ShareMobile Revenue Increased 47% Year Over Year
Adjusted EBITDA Increased 288% Year Over Year
Adjusted EBITDA Margin of 26%
NEW HOPE, Pa.–(BUSINESS WIRE)–
MeetMe, Inc. (NASDAQ: MEET), the public market leader for social
discovery, today reported financial results for its second quarter ended
June 30, 2015.
Second Quarter 2015 Financial Highlights
-
Mobile revenue was $8.3 million, up 47% from the second quarter of
2014. -
Mobile revenue represented 75% of total revenue, the highest in
MeetMe’s history. - Total revenue was $11.1 million, up 4% from the second quarter of 2014.
-
Adjusted EBITDA was $2.9 million or a 26% margin, an increase of 288%
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 income was $1.2 million compared to a net loss of $1.4 million for
the second quarter of 2014. - Cash and Cash Equivalents totaled $16.2 million at June 30, 2015.
Geoff Cook, Chief Executive Officer of MeetMe, stated, “Mobile
engagement continued to grow during the second quarter, with our mobile
daily active users increasing 26% year over year and our total mobile
monthly users increasing 42% year over year. We also achieved multiple
milestones during the quarter, including surpassing 25 million chats in
a single day, up more than 100% from a year ago, and reaching 20 million
installs of our flagship Android app. Additionally, we saw increased
international growth, with approximately 20,000 new international users
joining every day during the quarter, up more than 100% versus a year
ago.
During the quarter, we successfully transitioned our mobile advertising
inventory management to an in-house solution and have benefited from
this change with much stronger click-through-rates and increased mobile
revenue. From July 1 through July 26, our click-through-rate (CTR)
increased 62% over the average in April, the month in which we began
making mobile ad logic changes. During the same period our daily mobile
app ad revenue increased 50%. By optimizing for the performance of our
mobile advertising, we believe we have substantially increased the
overall value of our inventory.”
David Clark, Chief Financial Officer of MeetMe, added, “With continued
growth in mobile engagement, our mobile revenue during the quarter
increased 47% on a year-over-year basis. Mobile revenue represented 75%
of our total quarterly revenue, the highest percentage in our history
and up from 53% in the year ago quarter. We also significantly increased
adjusted EBITDA on a year-over-year basis to $2.9 million, resulting in
a 26% adjusted EBITDA margin.”
Webcast and Conference Call Details
Management will host a webcast and conference call to discuss second
quarter 2015 financial results today, July 30, 2015 at 10:30 a.m.
Eastern time. To access the call dial 877-419-6591 (+1 719-325-4755
outside the United States) and when prompted provide the participant
passcode 9080523 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 we will continue to benefit from transitioning
our mobile advertising to an in-house solution, whether CPMs and
click-through-rates will continue to strengthen, whether our CTR and
daily mobile app revenue will continue to increase, whether mobile
revenue will continue to increase, whether reducing lower quality ad
units and running more higher-performing ones increase, or will continue
to increase, the overall value of our ad inventory. 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.
| MEETME, INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (Unaudited) | |||||||
| June 30, 2015 | December 31, 2014 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 16,191,072 | $ | 17,041,050 | |||
|
Accounts receivable, net of allowance of $368,000 and |
11,106,887 | 9,045,269 | |||||
| Prepaid expenses and other current assets | 967,098 | 790,031 | |||||
| Total current assets | 28,265,057 | 26,876,350 | |||||
| Goodwill | 70,646,036 | 70,646,036 | |||||
| Property and equipment, net | 2,722,770 | 2,458,897 | |||||
| Intangible assets, net | 2,035,998 | 2,894,330 | |||||
| Other assets | 314,068 | 338,146 | |||||
| TOTAL ASSETS | $ | 103,983,929 | $ | 103,213,759 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| CURRENT LIABILITIES: | |||||||
| Accounts payable | $ | 1,679,353 | $ | 2,985,259 | |||
| Accrued liabilities | 2,730,300 | 3,249,404 | |||||
| Current portion of capital lease obligations | 540,235 | 872,761 | |||||
| Current portion of long-term debt | 1,733,446 | 2,068,326 | |||||
| Deferred revenue | 214,710 | 218,484 | |||||
| Total current liabilities | 6,898,044 | 9,394,234 | |||||
| Long-term capital lease obligation, less current portion, net | 372,892 | 587,416 | |||||
| Long-term debt, less current portion, net | – | 556,612 | |||||
| Other liabilities | 457,850 | 418,530 | |||||
| TOTAL LIABILITIES | $ | 7,728,786 | $ | 10,956,792 | |||
| 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; |
45,466 | 44,914 | |||||
| Additional paid-in capital | 298,348,932 | 297,001,168 | |||||
