abracky
5 years ago
The Meet Group Reports First Quarter 2020 Financial Results
Source: Business Wire
The Meet Group, Inc. (NASDAQ: MEET), a leading provider of interactive livestreaming solutions, today reported financial results for its first quarter ended March 31, 2020.
First Quarter 2020 Highlights
Total revenue of $55.1 million, up 11% from the first quarter of 2019.
GAAP net loss of $2.4 million, or $0.03 per diluted share, compared with GAAP net income of $1.3 million, or $0.02 per diluted share in the first quarter of 2019.
Adjusted EBITDA of $7.9 million, compared with $8.1 million in the first quarter of 2019.
Non-GAAP net income of $6.7 million, or $0.09 per diluted share, compared with $7.0 million, or $0.09 per diluted share, in the first quarter of 2019.
Transaction with ProSiebenSat.1’s and General Atlantic’s joint company NuCom Group expected to close in the second half of 2020.
(See the important discussion about the presentation of non-GAAP financial measures, and reconciliation to the most direct comparable GAAP financial measures, below.)
“The need to connect has never been greater and live video is helping to meet that need,” said Geoff Cook, Chief Executive Officer of The Meet Group. “We are seeing the impacts of COVID-19 across our business as video revenue and minutes increased to new highs, while advertising revenue declined from the year ago period due to the growing effect of the coronavirus on ad spend. Total daily active users were largely unchanged sequentially. Adjusted EBITDA for the quarter reflects the impact of higher flow-through advertising dollars being replaced by video revenue growth.
“We are pleased with our performance in the first quarter and we continue to progress toward closing the transaction with ProSiebenSat.1 and General Atlantic in the second half of 2020.”
First Quarter Financial Results
For the first quarter of 2020, the Company reported revenue of $55.1 million, an increase of $5.6 million, or 11%, from $49.5 million in the first quarter of 2019. GAAP net loss for the first quarter of 2020 was $2.4 million, or $0.03 per diluted share, compared with GAAP net income of $1.3 million or $0.02 per diluted share in the first quarter of 2019. Adjusted EBITDA for the first quarter of 2020 was $7.9 million, compared with $8.1 million in the first quarter of 2019. Non-GAAP net income for the first quarter of 2020 was $6.7 million, or $0.09 per diluted share, compared with $7.0 million, or $0.09 per diluted share, in the first quarter of 2019.
The Company ended the year with $32.1 million in cash and cash equivalents.
Outlook and Conference Call
Due to the pending acquisition by ProSiebenSat.1's and General Atlantic’s joint company NuCom Group, the Company does not plan to host an earnings conference call or provide forward-looking guidance.
THE MEET GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value and share data)
(Unaudited)
March 31,
2020
December 31,
2019
Assets:
Current assets:
Cash and cash equivalents
$
32,110
$
27,241
Accounts receivable, net
23,966
25,234
Prepaid expenses and other current assets
5,820
6,062
Total current assets
61,896
58,537
Deferred tax assets
16,211
16,233
Property and equipment, net
3,047
3,625
Operating lease right-of-use assets
7,138
7,034
Intangible assets, net
26,945
29,305
Goodwill
155,693
156,687
Other assets
850
1,300
Total assets
$
271,780
$
272,721
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable
$
7,518
$
5,346
Accrued liabilities
18,915
20,090
Current portion of long-term debt
3,500
3,500
Current portion of operating lease liabilities
2,527
2,081
Current portion of finance lease obligations
9
10
Deferred revenue
3,563
3,884
Total current liabilities
36,032
34,911
Long-term debt, net
29,523
30,375
Long-term operating lease liabilities
4,723
5,024
Long-term finance lease obligations
48
53
Long-term derivative liabilities
477
1,451
Deferred tax liabilities
2,888
2,773
Other liabilities
—
894
Total liabilities
73,691
75,481
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value; authorized - 5,000,000 shares; no shares issued and outstanding as of March 31, 2020 and December 31, 2019
—
—
Series A junior participating preferred stock, $0.001 par value; authorized - 200,000 shares; no shares issued and outstanding as of March 31, 2020 and December 31, 2019
—
—
Common stock, $0.001 par value; authorized - 100,000,000 shares; 71,185,492 and 70,756,013 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively
71
71
Additional paid-in capital
434,622
430,959
Accumulated deficit
(234,073
)
(231,441
)
Accumulated other comprehensive loss
(2,531
)
(2,349
)
Total stockholders’ equity
198,089
197,240
Total liabilities and stockholders’ equity
$
271,780
$
272,721
THE MEET GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except share and per share data)
Three Months Ended March 31,
2019
2018
Revenue
$
55,066
$
49,513
Operating costs and expenses:
Sales and marketing
7,714
7,841
Product development and content
37,671
31,123
General and administrative
5,030
4,928
Depreciation and amortization
2,820
3,198
Acquisition, restructuring and other
