– MeetMe®, Inc. ( NYSE MKT : MEET ), reported earnings after the market closed today for the third quarter ended September 30, 2012.
Yes this is the same company that bought Meet.me from MostWantedDomains.com for $450,000 last year.
Here are the results:
- Third quarter Revenue totaled $11.6 million, up 1,148% year-over-year.
- Third quarter Revenue represents a 30% increase over the $8.9 million of Combined Revenue, a non-GAAP measure, of Quepasa and myYearbook during the same period a year ago.
- Net Loss Allocable To Common Shareholders totaled $2.6 million or 7 cents per basic and diluted share in the third quarter of 2012, compared with a Net Loss Allocable To Common Shareholders of $3.5 million or 22 cents per basic and diluted share during the third quarter of 2011.
- Adjusted EBITDA, a non-GAAP measure, totaled $95 thousand, an improvement from an Adjusted EBITDA loss of $852 thousand in the year ago period.
- Mobile revenue grew 34% sequentially to $1.8 million, and 200% versus the same period a year ago, and now accounts for 20% of MeetMe-platform revenue.
- International monthly active users increased 147% from June to 1.34 million in September following the launch of MeetMe in Spanish and Portuguese.
“MeetMe successfully completed the final milestones associated with the Quepasa-myYearbook merger, including the internationalization of the MeetMe web and mobile products and the transition of the Quepasa user-base to the MeetMe platform,” said John Abbott, CEO of MeetMe, Inc. “We are now focused on continuing to expand our global footprint while at the same time monetizing our large and growing mobile audience.”
“International usage of MeetMe increased 147% in September compared to June.
Now one out of every two new registrations is international.
To continue this momentum, we look forward to expanding from three languages today to 13 languages over the course of the next five months,” noted Geoff Cook, COO of MeetMe, Inc.
“In addition to expanding our global footprint, we’ve increased the share of mobile revenue by more than 300% since Q4 2011 to 20% of MeetMe platform revenue. To continue this progress, we plan to launch a new subscription-based revenue stream in Q1 2013, as well as two new freemium products. To expand our mobile advertising revenue, we will be launching a feed-based advertising solution into our location-based Live Feed. We look forward to continuing to close the mobile vs. web monetization gap by leveraging both members’ increased willingness to purchase on the mobile platform and the dramatic levels of mobile engagement.”
Third Quarter 2012 Financial Highlights
- Revenue from Continuing Operations: MeetMe Revenue for the third quarter of 2012 was $11.6 million, up 1,148% from the $929 thousand recorded in the same period of 2011.
- Net Loss: MeetMe Net Loss Allocable To Common Shareholders for the third quarter of 2012 was $2.6 million or $0.07 per share, an improvement from the Net Loss Allocable To Common Shareholders of $3.5 million or $0.22 per share in the same period of 2011.
- Adjusted EBITDA: MeetMe Adjusted EBITDA for the third quarter of 2012 was $95 thousand or $0.00 per basic and diluted share, an improvement from an Adjusted EBITDA loss of $852 thousand or $0.05 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.)
- Balance Sheet: MeetMe Cash and Cash Equivalents totaled $5.5 million at September 30, 2012.
Operating and Business Highlights
- Core Platform (MeetMe) monthly active users (MAUs) totaled 3.94 million as of September 30, 2012, an increase of 36% year-over-year.
- Core Platform daily active users (DAUs) totaled 1.11 million as of September 30, 2012, an increase of 23% year-over-year.
- Mobile MAUs were 1.95 million as of September 30, 2012, an increase of 71% year-over-year.
- MeetMe mobile applications were introduced in Spanish and Portuguese across the company’s major mobile platforms, including iPhone, iPad, and Android
- In September of 2012 MeetMe surpassed one million daily active users in the United States for the first time in its history.
- Mobile revenue grew 34% sequentially over the second quarter and 200% vs. the same period a year ago, to $1.8 million. Mobile Spotlight products launched in Q1 contributed to 45% of mobile revenue. Mobile now accounts for 20% of MeetMe-platform revenue.
so, another reported year loss? it is great to have access to loads of dumb money 😐
meet.me was a horrible purchase for them.. but what boggles my mind is why three of the richest domainers in the market had to pool their money to come up with six thousand dollars to buy it. care to explain?
Horrible purchase
Public company whose stock has gone from $1.60 to over $5
We also purchased date.me and marry.me at the same time for a total around $100K
But it’s not always about the money.
It’s about sharing success with those who share your vision and who you want to share in your success.
ok… thanks for the explanation… but i still don’t think that has much to do with their apparent success. just know… i have a great track record… i predicted in 1984 that rap music would be over in six months.
could MeetMe not accomplished the same results with meetme.com, which is their main domain name that meet.me forwards to? I’d be surprised that the growth would be much less without meet.me.
In the late 1970’s I heard the Sugar Hill’s Gangs “Rapper’s Delight,” while I was just getting out of college & knew that Rap was going to be huge.
If I didn’t go to law school I would have went into that business
Also during my days at Brooklyn College I covered new artists for the school paper and got Meatloaf booked right after Bat out of Hell was released in for a show and that guy known as the Piano Man.
Shit I’m really old
One year out of the box they are already doing $11 million in a quarter.
Do you really think 5 years from now they are going to look back and think they wasted $450K on acquiring what could have been their biggest competitor?
besides some companies they own the .com and .me version are branding the .me not the .com, in case you missed it
http://www.thedomains.com/2012/11/05/techcrunch-covers-offersby-me-yes-they-own-the-com/
Gotcha…when I read the headline I thought you were attributing the company’s success to the purchase of and implementation of that domain name. I now see what you meant. Thanks.
$450K is a lot to pay to just forward to MeetMe.com…
Brad
They purchased meet.me to protect their brand since they are using meetme.com as their main site.
Michael, I am curious to get your thoughts on .me market. Have you personally seen the demand for .me increasing in recent times?
I bought MeetPeople.com for only $3,000 and sold it for $100,000 in 2008…i owned several premium dating domains and sold ALL for great profits…Locals.com, MeetLocals.com, SingleWomen.com, SingleMen.com, etc.
To answer your post title, that Meet.me sale is still looking pretty good!!
“$450K is a lot to pay to just forward to MeetMe.com…”
Agreed that this seems to be the case but let’s give them time before making rash judgement on their reasons or intended use. Branding, protection, and future application are three options available to them as a result of their purchase. And in the end they have a business asset that they can reselll
BTW this story plays into a recent article about buying defensive domains cybersquatting is a big problem and is getting alot of play in GTLD rollout discussions.
How many protective domains you should own is an individual thing and of course dependent on your budget. In my case personal experience leads me to believe that if you can afford to protect yourself with defensive domain acquisitions by all means do so or you will regret it later if you don’t
In keeping with the domain protection concept GTLD bundles and packages are almost a given and wil lbe good for registrars and business owners IMO
Ready or not the future is coming 🙂
MetMe.com would be their biggest competitor