Found some DD on $MEET!
Company Profile
MeetMe, Inc., incorporated on April 12, 2011, is a location-based social network for meeting new people both on the Web and on mobile platforms, including on iPhone, Android, iPad and other tablets that facilitate interactions among users.
The Company is a social media technology company that owns and operates MeetMe.com. The Company monetizes through advertising, in-app purchases, and paid subscriptions. The Company provides users with access to a menu of resources that promote social interaction, information sharing and other topics of interest to users.
The Company had approximately 4.98 million monthly active users (MAUs).
The Company offers online marketing capabilities, which enable marketers to display their advertisements in different formats and in different locations. The Company works with its advertisers to maximize the effectiveness of their campaigns by optimizing advertisement formats and placement.
The Company's social networking products include Profile, Chat and Friends. The Company's social discovery products include Feed, which is the Company's location-based stream communication feature, and Meet.
The Company features a virtual currency called Credits, which users can buy directly or earn by completing third-party offers, and several virtual products that users must spend Credits to access or use.
MeetMe offers a subscription product, MeetMe plus. The Company's products also include Boost and Feed Spotlight. The Company's products also include Social Theater, which enables publishers to incentivize their users to take certain actions in exchange for the hosting platform's virtual currency.
The Company competes with Tagged, Badoo, Skout, Highlight, Twoo, Meetup, Zoosk, Match.com, PlentyOfFish, Okcupid, Tinder, Facebook, Twitter, LinkedIn, Pinterest, Reddit, Tumblr, Quora, Goodreads, Last.fm, Fitocracy, TrueX, Unruly Media, SuperSonic Advertising, Jun Group, and Genesis Media.
Recent Financial Results
On May 5, MEET reported financial results for its first quarter ended March 31, 2016.
First Quarter 2016 Financial Highlights
► Total revenue was $13.3 million, up 15% from the first quarter of 2015.
► Mobile revenue was $11.7 million, up 42% from the first quarter of 2015.
► Mobile revenue represented 88% of total revenue, the highest in MeetMe’s history.
► GAAP net income was $2.4 million, or $0.04 per diluted share, up 226% from the first quarter of 2015.
► Non-GAAP net income was $3.6 million, or $0.07 per diluted share, up 100% from the first quarter of 2015.
► Cash and Cash Equivalents totaled $26.4 million at March 31, 2016, an increase of 37% or $7.1 million from $19.3 million at December 31, 2015.
Geoff Cook, Chief Executive Officer of MeetMe, stated, “We consider the first quarter a very strong start to what we believe will be a great year. We achieved record first-quarter results in revenue, adjusted EBITDA, and net income. Our mobile traffic is at an all-time high. We have a deep pipeline of product initiatives that we believe will continue to grow engagement and retention. In this quarter, we plan to launch Discuss (an interest-based group conversation platform) and a major revamp to our photos feature, as well as to expand into new languages and continue to optimize our discovery algorithms.”
David Clark, Chief Financial Officer of MeetMe, added, “Mobile revenue for the quarter increased 42% year over year and represented 88% of our total revenue, up from 71% in 2015. We believe our increasing mobile revenue was driven by continued strength in the mobile advertising industry, which resulted in higher advertising rates on mobile devices. Much of the increased revenue flowed through to adjusted EBITDA, which increased 19% to $3.7 million for the quarter, resulting in a 28% adjusted EBITDA margin.”
Daily Active User Milesone
MEET achieved a new mobile DAU (daily active users) record last month, surpassing 1.3 million daily active users on its mobile products for the first time in a calendar day on Sunday, May 1st.
“We are thrilled to have achieved a new mobile DAU milestone,” said Geoff Cook, CEO of MeetMe. “Our team has been working hard on our recommendation engine to leverage the data on our platform to drive better matches and higher quality chats. We have a deep pipeline of additional enhancements and optimizations that, we believe, will continue to drive growth.”
New Interest-Based Feature
Also last month, MEET has launched Discuss, a significant upgrade to the Feed feature of its MeetMe applications. Discuss is an interest-based group communication platform designed to foster conversation, connection, and community among like-minded MeetMe users.