3,370
479
Total operating costs and expenses
56,605
47,569
(Loss) income from operations
(1,539
)
1,944
Other income (expense):
Interest income
13
32
Interest expense
(396
)
(403
)
Loss on foreign currency transactions
(7
)
(65
)
Loss on disposal of assets
(108
)
—
Other items of income, net
2
4
Total other expense
(496
)
(432
)
(Loss) income before income tax expense
(2,035
)
1,512
Income tax expense
(373
)
(254
)
Net (loss) income
$
(2,408
)
$
1,258
Basic and diluted net (loss) income per share:
Basic net (loss) income per share
$
(0.03
)
$
0.02
Diluted net (loss) income per share
$
(0.03
)
$
0.02
Weighted-average shares outstanding:
Basic
71,001,906
74,848,080
Diluted
71,001,906
78,799,248
THE MEET GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Three Months Ended March 31,
2020
2019
Cash flows from operating activities:
Net (loss) income
$
(2,408
)
$
1,258
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization
2,820
3,198
Amortization of right-of-use assets
635
695
Stock-based compensation expense
3,185
2,425
Deferred tax expense (benefit)
9
(147
)
Loss on disposal of assets
108
—
Loss on foreign currency transactions
7
65
Provision for expected credit losses
82
325
Non-cash interest expense
120
38
Changes in derivative financial instruments
171
—
Changes in contingent consideration obligations
23
16
Changes in operating assets and liabilities:
Accounts receivable
944
1,187
Prepaid expenses, other current assets and other assets
768
(774
)
Accounts payable and accrued liabilities
(638
)
(5,009
)
Deferred revenue
(275
)
85
Net cash provided by operating activities
5,551
3,362
Cash flows from investing activities:
Purchases of property and equipment
(87
)
(283
)
Acquisition of business, net of cash acquired
—
(11,808
)
Net cash used in investing activities
(87
)
(12,091
)
Cash flows from financing activities:
Proceeds from exercise of stock options
564
681
Repurchases of common stock
(65
)
—
Payments of finance leases
(5
)
(41
)
Proceeds from revolving loan
—
7,000
Payments for restricted stock awards withheld for taxes
(86
)
(89
)
Payments of term loan
(875
)
(7,317
)
Net cash (used in) provided by financing activities
(467
)
234
Change in cash and cash equivalents prior to effect of foreign currency exchange rate
4,997
(8,495
)
Effect of foreign currency exchange rate
(128
)
(60
)
Net increase (decrease) in cash and cash equivalents
4,869
(8,555
)
Cash and cash equivalents as of beginning of period
27,241
28,366
Cash and cash equivalents as of end of period
$
32,110
$
19,811
Supplemental disclosure of cash flow information:
Cash paid for interest
$
123
$
361
Cash paid for income taxes
$
973
$
297
THE MEET GROUP, INC. AND SUBSIDIARIES
DISAGGREGATION OF REVENUE
(UNAUDITED)
(in thousands)
Three Months Ended March 31,
2020
2019
$
%
$
%
User pay revenue:
Video
$
28,633
52.0
%
$
20,229
40.9
%
Subscription and other in-app products
14,395
26.1
%
15,596
31.5
%
Total user pay revenue
43,028
78.1
%
35,825
72.4
%
Advertising revenue
12,038
21.9
%
13,688
27.6
%
Total revenue
$
55,066
100.0
%
$
49,513
100.0
%
THE MEET GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA
(UNAUDITED)
(in thousands)
Three Months Ended March 31,
2020
2019
Net (loss) income
$
(2,408
)
$
1,258
Interest expense
396
403
Income tax expense
373
254
Depreciation and amortization expense
2,820
3,198
Stock-based compensation expense
3,185
2,425
Acquisition, restructuring and other
3,370
479
Loss on disposal of assets
108
—
Loss on foreign currency transactions
7
65
Adjusted EBITDA
$
7,851
$
8,082
THE MEET GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF NET (LOSS) INCOME TO NON-GAAP NET INCOME
(UNAUDITED)
(in thousands, except share and per share data)
Three Months Ended March 31,
2020
2019
Net (loss) income
$
(2,408
)
$
1,258
Stock-based compensation expense
3,185
2,425
Amortization of intangibles
2,177
2,562
Income tax expense
373
254
Acquisition, restructuring and other
3,370
479
Non-GAAP Net Income
$
6,697
$
6,978
GAAP basic net (loss) income per share
$
(0.03
)
$
0.02
GAAP diluted net (loss) income per share
$
(0.03
)
$
0.02
Basic Non-GAAP Net Income per share
$
0.09
$
0.09
Diluted Non-GAAP Net Income per share
$
0.09
$
0.09
abracky
5 years ago
The Meet Group Announces Definitive Agreement to be Acquired by ProSiebenSat.1 and General Atlantic
Source: Business Wire
The Meet Group Shareholders to Receive $6.30 per Share in Cash
Transaction Will Provide Certain and Immediate Value to Shareholders
Transaction Expected to Close in the 2nd half 2020
The Meet Group, Inc. (NASDAQ: MEET), a leading portfolio of mobile dating apps, today announced that it has entered into a definitive agreement to be acquired by ProSiebenSat.1`s and General Atlantic’s joint company NuCom Group in an all cash transaction for $6.30 per fully diluted share representing an enterprise value of approximately $500 million. Together with NuCom Group’s portfolio company Parship Group, a matchmaking platform with its brands Parship, Elite Partner and eharmony, The Meet Group will become an integral part of a global leader in the online dating and social entertainment sector.
