Share- Total Fourth Quarter Revenue increased 12% year-over-year to $13.0
million as a result of a 128% increase in Mobile Revenue - Fourth Quarter Adjusted EBITDA of $2.4 Million, which is an 18.5%
Adjusted EBITDA margin
NEW HOPE, Penn.–(BUSINESS WIRE)–
MeetMe®, Inc. (NYSE MKT:MEET), the public market leader in social
discovery, today reported financial results for the fourth quarter and
full year ended December 31, 2013.
Fourth Quarter 2013 Financial Highlights
-
Mobile average revenue per user (ARPU) exceeded web ARPU for the first
time in Company history. -
In line with recently upwardly revised expectations, total revenue was
$13.0 million, a 12% increase from the fourth quarter of 2012. -
Mobile revenue was up 128% from the year ago quarter to a record $5.1
million, driven primarily by a significant increase in mobile
advertising. Mobile represented nearly 40% of total MeetMe fourth
quarter revenue, the highest proportion in Company history. -
Adjusted EBITDA increased to $2.4 million, or 18.5% of total revenues,
up from $977,000 in the fourth quarter of 2012. Net income for the
quarter was $15,290. (See the important discussion about the
presentation of non-GAAP financial measures, and reconciliation to the
most directly comparable GAAP financial measures, below.)
Full Year 2013 Financial Highlights
-
Mobile revenue was a record of $12.6 million, up 106% from $6.1
million in 2012. -
Adjusted EBITDA was $1.8 million for the year. Over the final three
quarters of the year, the Company generated Adjusted EBITDA of $3.5
million. Net loss for 2013 was $11 million. (See the important
discussion about the presentation of non-GAAP financial measures, and
reconciliation to the most directly comparable GAAP financial
measures, below.) -
Cash and Cash Equivalents totaled $6.3 million at December 31, 2013,
up from $5.0 million at December 31, 2012.
Geoff Cook, CEO of MeetMe, said, “We successfully built a number of
strong mobile monetization products in 2013, including advertising,
freemium, and subscription products. Our mobile native advertising
product, launched in March of 2013, accounted for 29% of mobile revenue
in the fourth quarter, as a result of both increased ad impressions and
stronger CPMs on native units versus traditional mobile banners.
Moreover, the fourth quarter was the first time in our Company’s history
that mobile ARPU exceeded web ARPU. Our mobile users login 100 times a
month on average, compared to nine times on the web, and we believe that
higher level of engagement now translates to higher levels of
monetization as a result of these successful new products.”
“Our primary goal in 2014 is to drive significantly more mobile daily
active users. The team is executing against an ambitious and exciting
product pipeline aimed at increasing both viral spread and engagement
among our users. Over the years, we have grown our audience from zero to
over one million daily users primarily on the basis of our repeated
success in creating new engaging products and then continually improving
them.”
“In the coming weeks, we intend to launch a dramatic overhaul of Chat,
our most important feature, to make it easier, faster, and more powerful
for meeting new people. We know Chat is the core of the MeetMe app, with
more than 50% of daily users sending a chat and more than 75% receiving
a chat every day. We also know some portion of users who discover each
other on MeetMe will leave MeetMe for dedicated messaging apps like
Whatsapp. We intend to dramatically upgrade our Chat feature in order to
retain users while at the same time differentiating it around the
meet-new-people use case. In particular, we plan to add real-time
components, including real-time typing and status indicators, to enhance
our current product. We also intend to enable ephemeral photo-sharing
directly within the chat conversation. The ability to share photos
within messages is one of the most requested features from users, and we
believe this product will enable increased messaging volume and
ultimately contribute to virality and improved DAU/MAU ratios.”
David Clark, Chief Financial Officer of MeetMe, added, “The fourth
quarter of 2013 represents an important inflection point as we returned
to year-over-year revenue growth driven by the strong performance of our
mobile strategy. This was also a successful earnings turnaround year,
beginning with positive Adjusted EBITDA in the second quarter and
culminating with positive GAAP earnings in the fourth quarter. The
significant improvement of our bottom line illustrates the earnings
potential in our business with fourth quarter Adjusted EBITDA increasing
144%, an Adjusted EBITDA margin of over 18% and our first quarter of
GAAP earnings in over five years. We expect to be EBITDA positive and
generate positive free cash flow before debt service in 2014. Our plan
for 2014 is to fund initiatives that we believe will drive user growth
and engagement that will create shareholder value over the longer term.”
Webcast and Conference Call Details
Management will host a conference call and audio webcast to discuss
fourth quarter 2013 financial results today at 10:30 AM Eastern Time.
During the conference call, management will also present the Company’s
revenue guidance estimates for 2014. Presentation materials will be
posted after the call on the Company’s website, www.meetmecorp.com,
in the Investors section under the “Presentations” tab. 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 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: 4559901#.
