Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Meet Group, Inc. | qpsa20130508_8k.htm |
EXHIBIT 99.1
MeetMe® Reports First Quarter 2013 Financial Results
|
● |
Mobile revenue on the MeetMe Platform grew 150% to $1.9 million in the first quarter of 2013, up from $0.8 million in the first quarter of 2012. |
|
● |
Subsequent to quarter’s end, MeetMe funded $5 million under a new growth capital line of credit with Western Technology Investment (WTI). |
|
● |
Total Registered Users surpassed 100 million during the quarter, including over eight million total Mobile Registered Users. |
|
● |
Mobile Subscription product MeetMe+ launched across iPhone and Android platforms. |
NEW HOPE, PA – May 8, 2013 – MeetMe, Inc. (NYSE MKT: MEET), the public market leader in social discovery, today reported financial results for the first quarter ended March 31, 2013.
First Quarter 2013 Financial Highlights
|
● |
Revenue was $7.8 million, compared to $10.4 million in the first quarter of 2012, or $8.4 million excluding $2.0 million in revenue from an affiliated party, a principal stockholder of the company. |
|
● |
Revenue attributed to mobile products was $1.9 million in the first quarter of 2013, an increase of 150% as compared to $0.8 million in the first quarter of 2012, with 49% of mobile revenue in the first quarter of 2013 attributed to virtual currency. Mobile average revenue per daily active user (ARPDAU) increased 75% from $0.016 to $0.028 during the same period. |
|
● |
Net Loss was $7.3 million or $0.20 per share, compared with $1.9 million or $0.05 per share in the same period of 2012. The first quarter 2013 loss includes $3.6 million, or 10 cents per share, of debt and other restructuring charges compared with restructuring charges of $0.3 million or, 1 cent per share, in the same period a year ago. |
|
● |
Adjusted EBITDA was a loss of $1.7 million, or $0.04 per share, compared to Adjusted EBITDA of $1.0 million, or $0.02 per share, for the same period in 2012. (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 $4.3 million at March 31, 2013. |
|
● |
Total Debt fell to $4.3 million at March 31, 2013 from $11.7 million at December 31, 2012, as the company retired $7.0 million of subordinated notes and $1.7 million of related accrued interest during the quarter. |
Geoff Cook, CEO of MeetMe, said, “The transition to mobile is accelerating as over 70% of our daily users in the United States and Canada accessed our service via mobile devices in the first quarter. While this transition impacted financial results in the near term, we positioned the company to continue to seize on this trend with the introduction of our premium MeetMe+ service. As a result, we are seeing acceleration of mobile bookings, which were up 81% in April compared to a year ago, and up 24% compared to the first quarter average. On the advertising front, we completed the preliminary launch of our native feed advertising solution in March and we expect to roll out additional networks, including native incented app-install feed ads in May.”
Operating and Business Highlights
|
● |
Monthly active users (MAUs) averaged 4.92 million on the MeetMe platform in the first quarter of 2013, an increase of over 50% compared to 3.23 million average MAUs on the MeetMe platform in the first quarter of 2012. Daily active users (DAUs) averaged 1.19 million on the MeetMe platform, an increase of 16% compared to 1.03 million average DAUs one year ago. |
|
● |
Average Mobile MAUs on the MeetMe platform increased 53% to 2.36 million from 1.54 million over the same period a year ago. Average Mobile DAUs improved by almost 39% to 774 thousand in the first quarter of 2013 from 558 thousand in the first quarter of 2012. |
|
● |
The MeetMe platform expanded to thirteen languages by the end of April 2013. 37.5% of MAUs in March 2013 came from outside the United States and Canada, as compared to 15.5% of MAUs coming from outside the United States and Canada in the same period a year ago. |
|
● |
MeetMe+, the company’s mobile subscription product, was launched across the iPhone and Android platforms. |
On May 1, 2013, MeetMe announced that it had closed on a line of credit from Western Technology Investment (WTI), a technology focused venture debt fund based in Silicon Valley, which has backed companies including Facebook, Google, and Juniper Networks among others. The facility has an $8 million total commitment and a three-year term. MeetMe has drawn $5 million under the line, and may draw two additional tranches of $1.5 million each contingent upon achieving certain financial goals. As of April 30, 2013, MeetMe maintained an unrestricted cash balance of approximately $9.1 million.
David Clark, Chief Financial Officer of MeetMe, added, “Over the past several months, we have recapitalized the company with the retirement of $8.7 million of subordinated notes and related accrued interest, and the subsequent closing of a line of credit with Western Technology Investment. These actions are designed to provide us with the capital needed to continue the development of our mobile revenue streams and bring us to cash flow break-even.”
Webcast and Conference Call Details
MeetMe will host a conference call to discuss first quarter 2013 financial results this afternoon at 4:30 p.m. ET. The conference call can be accessed by dialing toll-free 1-888-846-5003, or toll/international 1-480-629-9856. A webcast will also be available at the following link: http://public.viavid.com/index.php?id=104564. A replay of the call will be available for one year at the Investors section of the MeetMe corporate site, http://www.meetmecorp.com, and at 1-877-870-5176 (toll-free) or 1-858-384-5517 (toll/international), replay PIN number: 4617015.