After careful and thorough review, and following consultation with The Meet Group’s financial and legal advisors, the transaction was unanimously approved by The Meet Group’s board of directors. The purchase price represents a 30% and 43% premium to the unaffected 30 and 60 trading day volume weighted average price, respectively, to The Meet Group’s common stock through December 13, 2019, the last trading day prior to published market speculation regarding a potential transaction involving the company.
“The Meet Group Board of Directors undertook a robust process, which culminated in a transaction that we believe will deliver certain and immediate value to our shareholders,” said Spencer Rhodes, Chairman of The Meet Group Board of Directors. “We are excited about this transaction and the significant benefits resulting from a combination with Parship Group,” said Geoff Cook, Chief Executive Officer of The Meet Group. “This transaction will allow us to tap new strategic growth opportunities by leveraging our video platform and ProSiebenSat.1’s experience with content and entertainment. What’s more, with this transaction and the participation of both General Atlantic and ProSiebenSat.1, we will achieve a new level of financial scale and backing, which has the potential to further accelerate our growth.”
The Meet Group’s freemium dating brands, featuring its industry-leading video platform technology, will be combined with NuCom’s portfolio company Parship Group, which operates premium subscription dating brands including eharmony, Parship and Elite Partner. The transaction will diversify the revenue streams of both companies and increase their combined international footprint by broadening the companies’ user base.
Max Conze, CEO, ProSiebenSat.1 Media SE: “The acquisition of The Meet Group is one of ProSiebenSat.1’s largest transactions. It will significantly advance our ambition to create one of the leading global players in online dating and interactive live video. We believe the combination of these two successful and complementary businesses will also create synergies within the ProSiebenSat.1 universe and accelerate the growth of our market share in the German live video apps sector.”
Tim Schiffers, CEO Parship Group: “Following a successful acquisition of eharmony, we have proven that we can manage new businesses and accelerate their growth by combining the best of both worlds. We continue to consolidate our position in the online dating market and extend our business model by adding social entertainment. I am looking forward to working with our new colleagues to solidify our international footprint.”
The transaction, which is expected to close in the 2nd half of 2020, is subject to approval by The Meet Group’s stockholders, along with the satisfaction of customary closing conditions and regulatory approvals, including the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, antitrust approvals in Germany and Austria as well as approval from the Committee on Foreign Investment in the United States. The Meet Group expects to hold a special meeting of its stockholders to consider and vote on the transaction as soon as feasible after the mailing of the proxy statement to shareholders.
The Meet Group plans to release its fourth quarter fiscal year 2019 results before market open on March 11, 2020. In light of the pending transaction announced today, the company will not hold a corresponding conference call.
Representation
BofA Securities is acting as financial advisor to The Meet Group, and Morgan, Lewis & Bockius LLP is acting as legal counsel.
About The Meet Group
The Meet Group (NASDAQ: MEET) is a leading provider of interactive livestreaming solutions designed to meet the universal need for human connection. Our ecosystem of livestreaming apps enables users around the world to interact through one-to-many livestreaming broadcasts and text-based conversations. Our top apps, MeetMe®, LOVOO®, Skout®, Tagged® and Growlr®, deliver live interactions and meaningful connections to millions of users daily. Headquartered in New Hope, PA, we have offices in Philadelphia, San Francisco, Dresden, and Berlin. The Meet Group is committed to safety. You can find a description of current safety practices here: https://www.themeetgroup.com/safety-practices/. For more information, visit themeetgroup.com, and follow us on Facebook, Twitter or LinkedIn.
About ProSiebenSat.1 Media SE
ProSiebenSat.1 combines leading entertainment brands with a successful production business and a strongly growing commerce portfolio and is thus one of the most diversified media companies in Europe. We want to offer great entertainment – whenever, wherever and on any device. We can address over 45 million TV households in Germany, Austria and Switzerland with our 15 free and pay TV channels. At the same time, we reach around 36 million unique users every month with online offerings marketed by ProSiebenSat.1. Successful formats like “The Masked Singer”, “Germany’s Next Topmodel”, and “Beat the Channel” as well as top-notch stars like Heidi Klum, or Dwayne Johnson belong to our family. Shows like “Bosch”, “Married at First Sight”, or “Queen of Drags” are created within our production and distribution business Red Arrow Studios. Our global digital studio Studio71 achieves over 9.9 billion monthly video views and operates more than 1,400 web channels. Our NuCom Group is a rapidly growing e-commerce player with leading portfolio companies that offer online price comparison, matchmaking, experiences as well as beauty & lifestyle. ProSiebenSat.1 are more than 7,000 passionate creators that love to entertain and delight our viewers and consumers each day.