About MeetMe, Inc.
MeetMe® is the leading social network for meeting new people in the US
and the public market leader for social discovery (NYSE MKT: MEET).
MeetMe makes meeting new people fun through social games and apps,
monetized by both advertising and virtual currency. With 70 percent of
traffic coming from mobile, MeetMe is fast becoming the social gathering
place for the mobile generation. The Company operates MeetMe.com and
MeetMe apps 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.
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 new features and innovative apps and
whether such features and apps will drive increased mobile traffic and
revenue. All statements other than statements of historical facts
contained herein, including statements regarding the future success of
our mobile monetization products, including advertising, freemium, and
subscription products, future levels of monetization and the influence
of new products on monetization, our ability to drive more mobile daily
active users, the effectiveness of our product pipeline to increase
viral spread and user engagement, our ability to create new products and
continually improve them, whether we successfully upgrade our Chat
feature and the effectiveness of that upgrade, whether we can
successfully add ephemeral photo sharing to chat conversations and if so
whether it will result in increased messaging volume and ultimately
contribute to virality and improved DAU/MAU ratios, the future earnings
potential of our business, whether we will be EBITDA positive and
generate positive free cash flow before debt service in 2014, and
whether we will fund initiatives which will drive user growth and
engagement that creates shareholder value 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, 2012 and the Current Reports on Form 8-K filed with the SEC
on May 1, 2013, October 1, 2013 and November 6, 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.
| MEETME, INC. AND SUBSIDIARIES | ||||||
| CONSOLIDATED BALANCE SHEETS | ||||||
|
AS OF DECEMBER 31, 2013 AND 2012 |
||||||
|
(UNAUDITED) |
||||||
| 2013 | 2012 | |||||
| Assets | ||||||
| Current Assets | ||||||
| Cash and cash equivalents | $ | 6,330,532 | $ | 5,022,007 | ||
|
Accounts receivable, net of allowance of $495,000 and $547,000, at December 31, 2013 and December 31, 2012, respectively |
10,136,929 | 15,744,789 | ||||
| Notes receivable | – | 111,569 | ||||
| Prepaid expenses and other current assets | 597,133 | 870,881 | ||||
| Total current assets | 17,064,594 | 21,749,246 | ||||
| Goodwill | 70,646,036 | 70,646,036 | ||||
| Intangible assets, net | 4,787,941 | 6,746,273 | ||||
| Property and equipment, net | 2,871,800 | 4,772,632 | ||||
| Other assets | 205,869 | 520,480 | ||||
| Total assets | $ | 95,576,240 | $ | 104,434,667 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Current Liabilities: | ||||||
| Accounts payable | $ | 3,331,484 | $ | 3,528,607 | ||
| Accrued expenses and other liabilities | 3,262,327 | 3,213,115 | ||||
| Deferred revenue | 275,761 | 392,612 | ||||
| Accrued dividends | – | 69,455 | ||||
| Current portion of capital leases | 928,181 | 648,573 | ||||
| Current portion of long-term debt | 2,333,966 | 1,903,368 | ||||
| Total current liabilities | 10,131,719 | 9,755,730 | ||||
| Long term capital leases, less current portion, net | 713,699 | 1,058,230 | ||||
| Long term debt, less current portion, net | 2,102,842 | 8,098,558 | ||||
| Other Liabilities | 819,930 | – | ||||
| Total liabilities | 13,768,190 | 18,912,518 | ||||
| Commitments and Contingencies (see Note 9) | ||||||
| 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; 38,477,359 and 37,046,405 shares issued and outstanding at December 31, 2013 and 2012, respectively |
38,481 | 37,050 | ||||
| Additional paid-in capital | 282,496,996 | 275,261,794 | ||||
| Accumulated deficit | (200,110,075) | (189,211,750) | ||||
| Accumulated other comprehensive loss | (618,352) | (565,945) | ||||
| Total stockholders’ equity | 81,808,050 | 85,522,149 | ||||
| Total liabilities and stockholders’ equity | $ | 95,576,240 | $ | 104,434,667 | ||
|
See notes to consolidated financial statements included in the December 31, 2013 10-K filing. |
||||||
| MEETME, INC. AND SUBSIDIARIES | ||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||||||
