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
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,
323-468-2300meet@mkr-group.com
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