MeetMe (MEET) Tops Q1 EPS by 3c, Beats on Revenues; Offers FY18 Revenues Outlook Above Consensus

MeetMe (NASDAQ: MEET) reported Q1 EPS of $0.05, $0.03 better than the analyst estimate of $0.02. Revenue for the quarter came in at $37.6 million versus the consensus estimate of $34.17 million.

First Quarter 2018 Financial Highlights

• Total revenue of $37.6 million, up 88% year over year
• Mobile revenue of $30.7 million, up 63% year over year
• GAAP net loss of $4.2 million, or a net loss of $0.06 per share, compared to GAAP net income of $0.4 million, or $0.01 per diluted share, in the prior year quarter
• Adjusted EBITDA of $5.2 million, up 9% year over year
• Non-GAAP net income of $4.1 million, or $0.05 per diluted share, compared to $4.3 million or $0.07 per diluted share in the prior year quarter

“We are off to a strong start to the year, with growth from live video monetization accelerating at an even faster pace than we had anticipated,” said Geoff Cook, Chief Executive Officer of The Meet Group. “Video revenue grew approximately 120% from December 2017 to March 2018, which we attribute to momentum on our MeetMe app, the launch of livestreaming monetization on Skout, and our focus on strengthening our livestreaming community and the quality of our livestreams. Our annualized video revenue run rate now exceeds $29 million based on April’s results, up 53% from February’s run rate.

“Key video metrics are improving, and we are setting new highs on a regular basis,” continued Cook. “We have been particularly pleased to see average revenue per paying video user grow to $76 for the month of March on MeetMe Live. Average revenue per daily active user for MeetMe Live, or vARPDAU, in the United States increased to 44 cents in March and is now nearing levels achieved by leading livestreaming companies in Asia. Total vARPDAU, which includes Skout and MeetMe, was 18 cents in March. Importantly, the percentage of MeetMe users engaged in video exceeded 25% for the first time in April.

“We are continuing to video-enable more of our large, global community and build our social entertainment platform. Having recently rolled-out our shared livestreaming platform on Tagged, we are pleased to announce that we have launched enhanced video monetization on that app, ahead of schedule. We expect to begin launching live video on Lovoo later this month, starting with Austria. We expect our rollout of live video to more of our users, combined with our deep product pipeline, to contribute to continued growth in video

Company Outlook

The Company is providing the following outlook for the second quarter of 2018 and is increasing its outlook for the full year 2018.

Second quarter 2018:

• Revenue in the range of $38.0 million to $39.0 million
• Adjusted EBITDA in the range of $5.3 million to $5.6 million

Full year 2018:

• Revenue in the range of $152.0 million to $155.0 million
• Adjusted EBITDA in the range of $21.5 million to $23.5 million

GUIDANCE:

MeetMe sees FY2018 revenue of $152-155 million, versus the consensus of $142.8 million.

For earnings history and earnings-related data on MeetMe (MEET) click here.

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