Total Revenue Increased 48% Year Over Year

Mobile Revenue Increased 82% Year Over Year

Adjusted EBITDA Increased 109% Year Over Year

Non-GAAP Net Income Increased 103% 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 second quarter ended
June 30, 2016.

Second Quarter 2016 Financial Highlights

• Total revenue increased 48% year over year to $16.4 million.
• Mobile revenue increased 82% year over year to $15.1 million.
• Adjusted EBITDA increased 109% year over year to $6.0 million. (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 37%, up from 26% in the second
  quarter of 2015.
• GAAP net income was $29.6 million, or $0.55 per diluted share. GAAP
  net income included a one-time deferred tax benefit of $27.3 million.
  Excluding the deferred tax benefit, GAAP net income was $2.3 million,
  up 94% from the second quarter 2015.
• Non-GAAP net income increased 103% year over year to $4.9 million, or
  $0.09 per diluted share.
• Cash and Cash Equivalents totaled $32.1 million at June 30, 2016, an
  increase of 22% or $5.7 million from $26.4 million at March 31, 2016.

Geoff Cook, Chief Executive Officer of MeetMe, stated, “Our record
quarterly results reflect continued growth in our mobile user
engagement. Our mobile traffic is at an all-time high, with mobile daily
active users for the quarter increasing 15% year over year to 1.22
million and mobile monthly active users increasing 32% year over year to
4.84 million. During the quarter, we launched Discuss, our
interest-based group conversation platform, which we believe is helping
drive increased user engagement. In fact, last week we achieved a new
mobile DAU record surpassing 1.37 million daily active users for the
first time and reached a new record of 32.2 million chats in a single
day.

“We continue to expect our recently announced acquisition of Skout to
close in October of this year and for the combination to provide greater
scale for monetization and increased profitability for the combined
company. We are thrilled to bring two of the largest mobile apps for
meeting and chatting with new people into the same portfolio.”

David Clark, Chief Financial Officer of MeetMe, added, “Mobile revenue
for the quarter increased 82% year over year and represented 92% of our
total revenue, up from 75% 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 109% to $6.0 million for the quarter, resulting in a 37%
adjusted EBITDA margin.”

Webcast and Conference Call Details

Management will host a webcast and conference call to discuss second
quarter 2016 financial results today, August 1, 2016 at 8:30 a.m.
Eastern time. To access the call dial 888-364-3108 (+1 719-457-2628
outside the United States) and when prompted provide the participant
passcode 4406220 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 mobile user engagement will continue to grow, whether our
mobile traffic will continue at all-time high levels, whether our mobile
daily active users will continue to increase, whether our mobile monthly
active users will continue to increase, whether Discuss will continue to
drive user engagement, whether chats will continue to increase, whether
and when the Skout acquisition will close, if the Skout acquisition
closes, whether the combined company will provide greater scale for
monetization and increased profitability, 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, benefit or provision for income taxes, depreciation and
amortization, and non-cash stock-based compensation, non-recurring
acquisition and restructuring expenses, gain or 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 benefit or provision for income taxes,
amortization on intangibles, non-recurring acquisition and restructuring
costs, and non-cash stock­based 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)
			June 30, 2016					December 31, 2015
ASSETS
CURRENT ASSETS:
Cash and cash equivalents			$	32,069,035				$	19,298,038
Accounts receivable, net of allowance of $129,000 and $133,000, at June 30, 2016 and December 31, 2015, respectively				13,415,203					16,509,291
Other Receivables				2,303,258					–
Prepaid expenses and other current assets				992,920					970,239
Total current assets				48,780,416					36,777,568
Goodwill				70,646,036					70,646,036
Property and equipment, net				2,360,535					2,610,307
Intangible assets, net				527,332					1,278,498
Deferred taxes				27,269,800					–
Other assets				143,232					178,264
TOTAL ASSETS			$	149,727,351				$	111,490,673
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable			$	3,029,754				$	2,776,710
Accrued liabilities				5,010,940					4,127,634
Current portion of capital lease obligations				291,131					366,114
Deferred revenue				311,410					293,414
Total current liabilities				8,643,235					7,563,872
Long-term capital lease obligation, less current portion, net				81,761					221,302
Other liabilities				1,580,751					1,035,137
TOTAL LIABILITIES			$	10,305,747				$	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 June 30, 2016 and December 31, 2015				–					–
Common stock, $.001 par value; authorized – 100,000,000 Shares; 50,171,294 and 47,179,486 issued and outstanding at June 30, 2016 and December 31, 2015				50,175					47,183
Additional paid-in capital				305,500,755					300,725,791
Accumulated deficit				(166,129,326	)				(198,102,612	)
TOTAL STOCKHOLDERS’ EQUITY				139,421,604					102,670,362
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			$	149,727,351				$	111,490,673