“We understand that our users are primarily looking for people who share their interests, whether they are here to date, make friends, or simply chat,” said Geoff Cook, CEO of MeetMe. “We’ve created Discuss to facilitate discussions about a variety of interests that we know users share, based on the data we have been collecting over the last few months. We are thrilled to give our users a place to connect by discussing topics that resonate with them, and more generally, to enable communities of like-minded users to form organically within our larger user base.”
New Interstitial Ad Unit
MEET has revealed that it is experiencing strong performance of its new interstitial ad units, which are now live on MeetMe’s popular Android and iPhone applications. The interstitial is a full screen ad that appears in a number of high impact placements and has been tested and ramped up slowly over the last few months to avoid impacting engagement. The new unit is expected to contribute roughly $5,000 per day in revenue by the end of this month.
“This new interstitial unit is an evolution of the video interstitial unit we launched last year,” said Geoff Cook, CEO of MeetMe. “The CPMs for this unit are on par or better than what we saw for the video unit while also commanding a higher fill rate and being less disruptive for the user. We look forward to continuing to innovate and experiment with new ad placements both in the US and internationally.
Management
Geoffrey Cook
Chief Executive Officer
Geoffrey Cook has been Chief Executive Officer since March 11, 2013. Since November 10, 2011, he was a director and Chief Operating Officer, appointed in connection with the merger of Quepasa and myYearbook.Geoff co-founded myYearbook where he served as Chief Executive Officer from 2005 until the merger in 2011. During his tenure at myYearbook, Geoff grew myYearbook to profitability and $30+ million revenue with 100 employees. Geoff previously founded EssayEdge and ResumeEdge while a student at Harvard University in 1997 and sold them to The Thomson Corporation in 2002.
David Clark
Chief Financial Officer
David Clark has served as our Chief Financial Officer since April 2, 2013. From November 2007 through April 1, 2013, Mr. Clark served as Executive Vice President, Chief Financial Officer, for NutriSystem, Inc. Mr. Clark served as Chief Financial Officer for Claymont Steel from November 2006 to November 2007.
Prior to joining Claymont Steel, Mr. Clark co-founded and served as Chief Financial Officer of SunCom Wireless, Inc. (formerly Triton PCS) from February 1997 to February 2006. SunCom was the first AT&T Wireless affiliate and served markets in Virginia, the Carolinas, and Georgia. It went public in 1999 and was later sold to T Mobile USA in 2008. He also co-founded and served as Chief Financial Officer of Triton Cellular Partners until its sale in 2000 in a more than $1 billion deal.
Richard Friedman
Chief Technology Officer
Richard Friedman has served as our CTO since September 3, 2013. Rich was formerly CTO of Stuzo, Inc., from March 4, 2013, to August 23, 2013. Rich had served as MeetMe’s Vice President, Software Engineering, from November 10, 2011, to March 1, 2013. Rich was appointed in connection with the myYearbook merger. From December 2008 until the merger, Rich served as the Vice President and Director of Software Engineering of myYearbook.
From February 2008 to December 2008, Rich was a founder of Ringside Networks, a social networking open source startup. From December 2004 to February 2008, Rich held product manager roles at JBoss and its acquirer Red Hat for their respective systems management technology.
Conclusion
MEET currently has a book value of over $2.20 per share, is expanding advertising revenues and has introduced new ways to engage users. In fact, MEET has reached new milestones with record numbers of daily active users.
MEET has been able to direct more and more targeted advertising toward its users which has proved more effective for advertisers and which is providing MEET with increasing revenues. Even though MEET is trading near yearly highs, revenues, margings and profits are all expanding much faster than the current price is giving MEET credit for.
Currently, MEET is trading at only a forward P/E ratio of around 12. This, for a company that is seeing revenues grow 15% (just this past quarter compared to the same quarter last year) and seeing GAAP revenues increase over 200% since the same period last year. The company has almost no debt and over $20 million in cash on hand.
The hype in social media growth has slowed, but the hunger for successful and proven results has only increased. Institutions picking up plenty of shares recently and many of these purchases are new for those investors.
If this new buying continues, it's possible that MEET can post 50-75% gains over the next 4-6 months."