About General Atlantic
General Atlantic is a leading global growth equity firm providing capital and strategic support for growth companies. Established in 1980, General Atlantic combines a collaborative global approach, sector specific expertise, a long-term investment horizon and a deep understanding of growth drivers to partner with great entrepreneurs and management teams to build exceptional businesses worldwide. General Atlantic has more than 150 investment professionals based in New York, Amsterdam, Beijing, Greenwich, Hong Kong, Jakarta, London, Mexico City, Mumbai, Munich, Palo Alto, São Paulo, Shanghai, and Singapore. For more information on General Atlantic, please visit the website: www.generalatlantic.com.
About NuCom Group
NuCom Group is the growth partner for consumer internet companies. We create global category leaders and accelerate the growth of our portfolio companies by adding marketing power, operational expertise and clear buy-and-build strategies. Thereby we combine the strengths of our shareholders in a “best of both worlds” approach, featuring the reach, know-how and resources from the ProSiebenSat.1 Group and the expertise and firepower of General Atlantic, a leading global growth equity investor. We focus on B2C asset light business models with a clear USP and differentiation. Currently our portfolio is divided in four verticals: consumer advice, matchmaking, experience and gift vouchers and beauty and lifestyle.
https://www.nucom.group/
About Parship Group
The Parship Group is the leading provider of online matchmaking services. The well-known international brands Parship, ElitePartner and eharmony belong to the group. All three services use scientific methods to successfully support singles in finding meaningful relationships that enrich their lives. Both Parship and eharmony are pioneers in using algorithms to create highly compatible relationships. California-based eharmony was founded in 2000 and operates in the United States, Canada, the United Kingdom and Australia. Parship invented scientific matchmaking in Europe in 2001 and today offers its service in the German-speaking world and the Benelux countries. Since 2004, ElitePartner is the premium partner agency for sophisticated singles, operating in the DACH-region. Currently, the Parship Group employs over 300 colleagues in Hamburg / Germany (headquarters), Los Angeles, London and Amsterdam.
https://www.parshipgroup.com/
Caution Regarding Forward Looking Statements:
This document contains forward-looking statements, including statements regarding the proposed acquisition of The Meet Group (the “Company”) by eharmony Holding, Inc. (the “Parent”). From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management’s current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements often contain words such as “may,” “can,” “could,” “would,” “should,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “believes,” “seeks,” “will,” “is likely to,” “scheduled,” “positioned to,” “continue,” “forecast,” “aim,” “goal,” “target,” “predicting,” “projection,” “potential” or similar expressions, although not all forward-looking statements contain these words. Forward-looking statements may include references to goals, plans, strategies, objectives, projected costs or savings, anticipated future performance, results, events or transactions of the Company and the expected timing of the proposed transaction with Parent and other statements that are not strictly historical in nature. These forward-looking statements are based on management’s current expectations, forecasts and assumptions and could ultimately prove inaccurate. This means the forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including, but not limited to: uncertainties as to the timing of the merger; uncertainties as to how many of the Company’s stockholders will vote in favor of the merger; the possibility that competing offers will be made; the ability to receive the required consents and regulatory approvals for the proposed transaction and to satisfy the other conditions to the closing of the transaction on a timely basis or at all, including the required regulatory clearances under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR), the Bundeswettbewerbsbeh?rde (Austria’s Federal Competition Authority) and Bundeskartellamt (Germany’s Federal Cartel Office) and from the Committee on Foreign Investment in the United States (CFIUS); the failure of Parent to obtain or provide on a timely basis or at all the necessary financing as set forth in the Equity Commitment Letters delivered pursuant to the Merger Agreement; the occurrence of events that may give rise to a right of one or both of the Company and Parent to terminate the merger agreement; the risk that, prior to the completion of the transaction, the Company’s business and its relationships with employees, collaborators, vendors and other business partners could experience significant disruption due to transaction-related uncertainty; the risk that stockholder litigation in connection with the Merger may result in significant costs of defense, indemnification and liability; negative effects of the announcement of the transaction on the market price of Company common stock and/or on the Company’s business, financial condition, results of operations and financial performance; risks associated with transaction-related litigation; and the ability of the Company to retain and hire key personnel; and the risks and uncertainties pertaining to the Company’s business, including those detailed under “Risk Factors” and elsewhere in the Company’s public periodic filings with the SEC. There can be no assurance that the proposed transaction or any other transaction described above will in fact be consummated in the manner described or at all. Stockholders, potential investors and other readers are urged to consider these risks and uncertainties in evaluating forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. It is not possible to anticipate or foresee all risks and uncertainties, and investors should not consider any list of risks and uncertainties to be exhaustive or complete. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, please see the Company’s statements and reports on Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC and other written statements made by the Company from time to time. The forward-looking information herein is given as of this date only and is qualified in its entirety by this cautionary statement, and the Company undertakes no obligation to revise or update it.