|
(UNAUDITED) |
||||||||||||
| Three Months Ended December 31, |
Years Ended December 31, |
|||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||
| Revenues | $ | 13,016,106 | $ | 11,608,937 | $ | 40,378,007 | $ | 46,657,959 | ||||
| Operating Costs and Expenses: | ||||||||||||
| Sales and marketing | 2,393,167 | 2,367,564 | 7,799,077 | 8,467,158 | ||||||||
| Product development and content | 7,117,098 | 6,905,722 | 26,660,709 | 29,510,917 | ||||||||
| General and administrative | 2,115,897 | 3,337,527 | 7,875,395 | 9,663,323 | ||||||||
| Depreciation and amortization | 1,106,621 | 1,073,330 | 4,387,464 | 3,962,290 | ||||||||
| Restructuring costs | – | (469,011) | 2,540,896 | 422,488 | ||||||||
| Loss on debt restructure | – | – | 1,174,269 | – | ||||||||
| Total Operating Costs and Expenses | 12,732,783 | 13,215,132 | 50,437,810 | 52,026,176 | ||||||||
| Income (loss) from Operations | 283,323 | (1,606,195) | (10,059,803) | (5,368,217) | ||||||||
| Other Income (Expense),net: | ||||||||||||
| Interest income | 1,869 | 2,811 | 9,725 | 16,569 | ||||||||
| Interest expense | (269,902) | (418,538) | (848,247) | (1,285,674) | ||||||||
| Other income net | – | – | – | 9,611 | ||||||||
| Total other expense | (268,033) | (415,727) | (838,522) | (1,259,494) | ||||||||
| Income (loss) before income taxes | 15,290 | (2,021,922) | (10,898,325) | (6,627,711) | ||||||||
| Income taxes | – | – | – | – | ||||||||
| Net income (loss) from continuing operations | $ | 15,290 | $ | (2,021,922) | $ | (10,898,325) | $ | (6,627,711) | ||||
| Loss from discontinued operations, net of taxes | $ | – | $ | – | $ | – | $ | (3,680,627) | ||||
| Net Income (loss) Allocable To Common Shareholders | $ | 15,290 | $ | (2,021,922) | $ | (10,898,325) | $ | (10,308,338) | ||||
| Basic and diluted net loss per common shareholders: | ||||||||||||
| Continuing operations | $ | 0.00 | $ | (0.05) | $ | (0.29) | $ | (0.18) | ||||
| Discontinued operations | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | (0.10) | ||||
| Basic and diluted net loss per common shareholders | $ | 0.00 | $ | (0.05) | $ | (0.29) | $ | (0.28) | ||||
| Weighted Average Number of Shares Outstanding, Basic and Diluted: | 38,477,359 | 36,924,360 | 38,048,446 | 36,461,615 | ||||||||
| Net income (loss) | $ | 15,290 | $ | (2,021,922) | $ | (10,898,325) | $ | (10,308,338) | ||||
| Foreign currency translation, net | (25,466) | (1,078) | (52,407) | (102,996) | ||||||||
| Comprehensive Loss | $ | (10,176) | $ | (2,023,000) | $ | (10,950,732) | $ | (10,411,334) | ||||
|
See notes to consolidated financial statements included in the December 31, 2013 10-K filing. |
||||||||||||
| MEETME, INC. AND SUBSIDIARIES | |||||||||||||||
| RECONCILIATION OF GAAP NET INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA |
|||||||||||||||
|
(UNAUDITED) |
|||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||
| Net loss from continuing operations allocable to common shareholders | $ | 15,290 | $ | (2,021,922 | ) | $ | (10,898,325 | ) | $ | (6,627,711 | ) | ||||
| Interest expense | 269,902 | 418,538 | 848,247 | 1,285,674 | |||||||||||
| Depreciation and amortization | 1,106,621 | 1,073,330 | 4,387,464 | 3,962,290 | |||||||||||
| Amortization of stock based compensation | 996,477 | 976,740 | 3,758,043 | 3,881,896 | |||||||||||
| Loss on contingency for lawsuit settlements | – | 1,000,000 | – | 1,000,000 | |||||||||||
| Acquisition and restructuring costs | – | (469,011 | ) | 2,540,896 | 422,488 | ||||||||||
| Loss on debt restructure | – | – | 1,174,269 | – | |||||||||||
| Adjusted EBITDA | $ | 2,388,290 | $ | 977,675 | $ | 1,810,594 | $ | 3,924,637 | |||||||
| GAAP Basic and diluted net loss per common shareholders | $ | 0.00 | $ | (0.05 | ) | $ | (0.29 | ) | $ | (0.18 | ) | ||||
| Basic Adjusted EBITDA per common shareholders | $ | 0.06 | $ | 0.03 | $ | 0.05 | $ | 0.11 | |||||||
| Diluted Adjusted EBITDA per common shareholders | $ | 0.06 | $ | 0.02 | $ | 0.04 | $ | 0.09 | |||||||
| Weighted average number of shares outstanding, Basic | 38,477,359 | 36,924,360 | 38,048,446 | 36,461,615 | |||||||||||
| Weighted average number of shares outstanding, Dilutive | 40,694,677 | 40,815,708 | 40,375,214 | 41,514,224 | |||||||||||
ForMeetMe:
Gregory FCA
Joe
Hassett, 610-228-2110
joeh@gregoryfca.com
Source: MeetMe®, Inc.