ShareTotal Revenue for 2016 Increased 34% Year Over Year
Mobile Revenue for 2016 Increased 56% Year Over Year
GAAP Net Income for 2016 (excluding one-time deferred tax benefit)
Increased 204% Year Over Year
Adjusted EBITDA for 2016 Increased 45% Year Over Year
Full Year Adjusted EBITDA Margin Increased to 39%
NEW HOPE, Pa.–(BUSINESS WIRE)–
MeetMe, Inc. (NASDAQ: MEET), a public market leader for social
discovery, today reported financial results for its full year and fourth
quarter ended December 31, 2016.
Full Year 2016 Financial Highlights
- Total revenue was $76.1 million, up 34% year over year.
- Mobile revenue was $70.7 million, up 56% year over year.
-
GAAP net income was $46.3 million, or $0.80 per diluted share
(excluding a one-time deferred tax benefit, net income was $18.2
million, or $0.31 per diluted share, up 204% year over year). -
Non-GAAP net income was $26.9 million, or $0.47 per diluted share, up
60% year over year. -
Adjusted EBITDA was $29.3 million, or a 39% margin, up 45% 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.)
Fourth Quarter 2016 Financial Highlights
- Total revenue was $29.2 million, up 47% year over year.
- Mobile revenue was $27.8 million, up 62% year over year.
-
GAAP net income was $9.9 million, or $0.15 per diluted share, up 63%
year over year. -
Non-GAAP net income was $12.4 million, or $0.19 per diluted share, up
56% year over year. -
Adjusted EBITDA was $12.8 million, or a 44% margin, up 42% 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.) - Cash and Cash Equivalents totaled $21.9 million at December 31, 2016.
Geoff Cook, Chief Executive Officer of MeetMe, stated, “We made
tremendous progress on multiple fronts in 2016. We achieved record
financial results for the year, reflecting the increasing value of our
audience to mobile advertisers, as well as our growth in mobile
engagement through product innovation and the acquisition of Skout.
“Through our combination with Skout, we brought two of the largest
mobile apps for meeting and chatting with new people into the same
portfolio, increasing our scale to more than eight million monthly
active users. With the signing of our agreement to acquire if(we)
announced today, we continue to execute on our vision to innovate,
acquire and build the largest mobile portfolio of brands for meeting and
chatting with new people. The addition of if(we)’s Tagged and hi5 brands
into our portfolio is expected to increase our monthly active users to
more than 10 million, giving us even greater scale for monetization and
increased profits.”
David Clark, Chief Financial Officer of MeetMe, added, “Our record
mobile revenue for the year increased 56% year over year and was driven
by growth in the mobile engagement of our users, as well as by the
continued strength in the mobile advertising industry. Our record
adjusted EBITDA for the year increased 45% to $29.3 million,
representing a 39% adjusted EBITDA margin. During the year, we
internally funded the $28.5 million cash portion of the total
consideration for our acquisition of Skout, as well as $5 million of
stock buybacks, while still ending the year with a $2.6 million increase
in our cash balance.”
Webcast and Conference Call Details
Management will host a webcast and conference call to discuss full year
and fourth quarter 2016 financial results today, March 6, 2017 at 4:30
p.m. Eastern time. To access the call dial 888-337-8202 (US and Canada)
or +1 913-312-1450 (International) and when prompted provide the
participant passcode 1061836 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.
Through its portfolio of brands, MeetMe (NASDAQ: MEET) is meeting the
universal need for human connection. Using innovative products and
sophisticated data science, MeetMe keeps its approximately two million
daily active users engaged and originates untold numbers of casual
chats, friendships, dates, and marriages. MeetMe offers advertisers the
opportunity to reach customers on a global scale with hundreds of
millions of daily mobile ad impressions. MeetMe utilizes high user
density, economies of scale, and leading monetization strategies to
maximize EBITDA. MeetMe’s apps are available on iPhone, iPad, and Android in
multiple languages worldwide. 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 net income will continue to grow, whether
our adjusted EBITDA will continue to grow, whether we will continue to
execute against our Skout integration plan, whether and when we will
close the if(we) acquisition, whether the addition of if(we)’s Tagged
and hi5 brands into our portfolio will increase our MAU to more than 10
million and give us even greater scale for monetization and increased
profitability, whether our mobile user engagement will continue to grow,
whether we will continue to capitalize on our mobile opportunity,
whether the mobile advertising industry will remain strong, and whether
advertising rates on mobile devices will continue to increase. 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 filed with the SEC on March 8, 2016
and our Current Reports on Form 8-K filed with the SEC on October 4,
2016 and March 6, 2017. 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 Measures
The Company defines mobile traffic and engagement metrics (including
MAU, DAU, chats per day, and new users per day) to include mobile app
traffic for all properties and mobile web traffic for MeetMe and Skout.