Additional Information and Where to Find It
In connection with the merger and with the solicitation of proxies for the special meeting of stockholders (the “Special Meeting”), the Company intends to file with the Securities and Exchange Commission (“SEC”) a proxy statement of the Company (the “Proxy Statement”), and other relevant materials with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. A definitive Proxy Statement will be sent to the Company’s stockholders. Investors and security holders will be able to obtain the Proxy Statement free of charge from the SEC’s website or from the Company. The documents filed by the Company with the SEC may be obtained free of charge on the Company’s website at the Investor Relations section of http://ir.themeetgroup.com/CorporateProfile/ or at the SEC’s website at www.sec.gov. These documents may also be obtained free of charge from the Company by requesting them from Investor Relations by mail at 100 Union Square Drive, New Hope, PA 18938, or by telephone at 215.862.1162. This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended.
PARTICIPANTS IN THE SOLICITATION
The Company and its directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the Company’s directors and executive officers is available in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and in its proxy statement dated April 29, 2019, for its 2019 Annual Meeting of Stockholders. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Proxy Statement and other relevant materials to be filed with the SEC regarding the transaction when they become available. Investors should read the Proxy Statement carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of these documents from the Company as indicated above.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20200304005887/en/
The Meet Group
Investors:
Leslie Arena
larena@themeetgroup.com
267 714 6418
Media:
Brandyn Bissinger
bbissinger@themeetgroup.com
267 446 7010
Media ProSiebensat.1
Stefanie Rupp-Menedetter
Stefanie.Rupp@ProSiebenSat1.com
Phone: +49 [89] 95 07-2598
Media NuCom Group:
Dorothea Gugel
dorothea.gugel@nucom.group
Phone: +49 [89] 95 07-8741
General Atlantic
Mary Armstrong & Emily Japlon
media@generalatlantic.com
abracky
5 years ago
The Meet Group Releases “Viewer Levels” on MeetMe and Skout
Source: Business Wire
Recently Launched NextDate Dating Game Now Available to All US Users
The Meet Group, Inc. (NASDAQ:MEET), a leading provider of interactive livestreaming solutions, today announced that it has released a new “Viewer Levels” feature for viewers of its popular livestreaming product. Viewer Levels is now available to users of its MeetMe and Skout mobile apps.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20191119005226/en/
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(Graphic: Business Wire)
With the new product, livestreaming viewers will earn experience points, or XP, by spending time engaging with broadcasters and purchasing virtual gifts for them. On reaching certain XP thresholds, viewers will level-up through the ranks, from Rookie to Legend, while unlocking exclusive gifts like dinosaurs, dancing pineapples, castles, and more.
“After successfully launching a level-based progression system for broadcasters in July, we are now thrilled to offer a similarly gamified program for viewers to motivate them to engage even more,” said Geoff Cook, Chief Executive Officer of The Meet Group. “We believe we can further leverage these level systems to shape user behavior in the future by attaching XP bonuses or minimum level requirements to new features, contests, and promotions.”
Viewer Levels appear publicly on avatars and profiles in Live for viewers who reach Level 20. The company expects to bring the feature to its other apps by the end of the first quarter.
“Today, we are also pleased to announce that NextDate, our first-of-its-kind livestreaming dating game, is now available to all US users of our MeetMe and Skout apps,” continued Cook. “Now everyone can be the star of their very own dating game. We are pleased as well to see early performance in-line with expectations. In fact, just this weekend vDAU surpassed 900,000 for the first time since June. We look forward to growing this number further as NextDate rolls out to users in non-English markets on MeetMe and Skout later this year and to users of our apps Tagged and LOVOO in January.”
About The Meet Group
The Meet Group (NASDAQ: MEET) is a leading provider of interactive livestreaming solutions designed to meet the universal need for human connection. Our ecosystem of livestreaming apps enables users around the world to interact through one-to-many livestreaming broadcasts and text-based conversations. Our top apps, MeetMe®, LOVOO®, Skout®, Tagged® and Growlr®, deliver live interactions and meaningful connections to millions of users daily. Headquartered in New Hope, PA, we have offices in Philadelphia, San Francisco, Dresden, and Berlin. The Meet Group is committed to safety. You can find a description of current safety practices here: https://www.themeetgroup.com/safety-practices/. For more information, visit themeetgroup.com, and follow us on Facebook, Twitter or LinkedIn.