MEETME, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
|
March 31, |
December 31, |
|||||||||
|
2013 |
2012 |
|||||||||
|
Assets |
(Unaudited) |
|||||||||
|
Current Assets |
||||||||||
|
Cash and cash equivalents |
$ | 4,256,525 | $ | 5,022,007 | ||||||
|
Accounts receivable, net of allowance of $547,000, at March 31, 2013 and December 31, 2012, respectively |
5,858,181 | 15,744,789 | ||||||||
|
Notes receivable |
97,626 | 111,569 | ||||||||
|
Prepaid expenses and other current assets |
853,516 | 870,881 | ||||||||
|
Total current assets |
11,065,848 | 21,749,246 | ||||||||
|
Goodwill |
70,646,036 | 70,646,036 | ||||||||
|
Intangible assets, net |
6,256,690 | 6,746,273 | ||||||||
|
Property and equipment, net |
4,353,607 | 4,772,632 | ||||||||
|
Notes receivable - long-term portion |
- | - | ||||||||
|
Other assets |
447,921 | 520,480 | ||||||||
|
Total assets |
$ | 92,770,102 | $ | 104,434,667 | ||||||
|
Current Liabilities: |
||||||||||
|
Accounts payable |
$ | 2,047,132 | $ | 3,528,607 | ||||||
|
Accrued expenses and other liabilities |
3,464,813 | 3,211,681 | ||||||||
|
Current liabilities from discontinued operations |
- | 1,434 | ||||||||
|
Deferred revenue |
551,761 | 392,612 | ||||||||
|
Accrued dividends |
69,455 | 69,455 | ||||||||
|
Current portion of long-term debt |
2,935,032 | 2,551,941 | ||||||||
|
Total current liabilities |
9,068,193 | 9,755,730 | ||||||||
|
Long-term debt |
- | - | ||||||||
|
Long term debt, net of discount |
1,350,174 | 9,156,788 | ||||||||
|
Total liabilities |
10,418,367 | 18,912,518 | ||||||||
|
Commitments and Contingencies |
||||||||||
|
Stockholders' Equity: |
||||||||||
|
Convertible preferred stock Series A-1, $.001 par value; authorized - 5,000,000 shares; 1,000,000 shares issued and outstanding at March 31, 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 March 31, 2013 and December 31, 2012, respectively |
38,131 | 37,050 | ||||||||
|
Additional paid-in capital |
279,400,950 | 275,261,794 | ||||||||
|
Accumulated deficit |
(196,539,728 | ) | (189,211,750 | ) | ||||||
|
Accumulated other comprehensive loss |
(548,618 | ) | (565,945 | ) | ||||||
|
Total stockholders’ equity |
82,351,735 | 85,522,149 | ||||||||
|
Total liabilities and stockholders’ equity |
$ | 92,770,102 | $ | 104,434,667 | ||||||
MEETME, INC. AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Loss
|
For the Three Months Ended |
||||||||
|
March 31, |
||||||||
|
2013 |
2012 |
|||||||
|
Revenues |
$ | 7,805,632 | $ | 10,395,729 | ||||
|
Operating Costs and Expenses: |
||||||||
|
Sales and marketing |
1,986,693 | 1,766,396 | ||||||
|
Product development and content |
6,383,444 | 6,496,459 | ||||||
|
General and administrative |
2,400,259 | 1,944,533 | ||||||
|
Depreciation and amortization |
1,082,944 | 898,384 | ||||||
|
Restructuring costs |
1,894,417 | 290,067 | ||||||
|
Loss on debt restructure |
1,174,269 | - | ||||||
|
Total Operating Costs and Expenses |
14,922,026 | 11,395,839 | ||||||
|
Loss from Operations |
(7,116,394 | ) | (1,000,110 | ) | ||||
|
Other Income (Expense): |
||||||||
|
Interest income |
2,256 | 5,574 | ||||||
|
Interest expense |
(213,840 | ) | (298,068 | ) | ||||
|
Other income (expense), net |
- | 533 | ||||||
|
Total other income (expense) |
(211,584 | ) | (291,961 | ) | ||||
|
Loss before income taxes |
(7,327,978 | ) | (1,292,071 | ) | ||||
|
Income taxes |
- | - | ||||||
|
Net loss from continuing operations |
$ | (7,327,978 | ) | $ | (1,292,071 | ) | ||
|
Loss from discontinued operations, net of taxes |
$ | - | $ | (566,587 | ) | |||
|
Net Loss Allocable To Common Shareholders |
$ | (7,327,978 | ) | $ | (1,858,658 | ) | ||
|
NET LOSS PER COMMON SHARE, BASIC AND DILUTED |
$ | (0.20 | ) | $ | (0.03 | ) | ||
|
Basic and diluted net loss per common shareholders: |
||||||||
|
Continuing operations |
$ | (0.20 | ) | $ | (0.03 | ) | ||
|
Discontinued operations |
$ | - | $ | (0.02 | ) | |||
|
Basic and diluted net loss per common shareholders |
$ | (0.20 | ) | $ | (0.05 | ) | ||
|
Weighted Average Number of Shares Outstanding, Basic and Diluted: |
37,367,607 | 36,189,173 | ||||||
|
Net Loss |
$ | (7,327,978 | ) | $ | (1,858,658 | ) | ||
|
Foreign currency translation adjustment |
(17,327 | ) | 52,033 | |||||
|
Comprehensive Loss |
$ | (7,345,305 | ) | $ | (1,806,625 | ) | ||
MEETME, INC. AND SUBSIDIARIES
Reconciliation of GAAP Net Income (Loss) from Continuing Operations to Adjusted EBITDA
|
Three Months Ended |
