ShareMobile Revenue Increased 76% Year Over Year
Adjusted EBITDA Increased To $3.1 Million, Compared to a Loss of
$500,000 a Year Ago
Achieved Record Adjusted EBITDA Margin of 27%
NEW HOPE, Pa.–(BUSINESS WIRE)–
MeetMe, Inc. (NASDAQ: MEET), the public market leader for social
discovery, today reported financial results for its first quarter ended
March 31, 2015.
First Quarter 2015 Financial Highlights
- Total revenue was $11.6 million, up 22% from the first quarter of 2014.
- Mobile revenue was $8.2 million, up 76% from the first quarter of 2014.
-
Mobile revenue represented 71% of total revenue, the highest in
MeetMe’s history. -
Adjusted EBITDA was $3.1 million or a 27% margin, compared to a loss
of $500,000 in the first quarter of 2014. (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 $722,000 compared to a net loss of $3.4 million for the
first quarter of 2014. - Cash and Cash Equivalents totaled $14.8 million at March 31, 2015.
Geoff Cook, Chief Executive Officer of MeetMe, said:
“During the quarter we achieved the highest sequential mobile traffic
growth we’ve experienced in more than two years, and exceeded an average
of one million mobile daily users for the first time in company history.
On a sequential basis, mobile daily users increased 12% and mobile
monthly users increased 15% in the first quarter, and year over year,
mobile daily users increased 33% and mobile monthly users grew 44%. We
believe this significant growth in traffic reflects our success in
growing Chat engagement. Last October, we first achieved the milestone
of 20 million chats in a single day. Since then, we have reached that
milestone three times in November, seven times in December, and 83 out
of the 90 days in the first quarter, illustrating our momentum in the
quarter. We have a deep product pipeline planned focused on improving
the quality and relevance of the connections we facilitate, as well as
on enhancing our freemium and subscription offerings.”
David Clark, Chief Financial Officer of MeetMe, added:
“With continued growth in engagement, we are seeing solid financial
results. We grew total revenue during the quarter 22% on a year over
year basis to $11.6 million. Mobile revenue comprised 71% of our total
revenue for the quarter, the highest contribution in our history, and up
from 49% a year ago. We also increased adjusted EBITDA significantly on
a year-on-year basis to $3.1 million, resulting in a record 27% adjusted
EBITDA margin.”
Webcast and Conference Call Details
Management will host a webcast and conference call to discuss first
quarter 2015 financial results today, May 7, 2015 at 10:30 a.m. Eastern
time. To access the call dial 888-401-4668 (+1 719-457-2697 outside the
United States) and when prompted provide the participant passcode
8683228 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 will continue to grow, whether
our mobile revenue will continue to grow and continue to constitute an
increasing percentage of our total revenue, whether our mobile ARPU and
ARPDAU will continue to grow, whether our EBITDA will continue to grow,
whether net income will continue to be positive and grow, the growth of
sequential mobile traffic and whether that growth reflects our success
in growing Chat engagement, whether our Chat volumes will continue to
increase and if so at what rate, whether we will continue to meet the
milestone of 20 million chats in a single day, our ability to execute
against our product pipeline and the ability of our product pipeline to
improve the quality and relevance of the connections we facilitate and
enhance our freemium and subscription offerings, our ability to produce
solid financial results, and whether engagement will continue to grow
and if so at what rate. 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. 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) | ||||||||||
| March 31, 2015 |
December 31, 2014 |
|||||||||
| ASSETS | ||||||||||
| CURRENT ASSETS: | ||||||||||
| Cash and cash equivalents | $ | 14,835,822 | $ | 17,041,050 | ||||||
|
Accounts receivable, net of allowance of $324,000 and $586,000, at |
10,741,066 | 9,045,269 | ||||||||
|
Prepaid expenses and other current assets |
1,051,909 | 790,031 | ||||||||
| Total current assets | 26,628,797 | 26,876,350 | ||||||||
| Goodwill | 70,646,036 | 70,646,036 | ||||||||
| Property and equipment, net | 2,693,164 | 2,458,897 | ||||||||
| Intangible assets, net | 2,414,747 | 2,894,330 | ||||||||
| Other assets | 313,445 | 338,146 | ||||||||
|
TOTAL ASSETS |
$ | 102,696,189 | $ | 103,213,759 | ||||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||
| CURRENT LIABILITIES: | ||||||||||
| Accounts payable | $ | 1,845,433 | $ | 2,985,259 | ||||||
| Accrued liabilities | 2,417,242 | 3,249,404 | ||||||||
| Current portion of capital lease obligations | 708,426 | 872,761 | ||||||||
