MeetMe Reports Record Revenue, Adjusted EBITDA, and Net Income for Fourth Quarter and Full Year 2015

Feb. 29, 2016 8:30 am |  More About MeetMe


Total Revenue for 2015 Increased 27% Year Over Year
Mobile Revenue for 2015 Increased 84% Year Over Year
Adjusted EBITDA for 2015 Increased 303% Year Over Year
Full Year Adjusted EBITDA Margin Increased to 36%
Net Income for 2015 was a Record $6.0 Million

MeetMe, Inc. (NASDAQ: MEET), a public market leader for social discovery, today reported financial results for its full year and fourth quarter ended December 31, 2015.

Full Year 2015 Financial Highlights

  • Total revenue was a record $56.9 million, up 27% year over year.
  • Mobile revenue was a record $45.3 million, up 84% year over year.
  • Mobile revenue represented 80% of total revenue, up from 55% in 2014.
  • Adjusted EBITDA was a record $20.2 million, or a 36% margin, up 303% year over year. (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 a record $6.0 million, compared to a net loss of $4.0 million for 2014.

Fourth Quarter 2015 Financial Highlights

  • Total revenue was a record $19.9 million, up 53% from the fourth quarter of 2014.
  • Mobile revenue was a record $17.2 million, up 126% from the fourth quarter of 2014.
  • Mobile revenue represented 86% of total revenue, the highest in MeetMe’s history.
  • Adjusted EBITDA was a record $9.0 million, an increase of 247% year over year. (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 45%, up from 20% in the fourth quarter of 2014.
  • Net income was a record $6.1 million, compared to net income of $847,000 for the fourth quarter of 2014.
  • Cash and Cash Equivalents totaled $19.3 million at December 31, 2015.

Geoff Cook, Chief Executive Officer of MeetMe, stated, “We believe our record revenue, adjusted EBITDA and net income reflect the increasing value of our audience to mobile advertisers and the continued growth in mobile engagement by our users. We saw record engagement in the fourth quarter and experienced tremendous growth in chats this past year, reaching a new milestone of 30 million user-to-user chats in a single day at the end of the year. In the fourth quarter, our mobile daily active users increased 20% year over year and our total mobile monthly active users increased 32% year over year.”

David Clark, Chief Financial Officer of MeetMe, added, “Mobile revenue for 2015 increased 84% year over year and represented 80% of our total revenue, up from 55% in 2014. We believe our increasing revenue was driven by our growing mobile engagement as well as continued strength in the mobile advertising industry. Much of the increased revenue flowed through to adjusted EBITDA, which increased to a record $20 million for the year, resulting in a 36% adjusted EBITDA margin.”

Webcast and Conference Call Details

Management will host a webcast and conference call to discuss full year and fourth quarter 2015 financial results today, February 29, 2016, at 10:30 a.m. Eastern time. To access the call dial 888-427-9419 (+1 719-325-2435 outside the United States) and when prompted provide the participant passcode 5399747 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 U.S. 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 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 of our audience to mobile advertisers and the continued growth in mobile engagement by our users; whether net income will continue to grow; whether our record revenue, adjusted EBITDA, and net income reflect the increasing value of our audience to mobile advertisers and the continued growth in mobile engagement by our users; whether our increasing revenue was driven by our growing mobile engagement as well as 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, 2014, and the Current Report on Form 8-K filed with the SEC on June 3, 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, 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, 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.

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)
 

December 31,
2015

December 31,
2014

ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 19,298,038 $ 17,041,050
Accounts receivable, net of allowance of $133,000 and $586,000, at December 31, 2015 and 2014, respectively 16,509,291 9,045,269
Prepaid expenses and other current assets   970,239     790,031  
Total current assets   36,777,568     26,876,350  
 
Goodwill 70,646,036 70,646,036
Property and equipment, net 2,610,307 2,458,897
Intangible assets, net 1,278,498 2,894,330
Other assets   178,264     338,146  
TOTAL ASSETS $ 111,490,673   $ 103,213,759  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 2,776,710 $ 2,985,259
Accrued liabilities 4,127,634 3,249,404
Current portion of capital lease obligations 366,114 872,761
Current portion of long-term debt - 2,068,326
Deferred revenue   293,414     218,484  
Total current liabilities   7,563,872     9,394,234  
 
Long-term capital lease obligation, less current portion, net 221,302 587,416
Long-term debt, less current portion, net - 556,612
Other liabilities   1,035,137     418,530  
TOTAL LIABILITIES $ 8,820,311   $ 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; 0 and 1,000,000 shares issued and outstanding at December 31, 2015 and 2014 $ - $ 1,000
Common stock, $.001 par value; authorized - 100,000,000 Shares; 47,179,486 and 44,910,034 issued and outstanding at December 31, 2015 and 2014 47,183 44,914
Additional paid-in capital 300,725,791 297,001,168
Accumulated deficit (198,102,612 ) (204,072,240 )
Accumulated other comprehensive loss   -     (717,875 )
TOTAL STOCKHOLDERS' EQUITY   102,670,362     92,256,967  
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 111,490,673   $ 103,213,759  
 