The Company uses Adjusted EBITDA and Non-GAAP Net Income, 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
operations before interest expense, benefit or provision for income
taxes, depreciation and amortization, stock-based compensation, warrant
obligations, non-recurring acquisition, restructuring or other expenses,
gain or loss on cumulative foreign currency translation adjustment, gain
on sale of asset, bad debt expense outside the normal range, and
goodwill and long-lived asset 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) before benefit or
provision for income taxes, amortization of intangibles, non-recurring
acquisition and restructuring costs, bad debt expense outside the normal
range, 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) | ||||||||
| December 31, | December 31, | |||||||
| 2016 | 2015 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 21,852,531 | $ | 19,298,038 | ||||
|
Accounts receivable, net of allowance of $283,000 and $133,000, at December 31, 2016 and 2015, respectively |
23,737,254 | 16,509,291 | ||||||
| Prepaid expenses and other current assets | 1,489,267 | 970,239 | ||||||
| Total current assets | 47,079,052 | 36,777,568 | ||||||
| Restricted Cash | 393,484 | – | ||||||
| Goodwill | 114,175,554 | 70,646,036 | ||||||
| Property and equipment, net | 2,466,110 | 2,610,307 | ||||||
| Intangible assets, net | 17,010,565 | 1,278,498 | ||||||
| Deferred taxes | 28,253,827 | – | ||||||
| Other assets | 110,892 | 178,264 | ||||||
| TOTAL ASSETS | $ | 209,489,484 | $ | 111,490,673 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 5,350,336 | $ | 2,776,710 | ||||
| Accrued liabilities | 8,395,060 | 4,127,634 | ||||||
| Current portion of capital lease obligations | 221,302 | 366,114 | ||||||
| Deferred revenue | 434,197 | 293,414 | ||||||
| Total current liabilities | 14,400,895 | 7,563,872 | ||||||
| Long-term capital lease obligation, less current portion, net | – | 221,302 | ||||||
| Other Liabilities | – | 1,035,137 | ||||||
| TOTAL LIABILITIES | $ | 14,400,895 | $ | 8,820,311 | ||||
| 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; 0 shares issued and outstanding at December 31, 2016 and 2015, respectively |
$ | – | $ | – | ||||
|
Common stock, $.001 par value; authorized – 100,000,000 Shares; 58,945,607 and 47,179,486 issued and outstanding at December 31, 2016 and 2015, respectively |
58,949 | 47,183 | ||||||
| Additional paid-in capital | 351,873,801 | 300,725,791 | ||||||
| Accumulated deficit | (156,844,161 | ) | (198,102,612 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 195,088,589 | 102,670,362 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 209,489,484 | $ | 111,490,673 | ||||
| MEETME, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
| For the Three Months Ended | For the Years Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenues | $ | 29,222,186 | $ | 19,879,840 | $ | 76,124,109 | $ | 56,903,773 | ||||||||
| Operating Costs and Expenses: | ||||||||||||||||
| Sales and marketing | 6,313,958 | 2,826,198 | 15,089,987 | 6,618,837 | ||||||||||||
| Product development and content | 8,059,563 | 6,036,478 | 25,790,173 | 24,615,304 | ||||||||||||
| General and administrative | 3,063,319 | 3,337,598 | 9,494,804 | 14,534,861 | ||||||||||||
| Depreciation and amortization | 1,802,568 | 760,201 | 4,069,211 | 3,140,205 | ||||||||||||
| Acquisition and restructuring costs | 829,169 | – | 2,457,295 | – | ||||||||||||
| Total Operating Costs and Expenses | 20,068,577 | 12,960,475 | 56,901,470 | 48,909,207 | ||||||||||||
| Income from Operations | 9,153,609 | 6,919,365 | 19,222,639 | 7,994,566 | ||||||||||||
| Other Income (Expense): | ||||||||||||||||
| Interest income | 2,488 | 5,304 | 21,185 | 21,037 | ||||||||||||
| Interest expense | (3,160 | ) | (84,723 | ) | (19,388 | ) | (459,962 | ) | ||||||||
| Change in warrant liability | – | (622,819 | ) | (864,596 | ) | (616,607 | ) | |||||||||
| Gain (loss) on cumulative foreign currency translation adjustment | 69 | 5,640 | 33,416 | (856,438 | ) | |||||||||||
| Gain on sale of asset | – | – | – | 163,333 | ||||||||||||
| Total Other Expense | (603 | ) | (696,598 | ) | (829,383 | ) | (1,748,637 | ) | ||||||||
| Income before Benefit (Provision) for Income Taxes | 9,153,006 | 6,222,767 | 18,393,256 | 6,245,929 | ||||||||||||