||||||||
|
March 31, |
||||||||
|
2013 |
2012 |
|||||||
|
Net loss from continuing operations allocable to common shareholders |
$ | (7,327,978 | ) | $ | (1,292,071 | ) | ||
|
Interest expense |
213,840 | 298,068 | ||||||
|
Depreciation and amortization |
1,082,944 | 898,384 | ||||||
|
Amortization of stock based compensation |
1,305,148 | 810,081 | ||||||
|
Restructuring costs |
1,894,417 | 290,067 | ||||||
|
Loss on debt restructure |
1,174,269 | - | ||||||
|
Adjusted EBITDA (loss) attributable to common shareholders |
$ | (1,657,360 | ) | $ | 1,004,529 | |||
|
GAAP Basic and diluted net loss per common shareholders |
$ | (0.20 | ) | $ | (0.03 | ) | ||
|
Basic Adjusted EBITDA per common shareholders |
$ | (0.04 | ) | $ | 0.03 | |||
|
Diluted Adjusted EBITDA per common shareholders |
$ | (0.04 | ) | $ | 0.02 | |||
|
Weighted average number of shares outstanding, Basic |
37,367,607 | 36,189,173 | ||||||
|
Weighted average number of shares outstanding, Dilutive |
40,342,270 | 41,800,383 | ||||||
|
The following table presents a reconciliation of Mobile bookings, a non-GAAP financial measure to Revenue, a GAAP financial measure: | ||||||||
|
Three Months Ended March 31, |
||||||||
|
2013 |
2012 |
|||||||
|
Revenue from purchased mobile virtual currency products |
$ | 788,199 | $ | 136,426 | ||||
|
Change in deferred revenue |
138,228 | 25,615 | ||||||
|
Mobile bookings |
$ | 926,427 | $ | 162,041 | ||||
About MeetMe, Inc.
MeetMe® is the leading social network for meeting new people in the US and the public market leader for social discovery (NYSE MKT: MEET). MeetMe makes meeting new people fun through social games and apps, monetized by both advertising and virtual currency. With 60% of traffic coming from mobile, MeetMe is fast becoming the social gathering place for the mobile generation. The company operates MeetMe.com and MeetMe apps 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.
Cautionary Note Regarding 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 statements regarding our ability to roll out additional networks, including native incented app-install feed ads in May and our plans regarding launching new products and the effectiveness of these new products. All statements other than statements of historical facts contained herein, including statements regarding the continued growth in our platform, are forward-looking statements. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “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: our ability to roll out additional networks, including native incented app-install feed ads in May, and our plans regarding launching new products and the effectiveness of these new products. Further information on our risk factors is contained in our filings with the SEC, including the Form 10-K for the year ended December 31, 2012 and the Current Report on Form 8-K filed May 1, 2013. 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 above.
The company defines Adjusted EBITDA as earnings (or loss) from continuing operations before interest expense, income taxes, depreciation and amortization, and amortization of non-cash stock-based compensation, non-recurring acquisition and restructuring expenses and the goodwill impairment charges. The company excludes stock-based compensation because it is non-cash in nature.
Management uses mobile bookings to evaluate the results of our operations, generate future operating plans and assess the performances of our mobile virtual currency products and subscriptions. The Company defines mobile bookings as the total amount of revenue from the sale of our mobile virtual currency products that would have been recognized in a period if we recognized all revenue immediately at the time of sale. We record the sale of Credits and mobile subscriptions as deferred revenue. Credits are recognized when spent by the user. For the MeetMe+ subscription product, revenue is allocated between the elements of the subscriptions, Credits and services, using the relative sales value method. The service revenue element of the subscription is recognized over the respective life of the subscription and the credit revenue is recognized as revenue when used.
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.
-###-
Contact:
E. Brian Harvey
Vice President of Capital Markets and Investor Relations
MeetMe, Inc.
(215) 862-1162 x266
brian@meetme.com
Follow us on Twitter @meetme and @meetmecorp