MeetMe Reports Preliminary Third Quarter 2015 Financial Results above Its Previously Released Guidance


MeetMe, Inc. (NASDAQ: MEET), the public market leader for social
discovery, today reported preliminary financial results for its third
quarter ended September 30, 2015.

Preliminary Third Quarter 2015 Financial Results

  • Total revenue is expected to be approximately $14.2 million, an
    increase of approximately 22% from the third quarter of 2014, and
    above the Company’s previously released guidance range of $12.5
    million to $13 million for the third quarter of 2015.
  • Adjusted EBITDA is expected to be approximately $5.1 million, an
    increase of approximately 134% from the prior year third quarter and
    above the previously released guidance range of $2 million to $3
    million for the third quarter of 2015. Third quarter 2015 adjusted
    EBITDA will exclude approximately $5.8 million of an anticipated
    one-time write-off of Beanstock Media’s accounts receivable balance,
    which falls outside of the Company’s normal range of bad debt expense.

David Clark, Chief Financial Officer of MeetMe, added, “We believe our
quarterly revenue growth in excess of 20% year over year reflects
continued growth in mobile engagement and the effective management of
mobile advertising inventory. We significantly increased adjusted EBITDA
year over year largely as a result of mobile revenue growth and prudent
cost controls. During the quarter, we determined it was necessary to
write-off the accounts receivable owed by our previous outsourced
inventory management provider, Beanstock Media. This bad debt write-off
is a one-time event that falls well outside our normal range of bad debt
expense of less than 1% of revenue and should not impact our ability to
deliver substantial EBITDA margins going forward. Furthermore, we
successfully completed our transition to in-house management in the
second quarter at little or no additional cost, and since then have
continued to grow both revenue and adjusted EBITDA. We do intend to
vigorously pursue repayment of these amounts despite this write-off.”

Earnings Call and Webcast

MeetMe expects to report full third quarter results in early November.
Details for the earnings conference call and webcast will be provided in
a separate press release.

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

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 expected revenue and expected
adjusted EBITDA, whether quarterly revenue growth reflects mobile
engagement growth and whether mobile engagement will continue to grow,
whether we will continue to manage mobile advertising inventory
effectively, whether mobile revenue will continue to grow, whether we
will implement prudent cost controls, whether the write-off of the
Beanstock receivable will impact our ability to deliver substantial
EBITDA margins going forward, whether the write-off is a one-time event
and whether we will deliver EBITDA margins as expected, whether we will
continue to grow both revenue and adjusted EBITDA, and whether we will
vigorously pursue repayment of the Beanstock receivable. 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.

Investor Contact:
MKR Group Inc.
Todd Kehrli or Jim
Byers, 323-468-2300

Source: MeetMe, Inc