MeetMe Inc (NASDAQ:MEET) reported tremendous progress in 2Q2016 towards its objective of becoming the largest global service for chatting and meeting with new people. In 2Q2016, mobile revenue jumped 82% YoY to $15.1 million, contributing 92% of the total revenue. Total revenue surged 48% to $16.4 million.
The management speaks
Geoff Cook, the CEO of MeetMe, said that the record 2Q2016 results show continued growth in mobile user engagement. The mobile traffic is growing, with daily active users in reported quarter coming at 1.22 million. It marks an impressive growth of 15% YoY. The monthly active users on mobile platform jumped 32% YoY to 4.84 million.
In 2Q2016, the company introduced ‘Discuss’, a group conversation platform, for getting increased user engagement. Last month, a new mobile DAU made a record with over 1.30 million daily active users. As a part of other developments, the announced acquisition deal of Skout is expected to complete in October 2016. This deal once closed will help the company to achieve greater scale for monetization. Cook added that they are delighted to bring Skout app into the same portfolio.
Mobile revenue
David Clark, the CFO of MeetMe, said that mobile revenue in 2Q2016 showed a growth of 75% over the comparable period in 2015. The strong mobile revenue was led by continued growth in the mobile advertising industry, which eventually resulted in improved advertising prices on mobile platform. A big part of the revenue came from adjusted EBITDA, which surged 109% to $6 million in 2Q2016, resulting in adjusted EBITDA margin of 37%.
For 3Q2016, MeetMe expects revenue to come in a range of $17 million to $17.5 million compared to analysts’ estimate of $15.7 million. In FY2016, the revenue estimate is set in a range of $66 million to $68 million lower than the previous projection of $63 million to $66 million. Analysts are expecting FY2016 revenue to come around $68.9 million.