| Benefit (provision) for income taxes | 749,916 | (149,500 | ) | 27,875,362 | (276,301 | ) | ||||||||||
| Net Income | $ | 9,902,922 | $ | 6,073,267 | $ | 46,268,618 | $ | 5,969,628 | ||||||||
| Basic and diluted income per common stockholders: | ||||||||||||||||
| Basic net income per common stockholders | $ | 0.17 | $ | 0.13 | $ | 0.89 | $ | 0.13 | ||||||||
| Diluted net income per common stockholders | $ | 0.15 | $ | 0.12 | $ | 0.80 | $ | 0.12 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 58,856,831 | 46,090,961 | 51,963,702 | 45,419,175 | ||||||||||||
| Diluted | 64,121,470 | 51,735,136 | 57,745,652 | 49,535,826 | ||||||||||||
| MEETME, INC. AND SUBSIDIARIES | ||||||||||||||||
| RECONCILIATION OF GAAP NET INCOME ALLOCABLE TO COMMON STOCKHOLDERS TO ADJUSTED EBITDA |
||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
| For the Three Months Ended | For the Years Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net income allocable to Common Stockholders | $ | 9,902,922 | $ | 6,073,267 | $ | 46,268,618 | $ | 5,969,628 | ||||||||
| Interest expense | 3,160 | 84,723 | 19,388 | 459,962 | ||||||||||||
| Depreciation and amortization | 1,802,568 | 760,201 | 4,069,211 | 3,140,205 | ||||||||||||
| Stock-based compensation expense | 1,013,145 | 1,332,223 | 3,567,987 | 3,341,965 | ||||||||||||
| Change in warrant liability | – | 622,819 | 864,596 | 616,607 | ||||||||||||
| (Benefit) provision for income taxes | (749,916 | ) | 149,500 | (27,875,362 | ) | 276,301 | ||||||||||
| Acquisition and restructuring costs | 829,169 | – | 2,457,295 | – | ||||||||||||
| Bad debt expense outside normal range | – | – | – | 5,735,204 | ||||||||||||
|
(Gain) loss on cumulative effect of foreign currency translation adjustment |
(69 | ) | (5,640 | ) | (33,416 | ) | 856,438 | |||||||||
| Gain on sale of asset | – | – | – | (163,333 | ) | |||||||||||
| Adjusted EBITDA | $ | 12,800,979 | $ | 9,017,093 | $ | 29,338,317 | $ | 20,232,977 | ||||||||
| GAAP basic net income per common stockholders | $ | 0.17 | $ | 0.13 | $ | 0.89 | $ | 0.13 | ||||||||
| GAAP diluted net income per common stockholders | $ | 0.15 | $ | 0.12 | $ | 0.80 | $ | 0.12 | ||||||||
| Basic adjusted EBITDA per common stockholders | $ | 0.22 | $ | 0.20 | $ | 0.56 | $ | 0.45 | ||||||||
| Diluted adjusted EBITDA per common stockholders | $ | 0.20 | $ | 0.17 | $ | 0.51 | $ | 0.41 | ||||||||
| Weighted average number of shares outstanding, Basic | 58,856,831 | 46,090,961 | 51,963,702 | 45,419,175 | ||||||||||||
| Weighted average number of shares outstanding, Diluted | 64,121,470 | 51,735,136 | 57,745,652 | 49,535,826 | ||||||||||||
| MEETME, INC. AND SUBSIDIARIES | ||||||||||||||
| RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME | ||||||||||||||
| (UNAUDITED) | ||||||||||||||
| For the Three Months Ended | For the Years Ended | |||||||||||||
| December 31, | December 31, | |||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||
| GAAP Net Income | $ | 9,902,922 | $ | 6,073,267 | $ | 46,268,618 | $ | 5,969,628 | ||||||
| Amortization of Intangibles | 1,364,850 | 378,750 | 2,507,433 | 1,524,166 | ||||||||||
| Stock-based compensation expense | 1,013,145 | 1,332,223 | 3,567,987 | 3,341,965 | ||||||||||
| Benefit (provision) for income taxes | (749,916 | ) | 149,500 | (27,875,362 | ) | 276,301 | ||||||||
| Acquisition and restructuring costs | 829,169 | – | 2,457,295 | – | ||||||||||
| Bad debt expense outside normal range | – | – | – | 5,735,204 | ||||||||||
| Non-GAAP Net Income | $ | 12,360,170 | $ | 7,933,740 | $ | 26,925,971 | $ | 16,847,264 | ||||||
| GAAP basic net income per common stockholders | $ | 0.17 | $ | 0.13 | $ | 0.89 | $ | 0.13 | ||||||
| GAAP diluted net income per common stockholders | $ | 0.15 | $ | 0.12 | $ | 0.80 | $ | 0.12 | ||||||
| Basic Non-GAAP net income per common stockholders | $ | 0.21 | $ | 0.17 | $ | 0.52 | $ | 0.37 | ||||||
| Diluted Non-GAAP net income per common stockholders | $ | 0.19 | $ | 0.15 | $ | 0.47 | $ | 0.34 | ||||||
| Weighted average number of shares outstanding, Basic | 58,856,831 | 46,090,961 | 51,963,702 | 45,419,175 | ||||||||||
| Weighted average number of shares outstanding, Diluted | 64,121,470 | 51,735,136 | 57,745,652 | 49,535,826 | ||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170306006201/en/
Investor Contact:
MKR Group Inc.
Todd Kehrli or Jim
Byers
323-468-2300
meet@mkr-group.com
Source: MeetMe, Inc.