Total Revenue Increased 15% Year Over Year

Mobile Revenue Increased 42% Year Over Year

Adjusted EBITDA Increased 19% Year Over Year

GAAP Net Income Increased 226% Year Over Year

NEW HOPE, Pa.–(BUSINESS WIRE)–
MeetMe, Inc. (NASDAQ: MEET), a public market leader for social
discovery, today reported financial results for its first quarter ended
March 31, 2016.

First Quarter 2016 Financial Highlights

• Total revenue was $13.3 million, up 15% from the first quarter of 2015.
• Mobile revenue was $11.7 million, up 42% from the first quarter of
  2015.
• Mobile revenue represented 88% of total revenue, the highest in
  MeetMe’s history.
• Adjusted EBITDA was $3.7 million, an increase of 19% from the first
  quarter of 2015. (See the important discussion about the presentation
  of non-GAAP financial measures, and reconciliation to the most direct
  comparable GAAP financial measure, below.)
• Adjusted EBITDA margin increased to 28%, up from 27% in the first
  quarter of 2015.
• GAAP net income was $2.4 million, or $0.04 per diluted share, up 226%
  from the first quarter of 2015.
• Non-GAAP net income was $3.6 million, or $0.07 per diluted share, up
  100% from the first quarter of 2015.
• Cash and Cash Equivalents totaled $26.4 million at March 31, 2016, an
  increase of 37% or $7.1 million from $19.3 million at December 31,
  2015.

Geoff Cook, Chief Executive Officer of MeetMe, stated, “We consider the
first quarter a very strong start to what we believe will be a great
year. We achieved record first-quarter results in revenue, adjusted
EBITDA, and net income. Our mobile traffic is at an all-time high. We
have a deep pipeline of product initiatives that we believe will
continue to grow engagement and retention. In this quarter, we plan to
launch Discuss (an interest-based group conversation platform) and a
major revamp to our photos feature, as well as to expand into new
languages and continue to optimize our discovery algorithms.”

David Clark, Chief Financial Officer of MeetMe, added, “Mobile revenue
for the quarter increased 42% year over year and represented 88% of our
total revenue, up from 71% in 2015. We believe our increasing mobile
revenue was driven by continued strength in the mobile advertising
industry, which resulted in higher advertising rates on mobile devices.
Much of the increased revenue flowed through to adjusted EBITDA, which
increased 19% to $3.7 million for the quarter, resulting in a 28%
adjusted EBITDA margin.”

Webcast and Conference Call Details

Management will host a webcast and conference call to discuss first
quarter 2016 financial results today, May 5, 2016 at 8:30 a.m. Eastern
time. To access the call dial 888-504-7963 (+1 719-325-2215 outside the
United States) and when prompted provide the participant passcode
9841118 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 a leading social network for meeting new people in the US and
a public market leader for social discovery (NASDAQ: MEET). MeetMe makes
it easy to discover new people to chat with on mobile devices. With
approximately 90 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 net income will continue to grow, whether our mobile revenue
will continue to constitute an increasing percentage of our total
revenue, whether our revenue, adjusted EBITDA and net income will
reflect the increasing value that our audience provides to mobile
advertisers and the continued growth in mobile engagement by our users,
whether our record revenue, adjusted EBITDA and net income reflect the
increasing value of our audience to mobile advertisers and the continued
growth in mobile engagement by our users, whether our pipeline of
product initiatives will continue to grow user engagement and retention,
whether and when we will launch of Discuss, revamp our photos feature,
expand into new languages and continue to optimize, , whether our
increasing revenue was driven by our growing mobile engagement as well
as the continued strength in the mobile advertising industry, whether
our mobile engagement will continue to grow, and whether our growing
mobile engagement and continued strength in the advertising industry
will drive our revenue. 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, 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, bad debt expense outside the normal range, and
the goodwill impairment charges. The Company excludes stock-based
compensation because it is non-cash in nature. The Company defines
Non-GAAP Net Income as earnings (or loss) from continuing operations
before income taxes, amortization on intangible assets, and non-cash
stock-based compensation.

