ShareTotal Revenue for 2014 Increased 11% Year Over Year
Mobile Revenue for 2014 Increased 96% Year Over Year
Adjusted EBITDA for 2014 Increased 177% Year Over Year
NEW HOPE, Pa.–(BUSINESS WIRE)–
MeetMe, Inc. (NASDAQ: MEET), the public market leader for social
discovery, today reported financial results for its full year and fourth
quarter ended December 31, 2014.
Full Year 2014 Financial Highlights
- Total revenue was $44.8 million, up 11% year over year.
- Mobile revenue was $24.6 million, up 96% year over year.
- Mobile revenue represented 55% of total revenue, up from 31% in 2013.
-
Adjusted EBITDA was $5.0 million or an 11% margin, up 177% 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 loss was $4.0 million, compared to a net loss of $10.9 million for
2013.
Fourth Quarter 2014 Financial Highlights
-
Total revenue was $13.0 million, up 12% sequentially and equal to Q4
2013 (which included a one-time $600,000 recognition of deferred
revenue). -
Mobile revenue was $7.6 million, up 14% sequentially and 50% year over
year. -
Mobile revenue represented 58.4% of total revenue, the highest in
MeetMe’s history. -
Mobile average revenue per user (ARPU) was $2.46, up 22% from $2.01 in
the fourth quarter of 2013, and exceeded web ARPU of $1.03. -
Mobile average revenue per daily active user (ARPDAU) was $0.090, up
27% from $0.071 in the fourth quarter of 2013. -
Adjusted EBITDA was $2.6 million or a 20% margin, up 9% from $2.4
million in the fourth quarter of 2013. (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 increased to $847,000, compared to $15,000 for the fourth
quarter of 2013. - Cash and Cash Equivalents totaled $17.0 million at December 31, 2014.
Geoff Cook, Chief Executive Officer of MeetMe, said:
“We generated significant growth in our mobile traffic during the year
that helped drive a 96% increase in annual mobile revenue over last
year. In the fourth quarter, we reached an all-time high of 923,000
average mobile daily active users, up 19% over last year, and in January
we reported averaging more than one million daily active users on
mobile, up 30% from a year ago. Additionally, new user registrations on
our mobile apps in January increased 47% year over year. We believe
these positive growth metrics demonstrate the increasing momentum of our
business as the preeminent mobile chat app for connecting new people. We
look forward to continuing to execute against a strong product pipeline
in 2015 to further grow engagement and continue to expand our audience.”
David Clark, Chief Financial Officer of MeetMe, added:
“Our success in growing mobile engagement is reflected in our solid
financial results. We grew mobile revenue in 2014 to $24.6 million,
which represented 55% of our total revenue for the year, the highest
annual contribution in our history, and up from 31% a year ago. Mobile
ARPU climbed to $2.46 in the quarter, up 22% versus a year ago, on the
strength of our mobile banner and native advertising business. We also
increased adjusted EBITDA by 177% on a year-on-year basis to $5 million,
generated free cash flow of $3.5 million and ended the year with a
strong cash balance of $17 million.”