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 Levels will motivate users to engage even more, whether we can further leverage these level systems to shape user behavior in the future by attaching XP bonuses or minimum level requirements to new features, contests, and promotions, whether we will bring the feature to our other apps by the end of the first quarter, whether early performance NextDate is indicative of future performance, whether we will grow our VDAU number further as NextDate rolls out to users in non-English markets on MeetMe and Skout, and whether we will roll-our NextDate to users in non-English markets on MeetMe and Skout, as well as our Tagged and LOVOO apps, as expected. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “project,” “outlook,” “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, 2018 filed with the SEC on March 8, 2019 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2019, June 30, 2019, and September 30, 2019 filed with the SEC on May 9, 2019, July 31, 2019, and November 8, 2019, respectively. 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.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20191119005226/en/
Investor Contact:
Leslie Arena / larena@themeetgroup.com
(267) 714-6418
Media Contact:
Brandyn Bissinger / bbissinger@themeetgroup.com
(267) 446-7010
abracky
5 years ago
The Meet Group Ranked One of the Fastest Growing Companies in North America by Deloitte
Source: Business Wire
The Meet Group, Inc. (NASDAQ: MEET), a leading provider of interactive livestreaming solutions, announced it secured a place on Deloitte’s Technology Fast 500™, a ranking of the 500 fastest growing technology, media, telecommunications, life sciences and energy tech companies in North America.
The Meet Group’s Chief Executive Officer, Geoff Cook, credits strategic acquisitions and live video with the company’s 214% revenue growth in the four-year period from 2015 to 2018.
“We are honored to be named to the Deloitte’s Technology Fast 500™ list for the seventh time,” said Geoff Cook, Chief Executive Officer of The Meet Group. “Our goal is to build the best place to meet new people through video. Since 2015, we have expanded our global footprint by acquiring four mobile apps, Skout, Tagged, LOVOO and GROWLr. We are focused on accelerating growth across our portfolio of brands through innovating our livestreaming video product and sharing best practices in monetization and engagement across our mobile apps.”
“This year marks the 25th anniversary of Deloitte’s Technology Fast 500, so we are especially pleased to announce and congratulate the 2019 winners,” said Sandra Shirai, vice chairman, Deloitte LLP, and U.S. technology, media and telecommunications leader.
“As technology innovation trends towards ‘everything as a service,’ it’s no surprise that software companies dominate the winners list yet again this year,” said Mohana Dissanayake, partner, Deloitte & Touche LLP, and industry leader for technology, media and telecommunications, within Deloitte’s audit and assurance practice. "We congratulate all the well-deserving winners.”
About The Meet Group
The Meet Group (NASDAQ: MEET) is a leading provider of interactive livestreaming solutions designed to meet the universal need for human connection. Our ecosystem of livestreaming apps enables users around the world to interact through one-to-many livestreaming broadcasts and text-based conversations. Our top apps, MeetMe®, LOVOO®, Skout®, Tagged® and Growlr®, deliver live interactions and meaningful connections to millions of users daily. Headquartered in New Hope, PA, we have offices in Philadelphia, San Francisco, Dresden, and Berlin. The Meet Group is committed to safety. You can find a description of current safety practices here: https://www.themeetgroup.com/safety-practices/. For more information, visit themeetgroup.com, and follow us on Facebook, Twitter or LinkedIn.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.
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 build the best place to meet new people through video; whether we will be successful in accelerating growth across our portfolio of brands through innovating our livestreaming video product and sharing best practices in monetization and engagement across our mobile apps. 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,” “outlook,” “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, 2018 filed with the SEC on March 8, 2019 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2019, June 30, 2019, and September 30, 2019 filed with the SEC on May 9, 2019, July 31, 2019, and November 8, 2019, respectively. 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.
?
View source version on businesswire.com: https://www.businesswire.com/news/home/20191112005253/en/
Investor Contact:
Leslie Arena
larena@themeetgroup.com
267 714 6418
Media Contact:
Brandyn Bissinger
bbissinger@themeetgroup.com
267 446 7010
abracky
5 years ago
The Meet Group Reports Third Quarter 2019 Financial Results
Source: Business Wire
The Meet Group, Inc. (NASDAQ: MEET), a leading provider of interactive livestreaming solutions, today reported financial results for its third quarter ended September 30, 2019.
Third Quarter 2019 Financial Highlights
Total revenue of $52.6 million, up 15% from the prior year quarter.
GAAP net income of $3.0 million, or $0.04 per diluted share, compared to a GAAP net income of $1.3 million or $0.02 per diluted share in the prior year quarter.
Adjusted EBITDA of $11.0 million, compared to Adjusted EBITDA of $8.7 million in the prior year quarter.
Non-GAAP net income of $10.1 million, or $0.13 per diluted share, compared to $7.6 million, or $0.10 per diluted share, in the prior year quarter.
(See the important discussion about the presentation of non-GAAP financial measures, and reconciliation to the most direct comparable GAAP financial measures, below.)