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)
			March 31, 2016					December 31, 2015
ASSETS
CURRENT ASSETS:
Cash and cash equivalents			$	26,411,228				$	19,298,038
Accounts receivable, net of allowance of $130,413 and $133,000, at March 31, 2016 and December 31, 2015, respectively				10,593,708					16,509,291
Prepaid expenses and other current assets				920,592					970,239
Total current assets				37,925,528					36,777,568
Goodwill				70,646,036					70,646,036
Property and equipment, net				2,348,073					2,610,307
Intangible assets, net				899,748					1,278,498
Other assets				172,183					178,264
TOTAL ASSETS			$	111,991,568				$	111,490,673
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable			$	2,283,635				$	2,776,710
Accrued liabilities				1,943,236					4,127,634
Current portion of capital lease obligations				324,273					366,114
Deferred revenue				308,155					293,414
Total current liabilities				4,859,299					7,563,872
Long-term capital lease obligation, less current portion, net				151,485					221,302
Other liabilities				793,360					1,035,137
TOTAL LIABILITIES			$	5,804,144				$	8,820,311
STOCKHOLDERS’ EQUITY:
Common stock, $.001 par value; authorized – 100,000,000 Shares; 47,511,379 and 47,179,486 issued and outstanding at March 31, 2016 and December 31, 2015				47,515					47,183
Additional paid-in capital				301,887,623					300,725,791
Accumulated deficit				(195,747,714	)				(198,102,612	)
TOTAL STOCKHOLDERS’ EQUITY				106,187,424					102,670,362
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			$	111,991,568				$	111,490,673

MEETME, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)
			Three Months Ended March 31,
			2016					2015
Revenues			$	13,321,671				$	11,628,976
Operating Costs and Expenses:
Sales and marketing				2,321,423					1,215,320
Product development and content				5,708,100					6,319,804
General and administrative				2,348,168					1,619,904
Depreciation and amortization				751,264					815,915
Total Operating Costs and Expenses				11,128,955					9,970,943
Income from Operations				2,192,716					1,658,033
Other Income (Expense):
Interest income				5,115					5,186
Interest expense				(6,745	)				(158,866	)
Change in warrant liability				241,777					(95,728	)
Loss on cumulative foreign currency translation adjustment				16,352					(794,704	)
Gain on sale of asset				–					163,333
Total Other Income (Expense)				256,499					(880,779	)
Income before Income Taxes				2,449,215					777,254
Income taxes				(94,317	)				(55,200	)
Net Income			$	2,354,898				$	722,054
Other comprehensive Income:
Foreign currency translation adjustment				–					–
Comprehensive income			$	2,354,898				$	722,054
Basic and diluted income per common stockholders:
Basic income per common stockholders			$	0.05				$	0.02
Diluted income per common stockholders			$	0.04				$	0.01
Weighted average number of shares outstanding:
Basic				47,458,748					44,910,034
Diluted				53,666,626					48,246,763

MEETME, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME ALLOCABLE TO COMMON STOCKHOLDERS TO ADJUSTED EBITDA
(UNAUDITED)
			Three Months Ended March 31,
			2016					2015
Net income allocable to Common Stockholders			$	2,354,898				$	722,054
Interest expense				6,745					158,866
Depreciation and amortization				751,264					815,915
Stock-based compensation expense				727,780					615,265
Change in warrant liability				(241,777	)				95,728
Income taxes				94,317					55,200
Loss on cumulative effect of foreign currency translation adjustment				(16,352	)				794,704
Gain on sale of asset				–					(163,333	)
Adjusted EBITDA			$	3,676,875				$	3,094,399
GAAP basic and diluted net income per common stockholders			$	0.05				$	0.02
GAAP diluted net income per common stockholders			$	0.04				$	0.01
Basic adjusted EBITDA per common stockholders			$	0.08				$	0.07
Diluted adjusted EBITDA per common stockholders			$	0.07				$	0.06
Weighted average number of shares outstanding, Basic				47,458,748					44,910,034
Weighted average number of shares outstanding, Diluted				53,666,626					48,246,763

MEETME, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
(UNAUDITED)
			Three Months Ended March 31,
			2016				2015
GAAP Net Income			$	2,354,898			$	722,054
Stock-based compensation expense				727,780				615,265
Amortization of intangible assets				378,750				387,916
Income taxes				94,317				55,200
Non-GAAP Net Income			$	3,555,745			$	1,780,435
GAAP basic and diluted net income per common stockholders			$	0.05			$	0.02
GAAP diluted net income per common stockholders			$	0.04			$	0.01
Basic non-GAAP net income per common stockholders			$	0.07			$	0.04
Diluted non-GAAP net income per common stockholders			$	0.07			$	0.04
Weighted average number of shares outstanding, Basic				47,458,748				44,910,034
Weighted average number of shares outstanding, Diluted				53,666,626				48,246,763

View source version on businesswire.com: http://www.businesswire.com/news/home/20160505005357/en/

Investors:
MKR Group Inc.
Todd Kehrli or Jim Byers,
323-468-2300
meet@mkr-group.com

Source: MeetMe, Inc.