MEETME, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)
			Three Months Ended June 30,										Six Months Ended June 30,
			2016					2015					2016					2015
Revenues			$	16,388,991				$	11,086,878				$	29,710,662				$	22,715,854
Operating Costs and Expenses:
Sales and marketing				3,226,344					1,094,068					5,547,767					2,309,388
Product development and content				6,214,062					6,083,455					11,922,162					12,403,259
General and administrative				1,867,590					1,774,991					4,215,758					3,394,895
Depreciation and amortization				753,918					801,260					1,505,182					1,617,175
Acquisition and restructuring				1,160,349					–					1,160,349					–
Total Operating Costs and Expenses				13,222,263					9,753,774					24,351,218					19,724,717
Income from Operations				3,166,728					1,333,104					5,359,444					2,991,137
Other Income (Expense):
Interest income				6,447					5,244					11,562					10,430
Interest expense				(5,360	)				(122,989	)				(12,105	)				(281,855	)
Change in warrant liability				(787,391	)				56,408					(545,614	)				(39,320	)
Gain (loss) on cumulative foreign currency translation adjustment				18,201					11,614					34,553					(783,090	)
Gain on sale of asset				–					–					–					163,333
Total Other Income (Expense)				(768,103	)				(49,723	)				(511,604	)				(930,502	)
Income before Income Taxes				2,398,625					1,283,381					4,847,840					2,060,635
Benefit (provision) for income taxes				27,219,764					(73,450	)				27,125,446					(128,650	)
Net Income			$	29,618,389				$	1,209,931				$	31,973,286				$	1,931,985
Basic and diluted income per common stockholders:
Basic income per common stockholders			$	0.61				$	0.03				$	0.67				$	0.04
Diluted income per common stockholders			$	0.55				$	0.02				$	0.59				$	0.04
Weighted average number of shares outstanding:
Basic				48,218,184					45,191,563					47,838,466					45,051,576
Diluted				54,061,306					49,022,622					53,863,966					48,625,068
Other comprehensive Income:
Foreign currency translation adjustment				–					–					–					–
Comprehensive income			$	29,618,389				$	1,209,931				$	31,973,286				$	1,931,985

MEETME, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME ALLOCABLE TO COMMON STOCKHOLDERS TO ADJUSTED EBITDA
(UNAUDITED)
			Three Months Ended June 30,										Six Months Ended June 30,
			2016					2015					2016					2015
Net income allocable to Common Stockholders			$	29,618,389				$	1,209,931				$	31,973,286				$	1,931,985
Interest expense				5,360					122,989					12,105					281,855
Depreciation and amortization				753,918					801,260					1,505,182					1,617,175
Stock-based compensation expense				915,572					733,051					1,643,352					1,348,316
Change in warrant liability				787,391					(56,408	)				545,614					39,320
Benefit (provision) for income taxes				(27,219,764	)				73,450					(27,125,446	)				128,650
Acquisition and restructuring costs				1,160,349					–					1,160,349					–
(Gain) loss on cumulative effect of foreign currency translation adjustment				(18,201	)				(11,614	)				(34,553	)				783,090
Gain on sale of asset				–					–					–					(163,333	)
Adjusted EBITDA			$	6,003,014				$	2,872,659				$	9,679,889				$	5,967,058
GAAP basic net income per common stockholders			$	0.61				$	0.03				$	0.67				$	0.04
GAAP diluted net income per common stockholders			$	0.55				$	0.02				$	0.59				$	0.04
Basic adjusted EBITDA per common stockholders			$	0.12				$	0.06				$	0.20				$	0.13
Diluted adjusted EBITDA per common stockholders			$	0.11				$	0.06				$	0.18				$	0.12
Weighted average number of shares outstanding, Basic				48,218,184					45,191,563					47,838,466					45,051,576
Weighted average number of shares outstanding, Diluted				54,061,306					49,022,622					53,863,966					48,625,068

MEETME, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
(UNAUDITED)
			Three Months Ended June 30,									Six Months Ended June 30,
			2016					2015				2016					2015
GAAP Net Income			$	29,618,389				$	1,209,931			$	31,973,286				$	1,931,985
Stock-based compensation expense				915,572					733,051				1,643,352					1,348,316
Amortization of intangible assets				381,916					378,750				760,666					766,666
Benefit (provision) for income taxes				(27,219,764	)				73,450				(27,125,446	)				128,650
Acquisition and restructuring costs				1,160,349					–				1,160,349					–
Non-GAAP Net Income			$	4,856,462				$	2,395,182			$	8,412,207				$	4,175,617
GAAP basic net income per common stockholders			$	0.61				$	0.03			$	0.67				$	0.04
GAAP diluted net income per common stockholders			$	0.55				$	0.02			$	0.59				$	0.04
Basic non-GAAP net income per common stockholders			$	0.10				$	0.05			$	0.18				$	0.09
Diluted non-GAAP net income per common stockholders			$	0.09				$	0.05			$	0.16				$	0.09
Weighted average number of shares outstanding, Basic				48,218,184					45,191,563				47,838,466					45,051,576
Weighted average number of shares outstanding, Diluted				54,061,306					49,022,622				53,863,966					48,625,068

View source version on businesswire.com: http://www.businesswire.com/news/home/20160801005345/en/

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

Source: MeetMe, Inc.