“We had a strong third quarter and we are off to a good start in the fourth quarter,” said Geoff Cook, Chief Executive Officer of The Meet Group. “Our product strategy and execution contributed to growing revenue and adjusted EBITDA, resulting in record-high free cash flow in the third quarter that we used to repurchase our stock. With the launch of Streamer Levels and one-on-one video chat, we are giving users even more reasons to engage in video. Just last week we further expanded our product portfolio with the launch of NextDate, our new livestreaming dating game. While early, in markets where NextDate is available, we’re seeing an approximately 20% increase in daily video users versus September, the month prior to launch.
“Video revenue for the third quarter grew approximately 85% from the prior year quarter to $20.3 million,” continued Cook. “Global average revenue per daily active video user was $0.27 cents in the quarter, and across our apps we had an average of 829,000 daily video users (20% of our total mobile daily active users where video is available). We expect to grow video revenue in the fourth quarter by 10-16% sequentially as new products and features contribute to increasing user engagement. Video revenue in October exceeded video revenue in every month of the third quarter. Furthermore the Company expects November and December video revenue to continue to increase from October.
“Advertising results for the quarter were also solid. Mobile ad revenue, which comprises approximately 90% of our total advertising revenue, grew year-over-year for the first time since the first quarter of 2017. We believe this progress sets the stage for continued positive momentum in the fourth quarter of 2019 and throughout 2020.
"In the third quarter we repurchased 3.4 million shares of our stock for $12 million, directing 100% of our free cash flow in the quarter toward repurchases. Since authorizing our share repurchase plan in June 2019, the Company has repurchased $17.7 million (4.8 million shares) through November 5, 2019. We expect to continue to repurchase shares pursuant to our share repurchase program.
“Looking to the fourth quarter and longer term, we believe we have compelling products that position us well for future growth. We remain confident that our product pipeline and capital allocation strategy will continue to deliver value to our shareholders.”
Third Quarter Financial Results
For the third quarter of 2019, the Company reported revenue of $52.6 million, an increase of $6.9 million, or 15%, from $45.7 million in the third quarter of 2018. GAAP net income for the third quarter of 2019 was $3.0 million, or $0.04 per diluted share, compared to GAAP net income of $1.3 million or $0.02 per diluted share in the third quarter of 2018. Adjusted EBITDA for the third quarter of 2019 was $11.0 million, compared to $8.7 million in the third quarter of 2018. Non-GAAP net income for the third quarter of 2019 was $10.1 million, or $0.13 per diluted share, compared to $7.6 million, or $0.10 per diluted share, in the third quarter of 2018.
The Company ended the quarter with $27.5 million in cash and cash equivalents.
Company Outlook
The Company is providing the following outlook for the fourth quarter and full year 2019.
Fourth quarter 2019:
Revenue in the range of $56.9 million to $58.4 million.
Adjusted EBITDA in the range of $12.6 million to $13.1 million.
Full year 2019:
Revenue in the range of $211.0 million to $212.5 million
Adjusted EBITDA in the range of $41.5 million to $42.0 million.
THE MEET GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30,
2019
December 31,
2018
Assets:
Current Assets:
Cash and cash equivalents
$
27,488,790
$
28,365,725
Accounts receivable, net of allowance of $600,070 and $383,579 as of September 30, 2019 and December 31, 2018, respectively
23,922,049
27,148,484
Prepaid expenses and other current assets
5,177,333
4,911,057
Total current assets
56,588,172
60,425,266
Goodwill
155,307,593
148,132,873
Property and equipment, net
3,832,875
4,633,764
Operating lease right-of-use assets
4,995,799
—
Intangible assets, net
31,444,141
36,558,439
Deferred taxes
15,380,576
15,648,572
Other assets
1,541,514
2,453,255
Total assets
$
269,090,670
$
267,852,169
Liabilities and Stockholders' Equity:
Current Liabilities:
Accounts payable
$
4,672,207
$
9,071,193
Accrued liabilities
20,070,961
19,112,303
Current portion of long-term debt, net
3,500,000
18,566,584
Current portion of finance lease obligations
12,913
134,067
Current portion of operating lease liabilities
2,138,029
—
Deferred revenue
4,071,239
4,620,690
Total current liabilities
34,465,349
51,504,837
Long-term finance lease obligations
8,323
58,683
Long-term debt, net
31,251,928
18,087,956
Long-term operating lease liabilities
2,900,105
—
Long-term derivative liability
636,612
940,216
Other liabilities
871,084