Company Profile
MeetMe, Inc., incorporated on April 12, 2011, is a location-based social network for meeting new people both on the Web and on mobile platforms, including on iPhone, Android, iPad and other tablets that facilitate interactions among users.
The Company is a social media technology company that owns and operates MeetMe.com. The Company monetizes through advertising, in-app purchases, and paid subscriptions. The Company provides users with access to a menu of resources that promote social interaction, information sharing and other topics of interest to users.
The Company had approximately 4.98 million monthly active users (MAUs).
The Company offers online marketing capabilities, which enable marketers to display their advertisements in different formats and in different locations. The Company works with its advertisers to maximize the effectiveness of their campaigns by optimizing advertisement formats and placement.
The Company's social networking products include Profile, Chat and Friends. The Company's social discovery products include Feed, which is the Company's location-based stream communication feature, and Meet.
The Company features a virtual currency called Credits, which users can buy directly or earn by completing third-party offers, and several virtual products that users must spend Credits to access or use.
MeetMe offers a subscription product, MeetMe plus. The Company's products also include Boost and Feed Spotlight. The Company's products also include Social Theater, which enables publishers to incentivize their users to take certain actions in exchange for the hosting platform's virtual currency.
The Company competes with Tagged, Badoo, Skout, Highlight, Twoo, Meetup, Zoosk, Match.com, PlentyOfFish, Okcupid, Tinder, Facebook, Twitter, LinkedIn, Pinterest, Reddit, Tumblr, Quora, Goodreads, Last.fm, Fitocracy, TrueX, Unruly Media, SuperSonic Advertising, Jun Group, and Genesis Media.
Recent Financial Results
On May 5, MEET reported financial results for its first quarter ended March 31, 2016.
First Quarter 2016 Financial Highlights
► Total revenue was $13.3 million, up 15% from the first quarter of 2015.
► Mobile revenue was $11.7 million, up 42% from the first quarter of 2015.
► Mobile revenue represented 88% of total revenue, the highest in MeetMe’s history.
► GAAP net income was $2.4 million, or $0.04 per diluted share, up 226% from the first quarter of 2015.
► Non-GAAP net income was $3.6 million, or $0.07 per diluted share, up 100% from the first quarter of 2015.
► Cash and Cash Equivalents totaled $26.4 million at March 31, 2016, an increase of 37% or $7.1 million from $19.3 million at December 31, 2015.
Geoff Cook, Chief Executive Officer of MeetMe, stated, “We consider the first quarter a very strong start to what we believe will be a great year. We achieved record first-quarter results in revenue, adjusted EBITDA, and net income. Our mobile traffic is at an all-time high. We have a deep pipeline of product initiatives that we believe will continue to grow engagement and retention. In this quarter, we plan to launch Discuss (an interest-based group conversation platform) and a major revamp to our photos feature, as well as to expand into new languages and continue to optimize our discovery algorithms.”
David Clark, Chief Financial Officer of MeetMe, added, “Mobile revenue for the quarter increased 42% year over year and represented 88% of our total revenue, up from 71% in 2015. We believe our increasing mobile revenue was driven by continued strength in the mobile advertising industry, which resulted in higher advertising rates on mobile devices. Much of the increased revenue flowed through to adjusted EBITDA, which increased 19% to $3.7 million for the quarter, resulting in a 28% adjusted EBITDA margin.”
Daily Active User Milesone
MEET achieved a new mobile DAU (daily active users) record last month, surpassing 1.3 million daily active users on its mobile products for the first time in a calendar day on Sunday, May 1st.
“We are thrilled to have achieved a new mobile DAU milestone,” said Geoff Cook, CEO of MeetMe. “Our team has been working hard on our recommendation engine to leverage the data on our platform to drive better matches and higher quality chats. We have a deep pipeline of additional enhancements and optimizations that, we believe, will continue to drive growth.”
New Interest-Based Feature
Also last month, MEET has launched Discuss, a significant upgrade to the Feed feature of its MeetMe applications. Discuss is an interest-based group communication platform designed to foster conversation, connection, and community among like-minded MeetMe users.
