NEW HOPE, PA — (Marketwire) — 03/07/13 — MeetMe®, Inc. (NYSE MKT: MEET)
Full Year 2012 Revenue of $46.7 million.
2012 Revenue represents a 31% increase over the $35.6 million of Combined Revenue, a non-GAAP measure, of Quepasa and myYearbook during the same period of 2011.
Fourth Quarter Revenue totaled $11.6 million.
Fourth Quarter 2012 Revenue represents a 23% increase over the $9.5 million of Combined Revenue, a non-GAAP measure, of Quepasa and myYearbook during the same period of 2011.
Mobile revenue grew 25% sequentially to $2.2 million in the fourth quarter of 2012, and 355% compared to the same period of 2011.
Executive transition plan announced; COO Geoff Cook will become CEO; John Abbott will become the Company-s non-Executive Chairman of the Board.
MeetMe®, Inc. (NYSE MKT: MEET), the public market leader in social discovery, today reported its financial results for the fourth quarter and fiscal year ended December 31, 2012.
MeetMe Revenue for the fourth quarter of 2012 was $11.6 million, up 96% from the $5.9 million recorded in the same period of 2011. Fourth Quarter Revenue represents a 23% increase over the $9.5 million of Combined Revenue, a non-GAAP measure, of MeetMe and myYearbook during the same period a year ago.
MeetMe Net Loss Allocable to Common Shareholders for the fourth quarter of 2012 was $2.0 million or $0.05 per share, an improvement from the Net Loss Allocable to Common Shareholders of $5.5 million or $0.20 per share in the same period of 2011.
MeetMe Adjusted EBITDA for the fourth quarter of 2012 was $978 thousand or $0.03 per basic and $0.02 per diluted share, an improvement from an Adjusted EBITDA loss of $347 thousand or $0.01 per basic and diluted share, for the same period in 2011. (See the important discussion about the presentation of non-GAAP financial measures, and reconciliation to the most directly comparable GAAP financial measures, below.)
MeetMe Revenue for 2012 was $46.7 million, up 336% from the $10.7 million recorded in 2011. 2012 Revenue represents a 31% increase over the $35.6 million of Combined Revenue, a non-GAAP measure, of MeetMe and myYearbook during the same period a year ago.
MeetMe Net Loss Allocable to Common Shareholders for 2012 was $10.3 million or $0.28 per share, an improvement from the Net Loss Allocable to Common Shareholders of $12.8 million or $0.67 per share in 2011.
MeetMe Adjusted EBITDA for 2012 was $3.9 million or $0.11 per basic and $0.09 per diluted share, an improvement from an Adjusted EBITDA loss of $1.3 million or $0.07 per basic and diluted share, for 2011. (See the important discussion about the presentation of non-GAAP financial measures, and reconciliation to the most directly comparable GAAP financial measures, below.)
MeetMe Cash and Cash Equivalents totaled $5.0 million at December 31, 2012.
“This year was foundational for the company,” said John Abbott, CEO of MeetMe, Inc. “We successfully executed on the merger of Quepasa and myYearbook, consolidating the two services onto the rebranded MeetMe platform and consolidating operations into one streamlined organization. We have also reorganized our team and product development process around the reality that we are now a mobile company.”
“Our mobile revenues increased more than 180% in 2012,” said Geoff Cook, COO of MeetMe, Inc. “We look to continue mobile revenue growth in 2013 through a combination of a new mobile subscription product, MeetMe+, and new premium advertising placements in our mobile feed. Each of those initiatives is set to launch initially in March and expand further in a series of releases throughout the year.”
We averaged 5.51 million monthly active users (MAUs) on the core MeetMe platform in the fourth quarter of 2012, an increase of 85% as compared to 2.98 million average MAUs on the core MeetMe platform in the fourth quarter of 2011.
We averaged 1.26 million daily active users (DAUs) on the core MeetMe platform in the fourth quarter of 2012, an increase of 33% as compared to 0.95 million average DAUs on the core MeetMe platform in the fourth quarter of 2011.
Revenue attributed to our mobile products was $2.22 million in the fourth quarter of 2012, an increase of 355% as compared to $0.49 million in the fourth quarter of 2011, with 41.3% of mobile revenue in the fourth quarter of 2012 attributed to virtual currency. Mobile average revenue per daily active user (ARPDAU) increased 179% from $0.012 to $0.032 during the same period.
As of October 8, 2012, our consumer properties were combined under a single brand, MeetMe. This transition of our legacy Quepasa.com users onto the MeetMe platform marked the final step of the merger integration that began on November 10, 2011, when Quepasa Corporation merged with Insider Guides, Inc., DBA myYearbook.
We successfully internationalized the core MeetMe platform, launching in Spanish and Portuguese in August 2012, and expanding to French, German, and Italian in December 2012 and to Chinese (traditional), Japanese, and Russian in February 2013. As a result of these launches, 44.1% of our MAUs in December 2012 came from outside the United States and Canada, as compared to 16.7% of our MAUs coming from outside the United States and Canada in June 2012.
MeetMe also announced today an executive transition. Geoff Cook, currently Chief Operating Officer and President of the Consumer Internet Division of MeetMe, will become the Company-s Chief Executive Officer effective Monday, March 11, 2013, and John Abbott will become the Company-s non-Executive Chairman of the Board.