Webcast and Conference Call Details
Management will host a webcast and conference call to discuss full year
and fourth quarter 2014 financial results today, February 27, 2015 at
10:30 a.m. Eastern time. To access the call dial 888-438-5448 (+1
719-457-2664 outside the United States) and when prompted provide the
participant passcode 1362119 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 our total revenue and mobile revenue will
continue to grow, whether our adjusted EBITDA will continue to grow,
whether our mobile revenue will continue to constitute an increasing
percentage of our total revenue, whether our net loss will continue to
decrease, whether our mobile ARPU and ARPDAU will continue to grow and
exceed web ARPU, whether our net income will continue to increase,
whether our mobile traffic will continue to grow, whether our mobile
daily active users (DAU) will continue to grow, whether our new user
registrations on our mobile app will continue to grow, whether our
positive growth metrics demonstrate the increasing momentum of our
business and growing mobile engagement, whether we are the preeminent
mobile chat app for connecting new people, whether we will execute
against our product pipeline as anticipated to further grow engagement
and the strength of the pipeline, and whether we will continue to expand
our audience. 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, 2013, the Prospectus Supplement (Rule 424(b)(5)) filed on
July 24, 2014, and the Current Report on Form 8-K filed on December 29,
2014. 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 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 | ||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| AS OF DECEMBER 31, 2014 AND 2013 | ||||||||||||
| (UNAUDITED) | ||||||||||||
| 2014 | 2013 | |||||||||||
| ASSETS | ||||||||||||
| CURRENT ASSETS: | ||||||||||||
| Cash and cash equivalents | $ | 17,041,050 | $ | 6,330,532 | ||||||||
|
Accounts receivable, net of allowance of $586,000 and $495,000, at December 31, 2014 and 2013, respectively |
9,045,269 | 10,136,929 | ||||||||||
| Prepaid expenses and other current assets | 790,031 | 597,133 | ||||||||||
| Total current assets | 26,876,350 | 17,064,594 | ||||||||||
| Goodwill | 70,646,036 | 70,646,036 | ||||||||||
| Property and equipment, net | 2,458,897 | 2,871,800 | ||||||||||
| Intangible assets, net | 2,894,330 | 4,787,941 | ||||||||||
| Other assets | 338,146 | 205,869 | ||||||||||
| TOTAL ASSETS | $ | 103,213,759 | $ | 95,576,240 | ||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| CURRENT LIABILITIES: | ||||||||||||
| Accounts payable | $ | 2,985,259 | $ | 3,331,484 | ||||||||
| Accrued liabilities | 3,249,404 | 3,262,327 | ||||||||||
| Current portion of capital lease obligations | 872,761 | 928,181 | ||||||||||
| Current portion of long-term debt | 2,068,326 | 2,333,966 | ||||||||||
| Deferred revenue | 218,484 | 275,761 | ||||||||||
| Total current liabilities | 9,394,234 | 10,131,719 | ||||||||||
| Long-term capital lease obligation, less current portion, net | 587,416 | 713,699 | ||||||||||
| Long-term debt, less current portion, net | 556,612 | 2,102,842 | ||||||||||
| Other liabilities | 418,530 | 819,930 | ||||||||||
| TOTAL LIABILITIES | $ | 10,956,792 | $ | 13,768,190 | ||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||||||
|
Preferred stock, $.001 par value, authorized – 5,000,000 Shares; |
$ | 1,000 | $ | 1,000 | ||||||||
|
Common stock, $.001 par value; authorized – 100,000,000 Shares; 44,910,034 and 38,477,359 issued and outstanding at December 31, 2014 and 2013, respectively |
44,914 | 38,481 | ||||||||||
| Additional paid-in capital | 297,001,167 | 282,496,996 | ||||||||||
| Accumulated deficit | (204,072,239 | ) | (200,110,075 | ) | ||||||||
| Accumulated other comprehensive income (loss) | (717,875 | ) | (618,352 | ) | ||||||||
| TOTAL STOCKHOLDERS’ EQUITY | 92,256,967 | 81,808,050 | ||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 103,213,759 | $ | 95,576,240 | ||||||||
| MEETME, INC. AND SUBSIDIARIES | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
||||||||||||||||||||
| THREE MONTHS AND YEARS ENDED DECEMBER 31, 2014 AND 2013 | ||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
