (7,327,978 )
Interest expense 420,243 213,840
Change in warrant liability 355,954
Depreciation and amortization 1,085,459 1,082,944
Amortization of stock based compensation 941,287 1,305,148
Acquisition and restructuring costs 120,202 1,894,417
Loss on debt restructure       1,174,269  
Adjusted EBITDA $ (500,216 ) $ (1,657,360 )
GAAP basic and diluted net loss per common shareholders $ (0.09 ) $ (0.20 )
Basic and diluted adjusted EBITDA per common shareholders $ (0.01 ) $ (0.04 )
Weighted average number of shares outstanding, basic and diluted   38,499,171     37,367,607  

Gregory FCA
Joe Hassett, 610-228-2110

Source: MeetMe, Inc.