Geoff Cook has served as MeetMe-s Chief Operating Officer, President of the Consumer Internet Division and a director since the merger of the Company with myYearbook in 2011. Prior to joining the Company, Cook was the Chief Executive Officer and co-founder of Insider Guides, Inc., the parent company of myYearbook. During his six-year tenure there, Mr. Cook helped raise $20 million and grew myYearbook to profitability and more than $30 million in revenue with more than 100 employees. Previously, Mr. Cook founded EssayEdge and ResumeEdge while a student at Harvard University in 1997 and sold it to The Thomson Corporation in 2002.
“With the merger integration now complete as of this most recent quarter and the former myYearbook platform now the focus of the business, now is the right time to hand the reins to our Chief Operating Officer and President, Geoff Cook,” said Abbott. “Geoff is a pioneer in social discovery and a product visionary, who capitalized on the promise of mobile early, and who I believe is best equipped to lead MeetMe within a mobile-first world.”
“I am eager to tackle the opportunities and challenges that lie ahead and enthusiastic at the chance to continue to work with our talented team to revolutionize the way people meet in a mobile-first world,” noted Cook. “I am excited to seize upon our great momentum in mobile and our global footprint to drive continued growth and long-term shareholder value.”
On March 5, 2013, the Company, Altos Hornos de Mexico S.A.B. de C.V. (“AHMSA”) and Mexicans and Americans Trading Together, Inc. (“MATT”) entered into an agreement to offset the Company-s $5,000,000 Subordinated Promissory Note dated January 25, 2008 (the “Note”) with approximately $6 million of accounts receivable that MATT and AHMSA owed to the Company (the “Receivable”). As of March 5, 2013, $6,254,178 in principal and accrued interest was outstanding under the Note, and the Receivable had a balance of $6,025,828 plus interest of $222,446 from the agreement. MATT exercised warrants dated October 17, 2006 at an exercise price of $2.75 per share (the “MATT Warrants”) to purchase 2,147 shares of common stock using the amount by which the outstanding principal and accrued interest under the Note exceeded the amount of the Receivable. As a result of these transactions, both the Note and the Receivable have been deemed fully satisfied. In connection therewith, MATT has agreed to exercise or forfeit the MATT Warrants with an aggregate exercise price of $2,000,000 over an eleven-month period beginning in March 2013. The Receivable represented approximately 38.2% of our accounts receivable and approximately 50% of our working capital as of December 31, 2012.
On March 5, 2013 the Company and Richard L. Scott Investments, LLC (“RSI”) entered into an agreement pursuant to which RSI exercised warrants dated as of March 21, 2006 to purchase one million shares of common stock at an exercise price of $2.75 per share (the “RSI Warrants”). RSI paid the exercise price of the RSI Warrants by offsetting that same amount under the Company-s $2,000,000 Subordinated Promissory Note dated January 25, 2008 (the “Note”). The Company paid RSI $107,504 in cash, which represented the difference between the aggregate exercise price of the RSI Warrants of $2,750,000, and the total amount of principal and interest under the Note that would have accrued through the 2016 due date of $2,857,504. As a result of these transactions, the RSI Warrants have been fully exercised and are of no further force or effect, and the Note has been deemed fully satisfied.
Geoff Cook commented, “We view the satisfaction of the MATT, AHMSA and RSI obligations as a positive step in creating more financial flexibility on our balance sheet in order to pursue our growth strategy.”
MeetMe will host a conference call to discuss 2012 financial results this afternoon at 4:30 p.m. ET. The conference call can be accessed by dialing toll-free 1-877-941-8416, or toll/international 1-480-629-9808. A webcast will also be available at the following link: . A replay of the call will be available for one year at the Investors section of MeetMe-s corporate site, , and at 1-877-870-5176 (toll-free) or 1-858-384-5517 (toll/international), replay PIN number: 4602446.
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 and MeetMe apps on , , and in multiple languages including English, Spanish, Portuguese, French, Italian, German, Chinese (traditional), Russian and Japanese.
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 an executive transition plan, the ability to tackle the challenges that the shift from mobile to web represents, mobile revenue growth, long-term shareholder value, the launch of new mobile subscription product and new premium advertising placements, mobile monetization, expanding globally, 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 core 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: the risk that unanticipated events affect the internationalization of our mobile products, the effectiveness of our executive transition plan, mobile revenue growth through the launch of a combination of a new mobile subscription product and new premium advertising placements in our mobile feed, our ability to tackle the challenges that the shift from mobile to web represents, the ability to revolutionize the way people meet in a mobile-first world, our effectiveness of driving continued growth and long-term shareholder value, the effectiveness of our mobile software on smartphones and tablets, the willingness of our users to purchase virtual credits on their mobile devices and the willingness of users to try new product offerings. 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. 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.
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.
On November 10, 2011, MeetMe, Inc. and Insider Guides, Inc., owner of social network myYearbook, merged. The combined revenue results for 2011 give effect to the merger as if it had been completed as of January 1, 2011. The combined revenue data is for informational purposes only and does not purport to present what our results would actually have been had the merger actually occurred on the dates presented or to project our results for any future period. The Company believes that evaluation of its financial performance can be enhanced by a presentation of combined results in order to evaluate its prior, current or future period results on a more meaningful, consistent year-over-year basis.
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.
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.
Robin Shallow
EVP Communications & Public Relations
MeetMe, Inc.
(215) 862-7823
Follow us on Twitter @meetme
E. Brian Harvey
Vice President of Capital Markets and Investor Relations
MeetMe, Inc.
(215) 862-1162 x266
Follow our business news on Twitter @meetmecorp
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