| Revenues | $ | 13,021,878 | $ | 13,016,106 | $ | 44,817,436 | $ | 40,378,007 | ||||||||||||
| Operating Costs and Expenses: | ||||||||||||||||||||
| Sales and marketing | 1,666,406 | 2,393,167 | 7,277,719 | 7,799,077 | ||||||||||||||||
| Product development and content | 7,589,911 | 7,117,098 | 28,324,443 | 26,660,709 | ||||||||||||||||
| General and administrative | 1,962,026 | 2,115,897 | 8,017,970 | 7,875,395 | ||||||||||||||||
| Depreciation and amortization | 922,852 | 1,106,621 | 4,223,506 | 4,387,464 | ||||||||||||||||
| Restructuring costs | – | – | 120,202 | 2,540,896 | ||||||||||||||||
| Loss on debt restructure | – | – | – | 1,174,269 | ||||||||||||||||
| Total Operating Costs and Expenses | 12,141,195 | 12,732,783 | 47,963,840 | 50,437,810 | ||||||||||||||||
| Income (Loss) from Operations | 880,683 | 283,323 | (3,146,404 | ) | (10,059,803 | ) | ||||||||||||||
| Other Income (Expense): | ||||||||||||||||||||
| Interest income | 5,958 | 1,869 | 10,352 | 9,725 | ||||||||||||||||
| Interest expense | (183,754 | ) | (269,902 | ) | (1,052,620 | ) | (848,247 | ) | ||||||||||||
| Change in warrant liability | 144,037 | – | 226,508 | – | ||||||||||||||||
| Total Other Income (Expense) | (33,759 | ) | (268,033 | ) | (815,760 | ) | (838,522 | ) | ||||||||||||
| Income (loss) before Income Taxes | 846,924 | 15,290 | (3,962,164 | ) | (10,898,325 | ) | ||||||||||||||
| Income taxes | – | – | – | – | ||||||||||||||||
| Net Income (Loss) | $ | 846,924 | $ | 15,290 | $ | (3,962,164 | ) | $ | (10,898,325 | ) | ||||||||||
| Preferred stock dividends | – | – | – | – | ||||||||||||||||
| Net Income (Loss) Allocable to Common Stockholders | $ | 846,924 | $ | 15,290 | $ | (3,962,164 | ) | $ | (10,898,325 | ) | ||||||||||
| Basic and diluted net income (loss) per common shareholders: | ||||||||||||||||||||
| Basic and diluted net income (loss) per common shareholders | $ | 0.02 | $ | 0.00 | $ | (0.10 | ) | $ | (0.29 | ) | ||||||||||
| Weighted average shares outstanding, basic and diluted | 44,879,982 | 38,477,359 | 41,328,699 | 38,048,446 | ||||||||||||||||
| Net Income (Loss) | $ | 846,924 | $ | 15,290 | $ | (3,962,164 | ) | $ | (10,898,325 | ) | ||||||||||
| Foreign currency translation adjustment | (65,408 | ) | (25,466 | ) | (99,523 | ) | (52,407 | ) | ||||||||||||
| Comprehensive Income (Loss) | $ | 781,516 | $ | (10,176 | ) | $ | (4,061,687 | ) | $ | (10,950,732 | ) | |||||||||
| MEETME, INC. AND SUBSIDIARIES | |||||||||||||||||||
| RECONCILIATION OF GAAP NET INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA |
|||||||||||||||||||
| THREE MONTHS AND YEARS ENDED DECEMBER 31, 2014 AND 2013 | |||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
| Net Income (Loss) Allocable to Common Stockholders | $ | 846,924 | $ | 15,290 | $ | (3,962,164 | ) | $ | (10,898,325 | ) | |||||||||
| Interest expense | 183,754 | 269,902 | 1,052,620 | 848,247 | |||||||||||||||
| Depreciation and amortization | 922,852 | 1,106,621 | 4,223,506 | 4,387,464 | |||||||||||||||
| Stock-based compensation expense | 787,738 | 996,477 | 3,810,209 | 3,758,043 | |||||||||||||||
| Change in warrant liability | (144,037 | ) | – | (226,508 | ) | – | |||||||||||||
| Acquisition and restructuring costs | – | – | 120,202 | 2,540,896 | |||||||||||||||
| Loss on debt restructure | – | – | – | 1,174,269 | |||||||||||||||
| Adjusted EBITDA | $ | 2,597,231 | $ | 2,388,290 | $ | 5,017,865 | $ | 1,810,594 | |||||||||||
| GAAP basic and diluted net income (loss) per common shareholders | $ | 0.02 | $ | 0.00 | $ | (0.10 | ) | $ | (0.29 | ) | |||||||||
| Basic adjusted EBITDA per common shareholders | $ | 0.06 | $ | 0.06 | $ | 0.12 | $ | 0.05 | |||||||||||
| Diluted adjusted EBITDA per common shareholders | $ | 0.05 | $ | 0.06 | $ | 0.11 | $ | 0.04 | |||||||||||
| Weighted average number of shares outstanding, Basic | 44,879,982 | 38,477,359 | 41,328,699 | 38,048,446 | |||||||||||||||
| Weighted average number of shares outstanding, Diluted | 48,181,596 | 40,694,677 | 45,563,736 | 40,375,214 | |||||||||||||||
Investor Contact:
MKR Group Inc.
Todd Kehrli or Jim
Byers
323-468-2300
meet@mkr-group.com
Source: MeetMe, Inc.