MeetMe (MEET) Tops Q2 EPS by 2c, Revenues Beat; Offers FY18 Revenue Guidance Above Consensus

MeetMe (NASDAQ: MEET) reported Q2 EPS of $0.08, $0.02 better than the analyst estimate of $0.06. Revenue for the quarter came in at $42.8 million versus the consensus estimate of $38.83 million.

Second Quarter 2018 Financial Highlights

• Total revenue of $42.8 million, up 37% year over year
• GAAP net loss of $0.2 million, or $0.00 per diluted share, compared to GAAP net income of $0.9 million, or $0.01 per diluted share in the prior year quarter
• Adjusted EBITDA of $7.6 million, up 3% from the prior year quarter
• Non-GAAP net income of $6.4 million, or $0.08 per diluted share, compared to $6.6 million or $0.09 per diluted share in the prior year quarter

“Our strong momentum continued into the second quarter,” said Geoff Cook, Chief Executive Officer. “We made outstanding progress in video and reported better than anticipated results in advertising, contributing to growth in revenue and Adjusted EBITDA. Combined with our recent rollout of Live to Lovoo and the beta launch on MeetMe of Quick, our new 1-on-1 livestreaming feature, we believe we have set the stage for sustainable long-term revenue growth.

“Our investment in livestreaming video continues to yield strong results,” continued Cook. “The number of video users and video revenue per user both increased sequentially. In less than two years, Live has become foundational to our business, central to our user experience and a key driver of our improving financial performance. No product in our history has grown faster and none has transformed our company to the degree that Live has. What’s more, we have further diversified our business and are now generating 60% of our revenue from user pay, up from 26% in the year ago quarter. In July alone, we increased the annualized revenue run rate for video to $37 million, up from $35 million in June. Having now rolled out Live to all of our apps, we believe the opportunity to continue to grow video engagement and revenue is significant.”

Cook commented, “I am thrilled to have Nick rejoin our team. He brings a wealth of knowledge and a data-driven approach to managing mobile and online advertising. We look forward to his contributions to the team.”

Continued Cook, “Bill has been a tremendous contributor to our company for many years. He joined us as the Vice President of Advertising at myYearbook in 2007 and served as Chief Revenue Officer of The Meet Group since 2011. He was instrumental in creating our advertising strategy. I want to thank Bill for his tremendous contributions to our company. We wish him well in the future.”

Company Outlook

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

Third quarter 2018:

• Revenue in the range of $43 million to $44 million
• Adjusted EBITDA in the range of $7.4 million to $7.8 million

Full year 2018:

• Revenue in the range of $166 million to $168 million
• Adjusted EBITDA in the range of $27 million to $28 million

GUIDANCE:

MeetMe sees FY2018 revenue of $166-168 million, versus the consensus of $155.34 million.

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

You May Also Be Interested In

• Blackhawk Network (HAWK) Reports Q2 Loss of $0.07; Offers Guidance
• MapLight Therapeutics, Inc. (MPLT) Misses Q2 EPS by 33c
• Gemini Space Station, Inc. (GEMI) Misses Q2 EPS by 32c