The Meet Group Reports Third Quarter 2018 Financial Results
NEW HOPE, Pa.--(BUSINESS WIRE)--Nov 7, 2018--The Meet Group, Inc. (NASDAQ: MEET), a public market leader in the mobile meeting space, today reported financial results for its third quarter ended September 30, 2018.
Third Quarter 2018 Financial HighlightsTotal revenue of $45.7 million, up 42% year over year GAAP net income of $1.3 million, or $0.02 per diluted share, compared to $2.2 million, or $0.03 per diluted share in the prior year quarter Adjusted EBITDA of $8.7 million, compared to adjusted EBITDA of $8.9 million in the prior year quarter Non-GAAP net income of $7.6 million, or $0.10 per diluted share, compared to $8.1 million or $0.11 per diluted share in the prior year quarter
(See the important discussion about the presentation of non-GAAP financial measures, and reconciliation to the most direct comparable GAAP financial measures, below.)
“We continue to grow video revenue across all of our apps,” said Geoff Cook, Chief Executive Officer. “In one year, we have increased the annualized video revenue run rate from virtually zero to $55 million for the month of October. Our successful Lovoo acquisition and integration, together with the dramatic growth of video revenue, have contributed to transforming our revenue mix. We tripled user pay revenue from a year ago, with that portion of our business now contributing 61% of our total revenue, up from 27% in the third quarter of 2017. We believe we are in the early days of the video opportunity and that livestreaming aligns perfectly with our mission: to facilitate human connection.
“Traffic in the quarter was also strong. We grew mobile daily active users 3% sequentially to 4.3 million and mobile monthly active users 7% sequentially to 14.6 million, reflecting quarter-over-quarter gains from each of MeetMe, Lovoo, Skout, and Tagged. For the quarter, daily live video users averaged approximately 870,000, up more than 36% sequentially. In addition, we recently surpassed our 100 millionth gift sent since launching Live monetization a year ago.”
“Advertising results were also solid,” continued Cook, “increasing sequentially for the second consecutive quarter. We continue to see evidence of a return to seasonal trends in advertising and remain cautiously optimistic about the opportunity to grow ad revenue in the fourth quarter.”
Third Quarter Financial Results
For the third quarter of 2018, the Company reported revenue of $45.7 million, an increase of 42% from $32.2 million in the prior year quarter.
GAAP net income was $1.3 million, or $0.02 per diluted share, compared to $2.2 million, or $0.03 per diluted share, in the prior year quarter. Adjusted EBITDA in the third quarter of 2018 was $8.7 million compared to $8.9 million in the prior year quarter, reflecting the ongoing shift towards user pay revenue.
The Company ended the quarter with $21.8 million in cash and cash equivalents.
The Company is providing the following outlook for the fourth quarter of 2018 and is increasing its outlook for the full year 2018.
Fourth quarter 2018:Revenue in the range of $47.8 million to $48.8 million Adjusted EBITDA in the range of $8.7 million to $9.1 million
Full year 2018:Revenue in the range of $174 million to $175 million Adjusted EBITDA in the range of $30.2 million to $30.6 million
Webcast and Conference Call Details
Management will host a webcast and conference call to discuss third quarter 2018 financial results today, November 7, 2018 at 8:30 a.m. Eastern time. To access the call dial 866-572-9351 (US and Canada) or 703-736-7482 (International) and when prompted provide the participant passcode 3187279 to the operator. An audio replay will be available at 855-859-2056 domestically or 404-537-3406 internationally, using passcode 3187279 through November 14, 2018. In addition, a webcast of the conference call will be available live on the Investor Relations section of the Company’s website at www.themeetgroup.com and a replay of the webcast will be available for 90 days.
About The Meet Group
The Meet Group (NASDAQ: MEET) is a portfolio of mobile social entertainment apps designed to meet the universal need for human connection. We leverage a powerful live-streaming video platform, empowering our global community to forge meaningful connections. Our primary apps, MeetMe©, LOVOO©, Skout©, and Tagged©, keep millions of mobile daily active users entertained and engaged and originate untold numbers of casual chats, friendships, dates, and marriages. Our apps, available on iPhone, iPad, and Android in multiple languages, use innovative products and sophisticated data science to let our users stream live video, send gifts, chat, and share photos. The Meet Group has a diversified revenue mix consisting of in-app purchases, subscription, and advertising, and we have offices in New Hope, Philadelphia, San Francisco, Dresden, and Berlin. For more information, visit themeetgroup.com, and follow us on Facebook, Twitter or LinkedIn.
Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including whether fourth quarter 2018 and full year 2018 revenue and Adjusted EBITDA will be in the projected range, whether momentum will continue as expected, whether we have set the stage for sustainable long-term revenue growth as expected, whether our investment in livestreaming video will continue to yield strong results, whether there is a return to seasonal trends in advertising, whether there is an opportunity to grow ad revenue in the fourth quarter and whether the opportunity to continue to grow video engagement and revenue is significant. 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, 2017 filed with the SEC on March 16, 2018 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2018 and June 30, 2018 filed with the SEC on May 7, 2018 and August 2, 2018, respectively. 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 Measures
The Company defines mobile traffic and engagement metrics (including MAU, DAU, chats per day, and new users per day) to include mobile app traffic for all properties and mobile web traffic for MeetMe, Skout and Lovoo.
The Company uses Adjusted EBITDA and Non-GAAP Net Income, 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 operations before interest expense, benefit or provision for income taxes, depreciation and amortization, stock-based compensation, changes in warrant obligations, nonrecurring acquisition, restructuring or other expenses, gain or loss on foreign currency adjustment, and goodwill and long-lived asset impairment charges, if any. The Company excludes stock-based compensation because it is non-cash in nature. The Company defines Non-GAAP Net Income as earnings (or loss) before benefit or provision for income taxes, amortization on intangibles, non-recurring acquisition and restructuring costs, goodwill and long-lived asset impairment charges and non-cash stock-based compensation.
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.
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CONTACT: The Meet Group, Inc.
Leslie Arena, 267-714-6418
Brandyn Bissinger, 267-446-7010
KEYWORD: UNITED STATES NORTH AMERICA PENNSYLVANIA
INDUSTRY KEYWORD: TECHNOLOGY CONSUMER ELECTRONICS SOFTWARE AUDIO/VIDEO MOBILE/WIRELESS SOCIAL MEDIA COMMUNICATIONS ADVERTISING MARKETING
SOURCE: The Meet Group, Inc.
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PUB: 11/07/2018 07:30 AM/DISC: 11/07/2018 09:32 AM