“We understand that our users are primarily looking for people who share their interests, whether they are here to date, make friends, or simply chat,” said Geoff Cook, CEO of MeetMe. “We’ve created Discuss to facilitate discussions about a variety of interests that we know users share, based on the data we have been collecting over the last few months. We are thrilled to give our users a place to connect by discussing topics that resonate with them, and more generally, to enable communities of like-minded users to form organically within our larger user base.”
New Interstitial Ad Unit
MEET has revealed that it is experiencing strong performance of its new interstitial ad units, which are now live on MeetMe’s popular Android and iPhone applications. The interstitial is a full screen ad that appears in a number of high impact placements and has been tested and ramped up slowly over the last few months to avoid impacting engagement. The new unit is expected to contribute roughly $5,000 per day in revenue by the end of this month.
“This new interstitial unit is an evolution of the video interstitial unit we launched last year,” said Geoff Cook, CEO of MeetMe. “The CPMs for this unit are on par or better than what we saw for the video unit while also commanding a higher fill rate and being less disruptive for the user. We look forward to continuing to innovate and experiment with new ad placements both in the US and internationally.
Management
Geoffrey Cook
Chief Executive Officer
Geoffrey Cook has been Chief Executive Officer since March 11, 2013. Since November 10, 2011, he was a director and Chief Operating Officer, appointed in connection with the merger of Quepasa and myYearbook.Geoff co-founded myYearbook where he served as Chief Executive Officer from 2005 until the merger in 2011. During his tenure at myYearbook, Geoff grew myYearbook to profitability and $30+ million revenue with 100 employees. Geoff previously founded EssayEdge and ResumeEdge while a student at Harvard University in 1997 and sold them to The Thomson Corporation in 2002.
David Clark
Chief Financial Officer
David Clark has served as our Chief Financial Officer since April 2, 2013. From November 2007 through April 1, 2013, Mr. Clark served as Executive Vice President, Chief Financial Officer, for NutriSystem, Inc. Mr. Clark served as Chief Financial Officer for Claymont Steel from November 2006 to November 2007.
Prior to joining Claymont Steel, Mr. Clark co-founded and served as Chief Financial Officer of SunCom Wireless, Inc. (formerly Triton PCS) from February 1997 to February 2006. SunCom was the first AT&T Wireless affiliate and served markets in Virginia, the Carolinas, and Georgia. It went public in 1999 and was later sold to T Mobile USA in 2008. He also co-founded and served as Chief Financial Officer of Triton Cellular Partners until its sale in 2000 in a more than $1 billion deal.
Richard Friedman
Chief Technology Officer
Richard Friedman has served as our CTO since September 3, 2013. Rich was formerly CTO of Stuzo, Inc., from March 4, 2013, to August 23, 2013. Rich had served as MeetMe’s Vice President, Software Engineering, from November 10, 2011, to March 1, 2013. Rich was appointed in connection with the myYearbook merger. From December 2008 until the merger, Rich served as the Vice President and Director of Software Engineering of myYearbook.
From February 2008 to December 2008, Rich was a founder of Ringside Networks, a social networking open source startup. From December 2004 to February 2008, Rich held product manager roles at JBoss and its acquirer Red Hat for their respective systems management technology.
Conclusion
MEET currently has a book value of over $2.20 per share, is expanding advertising revenues and has introduced new ways to engage users. In fact, MEET has reached new milestones with record numbers of daily active users.
MEET has been able to direct more and more targeted advertising toward its users which has proved more effective for advertisers and which is providing MEET with increasing revenues. Even though MEET is trading near yearly highs, revenues, margings and profits are all expanding much faster than the current price is giving MEET credit for.
Currently, MEET is trading at only a forward P/E ratio of around 12. This, for a company that is seeing revenues grow 15% (just this past quarter compared to the same quarter last year) and seeing GAAP revenues increase over 200% since the same period last year. The company has almost no debt and over $20 million in cash on hand.
The hype in social media growth has slowed, but the hunger for successful and proven results has only increased. Institutions picking up plenty of shares recently and many of these purchases are new for those investors.
If this new buying continues, it's possible that MEET can post 50-75% gains over the next 4-6 months."