| Current portion of long-term debt | 2,125,897 | 2,068,326 | ||||||||
| Deferred revenue | 230,337 | 218,484 | ||||||||
| Total current liabilities | 7,327,335 | 9,394,234 | ||||||||
| Long-term capital lease obligation, less current portion, net | 475,758 | 587,416 | ||||||||
| Long-term debt, less current portion, net | 66,677 | 556,612 | ||||||||
| Other liabilities | 514,258 | 418,530 | ||||||||
| TOTAL LIABILITIES | $ | 8,384,028 | $ | 10,956,792 | ||||||
| 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; 1,000,000 shares issued and outstanding at March 31, 2015 and December 31, 2014 |
$ | 1,000 | $ | 1,000 | ||||||
|
Common stock, $.001 par value; authorized – 100,000,000 Shares; 44,910,034 issued and outstanding at March 31, 2015 and December 31, 2014 |
44,914 | 44,914 | ||||||||
| Additional paid-in capital | 297,616,433 | 297,001,168 | ||||||||
| Accumulated deficit | (203,350,186 | ) | (204,072,240 | ) | ||||||
| Accumulated other comprehensive income (loss) | – | (717,875 | ) | |||||||
| TOTAL STOCKHOLDERS’ EQUITY | 94,312,161 | 92,256,967 | ||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 102,696,189 | $ | 103,213,759 | ||||||
| MEETME, INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
||||||||||
| THREE MONTHS ENDED MARCH 31, 2015 AND 2014 | ||||||||||
| (UNAUDITED) | ||||||||||
| Three Months Ended March 31, | ||||||||||
| 2015 |
2014 |
|||||||||
| Revenues | $ | 11,628,976 | $ | 9,503,504 | ||||||
| Operating Costs and Expenses: | ||||||||||
| Sales and marketing | 1,215,320 | 2,159,088 | ||||||||
| Product development and content | 6,319,804 | 6,857,440 | ||||||||
| General and administrative | 1,619,904 | 1,929,645 | ||||||||
| Depreciation and amortization | 815,915 | 1,085,459 | ||||||||
| Restructuring costs | – | 120,202 | ||||||||
| Total Operating Costs and Expenses | 9,970,943 | 12,151,834 | ||||||||
| Income (Loss) from Operations | 1,658,033 | (2,648,330 | ) | |||||||
| Other Income (Expense): | ||||||||||
| Interest income | 5,186 | 1,166 | ||||||||
| Interest expense | (158,866 | ) | (420,243 | ) | ||||||
| Change in warrant liability | (95,728 | ) | (355,954 | ) | ||||||
| Loss on cumulative foreign currency translation adjustment | (794,704 | ) | – | |||||||
| Gain on sale of asset | 163,333 | – | ||||||||
| Total Other Income (Expense) | (880,779 | ) | (775,031 | ) | ||||||
| Income (loss) before Income Taxes | 777,254 | (3,423,361 | ) | |||||||
| Income taxes | (55,200 | ) | – | |||||||
| Net Income (Loss) | $ | 722,054 | $ | (3,423,361 | ) | |||||
| Preferred stock dividends | – | – | ||||||||
| Net Income (Loss) Allocable to Common Stockholders | $ | 722,054 | $ | (3,423,361 | ) | |||||
| Basic and diluted net income (loss) per common stockholders: | ||||||||||
| Basic net income (loss) per common stockholders | $ | 0.02 | $ | (0.09 | ) | |||||
| Diluted net income (loss) per common stockholders | $ | 0.01 | $ | (0.09 | ) | |||||
| Weighted average shares outstanding, basic | 44,910,034 | 38,499,171 | ||||||||
| Weighted average shares outstanding, diluted | 48,246,763 | 38,499,171 | ||||||||
| Net Income (Loss) | $ | 722,054 | $ | (3,423,361 | ) | |||||
| Foreign currency translation adjustment | – | 27,701 | ||||||||
| Comprehensive Income (Loss) | $ | 722,054 | $ | (3,395,660 | ) | |||||
| MEETME, INC. AND SUBSIDIARIES | ||||||||||
| RECONCILIATION OF GAAP NET INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS TO ADJUSTED EBITDA |
||||||||||
| THREE MONTHS ENDED MARCH 31, 2015 AND 2014 | ||||||||||
| (UNAUDITED) | ||||||||||
| Three Months Ended March 31, | ||||||||||
| 2015 | 2014 | |||||||||
| Net Income (Loss) Allocable to Common Stockholders | $ | 722,054 | $ | (3,423,361 | ) | |||||
| Interest expense | 158,866 | 420,243 | ||||||||
| Depreciation and amortization | 815,915 | 1,085,459 | ||||||||
| Stock-based compensation expense | 615,265 | 941,287 | ||||||||
| Change in warrant liability | 95,728 | 355,954 | ||||||||
| Income Tax | 55,200 | – | ||||||||
| Acquisition and restructuring costs | – | 120,202 | ||||||||
| Loss on cumulative foreign currency translation adjustment | 794,704 | – | ||||||||
| Gain on sale of asset | (163,333 | ) | – | |||||||
| Adjusted EBITDA | $ | 3,094,399 | $ | (500,216 | ) | |||||
| GAAP basic net income (loss) per common stockholders | $ | 0.02 | $ | (0.09 | ) | |||||
| GAAP diluted net income (loss) per common stockholders | $ | 0.01 | $ | (0.09 | ) | |||||
| Basic adjusted EBITDA per common stockholders | $ | 0.07 | $ | (0.01 | ) | |||||
| Diluted adjusted EBITDA per common stockholders | $ | 0.06 | $ | (0.01 | ) | |||||
| Weighted average number of shares outstanding, Basic | 44,910,034 | 38,499,171 | ||||||||
| Weighted average number of shares outstanding, Diluted | 48,246,763 | 38,499,171 | ||||||||
MKR Group Inc.
Todd Kehrli or Jim Byers
323-468-2300
meet@mkr-group.com
Source: MKR Group Inc.