39,651
Total liabilities
70,133,401
70,631,343
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $0.001 par value; authorized - 5,000,000 shares; no shares issued and outstanding as of September 30, 2019 and December 31, 2018
—
—
Common stock, $0.001 par value; authorized - 100,000,000 shares; 72,834,032 and 74,697,526 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively
72,834
74,700
Additional paid-in capital
428,106,985
419,455,818
Accumulated deficit
(226,077,248
)
(220,276,025
)
Accumulated other comprehensive loss
(3,145,302
)
(2,033,667
)
Total stockholders’ equity
198,957,269
197,220,826
Total liabilities and stockholders’ equity
$
269,090,670
$
267,852,169
THE MEET GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2019
2018
2019
2018
Revenues
$
52,621,250
$
45,716,053
$
154,134,591
$
126,155,591
Operating costs and expenses:
Sales and marketing
8,748,021
8,753,156
25,648,417
23,554,635
Product development and content
30,573,574
26,134,682
91,846,746
72,647,507
General and administrative
5,320,424
4,938,844
16,140,643
15,562,125
Depreciation and amortization
3,451,197
3,423,929
10,079,319
10,558,712
Acquisition and restructuring
244,432
416,141
748,881
4,802,694
Total operating costs and expenses
48,337,648
43,666,752
144,464,006
127,125,673
Income (loss) from operations
4,283,602
2,049,301
9,670,585
(970,082
)
Other income (expense):
Interest income
28,752
3,823
88,746
13,773
Interest expense
(300,319
)
(559,345
)
(1,031,379
)
(1,838,325
)
(Loss) gain on foreign currency transactions
(27,051
)
(6,229
)
(94,640
)
101,030
Gain on disposal of assets
40,376
—
40,376
—
Other items of income, net
2,030
6,527
4,792
28,154
Total other expense
(256,212
)
(555,224
)
(992,105
)
(1,695,368
)
Income (loss) before income tax expense
4,027,390
1,494,077
8,678,480
(2,665,450
)
Income tax expense
(1,036,410
)
(196,146
)
(2,226,075
)
(484,552
)
Net income (loss)
$
2,990,980
$
1,297,931
$
6,452,405
$
(3,150,002
)
Basic and diluted net income (loss) per share:
Basic net income (loss) per share
$
0.04
$
0.02
$
0.09
$
(0.04
)
Diluted net income (loss) per share
$
0.04
$
0.02
$
0.08
$
(0.04
)
Weighted-average shares outstanding:
Basic
74,674,981
73,362,467
75,056,593
72,704,205
Diluted
76,205,022
79,365,576
77,836,975
72,704,205
THE MEET GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended
September 30,
2019
2018
Cash flows from operating activities:
Net income (loss)
$
6,452,405
$
(3,150,002
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
10,079,319
10,558,712
Amortization of right-of-use assets
1,902,760
—
Stock-based compensation expense
8,321,345
7,026,991
Deferred tax expense (benefit)
211,533
(694,951
)
Gain on disposal of assets
(40,376
)
—
Loss (gain) on foreign currency transactions
94,640
(101,030
)
Bad debt expense
1,661,987
408,998
Non-cash interest expense
214,063
261,373
Changes in derivative financial instruments
—
(18,412
)
Changes in contingent consideration obligations
111,417
—
Changes in operating assets and liabilities:
Accounts receivable
1,878,915
1,302,954
Prepaid expenses, other current assets and other assets
2,355,628
(2,326,004
)
Accounts payable and accrued liabilities
(6,080,069
)
4,414,400
Deferred revenue
(510,352
)
515,743
Net cash provided by operating activities
26,653,215
18,198,772
Cash flows from investing activities:
Purchases of property and equipment
(1,158,070
)
(404,446
)
Acquisition of business, net of cash acquired
(11,807,925
)
—
Net cash used in investing activities
(12,965,995
)
(404,446
)
Cash flows from financing activities:
Proceeds from exercise of stock options
702,717
824,307
Repurchases of common stock
(12,257,073
)
—
Payments of finance leases
(167,378
)
(211,290
)
Proceeds from revolving loan
7,000,000
—
Proceeds from term loan, net
34,954,373
—
Payments for restricted stock awards withheld for taxes
(371,316
)
(306,127
)
Payments of loan origination costs
(125,170
)
—
Payments of revolving loan
(7,000,000
)
—
Payments of contingent consideration
—
(5,000,000
)
Payments of term loan
(36,940,158
)
(15,559,842
)
Net cash used in financing activities
(14,204,005
)
(20,252,952
)
Change in cash and cash equivalents prior to effect of foreign currency exchange rate
(516,785
)
(2,458,626
)
Effect of foreign currency exchange rate
(360,150
)
(271,982
)
Net decrease in cash and cash equivalents
(876,935
)
(2,730,608
)
Cash and cash equivalents at beginning of period
28,365,725
25,052,995
Cash and cash equivalents at end of period
$
27,488,790
$
22,322,387
Supplemental disclosure of cash flow information:
Cash paid for interest
$
865,260
$
1,598,781
THE MEET GROUP, INC.
DISAGGREGATION OF REVENUES
(UNAUDITED)
Three Months Ended September 30,
Nine Months Ended September 30,
2019
2018
2019
2018
$
%
$
%
$
%
$
%
User pay revenue:
Video
$
20,333,310
38.6
%
$
10,968,643
24.0
%
$
61,841,899
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