| Accumulated deficit | (202,140,255 | ) | (204,072,240 | ) | |||
| Accumulated other comprehensive loss | – | (717,875 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 96,255,143 | 92,256,967 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 103,983,929 | $ | 103,213,759 | |||
| MEETME, INC. AND SUBSIDIARIES | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) |
|||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Revenues | $ | 11,086,878 | $ | 10,687,330 | $ | 22,715,854 | $ | 20,190,834 | |||||||
| Operating Costs and Expenses: | |||||||||||||||
| Sales and marketing | 1,094,068 | 1,935,678 | 2,309,388 | 4,094,766 | |||||||||||
| Product development and content | 6,083,455 | 6,855,739 | 12,403,259 | 13,713,179 | |||||||||||
| General and administrative | 1,774,991 | 2,194,138 | 3,394,895 | 4,123,783 | |||||||||||
| Depreciation and amortization | 801,260 | 1,079,932 | 1,617,175 | 2,165,391 | |||||||||||
| Restructuring costs | – | – | – | 120,202 | |||||||||||
| Total Operating Costs and Expenses | 9,753,774 | 12,065,487 | 19,724,717 | 24,217,321 | |||||||||||
| Income (Loss) from Operations | 1,333,104 | (1,378,157 | ) | 2,991,137 | (4,026,487 | ) | |||||||||
| Other Income (Expense): | |||||||||||||||
| Interest income | 5,244 | 549 | 10,430 | 1,715 | |||||||||||
| Interest expense | (122,989 | ) | (241,643 | ) | (281,855 | ) | (661,886 | ) | |||||||
| Change in warrant liability | 56,408 | 181,493 | (39,320 | ) | (174,461 | ) | |||||||||
| Gain (loss) on cumulative foreign currency translation adjustment | 11,614 | – | (783,090 | ) | – | ||||||||||
| Gain on sale of asset | – | – | 163,333 | – | |||||||||||
| Total Other Income (Expense) | (49,723 | ) | (59,601 | ) | (930,502 | ) | (834,632 | ) | |||||||
| Income (loss) before Income Taxes | 1,283,381 | (1,437,758 | ) | 2,060,635 | (4,861,119 | ) | |||||||||
| Income taxes | (73,450 | ) | – | (128,650 | ) | – | |||||||||
| Net Income (Loss) | $ | 1,209,931 | $ | (1,437,758 | ) | $ | 1,931,985 | $ | (4,861,119 | ) | |||||
| Preferred stock dividends | – | – | – | – | |||||||||||
| Net Income (Loss) Allocable to Common Stockholders | $ | 1,209,931 | $ | (1,437,758 | ) | $ | 1,931,985 | $ | (4,861,119 | ) | |||||
| Basic and diluted income (loss) per common stockholders: | |||||||||||||||
| Basic income (loss) per common stockholders | $ | 0.03 | $ | (0.04 | ) | $ | 0.04 | $ | (0.13 | ) | |||||
| Diluted income (loss) per common stockholders | $ | 0.02 | $ | (0.04 | ) | $ | 0.04 | $ | (0.13 | ) | |||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 45,191,563 | 38,798,706 | 45,051,576 | 38,649,766 | |||||||||||
| Diluted | 49,022,622 | 38,798,706 | 48,625,068 | 38,649,766 | |||||||||||
| Net Income (Loss) | $ | 1,209,931 | $ | (1,437,758 | ) | $ | 1,931,985 | $ | (4,861,119 | ) | |||||
| Foreign currency translation adjustment | – | 12,573 | – | 40,274 | |||||||||||
| Comprehensive Income (Loss) | $ | 1,209,931 | $ | (1,425,185 | ) | $ | 1,931,985 | $ | (4,820,845 | ) | |||||
| MEETME, INC. AND SUBSIDIARIES | ||||||||||||||||
| RECONCILIATION OF GAAP NET INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS TO ADJUSTED EBITDA |
||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Net Income (Loss) Allocable to Common Stockholders | $ | 1,209,931 | $ | (1,437,758 | ) | $ | 1,931,985 | $ | (4,861,119 | ) | ||||||
| Interest expense | 122,989 | 241,643 | 281,855 | 661,886 | ||||||||||||
| Depreciation and amortization | 801,260 | 1,079,932 | 1,617,175 | 2,165,391 | ||||||||||||
| Stock-based compensation expense | 733,051 | 1,038,101 | 1,348,316 | 1,979,388 | ||||||||||||
| Change in warrant liability | (56,408 | ) | (181,493 | ) | 39,320 | 174,461 | ||||||||||
| Income taxes | 73,450 | – | 128,650 | – | ||||||||||||
| Acquisition and restructuring costs | – | – | – | 120,202 | ||||||||||||
| (Gain) loss on cumulative foreign currency translation adjustment | (11,614 | ) | – | 783,090 | – | |||||||||||
| Gain on sale of asset | – | – | (163,333 | ) | – | |||||||||||
| Adjusted EBITDA | $ | 2,872,659 | $ | 740,425 | $ | 5,967,058 | $ | 240,209 | ||||||||
| GAAP basic net income (loss) per common stockholders | $ | 0.03 | $ | (0.04 | ) | $ | 0.04 | $ | (0.13 | ) | ||||||
| GAAP diluted net income (loss) per common stockholders | $ | 0.02 | $ | (0.04 | ) | $ | 0.04 | $ | (0.13 | ) | ||||||
| Basic adjusted EBITDA per common stockholders | $ | 0.06 | $ | 0.02 | $ | 0.13 | $ | 0.01 | ||||||||
| Diluted adjusted EBITDA per common stockholders | $ | 0.06 | $ | 0.02 | $ | 0.12 | $ | 0.01 | ||||||||
| Weighted average number of shares outstanding, Basic | 45,191,563 | 38,798,706 | 45,051,576 | 38,649,766 | ||||||||||||
| Weighted average number of shares outstanding, Diluted | 49,022,622 | 38,798,706 | 48,625,068 | 38,649,766 | ||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20150730005276/en/
Investor Contact:
MKR Group Inc.
Todd Kehrli or Jim
Byers
(323) 468-2300
meet@mkr-group.com
Source: MeetMe, Inc.