 
     
MEETME, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)
                 
Three Months Ended December 31, Year Ended December 31,
2015 2014 2015 2014
 
Revenues $ 19,879,840   $ 13,021,878   $ 56,903,773   $ 44,817,436  
 
Operating Costs and Expenses:
Sales and marketing 2,826,198 1,666,406 6,618,837 7,277,719
Product development and content 6,036,478 7,589,911 24,615,304 28,324,443
General and administrative 3,337,598 1,962,026 14,534,861 8,017,970
Depreciation and amortization 760,201 922,852 3,140,205 4,223,507
Restructuring costs   -     -     -     120,202  
Total Operating Costs and Expenses   12,960,475     12,141,195     48,909,207     47,963,841  
 
Income (Loss) from Operations   6,919,365     880,683     7,994,566     (3,146,405 )
 
Other Income (Expense):
Interest income 5,304 5,958 21,037 10,352
Interest expense (84,723 ) (183,754 ) (459,962 ) (1,052,620 )
Change in warrant liability (622,819 ) 144,037 (616,607 ) 226,508
Loss on cumulative foreign currency translation adjustment 5,640 - (856,438 ) -
Gain on sale of asset   -     -     163,333     -  
Total Other Income (Expense)   (696,598 )   (33,759 )   (1,748,637 )   (815,760 )
 
Income (loss) before Income Taxes 6,222,767 846,924 6,245,929 (3,962,165 )
Income taxes   (149,500 )   -     (276,301 )   -  
Net Income (Loss) $ 6,073,267   $ 846,924   $ 5,969,628   $ (3,962,165 )
Preferred stock dividends   -     -     -     -  
Net income (loss) allocable to Common Stockholders $ 6,073,267   $ 846,924   $ 5,969,628   $ (3,962,165 )
 
Basic and diluted income (loss) per common stockholders:
Basic income (loss) per common stockholders $ 0.13   $ 0.02   $ 0.13   $ (0.10 )
Diluted income (loss) per common stockholders $ 0.12   $ 0.02   $ 0.12   $ (0.10 )
 
Weighted average number of shares outstanding:
Basic   46,090,961     44,879,982     45,419,175     41,328,699  
Diluted   51,735,136     48,181,596     49,535,826     41,328,699  
 
Net Income (Loss) $ 6,073,267 $ 846,924 $ 5,969,628 $ (3,962,165 )
Foreign currency translation adjustment   -     (25,134 )   -     (99,523 )
Comprehensive Loss $ 6,073,267   $ 821,790   $ 5,969,628   $ (4,061,688 )
 
 
     
MEETME, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS TO ADJUSTED EBITDA
(UNAUDITED)
                 
Three Months Ended December 31, Year Ended December 31,
2015 2014 2015 2014
 
Net income (loss) allocable to Common Stockholders $ 6,073,267   $ 846,924   $ 5,969,628   $ (3,962,165 )
 
Interest expense 84,723 183,754 459,962 1,052,620
Depreciation and amortization 760,201 922,852 3,140,205 4,223,507
Stock-based compensation expense 1,332,223 787,738 3,341,965 3,810,209
Change in warrant liability 622,819 (144,037 ) 616,607 (226,508 )
Income taxes 149,500 - 276,301 -
Acquisition and restructuring costs - - - 120,202
Bad debt expense outside normal range - - 5,735,204 -
Loss on cumulative effect of foreign currency translation adjustment (5,640 ) - 856,438 -
Gain on sale of asset   -     -     (163,333 )   -  
Adjusted EBITDA $ 9,017,093   $ 2,597,231   $ 20,232,977   $ 5,017,865  
 
 
GAAP basic and diluted net income (loss) per common stockholders $ 0.13   $ 0.02   $ 0.13   $ (0.10 )
Basic adjusted EBITDA per common stockholders $ 0.20   $ 0.06   $ 0.45   $ 0.12  
Diluted adjusted EBITDA per common stockholders $ 0.17   $ 0.05   $ 0.41   $ 0.11  
 
Weighted average number of shares outstanding, Basic   46,090,961     44,879,982     45,419,175     41,328,699  
Weighted average number of shares outstanding, Diluted   51,735,136     48,181,596     49,535,826     45,563,736  
 

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

Business Wire
February 29, 2016 - 8:30 AM EST


comments powered by Disqus

"I work with many of the companies that would be RedChip companies. And we certainly ascribe to the same view that the RedChip Companies do, which is Discovering Tomorrow's Blue Chips Today."

  • Bob McCooey, Senior Vice President The NASDAQ Stock Market