MeetMe Reports Second Quarter 2013 Financial Results

Updated

MeetMe Reports Second Quarter 2013 Financial Results

$9.5 million quarterly revenue driven by record mobile revenue

NEW HOPE, Pa.--(BUSINESS WIRE)-- MeetMe®, Inc. (NYSE MKT: MEET), the public market leader in social discovery, today reported financial results for the second quarter ended June 30, 2013.


Second Quarter 2013 Financial Highlights

  • Revenue was $9.5 million, up 21.5 percent sequentially. Previously the company announced that it anticipated Q2 revenues of approximately $9.0 million.

  • Mobile revenue reached an all-time high at $2.6 million, up 37 percent sequentially and 98 percent year-over-year, and exceeding the previous record set in the seasonally-strong fourth quarter of 2012 by 18.8 percent.

  • Net loss was $2.1 million or $0.05 per share, compared with a net loss of $3.8 million or $0.11 per share in the second quarter of 2012.

  • Adjusted EBITDA was a positive $384,000, up over $2 million sequentially from an Adjusted EBITDA loss of $1.7 million in the first quarter. (See the important discussion about the presentation of non-GAAP financial measures, and reconciliation to the most directly comparable GAAP financial measures, below.)

  • Cash and Cash Equivalents totaled $8.3 million at June 30, 2013.

Geoff Cook, CEO of MeetMe, said, "In the second quarter we believe we demonstrated the strength and potential of our mobile business, while at the same time demonstrating stability in our online business. Sequential revenue growth was significant, and we posted an adjusted EBITDA profit."

Mr. Cook continued, "We are seeing increasing traction with the new mobile advertising products. Since launching additional native mobile ads on iPhone in July, native advertising impressions increased more than fourfold on that platform compared to the week prior to launch. This launch contributed to the 43% increase in overall iPhone advertising revenue during the same period. With the recent launch of these units on Android, we now reach 90% of our mobile audience with our highest-monetizing and best-performing advertising units."

"Having spent the last year building out much of the infrastructure of mobile monetization with various advertising, freemium, and subscription products, we believe we now monetize our mobile audience at industry-leading rates," Mr. Cook noted. "To accelerate growth from here, we must continue to sustain our mobile monetization gains while also rapidly growing our mobile audience. Our team is working on driving increased engagement and usage with significant new product launches over the coming two quarters."

Operating and Business Highlights

  • Monthly active users (MAUs) increased nearly 70 percent, averaging 5.37 million in the second quarter of 2013 compared to 3.18 million average MAUs in the second quarter of 2012. Mobile MAUs increased 61 percent to 2.69 million in the second quarter of 2013 from 1.67 million in the second quarter of 2012.

  • Daily active users (DAUs) increased 15 percent, averaging 1.18 million in the second quarter of 2013 compared to 1.03 million in the second quarter of 2012. Average mobile DAUs improved 31 percent to 789,000 in the second quarter of 2013 from 603,000 in the second quarter of 2012.

  • Revenue attributed to mobile products was $2.6 million in the second quarter of 2013, an approximately 100 percent increase from $1.3 million in the second quarter of 2012, with 43 percent of mobile revenue in the second quarter of 2013 attributed to virtual currency. Mobile average revenue per daily active user (ARPDAU) increased 48 percent from $0.025 to $0.037 during the same period.

David Clark, Chief Financial Officer of MeetMe, added, "We believe the positive revenue trends and our emphasis on cost controls allowed us to drive positive adjusted EBITDA in the second quarter. We are encouraged by our mobile revenue growth, which represented 32 percent of total revenues this quarter versus 17 percent a year ago. We ended the quarter with an increased cash balance of $8.3 million."

MEETME, INC. AND SUBSIDIARIES

Consolidated Balance Sheets (Unaudited)

June 30,

December 31,

2013

2012

Assets

Current Assets

Cash and cash equivalents

$

8,335,444

$

5,022,007

Accounts receivable, net of allowance of $447,000 and $547,000, at

June 30, 2013 and December 31, 2012, respectively

6,830,798

15,744,789

Notes receivable

58,512

111,569

Prepaid expenses and other current assets

854,606

870,881

Total current assets

16,079,360

21,749,246

Goodwill

70,646,036

70,646,036

Intangible assets, net

5,767,107

6,746,273

Property and equipment, net

3,866,870

4,772,632

Other assets

490,498

520,480

Total assets

$

96,849,871

$

104,434,667

Liabilities and Stockholders' Equity

Current Liabilities:

Accounts payable

$

2,201,054

$

3,528,607

Accrued expenses and other liabilities

4,256,237

3,211,681

Current liabilities from discontinued operations

-

1,434

Deferred revenue

739,682

392,612

Accrued dividends

69,455

69,455

Current portion of long-term debt

3,807,907

2,551,941

Total current liabilities

11,074,335

9,755,730

Long term debt, net of discount

4,672,064

9,156,788

Total liabilities

15,746,399

18,912,518

Commitments and Contingencies

Stockholders' Equity:

Preferred stock, $.001 par value, authorized 5,000,000 shares:

Convertible preferred stock Series A-1, $.001 par value; authorized - 5,000,000 shares;

1,000,000 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively

1,000

1,000

Common stock, $.001 par value; authorized - 100,000,000 shares; 38,127,737

and 37,046,405 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively

38,131

37,050

Additional paid-in capital

280,297,474

275,261,794

Accumulated deficit

(198,638,774

)

(189,211,750

)

Accumulated other comprehensive loss

(594,359

)

(565,945

)

Total stockholders' equity

81,103,472

85,522,149

Total liabilities and stockholders' equity

$

96,849,871

$

104,434,667

MEETME, INC. AND SUBSIDIARIES

Consolidated Statements of Operations and Comprehensive Loss (Unaudited)

For the Three Months Ended
June 30,

For the Six Months Ended
June 30,

2013

2012

2013

2012

Revenues

$

9,482,960

$

13,054,861

$

17,288,592

$

23,450,590

Operating Costs and Expenses:

Sales and marketing

1,542,977

1,676,243

3,529,670

3,442,639

Product development and content

6,342,576

8,224,749

12,726,020

14,721,208

General and administrative

1,822,300

2,379,313

4,222,559

4,323,846

Depreciation and amortization

1,089,043

965,155

2,171,987

1,863,539

Restructuring costs

646,479

247,877

2,540,896

537,944

Loss on debt restructure

-

-

1,174,269

-

Total Operating Costs and Expenses

11,443,375

13,493,337

26,365,401

24,889,176

Loss from Operations

(1,960,415

)

(438,476

)

(9,076,809

)

(1,438,586

)

Other Income (Expense):

Interest income

3,097

4,318

5,353

9,892

Interest expense

(141,728

)

(288,216

)

(355,568

)

(586,284

)

Other income (expense), net

-

497

-

1,030

Total other income (expense)

(138,631

)

(283,401

)

(350,215

)

(575,362

)

Loss before income taxes

(2,099,046

)

(721,877

)

(9,427,024

)

(2,013,948

)

Income taxes

-

-

-

-

Net loss from continuing operations

$

(2,099,046

)

$

(721,877

)

$

(9,427,024

)

$

(2,013,948

)

Loss from discontinued operations, net of taxes

$

-

$

(3,114,040

)

$

-

$

(3,680,627

)

Net Loss Allocable To Common Shareholders

$

(2,099,046

)

$

(3,835,917

)

$

(9,427,024

)

$

(5,694,575

)

Basic and diluted net loss per common shareholders:

Continuing operations

$

(0.05

)

$

(0.02

)

$

(0.25

)

$

(0.06

)

Discontinued operations

$

-

$

(0.09

)

$

-

$

(0.10

)

Basic and diluted net loss per common shareholders

$

(0.05

)

$

(0.11

)

$

(0.25

)

$

(0.16

)

Weighted Average Number of Shares

Outstanding, Basic and Diluted:

38,127,737

36,240,472

37,749,772

36,306,886

Net Loss

$

(2,099,046

)

$

(3,835,917

)

$

(9,427,024

)

$

(5,694,575

)

Foreign currency translation adjustment

(45,741

)

(144,458

)

(28,414

)

(92,425

)

Comprehensive Loss

$

(2,144,787

)

$

(3,980,375

)

$

(9,455,438

)

$

(5,787,000

)

MEETME, INC. AND SUBSIDIARIES

Reconciliation of GAAP Net Income (Loss) from Continuing Operations to Adjusted EBITDA

Three Months Ended June 30,

Six Months Ended June 30,

2013

2012

2013

2012

Net loss from continuing operations allocable to common shareholders

$

(2,099,046

)

$

(721,877

)

$

(9,427,024

)

$

(2,013,948

)

Interest expense

141,728

288,216

355,568

586,284

Depreciation and amortization

1,089,043

965,155

2,171,987

1,863,539

Amortization of stock based compensation

605,776

1,068,505

1,910,924

1,878,586

Acquisition and restructuring costs

Originally published